Coffee and cocoa coops to benefit from Shs 32.8bln project
KAMPALA– Cooperatives, associations, communal groups, and community business organisations engaged in coffee or cocoa business stand to benefit from a project Shs 32.8 billion [EUR 8mln].
Dubbed Coffee and Cocoa Value Chain Development [CoCoDev] Project in Uganda, the project is a matching grants scheme to support farmers to establish production units of coffee and cocoa.
The Uganda Coffee Development Authority [UCDA] has called for expression of interest from eligible farmers’ organisations and individual companies, and they must submit by September 30, 2023.
According to UCDA, the project aims to increase rural jobs and income by supporting production and export of coffee and cocoa, thereby contributing to job-intensive, inclusive, environmentally sustainable and climate resilient value chains.
The project further aims at reducing g post-harvest losses, improving quality of coffee and cocoa produced, as well as creating and enhancing marketing opportunities of the two crops.
The funds to be receives by the eligible cooperatives and others will be used for procuring seeds, seedlings, and clonal cutting. They will also be used for carrying out good agricultural practices including climate change adaptation measures. Under the project farmers will also be able to buy fertiliers, pesticides, fungicides, and herbicides.
According to UCDA, beneficiaries/cooperatives that have 10-19 acres will receive 30 percent of fixed eligible costs while those with 20 acres and above will receive 40 percent. The beneficiaries must present land titles, valid national identity cards, and valid registration certificates among others.
However, the mechanism for funding both coffee and cocoa production units…will be based on reimbursement modality where deliverables are to be agreed upon.
“The activity budget will be reflected in the Grant Support Agreements [GSA] including reimbursable grant figures and required deliverables or milestones to trigger disbursement. The planned and agreed activities will be financed upfront by the grantee up to 100 percent and a claim request submitted based on agreed and verified deliverables,” UCDA says.
UCDA says no activities prior to the signing of the GSA will be eligible for funding and as such any expenses to that effect will be disallowed.
UCDA is implementing CoCODEV under Inclusive Green Economy Uptake [GreenUP Financing Agreement of the 11th European Development Fund [EDF].
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