Ethiopia launches landmark project to transform coffee agribusiness

Addis Ababa, March 18, 2025 (FMC) – Ethiopia today unveiled a significant initiative aimed at bolstering its crucial coffee sector with the launch of the ‘’Support Ethiopian Agribusiness Development Operating in the Coffee Value Chain, through De-Risking Investments and Institutional Support to the Ethiopian Coffee and Tea Authority’’ project.

The launching ceremony, held at the Skylight Hotel in Addis Ababa, underscored the strategic importance of coffee to Ethiopia’s national identity and economy.

Ms. Semereta Sewasew, speaking at the project launch, emphasized the transformative potential of this undertaking, highlighting that it is a strategic investment in Ethiopia’s economic future and that Coffee is more than a commodity for Ethiopia—it is part of our national identity, a pillar of our economy, and a vital source of employment for millions of Ethiopians. She also expressed gratitude to the Italian government for financing the project, recognizing the enduring partnership between Ethiopia and Italy.

Ethiopia, the birthplace of coffee, is renowned for its “finest and most unique varieties”. The coffee sector plays a pivotal role as a pillar of our economy, and a vital source of employment for millions of Ethiopians”. However, Semereta Sewasew noted that the sector faces persistent challenges such as “limited access to finance and investment capital” and underdeveloped market linkages and value addition. Furthermore, she underscored the need for sustainability and compliance with new international regulations, such as the European Union Deforestation Regulation (EUDR), require urgent action”.

State Minister Semereta noted that recognizing the coffee sector as a critical driver of job creation, rural development, and foreign exchange earnings, the Ethiopian government has placed it at the center of its Homegrown Economic Reform (HGER) program, with the aim to unlock its full potential through institutional reform, private sector engagement, and access to finance. To this end, she addressed the gathering by announcing the development of a comprehensive roadmap for coffee sector reform, which focuses on several key areas.

First, the roadmap aims to modernize production, processing, and marketing systems, thereby enhancing the global competitiveness of Ethiopian coffee. Second, it emphasizes the need to elevate the role of the private sector in shaping policies, driving investments, and fostering innovation within the coffee industry. Finally, it was announced by the State minister that the initiative seeks to strengthen sustainability practices to ensure alignment with evolving global market requirements, positioning Ethiopia’s coffee sector for future success.

A key element of this reform strategy is the establishment of a dedicated secretariat that will serve as a platform for structured dialogue between the government and private sector actors, including coffee growers, cooperatives, processors, roasters, exporters, and traders. This secretariat aims to amplify the voices of private sector stakeholders, drive sector-wide collaboration, and create a conducive environment for investment and innovation.

To address the challenge of limited access to finance in Ethiopia’s coffee sector, a new credit line facility has been introduced to provide affordable credit to various coffee enterprises, from smallholder farmers to large processors. This facility aims to enable these enterprises to expand production and improve quality while reducing financial risks for private sector investments, encouraging lender support for agribusiness projects.

Additionally, it promotes sustainable practices that align with Ethiopia’s commitment to environmentally responsible coffee production. The Commercial Bank of Ethiopia (CBE) will manage the facility to ensure efficient and transparent fund allocation, while the Ethiopian Coffee and Tea Authority (ECTA) will oversee the sector and provide technical assistance and policy support in line with the broader coffee reform strategy.

State Minister Semereta noted that the project aligns directly with the objectives of Ethiopia’s Homegrown Economic Reform (HGER) program, prioritizing job creation, private sector-led growth, export diversification, and sustainability and resilience. By empowering stakeholders across the coffee value chain with essential financial and institutional support, the initiative aims to not only strengthen Ethiopia’s coffee industry but also creating jobs, boosting exports, and enhancing rural development.

Ms. Semereta expressed profound appreciation for the commitment and support of the Italian Government and AICS, UNIDO, and other development partners, as well as the leadership of CBE and ECTA. In her concluding remarks, she emphasized that Today’s launch is a testament to the power of collaboration… This is a defining moment—not just for Ethiopia’s coffee sector, but for our broader vision of sustainable economic transformation”, urging collective action to elevate Ethiopian coffee to new heights, empower our farmers and businesses, and drive a future of shared prosperity.

The high-level event was attended by key dignitaries including Mr. Girma Amente, Minister of Agriculture, Agostino Palese, Italian Ambassador to Ethiopia, Mr. Michele Morana, AICS Director, and Adugna Debela, Director General of Ethiopian Coffee and Tea Authority (ECTA). Representatives from UNIDO and the Commercial Bank of Ethiopia (CBE) also participated, signifying the collaborative nature of this endeavor.