ImpactAlpha, October 2 – Kayonza Tea Factory in southwestern Uganda is an economic pillar in the region, supporting nearly 7,500 nearby smallholder tea farmers that are also owners. The farmers have been so successful that the facility has been operating at full capacity.
Dutch impact investor Oikocredit is extending a $3.2 million long-term loan to Kayonza to build a second factory in nearby Mpungu.
Dutch impact investor Oikocredit is extending a $3.2 million long-term loan to Kayonza to build a second factory in nearby Mpungu. The loan will enable Kayonza to double its processing capacity to 38,000 metric tons (42,000 tons) of tea per year, hire 220 local employees, and support an additional 3,000 farmers.
“Kayonza’s new factory has the potential to be a huge catalyst for development in the area,” Oikocredit’s Geoffrey Musyoki said.
Solidaridad, a sustainable supply chain network, provided capacity development and investment readiness support to Kayonza. The tea company is the first in Solidaridad’s pipeline of nearly 60 ventures it is helping secure investor backing.