Deadline for 2018-2019 Coffee Campaign payment fixed in 2 weeks

Emmanuel Niyungeko, Director General of the regulatory authority of the coffee sector –ARFIC, says a meeting chaired by the Minister of Agriculture with institutions operating in coffee sector, private banks and the central bank was held to find a solution to the problem of delay in the payment of coffee growers.

Emmanuel Niyungeko: “Serious measures have been taken and those in charge of paying coffee growers have to respect the set deadline”

He adds that serious measures have been taken and those in charge of paying them have to respect the set deadline.

Mr.Niyungeko says commercial banks have promised to give exporters credits on a rate of 7% instead of 9%. “A reduction of 2% was made to facilitate exporters,” he says adding that they will be given bank guarantees normally paid before the export.

Mr. Niyungeko says ARFIC will analyze the files to see if all exporters are in order. “The dishonest exporters will have to pay the communal tax and get back the foreign currency to pay coffee growers”.

He says the exporters will have to submit fixed contracts and other validated documents to commercial banks so as to obtain funding. “The Central Bank agrees to raise the exchange rate applicable to coffee export earnings for the 2018-2019 Campaign,” says Niyungeko adding that stakeholders in the coffee sector will reduce the charges retained from 5.6% to 2.6%. “CNAC murima w’isangi, Inter-café, and ARFIC have put their efforts together to facilitate the payment by moving from 5, 6% to 2, 6%; a contribution of 3%”.

Oscar Baranyizigiye, Executive Secretary at Inter-café Burundi says to be satisfied with the decision made for the smooth running of activities in the coffee sector. “When coffee farmers are complaining, all the activities in coffee sector cannot go on because they produce raw materials”.

He says all the stakeholders have contributed to the possible payment of coffee growers.
In a meeting that the National Security Council held on September 26, it recommended that all coffee growers should to be paid within 2 weeks from October 1st.