Huichuan Yongyu Supply Chain Management Service Co., Ltd., a coffee processing firm based in China’s Henan Province, has moved to formalize its expansion into Ethiopia. The company signed a Memorandum of Understanding (MoU) with the Ethiopian Investment Commission (EIC) to develop an integrated coffee industrial park, signaling a shift from preliminary investment interest to project implementation.
The agreement follows discussions between EIC Deputy Commissioners Dagato Kumbe and Zinabu Yirga and executives from the Chinese firm. The proposed facility is designed to process Ethiopian coffee beans into higher-value products before export, a move that aligns with the government's broader economic strategy to reduce reliance on raw bean exports and increase foreign exchange earnings.
During the meeting, EIC Deputy Commissioner Dagato Kumbe highlighted that while Ethiopia generated over US$3 billion from coffee exports in the 2018 Ethiopian fiscal year, the sector's potential is constrained by a lack of domestic processing. He noted that the planned industrial park is intended to accelerate the country's coffee industrialization agenda and improve its standing in global supply chains.
Huichuan Chairman Wang Shuiyong, who previously met with the Director General of the Ethiopian Coffee and Tea Authority, Adugna Debela (PhD), in March 2026, has indicated that the project will incorporate advanced freeze-drying technology. The company has operated a similar coffee processing park in Henan Province since 2019, where it has already been processing Ethiopian coffee for the Chinese market.
The Ethiopian Investment Commission has committed to providing the necessary institutional support and investment facilitation to assist in the development of the industrial park. Further details regarding the project's timeline and location are expected to emerge as the implementation phase progresses.
