Ethiopia’s coffee sector is set to receive a major financial boost with the launch of a €10-million concessional credit line aimed at enhancing productivity, quality, and market access. 

The initiative, financed by the Italian government through the Italian Agency for Development Cooperation, seeks to promote innovative and impact-driven investments across the coffee value chain.

Speaking at the launch event, Agriculture Minister Girma Amente highlighted the significance of the initiative, calling it a model for “de-risking investments” in Ethiopia’s coffee sector. 

He noted that while Ethiopia has made significant strides in improving coffee production and exports, challenges such as climate change, price fluctuations, and access to tailored financial services remain critical barriers for farmers and private investors.

“This financing facility addresses a crucial gap in demand-driven financial services, ensuring that coffee farmers and sector stakeholders have access to the necessary resources to enhance productivity and competitiveness,” Girma said. 

He assured that the Ministry of Agriculture, alongside key government and financial institutions, would ensure the transparent and effective management of the credit line.

State Minister of Finance Semereta Sewasew emphasized the broader economic significance of the project, stating, “Coffee is more than just a commodity for Ethiopia; it is deeply tied to our national identity and serves as a pillar of our economy.” She expressed appreciation for Italy’s continued support, calling the initiative a testament to the strong partnership between the two countries.

Michele Morana, Head of the Italian Agency for Development Cooperation, described the project as a milestone in Ethiopia’s coffee sector transformation. “We are not simply launching a project today. We are laying the foundation for long-term transformation, resilience and prosperity for Ethiopia.” he said.

Ethiopia’s coffee industry plays a vital role in the national economy, supporting over 5 million farming households and contributing a significant share to export earnings. 

With coffee exports experiencing steady growth over the past five years, the country has set an ambitious target of generating $2 billion in revenue from coffee exports in the current fiscal year.