Investment opportunities

Coffee Roasting, Grinding and Packaging

Project Description
  • Establishment of a plant for the production of roasted and grinded coffee with a capacity of 309 tonnes per annum
  • The principal raw material is washed green coffee, which is available locally
Value Proposition
  • There is a significantly large local and export demand for the product.The present demand for the proposed product is estimated at 2,968 tonnes per annum.The demand is expected to reach at 4,751 tonnes by the year 2020
  • The total investment requirement is estimated at about Birr 8.59 million,out of which Birr 1.33 million is required for plant and machinery. The plant will create employment opportunities for 33 persons
  • The project is financially viable with an internal rate of return (IRR) of 18.90 % and a net present value (NPV) of Birr 10.82 million, discounted at 8.5%
  • The project will create a backward linkage effect with coffee plantations. The establishment of such plant will have a foreign exchange earning effect by exporting its product to the global market
  • The total area for the envisaged plant is 1500 sq. m .The built up area is estimated at 800 sq. m. Out of the total built up area, 450 sq. m will be used for production facility, 250 sq.m for store and 100 sq. m for office building. At a rate of Birr 2300 Birr/ sq. m the cost of building and civil works will be Birr 1,840,000.

Ethiopian Investment Agency