Addis Ababa – September 14, 2025 – (Qahwa World) – The Ethiopian Coffee and Tea Authority (ECTA) has announced sweeping changes to the country’s coffee export regulations, significantly increasing the minimum capital required for exporters. The move, introduced under Directive 1106/2025, aims to professionalize the sector, reduce malpractice, and ensure higher quality standards in Ethiopia’s leading export industry.
Private coffee exporters must now hold a starting capital of 15 million birr, up from just 1 million birr — a 15-fold increase. Trade associations and corporate entities such as joint stock and limited liability companies face an even steeper jump, from 1.5 million birr to 20 million birr, more than 13 times the previous threshold. ECTA stated that previous rules were inadequate to monitor exporters and prevent the misuse of certificates of competence.
In addition to higher financial requirements, all exporters — except farmer exporters — are now obligated to establish an ECTA-certified coffee laboratory for basic quality testing. They must also employ a qualified coffee taster with at least a diploma and a renewed proficiency certificate, with each taster restricted to serving only one dispatcher.
The decision has divided stakeholders. Veteran exporter Semachew Ababu welcomed the directive, saying it would “refine the market” by filtering out under-funded players and ensuring greater consistency in quality for international buyers.
But smaller businesses voiced concerns. Entrepreneur Sosena Desalegin criticized the sudden hike, calling it “impossible to raise that much money overnight for a new business,” warning that it could stifle new entrants and competition.
Independent experts acknowledged the directive’s goal of curbing illegal practices but cautioned against the unintended consequences. “It may limit the sector to a few large players, which is not healthy for long-term growth and diversification,” one expert observed.
The new guidelines came into effect this week and are expected to reshape Ethiopia’s coffee export market, potentially concentrating power in the hands of larger companies while tightening quality controls across the sector.
