Tanzanian espresso provider vanishes with $43,750 export fee
DAR ES SALAAM — A Tanzanian espresso provider is dealing with allegations of fraud after failing to ship espresso beans regardless of receiving a 101.5 mil/- (43,750 US {dollars}) deposit from a global purchaser as upfront fee to an 87,500 US {dollars} export deal.
The case now raises issues over regulatory gaps in Tanzania’s espresso export sector and its influence on the nation’s status as a dependable buying and selling accomplice.
Nancy Magere, the CEO of Kilimo One Company Limited, is accused of breaching a espresso provide settlement with First Cups Co., Ltd, a Thai-based purchaser. The deal was facilitated by Fabio Kine, a South African middleman and proprietor of Omnitrade Solutions (PTY) Ltd.
“This isn’t just about financial loss,” Kine mentioned. “It’s about ensuring accountability and protecting Tanzania’s reputation in the global market.”
How the Deal Was Set Up
Kine mentioned the introduction to Magere was facilitated by David Moyo, a Tanzanian related to the Indonesian Embassy in Tanzania. Moyo linked Kilimo One to First Cups Co., Ltd after the corporate submitted its profile in search of worldwide enterprise alternatives.
In October, Kine and representatives from First Cups flew to Tanzania to satisfy Magere in Arusha, the place she introduced what Kine now describes as a “staged” espresso operation. The group finalized a deal on Oct. 17, 2024, with Magere agreeing to produce consignments of robusta and arabica espresso beans.
The settlement required an upfront deposit of $43,750, which was transferred to Magere’s private account at CRDB Bank on Oct. 18. The funds, Kine mentioned, have been meant to safe the preliminary consignment, however Magere did not ship.
After the fee was made, Magere allegedly stopped responding to calls and messages from each Kine and the client. Moyo, who facilitated the preliminary connection, mentioned he was later knowledgeable that the client and vendor had bypassed communication channels and agreed to maintain their dealings confidential.
“Payments were directed to Magere’s personal account rather than Kilimo One’s corporate account,” Moyo says, explaining that the plan was meant to cover the transaction from different events concerned.
Even extra regarding, Moyo says when contacted Magere to verify on the cargo, she (Magere) denied any enterprise dealings. “She knew she had already received the initial payment … She knew I had spent my money to facilitate this, she knew all that but she went ahead denying anything saying there were no business prospects with the people (First Cups Co., Ltd),” Moyo instructed Daily News.
“Hours later on that day, I received a message from the person in South Africa detailing everything and that Magere had received money behind our backs only to disappear,” he added.
Weeks later, Magere despatched a message to the contact in South Africa on Nov. 15, 2024, apologizing for the delays. She attributed the failure to cost fluctuations and logistical challenges and proposed a number of options, together with gradual aggregation of espresso from farmers or reinvestment in different crops.
“May my silence not put you in discomfort. I am still exploring ventures to have this consignment executed to perfection,” Magere wrote.
The purchaser in Thailand, annoyed by the breach of belief and missed deadlines, responded the next day with a agency demand for a full refund. “Breaking the agreement has negatively affected our reputation and customer trust in Thailand,” the message learn.
Regulatory Gaps Highlighted
The Tanzania Coffee Board (TCB) confirmed that Kilimo One shouldn’t be registered or licensed to export espresso, elevating severe questions in regards to the legitimacy of Magere’s operations.
“We don’t have any records of her or her company,” Mr. Primus Kimaryo, TCB Director General mentioned. “This is a legal matter because the contract was not registered with us.”
The board mentioned it managed to succeed in Magere by cellphone, and whereas she acknowledged receiving the funds, she failed to supply a proof and promised to name again, which she didn’t do.
Police Report in Thailand
After weeks of silence from Magere, First Cups Co., Ltd filed an official grievance with Thai police on Nov. 26, 2024. The grievance, filed at Phatthana Nikhom Police Station in Suphan Buri Province, was made by Mr. Suchat Sawatikorn, a consultant of the corporate.
According to the report (No. 15/2567), Sawatikorn alleged fraud within the espresso commerce settlement. The doc outlines how the client deposited $43,750 into Magere’s account on Oct. 18, anticipating supply of the espresso beans. However, Magere did not honor the contract or talk with the client, resulting in the authorized submitting.
The police report, translated into English, references the client’s frustration over the unfulfilled settlement, describing it as a transparent case of fraud.
Impact on Tanzania’s Coffee Trade
Tanzania exported 226 million US {dollars} price of espresso in 2022, rating because the twenty sixth largest espresso exporter on this planet. Coffee was the nation’s eighth most exported product that 12 months, with its major markets being Japan (81.2 million US {dollars}), Italy (21.3 million US {dollars}), the United States (18.9 million US {dollars}), Germany (18.1 million US {dollars}), and South Africa (14.7 million US {dollars}).
Between 2021 and 2022, Tanzania noticed its fastest-growing export markets in espresso in Japan, which grew by 35.1 million US {dollars}, South Africa by 11.2 million US {dollars}, and the United States by 7.53 million US {dollars}.
Coffee is Tanzania’s largest export crop, contributing considerably to the nation’s economic system. On common, the nation produces 30,000 to 40,000 metric tons of espresso yearly, comprising about 70 p.c Arabica and 30 p.c Robusta. However, manufacturing is on an upward trajectory, with forecasts suggesting an increase to 80,000 metric tons, doubtlessly producing over 250 million US {dollars} in annual gross sales.
On the opposite hand this case is sparking concern in regards to the harm such incidents can inflict on Tanzania’s status as a premium espresso exporter. Industry stakeholders warn that fraudulent actions might deter worldwide consumers and jeopardize long-term enterprise relationships.
“This case highlights the urgent need for stricter oversight of export businesses and enforcement of licensing requirements,” Byarugaba Muganyizi, an knowledgeable, warned in a cellphone name.
For First Cups Co., Ltd, the monetary loss is compounded by reputational harm. “We’ve lost time, money, and credibility with our customers,” mentioned an organization consultant. “Tanzania must address these issues to restore trust in its coffee trade.”
Moyo, who facilitated the deal, expressed frustration on the lack of accountability and the tarnished belief on all sides. “I spent my own money arranging this introduction, and now both parties have suffered because of one person’s dishonesty,” he mentioned.
Kine is urging Tanzanian authorities to take swift motion towards Magere and implement stronger safeguards to stop related circumstances.
As of now, the Tanzania Police Force has but to touch upon the matter.
