Ethiopia’s Tea industry sees 34% growth in 2023/24 FY, revenue exceeds US$2M

ETHIOPIA – Ethiopia’s tea industry recorded a 34 percent growth in the 2023/24 fiscal year, with exports surpassing 1,142 tons and generating US$2.33 million in revenue, according to the Ethiopian Coffee and Tea Authority (ECTA).  

This marks an increase of 292 tons compared to the previous year’s exports. 

ECTA Director Sahlemariam Gebremedin highlighted the industry’s potential for further growth, noting that despite exporting 50,000 tons of tea leaf, there is still untapped capacity in the sector.  

Historically, Ethiopia’s tea production was limited to 5,000 hectares of land, with foreign exchange earnings never exceeding US$3 million annually. 

In an effort to expand the industry, 460 million tea saplings were planted across 30,000 hectares during the 2023/24 fiscal year.  

This follows a 2016 initiative that saw over 7,813 hectares planted with tea seedlings, contributing to a nationwide total of more than 48 million seedlings. 

Despite these efforts, Gebremedin pointed out that low investor participation remains a challenge.  

He called for more government support to attract investors to the sector, emphasizing the long-term profitability of tea production, as tea plants can yield harvests every 15 days and have a productive lifespan of 30 to 40 years. 

“The government must encourage more investors to engage in the sector to fully realize the country’s potential,” he said. 

Tea is recognized as a strategic crop by the Ethiopian government, providing both foreign exchange earnings and employment opportunities.  

Many smallholder farmers have integrated tea into their farming practices, benefiting from cooperatives that offer technical support and market access. 

Currently, the United Kingdom accounts for 99 percent of Ethiopia’s tea exports, presenting opportunities for market diversification.  

The tea market in Ethiopia is projected to grow by 7.25 percent between 2024 and 2029, with a market volume expected to reach US$1.05 billion by 2029. 

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