The Ethiopian government and the United Nations Industrial Development Organisation (UNIDO) have joined hands to boost efficiency in the coffee value chain.
As part of the cooperation, the Ethiopian Ministry of Agriculture and UNIDO inked a cooperation agreement worth ten million Euros ($9,929,400) to facilitate loans to stakeholders engaged in the coffee value chain, state-affiliated Fanta Broadcasting Corporate (FBC) has reported.
The agreement was signed between Oumer Hussein, Ethiopian Minister of Agriculture and Aurelia Patrizia Calabro, Representative of UNIDO in Ethiopia.
Noting that financial constraints are the major obstacle for Ethiopian coffee exporters, suppliers and producers, Hussein emphasized that the technical and financial cooperation agreement made with the UN agency will alleviate the challenge and boost efficiency in coffee value chain.
Aurelia Patrizia Calabro, on her part, said the cooperation will help to identify and support stakeholders engaged in coffee investment.
Ethiopian Coffee and Tea Authority Director General, Adugna Debela, said that the project was a partnership model that reduces the risk of investments in the coffee sector in Ethiopia.
Debela stressed that the project would play an important part in providing access to low-interest loans to increase the quantity, quality and price of coffee.
He said the project is mainly expected to help coffee producers, suppliers and exporters.
Ethiopia, which is known as the origin of Arabica coffee, is recognised worldwide for its rich coffee quality, variety of flavours and aroma, making the demand for the commodity increase globally.
During the 2021/2022 Ethiopian fiscal year that ended on July 7, the East African country garnered a record $1.4 billion from exporting over 300,000 metric tons of coffee, according to Ethiopian Coffee and Tea Authority.