How Business Advisory Services Made Hope Coffee More Bankable
Introduction: A Coffee Enterprise Rooted in Hope
Hope Coffee Uganda Limited (HCU), a social enterprise owned by Celebrate Hope Ministries, operates in Kabano, Kyotera District in Southern Uganda. The company works with local farmers in the coffee value chain – growing, processing, value addition, and exporting of premium-quality Ugandan coffee.
Working with over 3,000 smallholder farmers, each cultivating about an acre of land, HCU has demonstrated strong productivity potential, with each farm capable of producing over 300kg of coffee annually. Like many agribusinesses in Uganda, HCU faced challenges in accessing finance to scale operations due to gaps in internal systems and investor readiness.
The Challenge: A Common Barrier in Uganda’s Agribusiness Sector
Many agribusinesses in Uganda operate in high-potential value chains but lack the internal governance, strategic planning, and financial management systems required to attract funding from development partners, financial institutions, or impact investors. Without these, their ability to scale remains limited. Hope Coffee Uganda was no exception despite its promise, it needed support to build internal capacity and become investment-ready.
The Intervention: Business Advisory Services That Unlock Growth
To address this, aBi Development contracted FRIENDS Consult Limited (FCL) under its pilot Business Advisory Services Providers (BASP) program. The objective was to offer tailored Business Advisory Services that would strengthen HCU’s internal systems and position it for sustainable growth and access to finance.
What FRIENDS Consult Did: Building Capacity from the Inside Out
Under this engagement, FRIENDS Consult delivered a comprehensive suite of business advisory interventions, including:
- Governance & Management: Developed a formal Board Charter to enhance oversight and strategic direction.
- Strategic and Business Planning: Facilitated the development of a Strategic Plan and Business Plan that aligned with market opportunities and internal goals.
- Financial Management Support: Prepared financial proposals, conducted financial needs assessments, and developed pitch decks tailored to potential investors.
- Transactional Advisory: Helped structure investment proposals and position HCU as a credible, investable agribusiness.
Alignment with National and Global Development Agendas
This initiative supports Uganda’s PDM and NDP IV by strengthening rural enterprises and promoting agro-industrial growth. It also advances global goals, particularly SDG 1 (No Poverty), SDG 8 (Decent Work), and SDG 9 (Industry & Innovation).
The Impact: From Capacity Building to Capital Access
Through this targeted support, Hope Coffee Uganda Limited successfully accessed external financing to expand its operations. This capital will support:
- Increased processing capacity, allowing for more value-added production.
- Job creation and improved livelihoods along the coffee value chain.
- Higher incomes for over 3,000 smallholder farmers, who now benefit from better post-harvest handling and guaranteed markets.
- Enhanced competitiveness in both local and international specialty coffee markets.
- This expansion not only solidifies HCU’s role in Uganda’s coffee industry but also delivers social, economic, and environmental returns to stakeholders.
Conclusion: A Model Worth Scaling
Hope Coffee Uganda’s transformation highlights a critical insight: agribusinesses don’t just need capital; they need capacity building as well. Business Advisory Services, when tailored and well-implemented, can bridge this gap, unlocking growth, investment, and impact. For development actors, financial institutions, and agripreneurs alike, this case demonstrates that building internal strength is the first step to external success.
Joseph Sserunjogi
Senior Projects Officer, FCL