To highlight the central role of coffee in the socio-economic development of Africa, the Heads of State of 11 African coffee-producing countries, including Angola, Cameroon, Central Africa, Congo (DRC), Côte d’Ivoire, Benin, Gabon, Kenya, Madagascar, Uganda, and Tanzania, convened on December 7, 1960, in Antananarivo, Madagascar. They collectively decided to establish the Inter-African Coffee Organization (IACO).
Shortly after its establishment, all African coffee-producing countries joined IACO, recognizing the importance of unified efforts to address challenges within the African coffee industry, particularly in processing and marketing.
Today, IACO is an intergovernmental organization consisting of 25 African coffee-producing countries, including Angola, Benin, Burundi, Cameroon, Congo, Central African Republic, Democratic Republic of Congo, Côte d’Ivoire, Ethiopia, Gabon, Ghana, Guinea, Equatorial Guinea, Kenya, Liberia, Madagascar, Malawi, Nigeria, Rwanda, Sierra Leone, Tanzania, Togo, Uganda, Zambia, and Zimbabwe.
Our guest today is Ambassador Solomon Rutega, the Secretary-General of the Inter-African Coffee Organization (IACO). Before assuming his current role, Rutega played a pivotal role in establishing the African Fine Coffees Association (formerly the East African Fine Coffees Association). He is also known for his contributions to Chinese-African relations in the coffee sector, having served as Uganda’s ambassador and consul general in Guangzhou, China.
During his recent interview with The Ethiopian Herald, Rutega discussed IACO’s mission to promote coffee and explore ways to increase coffee export earnings. Enjoy reading!
What is the primary goal of IACO?
IACO is the organization representing 25 African coffee-producing countries on the continent. Its mission is to transform the African coffee sector through value addition, with a vision anchored on four strategic objectives.
First, we play a key role in advocacy, encompassing political, economic, and social aspects across the board. The second objective is to coordinate coffee research on the continent, primarily addressing productivity and production issues to combat the threats posed by climate change.
The third objective involves creating public-private partnerships to promote coffee consumption culture on the continent. Coffee consumption in Africa, aside from Ethiopia, remains low, and we aim to increase consumption, particularly among the youth population, to reduce dependence on exporting green beans abroad.
The fourth objective is capacity building, focusing on training youth and women in areas such as coffee barista, brewing, and roasting. There is a need to educate people on coffee and instill a coffee culture, as many lack knowledge of its cultivation, processing, and roasting. With a growing number of cafes opening in urban areas, there is also a need for youth employment.
We are establishing training centers in member states, with Ethiopia leading the way with a successful coffee training center that serves as a benchmark for other countries. In summary, this is the role of my organization, and as the head of the mission, this is what I focus on.
How has IACO been performing its responsibilities since establishment?
IACO was established in 1960, making it one of the oldest intergovernmental organizations. This December marks its 64th anniversary.
The genesis behind its establishment was during the independence movement, as many African countries gained independence from colonial rule in 1960.
Initially headquartered in Paris to serve the European market, the headquarters were later moved to West Africa in Cote d’Ivoire, Abidjan in 1975. From 1960 to 1989, IACO operated under a quota regime, ensuring that Africa’s quarter accounted for about 30% of global total exports.
With the liberalization reforms starting in 1989, IACO adapted to the free market regime. In recent years, the focus has shifted towards the transformation of the sector through value addition, moving away from solely exporting green beans. A new vision has been implemented, and efforts are being made to fulfill this vision among member states.
With a specialized agency now in place, other African coffee-consuming countries on the continent can join the organization. The agreement made in 2020 allows consuming countries to become members, potentially increasing the number of coffee-producing countries from 25 to 55, which is the total number of African Union member states. IACO aims to reach this level in the future.
Can you mention some of the achievements that the organization has been able to achieve?
Yes, in the last 36 months, we have made quite a few remarkable achievements in all the areas mentioned earlier under the strategic objectives. The first one was getting the political leadership on the African continent to come together on a unified platform at the G25 Africa Coffee Summit.
This was the first time in AICO’s history where heads of state sat down under the summit to discuss how to address industry challenges. Previously, discussions would only reach the ministerial or technical level. The biggest achievement, in my opinion, is this initiative of political heads of state meeting annually to tackle industry issues.
The outcome of this initiative is why we are here. The leaders agreed that coffee should be adopted as a strategic commodity due to its importance in the global market and the economies of African countries. More than 53% of our rural population relies on coffee for their livelihoods.
It’s a half trillion-dollar business and a significant foreign exchange earner. So why wouldn’t leadership invest in such a crucial sector? This summit has brought this issue to the forefront, making it one of the most notable achievements in the last 36 months.
At the advocacy level, the second achievement is the introduction of Africa Coffee Week. This initiative has brought the private and public sectors together for the first time to have discussions on one platform. The first event was held in February in Addis Ababa, where the Africa Coffee Association from East and West Africa participated along with government officials from member states and IACO. This merger of the private and public sectors will help address industry challenges.
Another achievement is the establishment of a coffee school. We have set up several affiliates in the region, working with universities to build capacity through training centers. We have opened a school in Abidjan with the private sector called the Inter-Africa Coffee Training Institute. The focus is on training youth, especially women, to be able to work in coffee shops, hotels, and restaurants. Employment and job creation are key goals, and we are pleased with the success of the school training centers.
Other achievements include intangible benefits like networking opportunities that bring people together to make deals. I am happy with the progress so far. The biggest milestone is being adopted at the African Union, marking the first time coffee will be on the African agenda. These are just a few of the highlights.
What does the Kampala Declaration mean for IACO?
The Kampala Declaration is where the heads of state met in Kampala again to recommend and request the African Union to adopt coffee as a strategic commodity.
The first one was the Nairobi Declaration, which took place in May 2022. That was the initial conversation starter. The second one, held in Kampala and hosted by President Yoweri Museveni, was a continuation to galvanize and lobby more African leaders to support this request. The declaration was based on the request to adopt coffee as a strategic commodity under the AU. Six months later, the heads of state met in Addis and officially adopted it. The lobbying efforts, which involved bringing in heads of state, expedited the process at the African Union level.
Producing quality coffee is a significant challenge for many African countries. What support does IACO provide to these countries?
IACO collaborates with the national coffee authorities of its member states. For example, the Ethiopian Coffee, Tea and Spices Authority represent Ethiopia at IACO. We work directly with the Authority to explore ways to support the coffee industry at the national level. While we do not directly engage in technical capacity, we partner with the Authority to enhance quality, productivity, and address other value chain issues. The process involves IACO, the Authority, and the execution of quality and value-added initiatives.
What challenges has IACO faced so far in terms of coffee?
IACO is a non-profit membership organization, and one of the main challenges is getting members to pay their subscriptions on time. This is an internal challenge. Another challenge is collecting economic data to conduct economic analysis. We are working on developing a database to improve our economic analysis publications.
Inadequate funding to build capacity is another challenge, but this is a common issue for government organizations. We need to be more creative and innovative in increasing membership and attracting people from other countries, particularly consuming countries. Being under the AU will provide us with a platform to achieve this. I am optimistic about the future.
The Africa Free Trade Area is now being implemented on our continent. What is the role played by IACO?
In light of this, what is IACO’s plan to integrate all African countries in the coffee industry? We have signed a Memorandum of Understanding with the AfCFTA, which will give us direct access to the organization as a specialized agency. In order to export coffee inter-regionally, we will need a certificate from the AfCFTA.
As a specialized agency, we will be able to assist our member states more effectively. We will collaborate closely with the AfCFTA to promote inter-regional trade, allowing coffee from Ethiopia to access other consuming markets, such as those in North Africa. This will be facilitated through the AfCFTA concession framework.
We are also working closely with other AU organs, such as the Africa Standard Organization, Trade Insurance, Africa Exim Bank, and Africa Development Bank. All AU organs will collaborate closely with us as the AU specialized agency.
You have already established excellent relations with the rest of the world regarding coffee. What is your plan for promoting African coffee worldwide?
We will strive to open new markets for African coffees. For example, China, with the second-largest economy in the world and a population of 1.4 billion, has a low per capita coffee consumption of 5 cups per year. However, coffee consumption is growing at 15% annually, presenting a significant opportunity for African coffees.
We will ensure aggressive promotion of coffees from IACO Member States and support African producers in establishing new partnerships and accessing markets in these regions.
Research and other tasks may be part of your responsibilities. What does your organization focus on in terms of coffee-related research?
Funding for research remains a challenge, as it is not adequately supported. However, we have the Africa Coffee Research Network, which operates under IACO. The goal is to facilitate collaboration among National Coffee Research Institutes in member states to exchange information and work together. More funding is needed for research and development, but we have a dedicated unit for this purpose, led by a director.
Thank you very much for allowing me your valuable time for the interview!
You’re welcome!
BY GIRMACHEW GASHAW
THE ETHIOPIAN HERALD SATURDAY 5 OCTOBER 2024
