Project Description
On March 26, 2026 MIGA issued political risk insurance to Sucafina Holding S.A. of Luxembourg and/or its subsidiaries, for its equity investments in Rwacof Exports Limited and Rwanda Estates Limited in the Republic of Rwanda. The guarantees provide coverage against the risks of expropriation, transfer restriction and inconvertibility, and war and civil disturbance for a combined maximum aggregate liability of approximately $6.85 million for a tenor of up to 11 years.
The guarantees support Sucafina’s operations in Rwanda through the Project Enterprises, which are engaged in the procurement and processing of coffee cherries in the host country. The Project Enterprises’ main activities include: (i) the purchasing and processing of semi-washed and fully washed parchment coffee beans from farmers, traders, and partners; (ii) the operation of coffee washing stations, machinery, equipment, and related leased property located across Rwanda; (iii) the selling, trading, and exporting of green coffee to local and international markets; (iv) the purchasing and management of agricultural inputs; and (v) the ownership and leasing of coffee washing stations and related assets.
Sucafina has been active in Rwanda since 1996 and is one of the country’s leading coffee exporters. Its operations include a nationwide network of coffee washing stations and a large supply chain of smallholder farmers, linking Rwanda’s coffee production to international markets. MIGA’s guarantees support the company’s continued operations and long-term investment in the country’s coffee sector.
MIGA’s risk exposure under the guarantees is supported by a shared first-loss structure under the IDA Private Sector Window (PSW), which facilitates risk sharing and enables private investment in a low-income and frontier market environment.
Environmental Categorization
The Project has been categorized as Category B under MIGA’s Policy on Environmental and Social Sustainability.
The key environmental and social risks relate to the management of labor and working conditions, water usage, waste management, and supply chain risks associated with sourcing from smallholder farmers. These risks are generally site-specific, limited in scope, and can be effectively mitigated through appropriate management measures.
Sucafina has established environmental and social management systems and policies at the group and project levels, which are being applied to its operations in Rwanda. The Project Enterprises operate under structured environmental and social frameworks, which will be further strengthened through the implementation of an Environmental and Social Action Plan. These measures are expected to ensure alignment with MIGA’s Performance Standards, including those related to environmental and social risk management and labor conditions.
Development Impact
The Project is expected to generate significant development impact by supporting the livelihoods of smallholder farmers and strengthening Rwanda’s agricultural value chain.
Sucafina’s operations in Rwanda support a network of more than 30,000 smallholder farmers, providing access to markets, agricultural inputs, and technical assistance. The Project contributes to improved productivity and quality through training programs, certification support, and the promotion of sustainable farming practices. These interventions are expected to increase farmer incomes, enhance resilience to climate risks, and support long-term sector sustainability.
The Project aligns with the World Bank Group’s Country Partnership Framework for Rwanda, which focuses on promoting private sector-led growth, increasing agricultural productivity, and enhancing resilience to climate change. It also contributes to broader development objectives, including job creation, improved rural incomes, and the strengthening of inclusive value chains.
In addition, the Project promotes climate-smart agriculture through the adoption of sustainable production practices and supports gender inclusion through targeted interventions aimed at increasing opportunities for women across the coffee value chain.
