The economic impact of coffee on Ethiopia

Ethiopia and coffee are the two sides of a coin. Ethiopia is the oldest coffee producer, consumer, and exporter in the world. The country ranks top ten in the export of coffee. Total coffee production is about 200,000 tons of clean coffee per year and contributes to 60% of the country’s foreign exchange. Ethiopia is also the second-largest exporter of organic coffee by volume after Peru. There is ample opportunity for the country to increase coffee exports by improving the quality of coffee.

Agriculture is the dominant sector in the national economy of Ethiopia. It accounts for around 90% of foreign exchange and 40% of GDP. Thus the sector is the backbone of the Ethiopian economy. The coffee industry dominates the agriculture sector in its contribution to the national economy in general and the export sector in particular. Coffee is the most important and the backbone of the Ethiopian economy, which accounts for an average of 5% of GDP, 10% of the total agriculture production, and 60% of export earnings. Coffee has always been Ethiopia’s most important cash crop and largest export commodity, accounting for 90% of exports and 80% of total employment.

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