Organisation and management

Production and marketing organizations

Private enterprises will manage the fourth level of project implementation activities. In addition to individual crop growering HHs, these include the CPMCC, the NTC and any other commercial organizations established are supported by the project in the tea and coffee sub sectoral, as well as the farmer associations, cooperatives, and SMEs that will respond to project incentives to produce and market new cash and export crops.

The statute, organization structure, staffing and operation manual of the coffee and tea processing and marketing companies will be approved by the Boards of Directors of each commercial enterprise funded by the project, in accordance with practices and procedures generally accepted in private business. Since the RDB represents the majority shareholder in all cases, the RDB representative on the Boards will cast the deciding vote. The RDB will prepare a draft proposal for discussion at the Board meetings. Resources to draft the proposal are included in the first contract of the PCU with the RDB. The joint management of the CPMCC will be paid by the project for 5 years under the contract with TWIN. The management of the Nshili Tea Company is funded under the general financial arrangements envisaged to support the new company, and details will be worked out at the time of establishment of the company.

During project implementation, the possibility of several options for the actual organisation and management of the coffee diversification component will be examined. Among them, the advantages of establishing a central export company (tea and coffee) will be assessed, such company to be a joint venture of TWIN with the CPMCC, and the NTC (see last section of Working Paper 12).