• Sixteen Dutch companies visited Ethiopia to explore investment opportunities in the horticulture value chain.

• The mission focused on floriculture, fruits, vegetables, logistics, and agricultural technology.

• The visit was organized with support from the Embassy of the Kingdom of the Netherlands.

• Meetings were held with Ethiopian government institutions and private sector stakeholders.

• Ethiopia promoted investment incentives, including tax benefits and access to industrial parks.

• Discussions highlighted opportunities in cold-chain logistics and export-oriented production.

• The initiative aims to strengthen trade ties and attract foreign direct investment into Ethiopia’s agriculture sector.

Why it matters

The mission signals renewed European investor interest in Ethiopia’s horticulture sector, supporting export diversification, technology transfer, and foreign currency generation for the economy.

• Ethiopia earned $6.76 billion export revenue in first 8 months of FY 2025/26

• Export performance achieved 101% of government target

• Coffee exports generated over $1.5 billion, leading all commodities

• Gold exports exceeded $1 billion, driven by increased deliveries

• Oilseeds and pulses contributed over $1.2 billion combined

• Horticulture exports surpassed $500 million, showing steady growth

Why it matters?

Stronger export performance improves forex liquidity, easing import constraints and supporting trade, logistics, and industrial supply chains in Ethiopia.

• African Continental Free Trade Area creates market of 1.3 billion people
• Combined GDP of AfCFTA countries estimated at over $3.4 trillion
• Intra-African trade currently accounts for about 15–18% of total trade
• AfCFTA aims to eliminate tariffs on 90% of goods
• Non-tariff barriers remain major constraint to trade expansion
• Private sector identified as main driver of cross-border trade growth
• Logistics, financing, and infrastructure gaps limit participation
• SMEs represent over 80% of businesses across Africa
• Trade facilitation reforms required to increase intra-African trade share
• Ethiopia positioning to benefit through export diversification efforts

Why it matters?

A 1.3 billion market with $3.4 trillion GDP offers scale, but low intra-African trade (15–18%) shows untapped potential. Private sector participation is critical to unlocking AfCFTA benefits.

• Insurance pressure is intensifying, with costs up 35pc and war-risk cover being withdrawn from key routes.

• Djibouti banned retroactive freight surcharges on cargo loaded before Iran war escalation 

• Order issued by Djibouti Ports Authority dated March 10, 2026 

• Shipping lines had begun charging up to $2,000 per TEU surcharge 

• Directive separates pre-war cargo from higher-risk post-war shipments 

• Policy aims to prevent spillover of geopolitical risk costs into existing trade flows 

• Ethiopia relies on Djibouti corridor for over 90% of external trade (contextual dependency)

• Measure protects importers from unexpected cost escalation and contract disputes

Why it matters?

This decision stabilizes freight costs on Ethiopia’s main corridor, limiting sudden logistics inflation. It directly protects importers, truck operators, and LC-based trade flows from war-driven pricing shocks.

• Mohan Plc completed Ethiopia’s first merchant trade transaction through the Dire Dawa Free Trade Zone on March 22, 2026. 

• The transaction shipped kitchenware from Spain directly to India, while documentation and banking were processed in Ethiopia. 

• The Dire Dawa Free Trade Zone launched in August 2022 and operates outside Ethiopian customs jurisdiction. 

• Under the zone’s framework, goods entering the facility are not treated as imports into Ethiopia. 

• The model allows Ethiopian firms to earn foreign exchange from third-country trade without using domestic resources or importing into Ethiopia. 

• An exporter cited missed deals about five years ago because Ethiopia lacked transferable letter of credit rules. 

• The missed transactions included paradise seeds with a $3 per kg margin and purple tea with a $4 per kg margin. 

Why it matters?
This opens a new foreign-exchange earning channel for Ethiopian firms through service-based trade rather than only domestic production exports. For traders, banks, logistics operators, and free-zone investors, it signals a broader role for Ethiopia in regional and global trade intermediation.

• Coffee export earnings approach $3bn, up from about $1.4bn–$1.5bn in prior years
• Export volumes increased, exceeding 300,000 tonnes, driven by improved supply and pricing
• Global coffee prices declined after peaking, with futures falling from recent highs
• Brazil expected to produce over 60 million bags, increasing global supply
• Coffee accounts for over 30% of Ethiopia’s total export earnings
• FX inflows from coffee support import financing and reserve accumulation
• Price decline risks could reduce export earnings despite higher volumes

Why it matters?

Coffee drives a large share of Ethiopia’s FX inflows, directly financing imports. A global price decline, despite higher export volumes, could reduce FX availability, affecting trade balance, logistics demand, and import capacity.

• Global coffee prices declined sharply in 2026, triggering financial risk for Ethiopian exporters holding inventories.
• Exporters face losses as current prices fall below previously held stock purchase price levels.
• Coffee generates over $1 billion annually, remaining Ethiopia’s top foreign exchange earner.
• Large volumes of unsold stock increase exposure to price volatility and liquidity pressure.
• Authorities warn continued hoarding could amplify sector-wide financial losses.
• Exporters urged to release stocks immediately to limit further price-driven losses.

why it matters?

With over $1 billion in annual export value, price declines and stockpiling risks can significantly reduce Ethiopia’s FX inflows and strain exporter finances.

Ethiopia Pulses, Oilseeds Export Sector Faces Tax and Logistics Constraints

• Ethiopia exported 707,000 tonnes of pulses, generating USD 575 million during the current fiscal year.
• Oilseeds exports reached 363,000 tonnes, generating about USD 330 million in revenue.
• Pulses exports achieved about 95% of annual targets, according to Ministry of Trade and Regional Integration.
• Oilseeds exports reached 66% of the government’s annual export target.
• Exporters raised concerns over new tax rules, logistics costs, and port clearance delays affecting shipments.
• Meeting between exporters and the Ministry of Trade was held 7 March 2026 to address sector challenges.

Why it matters?

Pulses and oilseeds are among Ethiopia’s major non-coffee agricultural exports. Lower oilseeds export performance and rising logistics and tax costs could affect foreign currency earnings and export competitiveness.

• Ethiopia targets $3 billion in coffee export revenue this fiscal year. 

• Government plans to export 600,000 tonnes of coffee during the fiscal year. 

• First six months exports reached 200,000 tonnes, generating $1.35 billion. 

• Export volume achieved 74% of planned target despite strong revenue performance. 

• Authorities say some exporters withheld stock expecting higher prices or currency gains. 

• Government coordinating with Ethiopian Coffee and Tea Authority and regional bodies to prevent hoarding. 

Why it matters?
Coffee accounts for a major share of Ethiopia’s export earnings. Achieving the $3 billion target is critical for foreign exchange supply, while delayed shipments could affect export volumes and global market reliability. 

• Ethiopia generated $288 million from horticulture exports.

• Export revenue covers flowers, fruits, and vegetables.

• Earnings recorded during the current fiscal reporting period.

• Sector contributes to foreign exchange inflows.

• Export volumes supported by commercial farms and smallholder producers.

• Horticulture remains a key non-traditional export segment.

Why it matters?
$288 million in earnings strengthens FX supply and supports Ethiopia’s export diversification strategy.

• Ethiopian Airlines signed import document for food waste conversion project.

• Project aims to process organic waste into sustainable products.

• Initiative targets waste from airline catering and related operations.

• Equipment to be imported for waste processing and value-added production.

• Project supports circular economy and resource efficiency objectives.

• Implementation expected to reduce waste disposal volumes.

Why it matters?

• Reduces operational waste costs and supports industrial recycling value chains.

• Ethiopia generated USD 62 million from meat exports in the first six months of the fiscal year.

• Exporters shipped about 11,000 tons, below the 12,000-ton six-month target.

• Saudi Arabia and United Arab Emirates remained primary export destinations.

• Qatar agreed to resume meat imports starting during Ramadan after suspension.

• Industry reported USD 57 million earnings from 11,000 tons, below the USD 62 million target.

• Meat Producers and Exporters Association cited limited investment in feed and by-product processing.

• Endemic livestock diseases restrict access to United States and Asian markets due to certification requirements.

Why it matters?
Meat exports generated up to USD 62 million in six months but missed volume and revenue targets. Feed instability, disease control gaps, and market access barriers continue affecting export performance and foreign currency earnings.

• Deal focuses on coffee development in Debeka, Abaya Woreda, West Guji Zone, Oromia region.

• Agreement includes quality systems, workforce capacity-building, and technical support for coffee value chain.

• Signed one day after Ethiopia–Brazil Trade and Investment Forum in Addis Ababa on Feb 6, 2026.

• Ethiopian government will follow up and support effective implementation of the partnership.

• Presence at signing included Brazilian ambassador and Embrapa president.

• Kerchanshe currently exports coffee seedlings to over 20 countries.

  
  

Why it matters?

The agreement establishes a formal technology and research cooperation framework between Ethiopian coffee sector firms and a major Brazilian agricultural research institution, potentially influencing coffee production quality and productivity in Ethiopia’s flagship export sector.