An Ethiopian investor is looking to establish a coffee production plant in Lesotho, a move that could boost the country’s agro-processing sector. Afaw Girma Sahilegeberal of J.OIL Coffee Import and Export PLC is exploring the opportunity to help meet the growing demand for coffee in Lesotho and the broader Southern African region.
On February 21, 2025, Sahilegeberal visited the Lesotho National Development Corporation (LNDC), where he was briefed on investment opportunities, particularly in agro-processing. His proposal includes setting up a facility capable of producing 75-130 tonnes of roasted, ground, and packed coffee annually. Lesotho’s current coffee demand stands at approximately 356 tonnes per year and is projected to reach 378 tonnes by 2026. The project could reduce reliance on imports while fostering local production.
The total investment for the project is estimated at 5.93 million Lesotho loti (LSL), with 1.15 million LSL allocated for plant and machinery. If successful, it is expected to create jobs and facilitate skills transfer, offering employment opportunities for many job seekers in the country.
Lesotho’s Ambassador to Ethiopia, Ntsiuoa Sekete, welcomed the growing interest from Ethiopian businesses. She described the development as a promising step in strengthening economic ties between Lesotho and Ethiopia. While the LNDC is conducting due diligence and project assessments, she remains hopeful about the project’s potential.
The Southern African coffee market has been expanding over the past three decades despite the region not being a significant coffee producer. The rise of specialty coffee, sustainability initiatives, and ethical sourcing practices have fueled demand, making coffee production a promising investment.
Sekete also encouraged Basotho entrepreneurs to explore opportunities in Ethiopia as a market or a business partner. She urged local investors to consider coffee processing and exportation to stimulate economic growth in Lesotho.
