TECHNOLOGY AND ORIGIN: THE NEW FRONTIERS OF COFFEE IN ETHIOPIA AND UGANDA

Coffee represents a strategic pillar of Ethiopia’s economy and a defining element of the country’s cultural identity. Ethiopia is Africa’s leading producer of Arabica coffee and one of the world’s most renowned origins for high-quality and specialty varieties, such as Sidama, Yirgacheffe and Harrar. The sector employs more than 15 million people along the value chain and constitutes Ethiopia’s primary source of foreign exchange earnings. A high level of domestic consumption—exceeding 50% of total production—contributes to price stability but also underscores the importance of increasing value addition beyond raw exports.

Recent developments, including rising demand for specialty coffee and the implementation of the EU Deforestation Regulation (EUDR), are accelerating innovation along the coffee value chain. Digital traceability systems, geolocation of farm plots, GIS-based monitoring, and blockchain-enabled supply chain solutions are becoming essential tools to ensure market access, sustainability compliance and transparency. These trends open significant opportunities for technology providers and agribusiness solution developers, particularly from Italy.

Beyond traditional roasting and trading, coffee offers substantial potential for industrial diversification. Coffee-derived bioactive compounds—such as caffeine, antioxidants and coffee oil—are increasingly used in cosmetics, dermocosmetics, pharmaceuticals and nutraceuticals. Ethiopia’s abundant raw material base, combined with the current absence of local industrial processing capacity, creates a strong case for joint ventures in extraction, purification and formulation, targeting both domestic and regional markets. Additional opportunities arise from the valorisation of coffee by-products within a circular economy framework, including biofertilisers, bioenergy, biocomposites and sustainable building materials.

Within the framework of the Italian “Mattei Plan for Africa,” the coffee sector emerges as a flagship platform for integrated cooperation between Italy and Ethiopia. It enables the combination of agricultural development, industrial upgrading, technological innovation and youth employment, while promoting sustainable growth and local value creation. For Italian companies, the Ethiopian coffee sector represents a high-potential entry point for investment, technology transfer and long-term industrial partnerships in East Africa.