Ethiopia Raises Capital Requirements for Coffee Bean Exporters

According to Ethiopian media reports on September 13, 2025, the Ethiopian Coffee and Tea Authority has recently issued new regulations significantly raising the capital requirements for engaging in coffee export business.

Under the latest Coffee Marketing and Quality Control Directive, the minimum registered capital for individual exporters has been adjusted to 15 million birr (approximately RMB 790,000), while joint-stock and private limited companies are required to have 20 million birr (approximately RMB 1.05 million). This is the second capital increase issued by the Authority this year, following a previous adjustment from 1.5 million birr to 10 million birr.

The new rules require all exporters to submit proof of bank creditworthiness and disclosure of shareholding structure in order to obtain a business license. Officials from the Authority stated that the adjustment is intended to “more accurately reflect the current realities of the coffee market.” The directive also stipulates that exporters must be equipped with an officially certified coffee quality testing laboratory (except for those who also operate plantations), and that quality inspectors must hold professional qualifications and may not work simultaneously for multiple exporting firms.

Reportedly, exporters who violate the directive will face a temporary three-day suspension for rectification, and those failing to comply within the period will have their export licenses permanently revoked.

Authority officials emphasized: “Since the liberalization of the birr exchange rate last year, coffee prices have surged, and exporters now need more funds to conduct local procurement and international trade. The new regulation also aims to curb speculative behavior—many non-professional exporters took advantage of the situation by buying coffee either for resale in the domestic market at huge profits or for short-term exports to gain access to foreign currency quotas before exiting the market. Raising the capital threshold is meant to eliminate such practices that disrupt market order.”