New Rules Tighten Capital Thresholds for Ethiopian Coffee Exporters
Ethiopia's Coffee and Tea Authority has issued new regulations that significantly raise the capital requirements for coffee exporters. Individual exporters must now have at least 15 million birr, while joint-stock and private limited companies need 20 million birr. This is the second increase this year, following a rise from 1.5 million to 10 million birr. Exporters must also submit proof of bank creditworthiness and disclose their shareholding structure to obtain a business license.
The directive also mandates that exporters have an officially certified coffee lab module for professional testing, unless they operate plantations. Quality inspectors must hold professional qualifications and cannot work for multiple firms. Violations can lead to a three-day suspension or permanent license revocation. Officials say the changes aim to reflect market realities, curb speculation, and ensure that exporters have sufficient funds for procurement and international trade.
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.”
The above content is compiled by CoffeeHunters, a coffee news website.
