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Regulations - Financial

Oromia has introduced a new 5% levy on each Kg of coffee bought for export

Jan 20, 2026
Oromia has introduced a new 5% levy on each Kg of coffee bought for export


  1. Oromia Regional State has imposed a 5% levy on coffee beans sold for export. 

  2. The 5% fee applies to every kilogram of coffee bought from farmers for export. 

  3. The levy affects over 4,000 coffee producers in the region. 

  4. Oromia accounts for nearly 79% of Ethiopia’s total coffee exports

  5. The levy is tied to benchmark prices set by the Ethiopian Coffee & Tea Authority. 


    The implications for exporters:

  • Higher costs: The new 5% levy directly raises procurement costs per kilogram.

  • Margin pressure: Exporters must absorb the fee or pass it on, reducing competitiveness.

  • Pricing risk: Higher export prices may weaken demand in price-sensitive markets.

  • Cash-flow strain: Upfront fees increase working capital requirements.

  • Supply distortion: Exporters may seek non-Oromia sources or informal channels to avoid the levy.