MICROCAPITAL BRIEF: Incofin Assists SOPROCOPIV Coffee Cooperative with Fairtrade Certification, COVID-19 Adjustment in Democratic Republic of Congo (DRC)

Incofin, an investment management firm based in Belgium, recently launched a technical assistance project for Solidarité pour la Production et la Commercialisation des Produits Industriels et Vivriers (SOPROCOPIV), a coffee cooperative in the Democratic Republic of Congo (DRC). The goal is to help SOPROCOPIV become certified by Germany’s Fairtrade International by meeting Fairtrade’s documentation requirements and providing training to 5,000 producers on the organization’s guidelines. The certification will allow farmers to receive higher prices in general as well as to qualify for guaranteed minimum prices. From the customer perspective, the label indicates products are of high quality and are produced with environmental sensitivity and non-exploitative compensation practices and working conditions. Due to limited security and infrastructure in the region, Fairtrade is conducting SOPROCOPIV’s audit remotely, as a pilot test for remote certification.

Incofin is funding the technical assistance project in partnership with Kreditanstalt für Wiederaufbau (KfW), a government-backed development bank in Germany; Dutch development bank Nederlandse Financierings-Maatschappij voor Ontwikkelingslanden (FMO); and the government-backed Belgian Investment Company for Developing Countries, which is also known as BIO. These three funders also have partnered with Incofin on a Fair Trade COVID-19 Producer Fund, which is donating up to EUR 200,000 (USD 242,000) per project to fund farmers and their communities. The money can be used for personal protective equipment (PPE), health education and subsidizing economic recovery.

President Jean-Marie Muhindo Malekani of SOPROCOPIV, the first recipient of funding from Fair Trade COVID-19 Producer Fund, said “the project has enabled the cooperative to strengthen the capacities of its members by sensitizing them on the protection and the fight against the coronavirus.”

Founded by farmers in 2008, SOPROCOPIV operates in 16 villages in the Butembo region of North Kivu, DRC. As of April 2021, it had approximately 7,600 members. The cooperative’s growing practices are certified by Utz for its sustainability and management practices.

Founded in 2001, Incofin is a for-profit firm that seeks “to promote inclusive progress.” As of 2021, it has 320 investees in 66 countries, mostly active in financial inclusion and agriculture. Incofin’s portfolio is valued at USD 1 billion and comprises the following funds: agRIF, BRS Microfinance Coop Fund, Fairtrade Access Fund (FAF), Fonds pour l’Inclusion Financière en République Démocratique Congo, Incofin CVSO, Invest in Visions, Rural Impulse Fund II, Volksvermogen and a loan portfolio of vdk bank. As of February 2020, FAF reports total disbursements of USD 128 million, including an unspecified amount lent to SOPROCOPIV in February 2020.

By Sophie Fiala, Research Associate

Sources and Additional Resources

Incofin press release
https://incofin.com/incofin-assists-soprocopiv-to-acquire-the-fairtrade-certificate/

SOPROCOPIV homepage
https://soprocopiv.com/

Fairtrade International homepage
https://www.fairtrade.net/

Utz homepage
https://utz.org/

KfW homepage
https://www.kfw.de/

FMO homepage
https://www.fmo.nl/

BIO homepage
https://www.bio-invest.be/

FAF homepage
https://incofinfaf.com/

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