ADDIS ABABA – Ethiopia, in collaboration with the Italian government and key stakeholders, has launched A 10 million euros De-Risking Investment Project aimed at strengthening the coffee value chain and improving access to finance for the sector.
The initiative, unveiled yesterday by the Ethiopian Coffee and Tea Authority (ECTA) and the Italian government, is designed to address financial barriers within the coffee industry and enhance its overall value chain.
In his keynote address, the Italian Embassy Mission Deputy Head Luca Carpintieri highlighted the long-standing partnership between Italy and Ethiopia.
“This project is a testament to the deep cooperation between our two countries,” he said.
Luca further emphasized the pivotal role of coffee production and its value chain in Ethiopia’s socio-economic development. Coffee is a major source of income, foreign exchange, and employment, supporting the livelihoods of millions of people in rural areas.
Despite its significance, the coffee sector faces several challenges, including climate change, market volatility, quality issues, outdated farming practices, and a lack of innovation. Italy has committed to helping address these problems through strategic investments and solutions. “Tackling these challenges requires strong collaboration between both the private and public sectors,” said Luca. “No single entity can solve these issues alone. Finance is crucial to realizing the sector’s full potential.”
Agriculture Minister Girma Amente (PhD) acknowledged the progress made in Ethiopia’s coffee sector, noting that over the past five years, the country has experienced significant growth in coffee exports. In the first eight months of this fiscal year alone, Ethiopia generated 1.2 billion USD by exporting 257,000 metric tons of coffee.
“These achievements are a result of reforms and regulatory changes in the sector,” he added. Ethiopia aims to surpass 2 billion USD in coffee export earnings by the end of this fiscal year.
Despite these gains, Minister Girma pointed out that limited access to finance remains a critical challenge. He emphasized that the 10 million euros De-Risking Investment Project is crucial in transforming Ethiopia’s coffee sector by addressing the financial barriers that hinder growth.
This project is expected to play a key role in overcoming these obstacles, supporting the country’s broader goal of boosting farmers’ incomes, increasing coffee production, and optimizing export revenues.
BY TSEGAYE TILAHUN
THE ETHIOPIAN HERALD WEDNESDAY 19 MARCH 2025
