It was a recent phenomenon in late 2019 the government of Ethiopia and the Alibaba Group entered into a partnership to promote cross border trade with the Electronic World Trade Platform (EWTP) led by Chinese e-commerce platform Alibaba. This partnership recently saw the introduction of Ethiopian coffee upon the TMAll Global platform. About this development FDRE, President Sahlework Zewde invited Chinese coffee traders and consumers to enjoy the flavor and quality of Ethiopian Coffee and strengthen bonds between the two countries.
In another sequel of events, the third China International Import Expo (CIIE) entertained the Ethiopian government's emphasis on China's ever-growing e-commerce sector to market our coffee to access a bigger, previously unreachable pool of customers. In the expo Ethiopian Ambassador to China Teshome Toga also emphasized the parallel significance of digital commerce platforms in reshaping the traditional coffee business model, allowing deals with more money, fewer tariffs, and better policy support.
In this regards, Ethiopian coffee farmers have long exported raw beans at a high cost, due to their low added value character and transportation fees, which ate away revenues. The profit margins of coffee growers stood at less than 10 percent.
However, through digital platforms, Ethiopian farmers can now make $12 per kilogram of coffee beans, 4 more dollars than what they used to earn.
But it's not just Ethiopian traders and farmers who will make the most from the use of electronic trade. Chinese consumers, one of the most tech-savvy shoppers out there, are also benefiting from a wider range of products at competitive prices.
In all of these developments, our offices in China Guangzhou, Hong Kong, and South Korea are taking a closer expert look in bringing precise digital trade interventions and in harnessing the lucrative Asian coffee market.