NICARAGUA’S ECONOMY IS HEAVILY RELIANT ON COFFEE EXPORTS. COMERCIAL INTERNACIONAL EXPORTADORA (CISA), A MEMBER OF THE MERCON COFFEE GROUP, IS NICARAGUA’S LARGEST COFFEE EXPORTER, REPRESENTING OVER 33 PERCENT OF THE COUNTRY’S COFFEE GROWERS. NEARLY 90 PERCENT OF THESE COFFEE GROWERS ARE SMALLHOLDER FARMERS WITH LESS THAN 20 HECTARES.
In a bid to increase productivity and encourage resilience to climate change, this year IFC and GAFSP invested $7.5 million in CISA to support the expansion of the company’s long-term financing program. The loan will include $3 million GAFSP investment and will benefit at least 150 coffee farmers in Nicaragua over five years, who in turn employ approximately 1,500 people per year in rural areas. The financing will allow coffee farmers to renovate or expand coffee plantations, acquire technology and machinery, and improve agricultural productivity and income.
Estimates suggest that coffee yields can be improved up to 3.4 times after farmers undertake renovations supported by this project.