@EthiopianCoffee – Ethiopian Business Review

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Members of the Standing Committee on Agricultural Affairs of Ethiopia’s House of People’s Representatives have praised Daye Bensa Coffee and Tasty Specialty Coffee PLC for their innovative approach to modernising coffee production during a recent tour of their operations in Addis Ababa.

Committee Chairman, Solomon Lale, commended the two companies for their use of advanced technologies in processing, highlighting the high standards of quality and efficiency they have set. “Daye Bensa and Test Specialty Coffee are leading by example in Ethiopia’s coffee export industry. Their technological advancements and commitment to quality are crucial in elevating the sector,” he remarked.

The MPs noted the positive impact of the Ethiopian Coffee and Tea Authority’s reforms over the past four years, which have helped address long-standing challenges in the coffee sector, especially in quality assurance and stakeholder collaboration. As a result, Ethiopia has seen a noticeable increase in revenue from coffee exports.

During the visit, both companies acknowledged the support provided by the Ethiopian Coffee and Tea Authority but also raised concerns about operational challenges, including power shortages, limited space, and transport access. The MPs assured the companies that these issues would be raised with relevant government bodies for resolution.

Dr Adugna Debela, Director General of the Ethiopian Coffee and Tea Authority, reaffirmed that the Authority’s reform efforts will continue to be consolidated. As part of this, the Authority’s office is undergoing a complete renovation to create a more modern working environment. Additionally, a new helpline will be launched next week to provide vital information to actors throughout the coffee value chain.

Chief Advisor Dr Shafi Umer also presented the Authority’s nine-month performance report, revealing that Ethiopia has earned an unprecedented USD1.5 billion in coffee export revenue this year, further underlining the success of the ongoing reforms.

The Ministry of Transport and Logistics has announced that the Ethio-Djibouti Railway has steadily increased its transportation capacity, with plans to handle 50% of Ethiopia’s export cargo in the near future. The railway has consistently boosted its cargo capacity by 14.2% annually, solidifying its critical role in Ethiopia’s trade infrastructure.

Currently, the railway plays a pivotal part in the export of Ethiopian coffee, transporting 98% of the country’s coffee exports. It also handles a diverse range of goods, from fertilizers and livestock to heavy machinery, buses, and new trucks, showcasing its capacity to manage both multimodal and unimodal container loads.

In addition, the railway is instrumental in transporting perishable goods in containerized form, maintaining quality, and ensuring that products reach foreign markets in optimal condition—vital for safeguarding Ethiopia’s expected income from foreign trade.

Looking ahead, the Ethio-Djibouti Railway Corporation has set ambitious targets. It aims to cover 50% of Ethiopia’s freight transport needs, increase train frequency to 14 trains per day, and enhance the speed of freight trains to 58 km/h. Furthermore, the corporation is moving toward a fully digitalized rail service, focusing on improving operational efficiency and customer satisfaction.

Recent strides include obtaining multimodal operating and freight forwarding licenses, expanding its service offerings, and positioning itself as a key player in Ethiopia’s freight and logistics sector. The railway’s growth reflects not only its expanding capabilities but also Ethiopia’s ongoing efforts to improve trade efficiency and strengthen its position in the global market.

The Ethiopian Coffee and Tea Authority, in collaboration with the Italian government and the Commercial Bank of Ethiopia, has announced a loan aimed at supporting Ethiopian coffee producers, suppliers, and stakeholders across the sector’s value chain, according to the Ministry of Agriculture.

The Italian government has approved a loan of 10 million euros (approximately 10.9 million USD) for the sector, with the Commercial Bank of Ethiopia responsible for administering the funds.

Minister of Agriculture Dr. Girma Amente stated that more than 5 million farmers and traders are involved in Ethiopia’s coffee production value chain. He highlighted that financial constraints remain a major challenge within the coffee sector, and the extended credit service from the Italian government is expected to significantly boost productivity.

He also pointed to the tangible improvements made over the past five years in increasing both coffee production and productivity, underlined by the Green Legacy Program, which has contributed to a rise in the country’s forest cover and the planting of billions of coffee seedlings.

Michael Mora, Director of the Italian Development Cooperation Agency, emphasized that the Italian government’s support reflects a commitment to the joint development efforts between the two nations. He noted that coffee is not only an economic asset for Ethiopia but also a key part of the nation’s identity.

Commercial Bank of Ethiopia President Abe Sano acknowledged the obstacles affecting the coffee sector, including market fluctuations and production challenges. He reaffirmed that Ethiopia has the potential to produce world-class coffee, and cooperation is key to strengthening the sector’s value chain.

MPs Laud Daye Bensa and Tasty Specialty Coffee for Modernising Coffee Production

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Ethiopia Secures USD10.9M Loan from Italy to Boost Coffee Sector’s Growth