Status
ImplementationAid type
Project-type interventionsEthiopia
Location
-
€ 2,000,000
Committed
Committed
€ 1,500,000
Used
Used
Description
The intervention’s primary objective is the development of the coffee sector in Ethiopia. This intervention aims to contribute to support the private sector operating in the coffee value chain, to become a real engine of sustainable economic growth and wealth creation. Following the official request received from the Ethiopian Coffee and Tea Authority (ECTA), the present project has been developed with the objective to increase volumes, quality and the value of Ethiopian coffee. Coffee, and the coffee value chain, fit within the framework of the existing agro-processing clusters within the Integrated Agro Industrial Parks (IAIPs) which are presently built in Amhara, Oromia and Sidama. Value addition through processing will also increase the quality of coffee products both for internal and export markets. This project follows up and capitalizes on lessons drawn from the Italian Development Cooperation funded UNIDO initiatives “Improving the Sustainability and Inclusiveness of Ethiopian Coffee Value Chain through Private and Public Partnership (AID 11003), with a contribution of respectively EUR 2.5 M for technical assistance. The initiative, formulated in close cooperation with local and international public and private stakeholders, operationalizes a risk sharing business model. In this context, the general strategy will be based on facilitating access to finance, through the establishment of a specific credit line dedicated to funding investment proposals selected for their high impact on the coffee sector as well as on the social and environmental context. The project will minimize investment risk by establishing a responsive framework, in cooperation with public and private counterparts, to enable the 7 development of private sector initiatives operating in the Ethiopian coffee value chain. The present project will be implemented thanks to a EUR 10 M soft loan from the Italian Government to the Ethiopian Government (Ministry of Finance - MoF) for the establishment of one credit line - managed by the Commercial Bank of Ethiopia (CBE). The line will be dedicated to facilitate access to finance to selected investment project proposals. The selected business proposals will have the opportunity to easily access credit at a limited interest rate and a percentage of foreign currency. To complement the credit component, the Italian Agency for Development Cooperation (AICS) will provide a grant of EUR 2 M to UNIDO for technical assistance. Moreover, this intervention will also support the Ethiopian Coffee and Tea Authority (ECTA) with the aim of ensuring the continuous improvement and full sustainability of the Ethiopian Coffee Training Center (CTC) – set up and developed by the ECTA through the previous UNIDO project funded by AICS (AID 11003) - and promote the international recognition of the Ethiopian coffee sector.
read more
close
| Year | Committed | Used |
|---|---|---|
| 2024 | € 0 | € 500,000 |
| 2023 | € 1,000,000 | € 0 |
| 2022 | € 1,000,000 | € 1,000,000 |
Agency
| Type | Name | Channel code |
|---|---|---|
| Government | AICS - Italian Agency for Cooperation and Development | 11000 |
Channel reported
| Type | Name | Channel code |
|---|---|---|
| Multilateral | UNIDO - ORGANIZZAZIONE DELLE NAZIONI UNITE PER LO SVILUPPO INDUSTRIALE | 41123 |
Project data
Sectors
Policy markers
SDGs
-
-
-