Getting acces to working capital for reviving the coffee business Banyankole Kweterana Cooperative Union is a producer organization Registered in Uganda as a Cooperative Institution. It was founded in 1958 by primary cooperative societies in the South Western Uganda (Ankole Region). Currently its membership stand at 350 primary cooperative societies, each society with an average (individuals) membership of 300, totaling to 105.000 members. Banyankole Kweterana Cooperative Union suffered from the wars and has been revived in 2009. However, not all of these members are active. Some members are not aware yet that the union is being revived.  Approximately 45.000 members are active, according to Banyakole union. 8 Rural Producer Organizations are so active, that they can benefit from a 300.000.000 UGX  (approx. 100.000 euro) working capital loan from MSCL, which will be effective as off February 2013. The main crop being handled to-date is Robusta and Arabica Coffee.
In November 2012, a company assessment has been executed which identified many opportunities. However, there is room for improvement as well, especially on the side of marketing capacities and on separation management activities from governance, the responsibility of the Board. In addition, a bankable business plan is lacking. 
This project will focus especially on 3 issues, being essential for becoming a profitable enterprise with increased benefits for its members. This is developing a bankable business plan with which working capital to procure coffee can be obtained. The second is upgrading the marketing skills of the staff. And finally, by means of training and workshops, there will be more information available about the roles and responsibilities of the management and the Board and on increasing internal equity.

Banyankole Kweterana Co-operative Union (BKCU) Ltd has presented to Agriterra a business idea that indicated the challenges of their business operations. The business challenges came after wars of 1980s. The Board and management of the union worked hard to improve the coffee business since it’s revive in 2009. Apart from the efforts of the union, Banyankole Union faced challenges of getting access to working capital to bulk more coffee. 
The findings of the company assessment of BKCU are positive. BKCU has potential to effectuate the business ideas as presented. The potentials are built on the basis of existing coffee business structures such as existing systems (good procurement system) and facilities (coffee grading machine, 8 set up coffee buying centres and warehouses including an export license). The union has experienced and well educated staff and the supportive Board. Crucial elements which are missing in the Union is the lack of coffee marketing expertise and experience. The union has enough qualities to be bankable as they have business track records and collaterals to secure the loan but their financial statements for the past three years did not show profitability, however there are understandable explanations for this performance (costs of assets are higher than coffee procurement and sales). Also the union does not have a business plan which can be presented to financial institutions. 
Agriterra will support Banyakole Union in 2013 by upgrading the marketing skills of staff and management and by providing assistance with developing a bankable business plan. In addition, Agriterra will organize trainings and workshops on several subjects. The tasks and responsibilities of both management and Board will be explained and the subjects of increasing internal capital equity will be organized, with the aim of increasing equity for being able to pay a part of procurement of coffee costs internally and thereby decreasing the need for external loans.

The goal of this contract with Banyakole-Kweterana Union is to develop a bankable business plan in order to obtain enough working capital for achieivng their business goals. In addition, Agriterra will provide additional expertise in terms of marketing and internal structures.