DAR ES SALAAM — A Tanzanian coffee supplier is facing allegations of fraud after failing to deliver coffee beans despite receiving a 101.5 mil/- (43,750 US dollars) deposit from an international buyer as upfront payment to an 87,500 US dollars export deal.
The case now raises concerns over regulatory gaps in Tanzania’s coffee export sector and its impact on the country’s reputation as a reliable trading partner.
Nancy Magere, the CEO of Kilimo One Company Limited, is accused of breaching a coffee supply agreement with First Cups Co., Ltd, a Thai-based buyer. The deal was facilitated by Fabio Kine, a South African intermediary and owner of Omnitrade Solutions (PTY) Ltd.
“This isn’t just about financial loss,” Kine said. “It’s about ensuring accountability and protecting Tanzania’s reputation in the global market.”
How the Deal Was Set Up
Kine said the introduction to Magere was facilitated by David Moyo, a Tanzanian associated with the Indonesian Embassy in Tanzania. Moyo linked Kilimo One to First Cups Co., Ltd after the company submitted its profile seeking international business opportunities.
In October, Kine and representatives from First Cups flew to Tanzania to meet Magere in Arusha, where she presented what Kine now describes as a “staged” coffee operation. The group finalized a deal on Oct. 17, 2024, with Magere agreeing to supply consignments of robusta and arabica coffee beans.
The agreement required an upfront deposit of $43,750, which was transferred to Magere’s personal account at CRDB Bank on Oct. 18. The funds, Kine said, were meant to secure the initial consignment, but Magere failed to deliver.
After the payment was made, Magere allegedly stopped responding to calls and messages from both Kine and the buyer. Moyo, who facilitated the initial connection, said he was later informed that the buyer and seller had bypassed communication channels and agreed to keep 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 intended to hide the transaction from other parties involved.
Even more concerning, Moyo says when contacted Magere to check on the shipment, she (Magere) denied any business 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 told 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 sent a message to the contact in South Africa on Nov. 15, 2024, apologizing for the delays. She attributed the failure to price fluctuations and logistical challenges and proposed several solutions, including gradual aggregation of coffee from farmers or reinvestment in other crops.
“May my silence not put you in discomfort. I am still exploring ventures to have this consignment executed to perfection,” Magere wrote.
The buyer in Thailand, frustrated by the breach of trust and missed deadlines, responded the following day with a firm demand for a full refund. “Breaking the agreement has negatively affected our reputation and customer trust in Thailand,” the message read.
Regulatory Gaps Highlighted
The Tanzania Coffee Board (TCB) confirmed that Kilimo One is not registered or licensed to export coffee, raising serious questions about the legitimacy of Magere’s operations.
“We don’t have any records of her or her company,” Mr. Primus Kimaryo, TCB Director General said. “This is a legal matter because the contract was not registered with us.”
The board said it managed to reach Magere by phone, and while she acknowledged receiving the funds, she failed to provide an explanation and promised to call back, which she did not do.
Kine has provided a range of evidence to support her claims, including signed contracts, bank transfer records, and extensive WhatsApp conversations showing Magere’s repeated delays and excuses. Although her phone remains active, Magere has not responded to texts or calls from Kine, or journalists. Despite this, efforts to file a police report in Tanzania have been hindered by geographical constraints.
Police Report in Thailand
After weeks of silence from Magere, First Cups Co., Ltd filed an official complaint with Thai police on Nov. 26, 2024. The complaint, filed at Phatthana Nikhom Police Station in Suphan Buri Province, was made by Mr. Suchat Sawatikorn, a representative of the company.
According to the report (No. 15/2567), Sawatikorn alleged fraud in the coffee trade agreement. The document outlines how the buyer deposited $43,750 into Magere’s account on Oct. 18, expecting delivery of the coffee beans. However, Magere failed to honor the contract or communicate with the buyer, leading to the legal filing.
The police report, translated into English, references the buyer’s frustration over the unfulfilled agreement, describing it as a clear case of fraud.
Impact on Tanzania’s Coffee Trade
Tanzania exported 226 million US dollars worth of coffee in 2022, ranking as the 26th largest coffee exporter in the world. Coffee was the country’s eighth most exported product that year, with its primary 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 saw its fastest-growing export markets in coffee 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 significantly to the country’s economy. On average, the nation produces 30,000 to 40,000 metric tons of coffee annually, comprising about 70 percent Arabica and 30 percent Robusta. However, production is on an upward trajectory, with forecasts suggesting a rise to 80,000 metric tons, potentially generating over 250 million US dollars in annual sales.
On the other hand this case is sparking concern about the damage such incidents can inflict on Tanzania’s reputation as a premium coffee exporter. Industry stakeholders warn that fraudulent activities could deter international buyers and jeopardize long-term business relationships.
“This case highlights the urgent need for stricter oversight of export businesses and enforcement of licensing requirements,” Byarugaba Muganyizi, an expert, warned in a phone call.
For First Cups Co., Ltd, the financial loss is compounded by reputational damage. “We’ve lost time, money, and credibility with our customers,” said a company representative. “Tanzania must address these issues to restore trust in its coffee trade.”
Moyo, who facilitated the deal, expressed frustration at the lack of accountability and the tarnished trust on all sides. “I spent my own money arranging this introduction, and now both parties have suffered because of one person’s dishonesty,” he said.
Kine is urging Tanzanian authorities to take swift action against Magere and implement stronger safeguards to prevent similar cases.
As of now, the Tanzania Police Force has yet to comment on the matter.
