ADDIS ABABA– The Ethiopian National Coffee Association (ENCA) highlighted the significant impact of foreign businesses entering Ethiopia’s retail market, promoting quality coffee production and boosting hard currency generation.
Speaking to the Ethiopian Press Agency (EPA), ENCA President Hussein Ambo (PhD) stated that the influx of foreign investors into the country’s retail market marks a milestone for enhancing coffee export trade and increasing forex earnings. He noted that this development helps produce standard coffee for the international market, fetching higher prices.
According to Hussein, this initiative alleviates the burden of producing quality coffee, which is currently shared among farmers (40%), suppliers (40%), and exporters (20%), while also addressing forex challenges. The entry of foreign businesses offers an opportunity for coffee-producing communities to supply natural and specialty coffee to international auctions, connecting producers with potential global buyers and benefiting both coffee farmers and the nation.
The president emphasized that, aside from improving the quality and marketability of Ethiopian coffee, the presence of foreign investors would enhance producers’ productivity with efficient inputs and advanced coffee processing techniques, ultimately increasing coffee yield. He pointed out that the policy measure plays a crucial role in producing high-standard coffee and overcoming the shortcomings of substandard coffee products in the global market.
“Over 5.2 million smallholder coffee farmers produce about 93% of green coffee beans, with owners of large-scale coffee plantations producing the remaining 7%,” Hussein stated. He added that this move incentivizes farmers to improve their production and quality, potentially clearing their farm debts and improving their socio-economic livelihoods.
The president further emphasized the need for close collaboration with farming communities to yield high-end coffee and establish market linkages, driving positive change in the sector.
It is noteworthy that the Ethiopian Investment Commission has recently endorsed a directive allowing foreign investors to participate in the import, export, wholesale, and retail trade businesses, paving the way for significant advancements in Ethiopia’s coffee industry.
BY ASHENAFI ANIMUT
The Ethiopian herald July 14/2024
