Ethiopian Coffee Shipments Can be Bought Directly by Foreigners, say EIC

Foreign Companies can now purchase Ethiopian Coffee directly from farmers. The Ethiopian Investment Commission (EIC) has issued a new directive outlining that foreign investors can engage in specific trade investments. The new directive allows foreign Investors’ participation in previously reserved businesses including export, import, wholesale, and retail trade investments.

Ethiopian Investment Commission (EIC) Commissioner, Hanna Arayaselassie briefed today the details of the new directive. The new regulation is part of the Ethiopian government’s efforts to liberalize the economy.

Ethiopian Coffee is one of the best in the world. Ethiopia is the biggest coffee producer in Africa. According to the new directive, foreign companies can now buy coffee directly from the farmers and processors. Previously foreign companies like Starbucks, Volcafe, Louis Dreyfus, Olam International, and Sucafina SA had to buy coffee shipments from local businesses.

The new directive encourages foreign investment in export, import, wholesale, and retail trade sectors, which were reserved for domestic investors.

The EIC chief, Hanna Arayaselassie, said that the Ethiopian government wanted local businesses to grow. However, since the government was not getting the expected results from the local companies so it decided to let foreign companies to be involved.

Foreign traders who bought $10 million of coffee each year for the past three years are eligible and can apply for permits to buy coffee directly from Ethiopian farmers.

According to the Ethiopian Coffee and Tea Authority, Ethiopia produced 833,000 tons of coffee in the last season. And Ethiopia is making progress to become the leading grower of coffee in the continent.

Other Stories

Ethiopian Banks Face a Challenge While GDP Grows Faster