East Africa: Ethiopia Reaps Record Coffee Export Revenues Following Sector Reforms

27 July 2025
The Ethiopian Herald (Addis Ababa)

ADDIS ABABA - Ethiopia has registered a historic surge in coffee export revenue, earning 2.65 billion USD from 469,000 tons of coffee exported during the concluded 2017 Ethiopian Fiscal Year, according to the Ethiopian Coffee and Tea Authority (ECTA).

This performance exceeded the government's initial target of 2 billion USD from 400,000 tons and represents a significant leap from the previous fiscal year (2016), during which the country earned 1.4 billion USD from 300,000 tons of exported coffee. The export volume increased by 169,000 tons and revenue rose by a remarkable 1.25 billion USD year-on-year.

ECTA Director General Adugna Debela (PhD) attributed this milestone to comprehensive reforms introduced under Prime Minister Abiy Ahmed's administration. "Prior to the reforms, Ethiopia's annual coffee export revenue hovered between 600 and 700 million USD. This transformation is the result of policy changes that enhanced production, ensured quality, and expanded access to international markets," he told Ethiopian Press Agency (EPA).

The reform-driven approach included expanding market destinations, improving logistics, empowering farmers, and encouraging the export of value-added coffee products. "We are now working to shift from exporting raw coffee to processed forms like roasted and ground beans," Adugna added, noting that regulatory frameworks are being strengthened to support this transition.

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Japan, Germany, Belgium, Saudi Arabia, and the United States remain Ethiopia's top five coffee importers. However, China has emerged as a major buyer in recent years, climbing into the top five after previously being a marginal market. Ethiopia now exports coffee to more than 66 countries, with the top ten buyers accounting for over 76% of total exports.

According to Adugna, Ethiopian coffee commands a premium price globally due to its exceptional flavor and quality. "Many countries use Ethiopian coffee as a flavor enhancer for their blends. While Brazilian coffee is purchased in bulk for low prices, Ethiopian coffee fetches higher prices because of its unique attributes," he explained.

The director also emphasized the importance of empowering coffee farmers. "Previously, producers were often forced to sell their harvests at the farm gate. Now, thanks to changes in agricultural policy, farmers can obtain export licenses and directly sell their coffee to international buyers," he said.

To support this, the Authority has been issuing export certificates to qualified producers, enabling them to access global markets without intermediaries a step expected to further enhance rural incomes and the overall competitiveness of Ethiopian coffee.

THE ETHIOPIAN HERALD SUNDAY EDITION 27 JULY 2025

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