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Absa Group, a Johannesburg-based diversified financial services provider led by South African banking executive Arrie Rautenbach, has partnered with the International Finance Corporation (IFC), a member of the World Bank Group, to provide a $60-million trade finance facility to Volcafe, a leading global green coffee merchant.
The facility aims to bolster Volcafe’s operations in East Africa, consequently supporting tens of thousands of coffee farmers in the region.
The year-long facility, with a $30-million commitment each from Absa and IFC, will grant Volcafe the working capital necessary to purchase coffee cherries from smallholder farmers and local traders. The funds will also support the processing, storage, and transportation of coffee beans to export ports.
Absa, IFC back Volcafe initiative
Volcafe will leverage this facility to connect more than 75,000 farmers with the market. Additionally, through its established Volcafe Way program, the company will provide training on sustainable production techniques and best agricultural practices, aiming to enhance crop resilience and profitability for farmers.
“Volcafe is thrilled about this opportunity to collaborate with partners like IFC and Absa as we strive to unlock the immense potential of East Africa’s coffee sector,” said Melvin Wenger Weber, Volcafe chief financial officer. “This new facility will empower us to directly engage with tens of thousands of coffee farmers while introducing their produce to a wider range of markets.”
East Africa is a cornerstone of coffee production, contributing over 80 percent of the continent’s production and 10 percent of the global total. An estimated five million smallholder farmers in the region depend on the coffee industry for their livelihoods. However, these farmers often lack access to crucial financial resources, and climate change poses a significant threat to crop yields.
Arrie Rautenbach guides Absa Bank to success
With an extensive branch network and a customer base exceeding 12 million, Absa stands out under the strategic leadership of Arrie Rautenbach, a respected banking veteran with a long and successful career in South Africa’s financial sector.
Since taking the helm as CEO in 2022, Rautenbach has steered Absa Bank Group to significant financial success. The group achieved a notable milestone in fiscal 2023, surpassing $5 billion in revenue for the first time, reaching $5.37 billion. Rautenbach holds a 0.026-percent stake, equivalent to 218,412 shares valued at $1.82 million, in the financial services giant.
