Report

Mahembe Coffee

A cherry producer, green bean processor, and trader in the Rwandan coffee sector

This case study analyzes the extent to which a small agribusiness in Rwanda complies with international standards for responsible investment in agriculture.

By Hafiz Mirza, Duncan Pringle on August 9, 2024

Responsible investment in and by agribusinesses—including crop producers, processors, and traders—can play a transformative role in driving innovation in agrifood systems, building market and supply chain linkages, and contributing to local economies and communities. These outcomes can be enhanced when agribusinesses align their policies, operations, and practices with the Committee on World Food Security’s Principles for Responsible Investment in Agriculture and Food Systems (CFS-RAI).

The agribusiness in this case study, Mahembe, is supported by an impact investor involved in the Smallholder Safety Net Up-scaling Programme (SSNUP). This program brings together investors to promote sustainable, climate-smart farming practices and improve food security and living standards in developing countries. It is part of a series aimed at analyzing how well SSNUP investees perform and comply with international standards for responsible business conduct, such as the CFS-RAI.

Mahembe is representative of small and medium-sized agricultural enterprises in Rwanda, operating as a cherry producer, green bean processor, and exporter, selling green beans to specialty coffee roasters. They face several challenges—such as finding well-paying markets for specialty beans, managing supply with an aging farmer population, assuring quality for niche coffee sectors, and accessing the financial resources needed to scale operations.

We measured their compliance with principles for responsible investment across seven key dimensions. Overall, we found them to have a high level of compliance. This is due to Mahembe deliberately setting clear objectives to develop the business in a socially responsible way.

Our case study recommends that Mahembe adopt a more formal approach to recording its policies and procedures. This should include clearly defining principles focused on development, such as support for the community and young farmers. Doing so will help new shareholders and employees understand and follow these guidelines, ensuring ongoing compliance with responsible agricultural investment standards.