The coffee industry, long a symbol of national pride and a vital source of foreign exchange, is undergoing a sweeping regulatory overhaul, stamping out systemic abuse and restoring global trust in exports.

The Ethiopian Coffee & Tea Authority (ECTA) has introduced a slate of new rules under an amended Coffee Marketing & Quality Control law, signalling an assertive shift away from years of lax oversight. The amendment raises financial barriers for new entrants, mandates quality control protocols, and digitises the licensing regime to curb forgery and malpractice. Officials say the measure is overdue and critical to salvaging Ethiopia’s coffee brand abroad.

“We aren't doing this for bureaucracy’s sake,” said Kassahun Geleta, ECTA’s post-production lead. “These are the bare minimums for a healthy and transparent market.”

He stated that the digital system for applications is not yet fully operational, but it will be launched soon.

"People need to understand this is basic and necessary," Kassahun said.

The directive tightens entry into the export business with sharp increases in capital requirements. Individual exporters should now present proof of 15 million Br in a certified bank account and at least a year of verifiable financial activity. Business associations and private limited companies face a 20 million Br threshold and have to demonstrate a more robust financial record. While the changes apply only to new applicants, industry veterans say it is a long-overdue correction.

“There are people who don’t even know they have a license,” said Israel Degefaw of the Ethiopian Coffee Exporters Association.

He describes a regime that allowed paper exporters to divert high-quality beans meant for global markets to the domestic scene, chasing higher local prices and skirting scrutiny. The “export diversion” has ballooned into a corrosive force in the sector. With per capita consumption now at 2.3Kg and local prices surging during seasonal shortages, incentives for illegal diversion are stronger than ever. In 2023/24 alone, 775tns of export-grade coffee, worth 100 million Br, were seized after being rerouted to domestic buyers.

"Honestly, it is a little late," Israel said. "But this is for the country's good."

Determined to stem the tide of forgery and regulatory arbitrage, ECTA is digitising its application system. The new platform promises paperless submissions, QR-coded certification, and enhanced surveillance of exporters and cuppers, the professionals responsible for grading coffee. While not yet fully online, the system is a core pillar of the Authority’s modernisation push. Under the revised law, exporters are required to run certified labs and employ licensed cuppers, each restricted to serving only one exporter to avoid conflicts of interest. New exporters have 12 months to operationalise post-certification or face suspension.

Also banned are shell arrangements, where individuals or entities hold multiple export licenses under different guises. This rule targets market manipulation and seeks to close loopholes that have long enabled fly-by-night operators.

Despite the bold rhetoric and reforms, not all stakeholders are persuaded of the law’s efficacy. Critics argue that the directive skirts deeper structural failings, most notably, financial exclusion and volatile profitability.