Africa-Press – Ethiopia. A 10-million-Euro landmark project, which supports the Ethiopian coffee value chain by promoting innovative and impact driven investments, was launched today.
The credit line facility is a concessional loan financed by the Italian government.
Speaking at the launching event, Agriculture Minister Girma Amente said the “de-risking investments” in the Ethiopian coffee value chain represent an exemplary and innovative financing initiative.
Ethiopia has consistently led efforts to improve coffee productivity, quality and market access despite challenges such as climate change, price and volatility, among others, he added.
However, he stated that there is a notable gap in innovative demand driven financial services that can meet the specific needs of the private sector and coffee farming households.
According to him, the de-risking investment funded by the Italian Agency for Development Cooperation supports the coffee sector stakeholders and complements the government’s effort to transform Ethiopia’s coffee sector.
“With the active engagement of Ministry of Agriculture, Ministry of Finance, Ethiopian Coffee and Tea Authority, Commercial Bank of Ethiopia, and our technical and strategic partners, we are confident that the credit line will be effectively managed to ensure that it is utilized in transparent manner.”
The minister affirmed the ministry’s commitment to closely monitor and support the implementation of the project which is considered to be an exemplary initiative for the coffee sector.
On her part, Finance State Minister Semereta Sewasew said the project is a strategic investment in Ethiopia’s economic future.
Coffee is more than a commodity for Ethiopia; “it is part of our national identity and a pillar of our economy,” she noted.
“We are very grateful for the Italian government for financing this project. This project is a testament of the strong partnership between Ethiopia and Italy.”
Italian Agency for Development Cooperation Head Michele Morana said the project is a significant milestone in the coffee sector value-chain and shows the strong commitment of the government for the sector.
“We are not simply launching a project today. We are laying the foundation for long-term transformation, resilience and prosperity for Ethiopia.”
Coffee is a cornerstone of Ethiopia’s economy as more than 5 million households are mainly depending on coffee as a source of livelihood and accounts a major share of the total goods export earnings of the country.
Over the past five years, Ethiopia has seen tremendous growth in coffee exports and the country targets to earn 2 billion USD in the current Ethiopian fiscal year.
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