Feds Push for Product Prestige While Global Market Profits Elude Local Producers

Jun 8 , 2025. By AMANUEL BEKELE ( FORTUNE STAFF WRITER )

Federal authorities are pushing ahead with an ambitious plan to institutionalise Geographical Indications (GIs), a legal framework designed to link product quality and origin. Launched through a partnership between the Ethiopian Intellectual Property Authority (EIPA) and the World Intellectual Property Organisation (WIPO), the initiative marks a landmark moment for Ethiopia’s export strategy and rural development.

According to Innovation & Technology Minister, Belete Molla, geographical indications go beyond mere legal classifications. They serve as strategic development tools that leverage identity-based branding to spur economic transformation. Woldu Yimesel, director of the EIPA, reinforced the Minister's message, stating that GI certification could open new trade routes, enhance product pricing, and promote job creation locally.

The Authority handles most GI-related work, and provides training and awareness programs involving multiple intersted parties, which are planned after the legal groundwork is completed.

The two-day conference held last week at the Skylight Hotel, on Africa Avenue (Bole Road), brought together local producers, policymakers, business leaders, and international experts to discuss a path toward implementing a comprehensive Geographical Indication (GI) protection system. Participants reviewed a draft proclamation for GI, a legal framework defining clear distinctions between geographical indications and trademarks. The bill would establish collective and non-transferable rights, introduce formal opposition and appeals processes, and mandate detailed specifications to guarantee consistent product quality and traceability.

GI certification ensures that a product's quality, reputation, or other notable characteristics are directly linked to its geographical source. Globally recognised products, such as Champagne from France, Parmigiano Reggiano cheese from Italy, and Darjeeling tea from India, illustrate the benefits, with these items typically commanding price premiums of up to 50pc higher due to GI protection.

Goods such as Yirgacheffe coffee, Adaa Teff, honey from Tigray Regional State, spices, and traditional hand-woven textiles are prime candidates for GI certification.

Experts argue that GI certification could boost the pricing power of producers, build lasting brand loyalty, and improve global competitiveness. These protections can stimulate rural tourism, attracting visitors interested in authentic cultural and agro-tourism experiences tied closely to the products' geographic origins.

However, despite its promising potential, the aspiration toward a fully functioning GI system is not without problems. Sisay Bogale, chairperson of the Gamo Farmers Fruit & Vegetable Cooperative Union, identified critical obstacles such as high transportation costs and inadequate structured monitoring, both of which could compromise the full realisation of GI benefits.

According to Adugna Debela, director general of the Ethiopian Coffee & Tea Authority (ECTA), existing difficulties in clearly identifying and differentiating coffee beans produced in geographically adjacent regions may lead to consumer confusion.

Others view the GI system as an essential strategy to rebalance power dynamics within the coffee market, reducing monopolies and addressing the role of middlemen.

"We haven't met all the requirements yet," admitted Hussein Ambo, president of the Ethiopian National Coffee Association (ENCA), praising ongoing research collaborations with academic institutions.

Hawassa University is developing precise specifications for Sidama Coffee, with similar efforts underway at Jimma, Haromaya, and Dembi Dolo universities for coffees from their respective regions. According to Hussien, each specification book is detailed and tailored to ensure product authenticity. However, he is troubled by the issue of "widespread mislabeling," whereby sellers inaccurately market coffees from one region as originating from another.

"While exporters and traders can operate freely," he said, "they should act transparently and ethically."

The Oromia Coffee Farmers' Cooperative Union (OCFCU), representing over half a million farmers, has independently pursued certifications based on organic practices and specific geographic locations. Its General Manager, Dejene Dadi, disclosed that the certifications are not part of the formal GI framework, but they have helped the Union access international markets. He acknowledged that for a cooperative as large as OCFCU, the cost and effort involved in GI registration would be carefully considered, especially in the short term.

Dejene identified climate change and increasing labour costs as ongoing barriers.

Yet, many believe that legal infrastructure would not be sufficient. Lidet Abebe, an intellectual property lawyer, noted that Ethiopia already has established laws covering trademarks, copyrights, and patents. According to her, there is a need to study successful international examples of GI systems to enhance enforcement capabilities.

"The law gives producers the right to fight misuse and counterfeiting," she said. "But, without local enforcement capacity, these rights are difficult to exercise."

The experts dealing with intellectual property rights acknowledged persistent gaps. While they argue that awareness and technical consultations are improving, adherence to precise specifications remains inconsistent among some producers, which risks compromising quality assurance and credibility. For Tadesse Worku, lead executive on geographical indications at the EIPA, the issue is not limited to registering products.

"It's about upholding the standards that justify GI status," he said.

Another expert at the EIPA, Samson Tesfaye, a trademark examiner, stated the need for improved public understanding of the distinctions between trademarks and geographical indications. Unlike trademarks, which are individually owned, GIs represent a collective regional identity that cannot be bought or sold.

WIPO's Alexandra Grazioli sees Ethiopia's considerable potential, attributing the importance of a robust GI system to protecting the country's global brand identity, reducing reputational risks, and shielding producers from imitation. According to Grazioli, effective GI labelling requires products to bear their place of origin explicitly, with intrinsic qualities inseparably linked to that locale.

PUBLISHED ON Jun 08,2025 [ VOL 26 , NO 1311]