"IFC's guarantee means Bank South Pacific will now be able lend us the money we need to triple our coffee processing capacity to six tons per hour from two tons," said Jerry Kapka, Kongo Coffee's Managing Director. "This improvement will allow us to purchase more coffee beans from local farmers, satisfy our customers' demands, and increase our coffee exports."
The company largely buys its coffee from remote communities in Simbu province, where more than 100,000 people rely on the coffee industry for jobs and income. Most of its suppliers are small growers who own less than two and a half hectares of land.
In addition, IFC will provide advice to Kongo Coffee to improve its corporate governance, internal systems, and management skills.
"By helping Kongo increase its exports and sustainability, we are giving small-scale coffee farmers an assured buyer who will want more of their product," said Carolyn Blacklock, IFC's Resident Representative in Papua New Guinea. "More demand means younger farmers have a future and are given the opportunity to expand their businesses, increase profits, and create jobs."
A key priority for IFC in the Papua New Guinea is to provide investment and advisory services to financial institutions to better serve micro, small, and medium enterprises and expand access to finance in rural areas to improve living standards and create economic opportunities.