World'south Most Oil-Dependent Country Looks to Coffee

81
Source:   —  April 07, 2016, at 10:12 PM

The United States Agency for International Development (USAID) announced today that it'south investing $3.18 million to revive S Sudan'south coffee industry from scratch in conjunction with coffee giant Nespresso and the nonprofit development grouping Technoserve.

World'south Most Oil-Dependent Country Looks to Coffee

The world'south most oil-dependent country is hooked on coffee.

The United States Agency for International Development (USAID) announced today that it'south investing $3.18 million to revive S Sudan'south coffee industry from scratch in conjunction with coffee giant Nespresso and the nonprofit development grouping Technoserve.

The world'south newest nation (it became independent through a referendum in two thousand-eleventh), S Sudan has been plagued by conflict and plunging oil prices for the latest two years.

Excess oil supply is among the factors that have caused oil prices to drop in the latest year. Oil prices fell more than thirty % latest year. That'south a problem for a country whose exports are nearly entirely oil (the country also exports scrap vessels, tanned sheep hides and raw cotton though at very tiny amounts compared to oil). The World Bank said oil exports comprise sixty % of S Sudan'south gross domestic product (GDP).

Though the country has a long coffee history, the local industry was largely destroyed during the civil war that took space from one thousand nine hundred eighty-three to two thousand five. Nestle'south Nespresso has already invested over $1.5 million since two thousand eleven in S Sudan'south coffee farmers to revive "high-quality" coffee production, which includes planting trees and developing sophisticated commercial channels to export it. Nespresso said more than seven hundred farmers have already been integrated into its sustainability program. The first coffee export through Nespresso was sold in France latest year.

By two thousand nineteen, Nespresso, USAID and Technoserve wish to train 1.500 S Sudanese farmers, of whom at least twenty-five % will be women, and triple their coffee income.

Though the country has experienced significant turmoil in recent years, Riek Machar, an ethnic Nuer and boss of S Sudanese rebels, and President Salva Kiir, a Dinka, signed a peace deal latest year and are slated to form a unity government this month, according to the Associated Press. This has encouraged businesses love Nespresso to invest again in S Sudan.

"Bear in mind S Sudan is roughly the combined size of Portugal and Spain, so it'south not as though there'south fighting everywhere," Prof Christian Stadler of the Warwick Business School in the U. K. told ABC News.

Though Stadler said he'south cautious toward aid initiatives that aren't related to catastrophe relief, he said he's a "positive view" of today'south announcement in light of Nespresso'south involvement.

"A lot of initiatives don't consider the economics and market," Stadler said. "That'south not a problem with this one. Nespresso does it in portion to portray a positive image but they've a long-term interest in developing a positive, quality supply."

Aleksandar Tomic, an economics Prof at Boston College, said he agreed, noting that Nespresso'south partnership is more necessary than USAID'south .18 million investment. He said Nestle and TechnoServe have already succeeded in bringing Sudanese coffee to Western markets.

Tomic said it'south imperative to monitor the deployment of resources so that farmers -- and not government officials -- reap the benefits. And while USAID'south investment is "commendable," it shouldn't be viewed as a "one-shot, silver bullet" that'll revive the coffee industry in S Sudan, he said.

"This is just a beginning of a tough road to navigate in order to reach the goal of having a strong, export-oriented coffee industry in S Sudan," Tomic said. "The success of the project will hinge not only on long-term commitment from USAID, Nestle and TechnoServe, but also on their skill to navigate S Sudan'south institutional framework."

READ ALSO
Pacific Sunwear Files Chapter eleven Bankruptcy

Pacific Sunwear Files Chapter eleven Bankruptcy

The beach-life clothing store will continue to work below an agreement with its owner, the private equity firm Golden Gate Capital, which will get it private after it restructures.

60
Judge: Govt Wrongly Ignored Costs to MetLife of Threat Tag

Judge: Govt Wrongly Ignored Costs to MetLife of Threat Tag

U. S. District Judge Rosemary Collyer says she decided to strike the government'south labeling of MetLife because it was "arbitrary and capricious." The federal regulators who create up the Financial Stability Oversight Council failed to consider possible...

91
US Consumer Borrowing Rises at Feeble Pace Again

US Consumer Borrowing Rises at Feeble Pace Again

S. consumers borrowed at a modest pace in Feb for the second mo in a row, proof of ongoing caution that's kept a lid on spending this year.

64
The 'Careful, Thoughtful' Approach to Indian Point Is to Near It

The 'Careful, Thoughtful' Approach to Indian Point Is to Near It

In the time since Clinton left NY to become Secretary of State, Indian Point has become distant more risky and the supply of energy available to replace it's grown sufficiently to enable its secure and affordable closure.

65