Ethiopia’s coffee exporters expect China’s expanded zero-tariff policy for African goods to further boost their trade with the world’s second-largest economy.
China on Friday began implementing expanded zero-tariff treatment for imports from all 53 African countries with which it has diplomatic relations.
The move builds on Beijing’s Dec. 1, 2024 decision to scrap tariffs on 100 percent of tariff lines for 33 least-developed countries in Africa. The new policy extends the treatment to relatively better-off African countries.
Ethiopia’s exports to China have grown significantly in recent years, with annual export values now exceeding half a billion U.S. dollars. Coffee, one of Ethiopia’s key exports, has played a critical role in driving that growth.
"China is one of the fastest growing coffee markets, especially for Ethiopian markets. It was, five, six years ago, a very small quantity, 2,000 to 3,000 tons. Now it is above 50,000 tons per year exported to China," said Seid Omer, managing director of Tracon Trading PLC, one of Ethiopia's leading coffee exporters.
Tracon Trading PLC alone exported more than 10,000 tons of coffee to China in 2025.
Omer said he is optimistic that the new zero-tariff policy will further accelerate growth, benefiting coffee farmers, exporters and the country at large.
"Ethiopian coffee goes to China, it is zero (tariff). It would be cheaper to buy Ethiopian coffee. This means, Ethiopian coffee and African coffee in China market will grow. Exporters will demand more coffee from the farmers, then farmers have the ability to increase some prices, so it is great news for the farmers, great news for Ethiopia, great news for exporters," said Omer.
Despite growing exports, Ethiopia’s trade balance with China remains heavily skewed in China’s favor, and experts say the new policy could help narrow the gap while strengthening existing investment and trade partnerships between China and Africa.
"One way to overcome this trade deficit from the perspective of African economies is exporting African goods to the Chinese economy free of tax, free of tariffs. So the zero tariff announced by the Chinese government will improve the trade balance. China is offering a real option and a real alternative for African economies in terms of exporting their goods, and this further strengthens the already existing bilateral partnership between Africa and China, and of course, African member states and China on individual basis," said Dejene Mamo, a researcher in finance and political economy.
China is a leading source of foreign direct investment (FDI) in Ethiopia, accounting for almost 50 percent of the country’s FDI inflows.
Ethiopia expects zero-tariff policy to boost coffee exports to China
