Addis Ababa: A 10-million-Euro landmark project, which supports the Ethiopian coffee value chain by promoting innovative and impact-driven investments, was launched today. The credit line facility is a concessional loan financed by the Italian government.
According to Ethiopian News Agency, Agriculture Minister Girma Amente stated at the launching event that the “de-risking investments” in the Ethiopian coffee value chain represent an exemplary and innovative financing initiative. Ethiopia has consistently led efforts to improve coffee productivity, quality, and market access despite challenges such as climate change and price volatility. However, he noted a significant gap in innovative demand-driven financial services that can meet the specific needs of the private sector and coffee farming households.
The minister highlighted that the de-risking investment funded by the Italian Agency for Development Cooperation supports coffee sector stakeholders and complements the government’s effort to transform Ethiopia’s coffee sector. “With the active engagement of the Ministry of Agriculture, Ministry of Finance, Ethiopian Coffee and Tea Authority, Commercial Bank of Ethiopia, and our technical and strategic partners, we are confident that the credit line will be effectively managed to ensure that it is utilized in a transparent manner,” he added. He affirmed the ministry’s commitment to closely monitor and support the implementation of the project, considered an exemplary initiative for the coffee sector.
Finance State Minister Semereta Sewasew described the project as a strategic investment in Ethiopia’s economic future. She emphasized that coffee is more than a commodity for Ethiopia; “it is part of our national identity and a pillar of our economy.” She expressed gratitude to the Italian government for financing the project, labeling it a testament to the strong partnership between Ethiopia and Italy.
Italian Agency for Development Cooperation Head Michele Morana remarked that the project is a significant milestone in the coffee sector value-chain and demonstrates the government’s strong commitment to the sector. “We are not simply launching a project today. We are laying the foundation for long-term transformation, resilience, and prosperity for Ethiopia,” he stated.
Coffee is a cornerstone of Ethiopia’s economy, with more than 5 million households relying primarily on coffee as a source of livelihood. It accounts for a major share of the country’s total goods export earnings. Over the past five years, Ethiopia has seen tremendous growth in coffee exports, with the country targeting earnings of 2 billion USD in the current Ethiopian fiscal year.