The Italian Government has made a significant investment of €10 million (equivalent to US$10.91 million) in Ethiopia’s coffee industry. This financial injection aims to enhance the sector’s competitiveness, sustainability, and financial resilience.
The concessional loan is being channeled through the Italian Agency for Development Cooperation (AICS) as part of the ‘Support Ethiopian Agribusiness Development Operating in the Coffee Value Chain’ project. The project was officially launched at an event in Addis Ababa on March 18, 2025.
Designed to tackle various industry challenges, the project focuses on issues such as restricted access to finance, global market volatility, and the need to comply with new international trade regulations, like the European Union Deforestation Regulation (EUDR).
Dr Girma Amente, Ethiopia’s Minister of Agriculture, emphasized the pivotal role of coffee in the country’s economy and the importance of this financial support for sectoral growth. He stated, “Coffee is not merely a commodity for Ethiopia; it is a cornerstone of our economy, providing a livelihood for millions of farmers and contributing substantially to our foreign exchange earnings. This initiative represents a strategic investment that will empower coffee producers and exporters to elevate quality, increase value addition, and maintain global competitiveness.”
The launch of this initiative comes at a time when African coffee is gaining increased global recognition, having been declared the first – ever strategic commodity of the African Union in 2024.
Beyond the financial assistance, AICS and the United Nations Industrial Development Organization (UNIDO) have been actively collaborating with Ethiopian stakeholders to foster long – term development in the coffee industry. In 2021, these organizations joined forces with the Ethiopian Coffee and Tea Authority to establish Ethiopia’s first Coffee Training Center. The center was established with the aim of enhancing quality standards, refining processing techniques, and optimizing marketing strategies.
In 2022, UNIDO partnered with the Ethiopian Government on a €10 million (US$10.91 million) project. This initiative was focused on facilitating credit access for coffee producers and processors, with the goal of strengthening Ethiopia’s position in the global coffee market.
Michele Morana, the Director of AICS in Addis Ababa, explained that the new concessional financing is intended to mitigate risks associated with private investment in Ethiopia’s coffee sector. It aims to assist businesses in securing funding while ensuring they meet sustainability requirements for international markets. He said, “Ethiopia’s coffee industry is at a crucial juncture. This initiative provides the necessary financial foundation to support farmers, exporters, and small businesses, enabling them to compete on a global stage.”
The Ethiopian Government, in cooperation with industry stakeholders, has formulated a roadmap for coffee sector reform. This roadmap emphasizes value addition, improved access to finance, adherence to sustainability standards, and the encouragement of private – sector investment.
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