The AfCFTA presents a historic opportunity to deepen intra-African trade and reduce reliance on extra-continental intermediaries. However, tariff reductions alone are insufficient. Non-tariff barriers (NTB), regulatory misalignment, logistics inefficiencies, limited market intelligence, and weak buyer-supplier linkages and trust continue to constrain direct trade flows.

The Ethiopia–Algeria coffee trade case reflects a broader structural challenge in intra-African trade, characterized by limited direct market access, insufficient understanding of destination market requirements, weak adaptation of branding and packaging to specific markets, limited availability and utilization of African trade finance instruments, and persistent gaps in trade facilitation and customs coordination. Collectively, these constraints hinder the development of efficient and competitive trade linkages between African economies and limit the ability of businesses to fully benefit from the opportunities created under the single continental trade frameworks.

Algeria is one of the largest coffee-consuming markets in North Africa[2] and strengthening direct sourcing from Ethiopia presents significant mutual benefits. Establishing more direct trade linkages would improve price competitiveness for Algerian importers while increasing export earnings and value retention for Ethiopian exporters. It would also enhance traceability and quality control across the supply chain, reinforce intra-African trade partnerships, and serve as a practical demonstration of the benefits and opportunities created under the African Continental Free Trade Area (AfCFTA).

It is against this background that the present assignment proposes to organize a dedicated Ethiopia–Algeria Coffee Trade Facilitation Activity, designed to bring together public and private sector stakeholders from both countries to address the bottlenecks identified above and to seize the opportunities arising under the AfCFTA. Such an activity offers a timely and strategic platform to facilitate structured business-to-business (B2B) and business-to-government (B2G) dialogues, while bringing together key stakeholders such as regulators, trade finance institutions, logistics providers and quality control agencies. It also provides an opportunity to showcase Ethiopian products beyond coffee, including agro-processing and to negotiate pilot direct supply agreements that can strengthen long-term commercial partnerships. Algerian businesses would also explore with their Ethiopian counterparts potential market opportunities for their products, including pharmaceuticals and agricultural products such as olive oil. In addition, the use of digital B2B matchmaking platforms and online trade facilitation tools will help maintain engagement between buyers and suppliers beyond the Coffee Trade Facilitation Activity. 

A specialized and well-prepared business facilitation, rather than just participation or general engagement in a trade fair or forum, is needed to ensure that outcomes go beyond visibility and hopefully result in tangible trade deals between the two countries. These efforts would help Ethiopian exporters, especially coffee exporters, to establish direct links with Algerian buyers and reinforce commercial partnerships while also laying the foundation for broad-based two-way trade relationships between Ethiopia and Algeria under the AfCFTA. Ultimately, this will increase bilateral trade.