• Huichuan Freeze-Dried Health Food plans to invest in a large-scale coffee processing plant in Ethiopia.

• The project aims to produce premium instant coffee using advanced freeze-drying technology for export markets.

• Ethiopia seeks to increase local value addition in a sector that generated $2.65 billion in exports in 2024/2025.

China’s Huichuan Freeze-Dried Health Food plans to invest in Ethiopia’s coffee processing industry through the construction of a large-capacity industrial plant. Wang Shuiyong, the company’s president, announced the plan after a meeting with Adugna Debela, Director General of the Ethiopian Coffee and Tea Authority (ECTA), held on Wednesday, March 25 in Addis Ababa.

According to Ethiopian Business Review, the project will introduce advanced freeze-drying technology to produce premium instant coffee for international markets. The ECTA said the initiative confirms the growing attractiveness of Ethiopia’s coffee sector for Chinese investors.

“We are witnessing a transformative trend where many Chinese investors are registering to enter our coffee sector,” said Adugna Debela.

However, the parties have not yet disclosed the investment cost, plant location, or processing capacity. Nevertheless, the project could increase the share of processed coffee in Ethiopia’s export mix if implemented.

According to the U.S. Department of Agriculture (USDA), Ethiopia exports nearly all of its coffee beans in unprocessed form, limiting the sector’s ability to capture higher value.

At the end of the 2024/2025 fiscal year, Ethiopia exported 470,000 tonnes of coffee beans and generated $2.65 billion in revenue. The performance marked a record and reinforced the country’s position as Africa’s leading coffee exporter.

This article was initially published in French by Stéphanas Assocle

Adapted in English by Ange J.A de Berry Quenum