The Italian Government has invested €10 million (US$10.91 million) in Ethiopia‘s coffee industry to enhance the competitiveness, sustainability, and financial resilience of the sector.
The concessional loan, facilitated through the Italian Agency for Development Cooperation (AICS), is part of the ‘Support Ethiopian Agribusiness Development Operating in the Coffee Value Chain’ project which was launched at an event in Addis Ababa on 18 March 2025.
The project is designed to address industry challenges including limited access to finance, global market fluctuations, and compliance with new international trade regulations such as the European Union Deforestation Regulation (EUDR).
Ethiopia’s Minister of Agriculture, Dr Girma Amente, says coffee is central to Ethiopia’s economy, with financial support is important for sectoral growth.
“Coffee is not just a commodity for Ethiopia – it is a pillar of our economy, supporting millions of farmers and contributing significantly to our foreign exchange earnings,” he says.
“This initiative is a strategic investment that will enable coffee producers and exporters to enhance quality, increase value addition, and ensure global competitiveness.”
The initiative’s launch coincides with the growing global recognition of African coffee, which was declared the first-ever strategic commodity of the African Union in 2024.
Beyond financial support, AICS and the United Nations Industrial Development Organization (UNIDO) have been working closely with Ethiopian stakeholders to drive long-term development in the coffee industry.
In 2021, the organisations partnered with the Ethiopian Coffee and Tea Authority to establish Ethiopia’s first Coffee Training Center, aimed at improving quality standards, processing techniques, and marketing strategies.
In 2022, UNIDO collaborated with the Ethiopian Government on a €10 million (US$10.91 million) project to facilitate credit access for coffee producers and processors to strengthen Ethiopia’s role in the global coffee market.
According to Michele Morana, Director of AICS in Addis Ababa, the new concessional financing is designed to de-risk private investment in Ethiopia’s coffee sector, helping businesses secure funding while ensuring sustainability compliance for international markets.
“Ethiopia’s coffee industry is at a turning point. This initiative provides the financial backbone needed to support farmers, exporters, and small businesses, ensuring they can compete on a global scale,” he says.
The Ethiopian Government, in collaboration with industry stakeholders, has developed a roadmap for coffee sector reform focused on value addition, improving access to finance, ensuring sustainability standards, and encouraging private-sector investment.
