Ethiopia tightens coffee export rules with higher capital thresholds, stricter quality standards 

ETHIOPIA – The Ethiopian Coffee and Tea Authority (ECTA) has implemented a new directive increasing capital requirements and introducing stricter quality standards for coffee exporters.  

The move is designed to enhance accountability, curb illegal practices, and professionalize Ethiopia’s vital coffee sector. 

Under Directive 1106/2025, private coffee exporters must now hold a minimum capital of Birr 15 million, up from Birr 1 million. Trade associations and larger companies, including joint stock and limited liability firms, face a capital increase from Birr 1.5 million (US$10,391.97) to Birr 20 million (US$138.6K).  

ECTA said earlier regulations were insufficient to prevent misuse of competence certificates and ensure market transparency. 

The directive also requires all exporters, except farmer-exporters, to operate an ECTA-certified coffee laboratory and employ a qualified taster holding at least a diploma and a renewed proficiency certificate. Each taster can work for only one coffee dispatcher, strengthening oversight and traceability. 

While some industry stakeholders welcome the move, others have expressed concern that higher thresholds may favor larger players and reduce competition. Nevertheless, experts believe the directive could raise professionalism and quality standards across the sector. The regulations took effect last week, reshaping the country’s coffee export landscape. 

Meanwhile, Ethiopia’s Ministry of Agriculture reported that the coffee industry generated US$2.7 billion in revenue during the last fiscal year.  

Production reached 1.2 million tons, with 467,000 tons exported—an increase compared to fewer than 200,000 tons five years ago. 

Agriculture Minister Addisu Arega said initiatives such as the Green Legacy program, which promotes mass planting of coffee seedlings, have contributed to higher production levels.  

Research institutions are also developing new coffee varieties to boost yields and address threats such as plant diseases and changing weather conditions. 

Coffee supports the livelihoods of more than 20 million Ethiopian farmers and remains central to the country’s economic growth and export strategy. 

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