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Support Ethiopian agribusiness development operating in the coffee value chain




Aid type

Project-type interventions




€ 2,000,000
€ 1,000,000


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
2023 € 1,000,000 € 0
2022 € 1,000,000 € 1,000,000


Type Name Channel code
Government AICS - Italian Agency for Cooperation and Development 11000

Channel reported

Type Name Channel code

Project data

  • IATI IdentifierXM-DAC-6-4-012510-01-0
  • CRS Activity identifier2022000179
  • AID012510/01/0
  • Planned start 2022/06/01
  • Planned End 2025/05/31
  • Actual start 2022/12/23
  • Actual end -
  • Bi/Multilateral Bilateral
  • Status Implementation
  • Tied status Partially tied


  • 11110 - Education policy and administrative management 4.0%
  • 24030 - Formal sector financial intermediaries 77.0%
  • 25030 - Business development services 15.0%
  • 31110 - Agricultural policy and administrative management 4.0%

Policy markers

  • Gender Equality not targeted
  • Participatory Development/Good Governance significant objective
  • Trade Development principal objective


  • 17.1 - Strengthen domestic resource mobilization, including through international support to developing countries, to improve domestic capacity for tax and other revenue collection
  • 17.3 - Mobilize additional financial resources for developing countries from multiple sources
  • 5.5 - Ensure women’s full and effective participation and equal opportunities for leadership at all levels of decision-making in political, economic and public life
  • 8.1 - Sustain per capita economic growth in accordance with national circumstances and, in particular, at least 7 per cent gross domestic product growth per annum in the least developed countries
  • 8.2 - Achieve higher levels of economic productivity through diversification, technological upgrading and innovation, including through a focus on high-value added and labour-intensive sectors
  • 9.3 - Increase the access of small-scale industrial and other enterprises, in particular in developing countries, to financial services, including affordable credit, and their integration into value chains and markets