Political Connections Shield Illicit Coffee Traders In Ethiopia, Study Alleges
A new study alleges that corruption and political connections in Ethiopia's coffee sector allow illicit traders to bypass regulations and sanctions. The report warns that these systemic issues threaten the economic stability of the industry and the livelihoods of smallholder farmers.
Why it matters
The coffee industry is a vital economic pillar for Ethiopia; corruption within it has significant implications for international trade and local poverty reduction.
A new study of southwest Ethiopia’s coffee sector alleges that politically connected traders benefit from selective law enforcement, fragmented regulation, and weak accountability, allowing illicit shipments to evade sanctions while smallholder farmers face mounting economic and land pressures.
The report, published by the Rift Valley Institute (RVI) as part of the Ethiopia Peace Research Facility’s Knowledge for Peace series, examines the political economy of production and trade across the Kaffa, Bench-Sheko, and Sheka zones of the Southwest Ethiopia Peoples’ Region. Written by Dubale Gebeyehu Genbezo and drawing on 47 in-depth interviews, the study argues that corruption and informal power networks have become deeply embedded in sector governance, influencing land allocation, licensing, trade enforcement, and export market access.
“Corruption in the context of the Kaffa–Bench-Sheko–Sheka belt is on another dimension. That is, it functions as a mode of governance, not an aberration,” the study states.
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