Huye coffee farmers plan to establish microfinance institution

By The Inspirer.

Coffee farmers organised under Maraba Cooperative in Huye District say the income and savings they have built through coffee farming could enable them to establish a microfinance institution to provide members with access to loans and help them improve their livelihoods throughout the year.

The cooperative’s founding members say they started with 70 farmers in 2002, but the benefits of coffee farming have attracted more growers over the years.

One of the founding members said the income earned per coffee season had increased significantly, enabling farmers to meet household needs and invest in other income-generating activities.

“We started in 2002 with 70 members, including 20 women and 50 men. We were few, and our earnings were low. I used to earn Rwf70,000 per season, but now I make more than Rwf200,000,” the farmer said.

The farmer attributed the progress to a culture of saving, which has improved not only agricultural earnings but also family welfare.

“I can now pay my children’s school fees, pay community-based health insurance contributions on time and buy livestock, which also provides manure for my farm,” the farmer added.

Biziyaremye Theophile, the accountant of Maraba Coffee Cooperative, said membership had grown from 70 farmers in 2002 to 1,598, comprising 800 men and 759 women, according to the cooperative’s figures.

Beyond seasonal coffee earnings, members have accumulated savings worth Rwf200 million, which the cooperative uses to provide loans to farmers.

Rather than keeping all the money in a bank, the cooperative lends it to members to support their activities and generate returns. Borrowers repay their loans with an additional 1% interest, Biziyaremye said.

“We would not want to keep the money in a bank where it would not generate enough returns for us. That is why we lend it to cooperative members. Our goal is to establish a microfinance institution, and we believe it is achievable,” he said.

The farmers’ ambition comes as Huye seeks to attract more investment into coffee production and processing, which could increase the value retained locally and improve returns for producers.

Speaking at an investment conference in Huye District, Rwanda Development Board (RDB) Chief Executive Officer Jean-Guy Afrika highlighted the need to strengthen economic opportunities in districts and secondary cities, including Huye, which he said offers promising investment prospects.

Afrika singled out coffee as an investment opportunity, arguing that expanding local processing could reduce the cost of finished coffee products for domestic consumers while creating opportunities to export higher-value products.

“Coffee from Huye is exceptional on the international market. Rwanda’s coffee is exported, processed abroad and then brought back for us to buy at a higher price. If investors established processing plants here, we could process it locally and export finished products, while making it available to consumers in Rwanda at lower prices,” he said.

He reaffirmed the government’s commitment to supporting coffee farmers, describing coffee as an important source of foreign exchange for Rwanda.

On October 22, 2026, a kilogram of Rwandan coffee from Huye reportedly fetched Rwf670,000, highlighting the premium that exceptional coffee can command on the market.

For Maraba’s farmers, expanding their savings and lending activities into a microfinance institution could provide a more reliable source of financing between harvests, helping members invest in farming and other businesses without relying solely on seasonal coffee income.

Source: IMVAHO NSHYA