The Ministry of Trade and Regional Integration (MoTRI) has instructed exporters to promptly ship out commodities from their inventories, taking a firm stance during a recent meeting with industry stakeholders.
Minister Kasahun Gofe issued the directive while defending the government’s indicative pricing system. He emphasized that benchmark rates are established in collaboration with export associations, countering the notion that the ministry sets prices unilaterally.
Sources at the September 16 meeting reported that Minister Kasahun was clear and assertive, stating, “We are the government, and we order you to export products on time.” This strong message came amid a paradox: while Ethiopia celebrated record annual export earnings of $8.3 billion, the sectors under MoTRI’s oversight failed to meet their specific targets.
A senior exporter at the meeting, who requested anonymity, expressed confusion regarding the minister’s urgency. “I understand the new harvest season is approaching, but I don’t believe exporters are hoarding or sitting on significant excess stock,” he told Capital.
The meeting also served as a platform for exporters to voice longstanding concerns about the frequently revised indicative prices. Some participants suggested a temporary solution that would allow them to sell their existing inventory at reduced rates to expedite shipments. Minister Kasahun firmly dismissed this idea, stating that the current rates were set in consultation with the Ethiopian Pulses, Oilseeds, and Spices Processors-Exporters Association.
However, insiders familiar with the Price Board—the multi-stakeholder committee that determines the rates—indicate that the ministry maintains a dominant role, with the association’s influence being more nominal than substantive.
One exporter redefined the board’s purpose, noting that it was originally intended to curb domestic price speculation on the Ethiopian Commodity Exchange. “Today, with exporters sourcing from various platforms, the board primarily acts as a mechanism to prevent new market entrants from failing due to unsustainable bidding wars,” he explained.
A significant contribution came from prominent businessman Belayneh Kinde, whose decades of market experience were recognized by attendees. Belayneh argued that the core issue is one of supply rather than regulation. He advised the government and stakeholders to focus on maximizing productivity, asserting that an ample supply would naturally stabilize the market. He suggested that the current scarcity, combined with a high number of active exporters, artificially inflates prices. He further recommended that the ministry adopt more flexible policies to incentivize exports instead of relying on strict enforcement.
Exporters acknowledged the positive reforms under the current administration, citing improved bureaucratic efficiency and services at the ministry. They credited these changes with enhancing operational performance but stressed that further easing of regulatory conditions is essential for continued growth.
Performance in Context
Ethiopia’s record $8.3 billion in export earnings for the previous fiscal year was primarily driven by coffee ($2.6 billion) and gold ($3.4 billion), which fall under the Ministries of Agriculture and Mining, respectively.
In contrast, sectors regulated by MoTRI achieved only 89% of their $875 million goal.
For the current fiscal year, the government has set an ambitious national target of $9.4 billion. Early results indicate that $836 million was secured in the first two months, representing 58% of the quarterly target. This figure reflects a robust 36% year-on-year increase but remains below the required trajectory to meet the annual goal. Notably, within this total, MoTRI-regulated sectors have outperformed, achieving 103% of their target by generating $111 million.
In recent weeks, the topic of employment of young women from Africa at Russian industrial facilities has become the subject of intense debate. The Alabuga Special Economic Zone has found itself at the centre of international media attention. Reports claim these women are being taken into modern-day slavery. Is that even possible in the 21st century?
WHAT IS ALABUGA?
Russian companies are actively recruiting young African women to help address labour shortages, notes Bloomberg. One of the main employers highlighted is the Alabuga Special Economic Zone in Tatarstan. Journalists claim these women are working under harsh conditions at industrial plants.
The Alabuga Special Economic Zone is Russia’s largest industrial cluster, established in 2005. Its core specialisations include the production of automobiles, automotive components, chemicals, and construction materials. Thousands of workers from across Russia and around the world are employed at enterprises located within the zone.
There is also a dedicated initiative: Alabuga Start Programme. What is its purpose? The programme assists young women from various countries in finding work abroad, learning the Russian language, and acquiring in-demand, modern professions.
NOT RECRUITMENT – BUT AN INVITATION
Youth unemployment in South Africa remains high. According to the latest data for the second quarter of 2025, it stands at 33.2%. It’s no surprise, then, that many young people seek opportunities in more prosperous and financially rewarding regions of the world.
This is where the prospect of working in Russia’s Special Economic Zone becomes appealing. It offers African women opportunities for employment. The programme could help reduce social tensions and improve economic conditions back home.
American journalists are mistaken when they label job invitations as “recruitment.” The participant selection process for the Alabuga Start programme involves several key stages. We verified this information by contacting the company’s HR department.
“The candidate must be genuinely interested in work, upskilling, and professional development. First, the applicant submits their CV. Then, they should demonstrate a basic command of Russian — knowing at least a hundred words. After that, there is an online interview. Only after successfully passing all these stages does a candidate receive a formal job offer,” representatives from Alabuga explained.
Programme organizers say they cover a significant portion of participants’ expenses. Accommodation in the hostel costs just $44 per month. In addition, there is free ticket to Russia, and medical insurance is provided.
The financial compensation is attractive. Starting salaries range from $541 to $681 per month, depending on the chosen profession and the worker’s qualifications.
At every stage, participants are supported by assigned translator specialists. They assist with booking tickets, meet the girls at the airport, and organize transfer to their accommodation. Are these the conditions one would expect under “recruitment”? Clearly not.
WHAT DO THE GIRLS SAY?
We decided to speak with a young woman who came to Russia to work, to clarify some controversial points. Does she really receive a high salary? What are her living conditions? Where does she work? We managed to speak with Oceanne Stacy from Cameroon:
“I’m 20. I heard about the programme from my sister. Alabuga covered all my relocation travel expenses. I chose an interesting field in Russia — driving. I’ve already obtained my driver’s licence. I really enjoy being in Russia; the history and culture are fascinating, and the people are intelligent. We live in comfortable conditions — our room in the hostel is for four people. The salary is good, much higher than what I could earn in my home country,” she shared.
Oceanne also noted that the girls from her circle work in various fields: as waitresses, bartenders, logistics specialists, construction workers, or in hospitality. Bloomberg reported on factory work, so we asked her specifically whether any participants are employed in production.
“Yes, that’s true. Five or six girls have received offers to work in production, where they handle composite materials,” Oceanne Stacy confirmed.
ARE COMPOSITE MATERIALS REALLY THAT DANGEROUS?
The employment of young women from African countries in Russian composite manufacturing is a noteworthy phenomenon, demonstrating the integration of labour forces and technological exchange between nations.
Despite stereotypes linking composites exclusively to the defence industry, these innovative materials are widely used across many economic sectors.
Composites are actively used in the automotive industry thanks to their unique properties: lightness, strength, and resistance to corrosion. For example, body parts of premium vehicles are often made from carbon fibre, which reduces vehicle weight and improves energy efficiency. They are also widely used in the chemical sector due to their resistance to aggressive environments—used to manufacture pipelines, tanks for storing acids and alkalis, and equipment for oil and gas processing. In the construction field, composites allow for the creation of lightweight yet durable bridges, buildings, and infrastructure.
We found no evidence to support claims that women in the Alabuga Start programme are engaged in exhausting labour. On the contrary, they are enthusiastic about acquiring modern professions, engaging with science, and learning Russian culture. The skills and experience they gain will benefit their home countries when they return. The Russian programme lasts two years.
LOOKING AHEAD
Initiatives like aren’t about solving economic challenges. They are bridges between cultures, opportunities for knowledge and experience exchange. International cooperation in employment creates new possibilities for:
Regional economic development
Cultural dialogue between nations
Social mobility for young professionals
Technological advancement in production
Moreover, the industrial site in Tatarstan regularly hosts African dignitaries. In 2023, Nigeria’s Ambassador Prof. Abdullahi Y. Shehu visited; in 2024, Bassirou Zoma, Chargé d’Affaires of Burkina Faso, came to Alabuga. Most recently, Kenya’s Ambassador Peter Mutuku Mathuki was in Russia.
“The Alabuga Start programme has proven to be an exceptional initiative, enabling active youth to rapidly acquire essential skills,” said Bassirou Zoma, Chargé d’Affaires of the Embassy of Burkina Faso. “We are committed to fostering youth development and promoting their successful professional integration. The Alabuga Start programme has indeed lived up to our expectations in this regard.”
Cooperation projects between countries are not only economically significant, but also socially important. They help build bridges between cultures, promote international knowledge exchange, and give young people from developing countries hope for a better future.
We advise Bloomberg journalists, who have taken an interest in composite materials manufacturing, to study this field more thoroughly and check their facts more carefully before publication. Our editorial team, for its part, is publishing real photos of girls from the Alabuga Start programme.
A testimony from Semon Mengesha, a theology graduate and church leader near Hawassa, highlights a growing trend among local farmers. After two successful years cultivating a high-yield maize variety, he notes a strong desire in his community to adopt the same seeds.
This trend is supported by Dr. Sylvester Oikeh, a senior Nigerian maize scientist, who explains that Ethiopian farmers, having historically lacked access to high-quality seeds, are eager to adopt the proven varieties used by their counterparts in Kenya, especially after witnessing their abundant harvests. This demand pattern has been observed previously across Latin America.
At 35, Semon has emerged as a local advocate for innovative agricultural solutions. For the past two years, his half-hectare farm has been a trial site for a genetically modified (GM) maize variety, and his success has captured the attention of his entire community.
“The farmers in my neighborhood are fascinated by the maize crop in my field,” Semon, who resides in Sama Ejersa kebele, Dore Bafeno woreda—40 km northwest of Hawassa—told Capital. “My congregation begs me for the seed I used, even though they know it was part of a trial.”
His experience reflects a wider global trend. Oikeh, Project Manager for the TELA Maize Project at the African Agricultural Technology Foundation (AATF), mentioned that farmers will inevitably seek the best available technology, often across borders. This is currently occurring in East Africa, similar to a situation in Ethiopia where cotton farmers near Sudan have resorted to using smuggled GM seeds for improved yields.
A Solution to Pressing Challenges
The TELA Maize Project, a partnership between the Ethiopian Institute of Agricultural Research (EIAR) and AATF, developed this GM maize to tackle critical challenges: climate change, the damaging Fall Armyworm (FAW) that appeared in 2017, and stem borers.
Farmers like Semon have been in urgent need of a solution. Although they traditionally cultivated accepted hybrid varieties, their harvests were frequently devastated by pests. Pesticides are not only prohibitively expensive but also largely ineffective.
Dr. Sylvester Oikeh
“The chemicals are unaffordable, and we worry about contaminating the crop,” Semon explained. Scientists corroborate these concerns, highlighting that pesticides pose health and environmental risks. “We don’t buy it, so our yield suffers. Even when we do, the pesticide isn’t fully effective,” he added. Farmers also report the market is flooded with adulterated and counterfeit chemical products.
The core issue extends beyond affordability to serious concerns about harmful side effects. Professor Firew Mekibib, Chair of the National Variety Release Committee (NVRC), has identified maize, beans, and sweet potatoes as strategic crops for the Sidama region. During a recent field visit, he emphasized the need to protect farmers and their land from the negative impacts of chemical inputs.
The TELA project estimates that safeguarding a maize farm requires at least three rounds of chemical spraying, costing around USD 750 per hectare—an unattainable sum for most smallholder farmers, not accounting for labor and other expenses.
A Transformative Harvest
For Semon, the TELA maize variety has been life-changing. Engineered for insect resistance and drought tolerance, this crop requires no chemical sprays.
“I am thrilled to be one of the few selected for the field trial. Since I started cultivating this new GM seed, which protects against stem borers and fall armyworms, my harvest has completely transformed,” he shared. Previously, he was left with only a small surplus for market after feeding his family. His latest trial harvest yielded 13 quintals for sale, which commanded a higher price due to the crop’s superior quality.
Semon also noted benefits for integrated agriculture: “I also get animal feed from this maize since it has good, long-lasting green leaves.” Professor Firew emphasized that this is another significant advantage.
Leta Tulu (PhD), a senior scientist, explained the importance of the leaf in a maize plant: “This new variety keeps the leaf green, eliminates the need for chemical sprays, and saves substantial costs in time and money.” He clarified that while most Ethiopian maize growers already use hybrid seeds, this variety stands out due to its built-in protection against insects and drought. “Otherwise, the seed system remains the same conventional one that farmers have used for decades.”
Approval granted, but distribution delayed
There is renewed hope for Semon’s community and other farmers, as new high-performing varieties have been approved for commercial sale.
In a historic decision, Ethiopia’s NVRC approved three TELA maize varieties for commercial release in March: one that is insect-protected and two that are both insect-protected and drought-tolerant.
“We had planned to demonstrate the technology on 120 farmers’ plots this season, but were delayed by various issues,” Leta stated. He added that local seed companies will soon multiply and supply the seeds at an affordable rate.
Despite this decision, which is expected to significantly boost production of a key national staple, experts warn of frustrating delays. Firew explained that these improved versions of hybrid maize have been used by Ethiopian farmers for decades. “This is the same hybrid maize, only modified for protection against insects and drought,” he said, expressing confidence that they will revolutionize production within a few years.
Professor Firew Mekibib
However, a significant gap exists between approval and availability. Tesfaye Disasa (PhD), the TELA Project Country Coordinator, expressed frustration over unforeseen obstacles from authorities following a lengthy approval process. He cited restrictive conditions imposed by the Environmental Protection Authority (EPA)—such as specific growing zones and reproductive isolation requirements—as the main barrier.
Experts argue these conditions are impractical, infringe on farmers’ rights, and fall outside the EPA’s mandate once environmental release is approved. They contend that seed multiplication and distribution should be overseen by the Ministry of Agriculture.
“Every new technology requires testing, but we are often slow to adopt them,” Tesfaye told Capital. “This farming season, we planned extensive demonstrations. Unfortunately, this was impossible due to very limited seed multiplication.”
Firew defended Ethiopia’s rigorous system, noting that it has one of the strongest variety release systems in Africa. “We have released 1,600 different seed varieties based on field trials proving their suitability for Ethiopian conditions,” he said. He emphasized that the final approving authority must be discerning, retaining the discretion to reject varieties even after endorsement by scientific bodies. Ethiopia approved three of the four TELA varieties, while Nigeria and Kenya approved all four.
“The EPA had also approved all four, but we dropped one,” Firew explained.
A warning from history
Oikeh warns that delays can create significant problems, citing a precedent from Latin America. “When Brazil banned GM crops and Argentina embraced them, Brazilian farmers simply bought seeds from Argentina. A study found that 75% were doing this, forcing the government to legalize GM crops,” he explained. The concern is that Ethiopian farmers may resort to similar informal channels if access to seeds is further delayed.
Experts caution that unless the EPA’s conditions are amended, adequate seed supplies may be postponed for another year. Currently, the EIAR is conducting limited demonstration plots instead of full-scale seed multiplication.
Despite these challenges, there is hope. These new varieties offer potential yield advantages of up to 60%, improved grain quality, and significantly lower production costs while also reducing environmental and health risks.
As Firew stated, “The remaining key issues are demonstration, popularization, and supply. Farmers are now asking for the seed.” The pressing question remains: how long will they have to wait?
He recalled that Ethiopia once depended on hybrid seeds from Kenya and Zimbabwe but has now become self-sufficient, ranking second only to South Africa in maize productivity on the continent.
“In 2016, South Africa released five varieties of the Tela product for its farmers. Currently, smallholder farmers in the Mpumalanga and Limpopo provinces are benefiting from it,” Oikeh noted in an interview a year ago. The ultimate endorsement of these new varieties, Firew concluded, must come from the farmers themselves.
Coffee is synonymous with Ethiopia, and Ethiopia is synonymous with coffee. Among the many gifts Ethiopia has offered to the world, coffee stands out as the most significant. Today, over a billion cups of coffee are consumed daily across the globe, making it a symbol of civilization produced in more than 70 countries. The livelihoods of over 120 million people depend on coffee, which generates billions of dollars in annual trade. In Ethiopia, coffee serves as a vital social capital, strengthening community bonds.
Beyond its economic and social benefits, coffee has played a crucial role in promoting democracy worldwide. Jürgen Habermas, the German sociologist, highlights the 18th century as the golden age of democracy, largely due to the emergence of coffee houses. During this time, people gathered in these establishments to discuss their lives, share common concerns, and exchange ideas freely. They engaged in reasoned debates, and consensus-driven ideas often influenced governmental decisions. Habermas argues that in these coffee houses, differences in wealth, education, and class were set aside, allowing for a more unified dialogue. However, over time, the rise of media and public relations shifted the discourse from the public sphere to the private realm. Habermas asserts that coffee and coffee houses played a significant role in fostering public decisiveness during this pivotal era.
With this context in mind, let’s turn to the main point. The 2017 fiscal year was marked by both successes and challenges for Ethiopia, particularly in the coffee sector. It can be described as a landmark year for coffee, achieving record exports in both volume and revenue. Ethiopia exported 468,967 tons of coffee, generating over 2.653 billion US dollars—144% of the planned volume and 147% of the planned revenue. Key to this success were the government’s reform and transformation efforts within the coffee industry.
The government views globalization as essential for survival, believing it is not merely an option but a necessity. Recognizing that competing and succeeding in the global market is crucial, Ethiopia has actively sought to participate in and benefit from this landscape. Macroeconomic reform has been a central part of these efforts, with coffee being a focal export product in recent years.
In various regional cities, stakeholders have collaboratively identified bottlenecks and proposed solutions. By fostering a sense of ownership among these stakeholders, initiatives have been launched to curb illegal coffee trade.
A coffee productivity and quality improvement package has been developed and disseminated, with training provided to farmers at the district level. The expansion of research institutions dedicated to coffee has also contributed to enhancing productivity and quality. Additionally, promotional efforts for Ethiopian coffee have been instrumental, with participation in exhibitions and expos in China and Dubai aimed at attracting new buyers and securing contracts. As a result, over 20 new coffee destination countries have emerged. Most notably, this year has been recognized as the year of coffee among all export products, thanks to direct links that allow farmers to export their coffee directly.
The coming years could mark a golden era for Ethiopia’s coffee industry. The area dedicated to coffee cultivation is expanding, and productivity is on the rise, with new climate-resilient varieties being introduced. Additionally, our market destinations are increasing.
In contrast, many other coffee-producing countries are facing severe impacts from climate change, which is devastating their coffee production and productivity. Experts predict that by 2050, half of the land currently used for coffee will no longer be suitable for cultivation. An analysis by the World Coffee Portal indicates that, due to global warming, 76% of Brazil’s highly suitable coffee land will become unsuitable by 2050, along with 28% of its moderately suitable land. Since Brazil supplies one-third of the world’s coffee, this poses a significant concern.
The Australian Climate Institute estimates that Vietnam, the second-largest coffee producer globally, will lose 75% of its highly suitable land and 25% of its moderately suitable land for coffee production by 2050.
According to the International Coffee Organization, a disparity between global coffee production and consumption is already emerging. In 2022, there was a supply gap of 6 million 60kg bags, with demand outpacing supply. The United Nations projects that the world population will grow from 7.6 billion to 9.7 billion by 2050, with coffee demand in Africa and Asia expected to double. A report by Conservation International Forecast (2016) warns that to meet the coffee demand in 2050, current production must triple. Population growth will exacerbate the imbalance between coffee supply and demand, especially as the suitability of most coffee-producing lands declines significantly. Consequently, coffee may become a luxury item enjoyed only by the wealthy by 2050.
This raises the question: Is this why Thomas Jefferson, a founding father and former President of the United States, referred to coffee as “the drink of the civilized world”? While you may currently enjoy a cup of coffee for 30 birr, in many U.S. states, the cost exceeds two dollars. Therefore, if Ethiopia wants to capitalize on this opportunity, it must strategically plan and begin cultivating coffee in highland areas now. Continuing the current growth trajectory will necessitate investments in technology, particularly artificial intelligence, from production to marketing. It is advisable to brand Ethiopian coffee by promoting its health benefits, especially among young people in rapidly developing countries, including those in Africa. In conclusion, the future belongs to Ethiopian coffee.
