The Ethiopian Coffee and Tea Authority (ECTA) has introduced a new directive raising capital requirements for coffee exporters, aiming to curb illegal practices and professionalize the sector.

Under Directive 1106/2025, private exporters must now hold a minimum capital of Birr 15 million, up from 1 million. Trade associations and companies like joint stock and limited liability firms face an increase from Birr 1.5 million to 20 million. ECTA said previous regulations were inadequate for ensuring accountability, particularly in preventing misuse of competence certificates.

The directive also mandates that all exporters, except farmer-exporters, operate an ECTA-certified coffee lab and employ a qualified taster with at least a diploma and renewed proficiency certificate. Each taster can only serve one coffee dispatcher.

While some industry veterans support the move, others voice concern. Experts agree the directive could enhance professionalism but caution that it risks limiting the market to larger players, potentially reducing competition. The directive took effect last week, reshaping Ethiopia’s coffee export landscape.

Source: Capital Ethiopia