Italy invests US$10.91M in Ethiopia’s coffee sector to boost competitiveness, sustainability
The Italian government has allocated €10 million to strengthen Ethiopia’s coffee industry, enhancing its global competitiveness and sustainability while improving access to finance for producers.
ETHIOPIA – The Italian government has committed €10 million (US$10.91 million) to Ethiopia’s coffee sector in a bid to enhance competitiveness, sustainability, and financial resilience.
The investment, provided as a concessional loan through the Italian Agency for Development Cooperation (AICS), is part of the ‘Support Ethiopian Agribusiness Development Operating in the Coffee Value Chain’ project.
The initiative was launched in Addis Ababa on March 18, 2025.
The project aims to address key industry challenges such as limited access to credit, global market fluctuations, and the need to comply with evolving international trade regulations, including the European Union Deforestation Regulation (EUDR).
Ethiopia’s Minister of Agriculture, Dr. Girma Amente, emphasized the significance of the initiative, stating that coffee is not merely an export product but a crucial pillar of the country’s economy, supporting millions of farmers and generating substantial foreign exchange earnings.
He noted that the initiative will enhance coffee quality, boost value addition, and improve Ethiopia’s global market position.
The investment comes at a time of increasing international recognition of African coffee, with the African Union designating coffee as its first-ever strategic commodity in 2024.
Beyond financial support, AICS and the United Nations Industrial Development Organization (UNIDO) have been actively engaged in long-term development efforts for Ethiopia’s coffee industry.
In collaboration with Ethiopian authorities, the two organizations have spearheaded initiatives such as the establishment of Ethiopia’s first Coffee Training Center in 2021 to improve processing, quality control, and marketing.
In 2022, UNIDO and the Ethiopian government launched a €10 million initiative to enhance credit access for coffee producers and processors, reinforcing the country’s role in global coffee trade.
Michele Morana, AICS Director in Addis Ababa, emphasized that the new financing will mitigate investment risks and facilitate funding for businesses while ensuring compliance with sustainability standards required by international buyers.
The Ethiopian government, in partnership with industry stakeholders, has outlined a roadmap for coffee sector reforms, focusing on increasing value addition, improving access to finance, and encouraging private-sector investment.
Ethiopia aims to generate US$2 billion in coffee export revenue by the end of the fiscal year, with a target of shipping over 400,000 tonnes.
In the previous fiscal year, the country earned over US$1.4 billion from coffee exports, reinforcing its reputation as the birthplace of Arabica coffee.
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