Access To Finance John Nuwagaba has been ACPCU’s General Manager for over 15 years. Credit: John Nuwagaba
John Nuwagaba is General Manager of the Ankole Coffee Producers’ Cooperative Union (ACPCU). Founded in 2006, the organization is located in South Western Uganda and processes and exports Fairtrade organic coffee.
John joined ACPCU in 2008, and has seen the organization evolve from humble beginnings, originally working with 3,800 producers, to a successful coffee exporter working with over 17,000 producers and generating $10.6M in sales. Through it all, ACPCU has remained committed to sustainability, quality, and the wellbeing of their workers.
The Challenge
When ACPCU first launched, access to working capital was its greatest challenge. With only $700 to its name, the organization struggled to find lenders. As John recalls, “Nobody was willing to lend to us, not even the local banks.” Due to the lack of funds, John volunteered his time until ACPCU became more financially stable and could afford to pay salaries.
“We also had very few assets,” John adds. “We had simple wooden chairs, three of them, and two tables. We were in rented premises and one portion was the office, and another was the warehouse.”
Beyond financial constraints, ACPCU has faced significant external challenges since it started. The escalating climate crisis has brought long-lasting droughts, erratic rainfall, and rising temperatures. In addition, periods of civil unrest in Uganda dating back to the 1970s have disrupted agricultural practices, while fluctuating coffee prices have made it difficult for farmers to plan for their future.
Caption: Root Capital staff pictured with members of ACPCU. Credit: Root Capital
Our Collaboration
In 2008, Root Capital provided ACPCU with its first-ever loan. “The loan from Root Capital marked a turning point for us,” John explained. Alongside financial support, ACPCU received training from Root Capital in business and operations management, which strengthened the cooperative’s leadership and managerial skills. Ultimately, the loan enabled the cooperative to export directly and secure higher prices on the international market.
Recognizing ACPCU’s vulnerability to climate change, Root Capital also offered agronomic training to help the cooperative assess risks and co-create an action plan to mitigate negative impacts. They are now implementing high-impact actions, such as establishing tree nurseries, adopting energy-efficient technologies, and promoting the use of cover crops and mulching—strategies that will ensure the cooperative’s long-term sustainability. Additionally, Root Capital has trained ACPCU staff to use a climate vulnerability dashboard, enabling their technical officers to analyze data collected by farmers and take targeted actions to enhance climate resilience.
The Impact
Fifteen years after its first loan, ACPCU has become an award-winning coffee exporter, with the ability to access more diverse sources of funding, including traditional banks. With Root Capital’s support, ACPCU now reaches over 17,000 farmers and has increased its sales 50-fold. The cooperative has also built a new processing plant, creating additional opportunities for farmers and workers throughout the region.
Beyond economic growth, ACPCU has invested in numerous community projects, including training farmers in sustainable agronomic practices and advanced coffee processing techniques. These initiatives are poised to have a ripple effect on the future of Uganda’s coffee industry, fostering new opportunities for local farmers and improving livelihoods in one of the world’s most underserved regions.
“Today, [local banks] are coming to us and asking, ‘Can we lend to you?’” says John. “We know the role Root Capital played at the start of our business and what they continue to do. There is no way we could have done this without Root Capital.”
ACPCU has continuously improved the quality of its coffee, earning both national and international accolades. As John notes, “Our motto used to be ‘we strive for excellence.’ Now, we say: ‘we value excellence.’”
ACPCU’s story demonstrates how access to finance and capacity-building services can transform an organization’s future.