In a regulatory shift aimed at improving professionalism in the coffee export sector, the Ethiopian Coffee and Tea Authority has planned to raise the minimum capital requirement for obtaining a coffee exporter qualification certificate from Birr 1.5 million to Birr 15 million, a tenfold increase.

The adjustment is part of broader reforms designed to ensure that only well-qualified and knowledgeable individuals or organizations participate in Ethiopia’s critical coffee trade. Ato Gizat Worku, General Manager of the Ethiopian Coffee Association, explained that the previous low capital threshold had allowed many to enter the market solely in pursuit of quick profits, without sufficient understanding of the sector.

“This has led to persistent problems between suppliers and exporters within the country, and between exporters and international buyers,” Ato Gizat said. He emphasized that coffee exporting is not just about making quick money, but requires an in-depth understanding of pricing, quality, and processing.

While Ethiopia follows the principles of a free market, where competition is meant to reward the capable, Ato Gizat noted that this principle has not functioned effectively in the coffee industry. “The market should distinguish the successful from the unsuccessful, but that hasn’t been happening in this sector,” he remarked.

The new directive also mandates that applicants must submit a bank-certified document showing at least one year of financial activity. Moreover, exporters who receive the qualification certificate must begin operations within a year. If they are unable to do so due to reasons beyond their control, they must submit evidence to the Coffee and Tea Authority for review.

The Authority stated that the revised regulations will come into effect after the current coffee harvest season concludes.

Source: Sheger FM 102.1