Ethiopia is a landlocked nation of about ninety-four million people in eastern Africa, west of Somalia.
Ethiopia's entire coastline along the Red Sea was lost with the de jure independence of Eritrea on 1993
The Blue Nile, the chief headstream of the Nile by water volume, rises in T'ana Hayk (Lake Tana) in northwest Ethiopia.
Three major crops are believed to have originated in Ethiopia: coffee, grain sorghum, and the castor bean.
Although it is only the tenth largest country in Africa, Ethiopia is the second most populous country on the continent. Nearly a third of the country’s urban population lives in Adis Abeba (more commonly known as Addis Ababa), in the Ethiopian Highlands.
Starting in the mid-1970s, poor agricultural productivity, unemployment, and poverty pushed Ethiopians from the nearby countryside into Adis Abeba, and the city began a period of rapid growth.
Ethiopia's current environmental issues include:
- soil erosion;
- desertification; and,
- water shortages in some areas from water-intensive farming and poor management
Part of the geologically active Great Rift Valley makes Ethiopia susceptible to earthquakes, volcanic eruptions. It also experiences frequent droughts.
Unique among African countries, the ancient Ethiopian monarchy maintained its freedom from colonial rule with the exception of a short-lived Italian occupation from 1936-41.
Eritrea (a Italian colony until World War II which Britain took over administration) was awarded to Ethiopia in 1952 as part of a federation. Ethiopia's annexation of Eritrea as a province 10 years later sparked a 30-year struggle for independence that ended in 1991 with Eritrean rebels defeating governmental forces and independence from Ethiopia in a 1993. As a result, Ethiopia no longer borders the Red Sea and is a landlocked nation.
In 1974, a military junta, the Derg, deposed Emperor Haile Selassie (who had ruled since 1930) and established a socialist state.
Torn by bloody coups, uprisings, wide-scale drought, and massive refugee problems, the regime was finally toppled in 1991 by a coalition of rebel forces, the Ethiopian People's Revolutionary Democratic Front (EPRDF).
A constitution was adopted in 1994, and Ethiopia's first multiparty elections were held in 1995.
A border war with Eritrea late in the 1990s ended with a peace treaty in December 2000.
In November 2007, the Eritrea-Ethiopia Border Commission(EEBC) issued specific coordinates as virtually demarcating the border and pronounced its work finished. Alleging that the EEBC acted beyond its mandate in issuing the coordinates, Ethiopia has not accepted them and has not withdrawn troops from previously contested areas pronounced by the EEBC as belonging to Eritrea
Ethiopian forces invaded southern Somalia and routed Islamist Courts from Mogadishu in January 2007.
"Somaliland" secessionists provide port facilities in Berbera and trade ties to landlocked Ethiopia;
Ethiopia is located in the Horn of Africa and is bordered by Eritrea, Djibouti, Somalia, Kenya, South Sudan, and Sudan. The country has a high central plateau that varies from 1,800 to 3,000 meters (6,000 ft.-10,000 ft.) above sea level, with some mountains reaching 4,620 meters (15,158 ft.). Elevation is generally highest just before the point of descent to the Great Rift Valley, which splits the plateau diagonally. A number of rivers cross the plateau--notably the Blue Nile flowing from Lake Tana. The plateau gradually slopes to the lowlands of Ethiopia's neighbors to the west and the Somali-inhabited plains to the southeast.
The climate is temperate on the plateau and hot in the lowlands. At Addis Ababa, which ranges from 2,200 to 2,600 meters (7,000 ft.-8,500 ft.), maximum temperature is 26o C (80o F) and minimum 4o C (40o F). The weather is usually sunny and dry with the short (belg) rains occurring February-April and the big (meher) rains beginning in mid-June and ending in mid-September.
Location: Eastern Africa, west of Somalia
Geographic Coordinates: 8 00 N, 38 00 E
Area: 1,127,127 km2 (1,119,683 km2 land and 7,444 km2 water)
Eritrea and Ethiopia agreed to abide by the 2002 Eritrea-Ethiopia Boundary Commission's (EEBC) delimitation decision, but neither party responded to the revised line detailed in the November 2006 EEBC Demarcation Statement.
The undemarcated former British administrative line has little meaning as a political separation to rival clans within Ethiopia's Ogaden and southern Somalia's Oromo region.
Civil unrest in eastern Sudan has hampered efforts to demarcate the porous boundary with Ethiopia
Coastline: 0 km (landlocked)
Natural Hazards: geologically active Great Rift Valley susceptible to earthquakes, volcanic eruptions; frequent droughts
Volcanism: Ethiopia experiences volcanic activity in the Great Rift Valley. Erta Ale (elev. 613 m), which has caused frequent lava flows in recent years, is the country's most active volcano. Dabbahu became active in 2005, causing evacuations. other historically active volcanoes include Alayta, Dalaffilla, Dallol, Dama Ali, Fentale, Kone, Manda Hararo, and Manda-Inakir.
Terrain: High plateau with central mountain range divided by Great Rift Valley
lowest point: Denakil Depression -125 metres
highest point: Ras Dejen 4,533 metres
Climate: Tropical monsoon with wide topographic-induced variation
Satellite view of Ethiopia. Source: The Map Library
Topography of Ethiopia. Source: Wikimedia Commons.
Ecology and Biodiversity
Ecorgeions of Ethiopia. Source: World Wildlife Fund
- Simen National Park
- Biological diversity in the Horn of Africa
- Eastern Africa and land resources
- Biological diversity in the Eastern Afromontane
- Eastern Africa and biodiversity
People and Society
Population: 93,815,992 (July 2012 est.)
Ethiopia's population is highly diverse. Most of its people speak a Semitic or Cushitic language. The Oromo, Amhara, and Tigreans make up more than two-thirds of the population, but there are more than 77 different ethnic groups with their own distinct languages within Ethiopia. Some of these have as few as 10,000 members. In general, most of the Christians live in the highlands, while Muslims and adherents of traditional African religions tend to inhabit lowland regions. English is the most widely spoken foreign language and is taught in all secondary schools. Amharic is the official language and was the language of primary school instruction but has been replaced in many areas by local languages such as Oromifa and Tigrinya.
Ethnic Groups: Oromo 34.5%, Amara 26.9%, Somalie 6.2%, Tigraway 6.1%, Sidama 4%, Guragie 2.5%, Welaita 2.3%, Hadiya 1.7%, Affar 1.7%, Gamo 1.5%, Gedeo 1.3%, other 11.3% (2007 Census)
|Areal view approaching into Addis Abeba. Source: Hansueli Krapf/Wikimedia Commons|
0-14 years: 46.3% (male 20,990,369/female 21,067,961)
15-64 years: 51% (male 22,707,235/female 23,682,385)
65 years and over: 2.7% (male 1,037,488/female 1,388,301) (2011 est.)
Population Growth Rate: 3.179% (2012 est.)
Birthrate: 42.59 births/1,000 population (2012 est.)
Death Rate: 10.79 deaths/1,000 population (July 2012 est.)
Net Migration: -0.01 migrant(s)/1,000 population (2012 est.)
Note: repatriation of Ethiopian refugees residing in Sudan is expected to continue for several years; and, some Sudanese, Somali, and Eritrean refugees, who fled to Ethiopia from the fighting or famine in their own countries, continue to return to their homes
Life Expectancy at Birth: 56.56 years
male: 53.99 years
female: 59.21 years (2012 est.)
Total Fertility Rate: 5.97 children born/woman (2012 est.)
Languages: Amarigna 32.7%, Oromigna 31.6%, Tigrigna 6.1%, Somaligna 6%, Guaragigna 3.5%, Sidamigna 3.5%, Hadiyigna 1.7%, other 14.8%, English (major foreign language taught in schools) (1994 census)
Literacy: (age 15 and over can read and write): 35.1% (2003 est.)
Urbanization: 17% of total population (2010) growing at an annual rate of change of 3.8% (2010-15 est.)
Hominid bones discovered in eastern Ethiopia dating back 4.4 million years make Ethiopia one of the earliest known locations of human ancestors. Ethiopia is the oldest independent country in Africa and one of the oldest in the world. Herodotus, the Greek historian of the fifth century B.C., describes ancient Ethiopia in his writings. The Old Testament of the Bible records the Queen of Sheba's visit to Jerusalem. According to legend, Menelik I, the son of King Solomon and the Queen of Sheba, founded the Ethiopian Empire. Missionaries from Egypt and Syria introduced Christianity in the fourth century A.D. Following the rise of Islam in the seventh century, Ethiopia was gradually cut off from European Christendom. The Portuguese established contact with Ethiopia in 1493, primarily to strengthen their influence over the Indian Ocean and to convert Ethiopia to Roman Catholicism. There followed a century of conflict between pro- and anti-Catholic factions, resulting in the expulsion of all foreign missionaries in the 1630s. This period of bitter religious conflict contributed to hostility toward foreign Christians and Europeans, which persisted into the 20th century and was a factor in Ethiopia's isolation until the mid-19th century.
Under the Emperors Tewodros II (1855-68), Johannes IV (1872-89), and Menelik II (1889-1913), the kingdom was consolidated and began to emerge from its medieval isolation. When Menelik II died, his grandson, Lij Iyassu, succeeded to the throne but soon lost support because of his Muslim ties. The Christian nobility deposed him in 1916, and Menelik's daughter, Zewditu, was made empress. Her cousin, Ras Tafari Makonnen (1892-1975), was made regent and successor to the throne. In 1930, after the empress died, the regent, adopting the throne name Haile Selassie, was crowned emperor. His reign was interrupted in 1936 when Italian Fascist forces invaded and occupied Ethiopia. The emperor was forced into exile in England. Five years later, British and Ethiopian forces defeated the Italians, and the emperor returned to the throne.
Following civil unrest, which began in February 1974, the aging Haile Selassie I was deposed on September 12, 1974, by a provisional administrative council of soldiers, known as the Derg ("committee"). The Derg seized power, installing a government that was socialist in name and military in style. It then summarily executed 59 members of the royal family and ministers and generals of the emperor's government; Emperor Haile Selassie I was strangled in the basement of his palace on August 22, 1975.
The Derg's collapse was hastened by droughts, famine, and insurrections, particularly in the northern regions of Tigray and Eritrea. In 1989, the Tigrayan People's Liberation Front (TPLF) merged with other ethnically based opposition movements to form the Ethiopian Peoples' Revolutionary Democratic Front (EPRDF). In May 1991, EPRDF forces advanced on Addis Ababa. Mengistu fled the country for asylum in Zimbabwe, where he still resides.
In July 1991, the EPRDF, the Oromo Liberation Front (OLF), and others established the Transitional Government of Ethiopia (TGE), composed of an 87-member Council of Representatives and guided by a national charter that functioned as a transitional constitution. In June 1992, the OLF withdrew from the government; in March 1993, members of the Southern Ethiopia Peoples' Democratic Coalition left the government.
In May 1991, the Eritrean People's Liberation Front (EPLF), led by Isaias Afwerki, assumed control of Eritrea and established a provisional government. This provisional government independently administered Eritrea until April 23-25, 1993, when Eritreans voted overwhelmingly for independence in a UN-monitored free and fair referendum. Eritrea, with Ethiopia’s consent, was declared independent on April 27. The United States recognized its independence the next day.
In Ethiopia, President Meles Zenawi and members of the TGE pledged to oversee the formation of a multi-party democracy. The election for a 547-member constituent assembly was held in June 1994. The assembly adopted the constitution of the Federal Democratic Republic of Ethiopia in December 1994. The elections for Ethiopia's first popularly chosen national parliament and regional legislatures were held in May and June 1995. Most opposition parties chose to boycott these elections, ensuring a landslide victory for the EPRDF. International and non-governmental observers concluded that opposition parties would have been able to participate had they chosen to do so. The Government of the Federal Democratic Republic of Ethiopia was installed in August 1995.
In May 1998, Eritrean forces attacked part of the Ethiopia-Eritrea border region, seizing some Ethiopian-controlled territory. The strike spurred a 2-year war between the neighboring states that cost more than 70,000 lives. On June 18, 2000, Ethiopian and Eritrean leaders signed an Agreement on Cessation of Hostilities and on December 12, 2000, a peace agreement known as the Algiers Agreement.
Opposition candidates won 12 seats in national parliamentary elections in 2000. In controversial national elections in May 2005, the opposition was awarded 170 of 547 seats but claimed fraud; violence ensued. Ethiopian security forces responded and in the process killed more than 200 people, arrested scores of opposition leaders, as well as journalists and human rights advocates, and detained tens of thousands of civilians for up to 3 months in rural detention camps. In December 2005, the government charged 131 opposition, media, and civil society leaders--including the prominent opposition leader Birtukan Mideksa, a former judge and the vice-chairperson of the opposition Coalition for Unity and Democracy (CUD) party--with capital offenses including "outrages against the constitution." Birtukan was sentenced to life imprisonment, though she and other key opposition leaders and the majority of the 131 arrested were pardoned and released from prison 18 months later. The opposition largely boycotted local elections in 2008 with the result that EPRDF won more than 99% of all local seats.
In June 2008, Birtukan was elected the party chairman of the new Unity for Democracy and Justice (UDJ) party at its inaugural session in Addis Ababa. In October 2008, the Ethiopian Government arrested more than 100 Oromo leaders, accusing some of being members of the outlawed Oromo Liberation Front (OLF). At the end of December 2008, after briefly detaining Birtukan several times during the month, the government re-arrested her, saying she had violated the conditions of her summer 2007 pardon. Her original sentence of life imprisonment was reinstated and she remained in prison until she was pardoned again and released on October 6, 2010.
In April 2009, the Ethiopian Government arrested 41 individuals, mostly Amhara military or ex-military members allegedly affiliated with external opposition party Ginbot 7, for suspected involvement in a terrorist assassination plot of government leaders. The Ginbot 7 party was founded in May 2008 in the United States by Berhanu Nega, one of the opposition leaders in the 2005 elections, and advocates for change in the government "by any means." In August 2009, the Federal High Court found 13 of the defendants guilty in absentia and one not guilty in absentia. In November 2009, the court found another 27 guilty.
In simultaneous national and regional parliamentary elections in May 2010, the ruling EPRDF won more than 99% of all legislative seats in the country. In a tally of the popular vote, 91.95% voted for EPRDF and affiliate parties, while only 8.05% voted for the opposition countrywide. Election day was peaceful as 89% of registered voters cast ballots, but independent observation of the vote was severely limited. Only European Union and African Union observers were permitted, and they were restricted to the capital and barred from proximity to polling places. Although those few independent observers allowed access to the process did not question the EPRDF victory, there was ample evidence that unsavory government tactics--including intimidation of opposition candidates and supporters--influenced the extent of the victory.
Observers declared the 2010 elections not up to international standards because an environment conducive to free and fair elections was not in place. According to observers, the EPRDF used the advantage of incumbency to restrict political space for opposition candidates and activists. At the local level, thousands of opposition activists complained of EPRDF-sponsored mistreatment, ranging from harassment in submitting candidacy forms to beatings by local militia members, and complained further that there was no forum free of EPRDF control to which to present those complaints.
In June 2011, the Ethiopian parliament officially designated five groups as terrorist organizations under Ethiopian law, including the OLF, the Ogaden National Liberation Front (ONLF), Ginbot 7, al-Qaida, and al-Shabaab. Later in 2011, the Ethiopian Government arrested large numbers of activists, journalists, and political leaders for alleged involvement in terrorist activities and charged many of them under Ethiopia's controversial 2009 anti-terrorism proclamation. In December 2011, two Swedish journalists were sentenced to 11 years in prison on charges of entering Ethiopia illegally and allegedly supporting the ONLF.
On January 26, 2012, the Federal High Court sentenced Elias Kifle, a blogger, to life imprisonment in absentia; Zerihun Gebre Egziabhier, Chairman of Ethiopian National Unity Party, to 17 years in prison; Wubishet Taye, deputy editor-in-chief of a local newspaper, to 14 years; Reeyot Alemu, a columnist, to 14 years; and Hirut Kifle, a political activist, to 19 years, for conspiring and attempting to commit terrorist acts and participation in a terrorist organization.
Ethiopia was relatively isolated from major movements of world politics until Italian invasions in 1895 and 1935. Since World War II, Ethiopia has played an active role in world and African affairs. Ethiopia was a charter member of the United Nations and took part in UN operations in Korea in 1951 and the Congo in 1960. Former Emperor Haile Selassie was a founder of the Organization of African Unity (OAU), now known as the African Union (AU), which is headquartered in Addis Ababa. Addis Ababa also hosts the UN Economic Commission for Africa (UNECA). Ethiopia is also a member of the Intergovernmental Authority on Development (IGAD), a Horn of Africa regional group.
Although nominally a member of the Non-Aligned Movement, after the 1974 revolution Ethiopia moved into a close relationship with the Soviet Union and its allies and supported their international policies and positions until the change of government in 1991. Today, Ethiopia has good relations with the United States and the West, especially in responding to regional instability and supporting counterterrorism efforts.
Ethiopia's relations with Eritrea have remained tense and unresolved following the brutal 1998-2000 border war. The two countries signed a peace agreement in December 2000. A five-member independent international commission--the Eritrea Ethiopia Boundary Commission (EEBC)--issued a decision in April 2002 delimiting the border. In November 2007, the EEBC issued a decision demarcating the border based on map coordinates (typical demarcation based on pillars on the ground had not yet occurred due to disagreement between Ethiopia and Eritrea) and disbanded. Ethiopia does not consider the border to be demarcated, though Eritrea does. In July 2008, the United Nations Mission in Ethiopia and Eritrea (UNMEE) peacekeeping mission was terminated because Eritrean restrictions impeded UNMEE’s ability to operate. Each country has stationed approximately 100,000 troops along the border. Both countries insist they will not instigate fighting, but remain prepared for any eventuality. Ethiopia briefly sent troops a few miles into Eritrea in March 2012 in retaliation for a January 2012 attack on foreign tourists that Ethiopia blamed on a rebel group allegedly backed by Eritrea.
The irredentist claims of the extremist-controlled Council of Islamic Courts (CIC) in Somalia in 2006 posed a security threat to Ethiopia and to the TFG. In December 2006, the TFG requested the assistance of the Ethiopian military to respond to the CIC's growing strength within Somalia. Within a few weeks, the joint Ethiopian-TFG forces routed the CIC from Somalia. Subsequently, Ethiopia stationed troops in Somalia (largely around Mogadishu), awaiting full deployment of the African Union's Mission in Somalia (AMISOM). However, the slow buildup of AMISOM troop levels pushed the Ethiopian Government to announce that its army would withdraw from the country in a matter of weeks. By the end of January 2009, all of its 3,000-4,000 troops had left the country. In December 2011, Ethiopia deployed troops to Somalia to assist the TFG, Kenyan Defense Forces, and AMISOM troops in fighting al-Shabaab.
Ethiopia is a federal republic under the 1994 constitution. The executive branch includes a president, Council of State, and Council of Ministers. Executive power resides with the prime minister. There is a bicameral parliament; national legislative elections were held in 2010. The judicial branch comprises federal and regional courts. Following the 2010 elections, there were 152 women in the 547-seat parliament, two female judges on the 11-seat Supreme Court, three women ministers among the 21-member cabinet, and four women among 53 state ministers.
Political parties include the Ethiopian People's Revolutionary Democratic Front (EPRDF), Ethiopian Federal Democratic Unity Forum (Medrek), the Unity for Democracy and Justice (UDJ) party, the United Ethiopian Democratic Forces (UEDF), Oromo Federalist Democratic Movement (OFDM), Ethiopian Democratic Party (EDP), Oromo Peoples’ Congress (OPC), All Ethiopia Unity Party (AEUP), and other small parties. Suffrage is universal at age 18.
The EPRDF-led government of Prime Minister Meles Zenawi has promoted a policy of ethnic federalism, devolving significant powers to regional, ethnically-based authorities. Ethiopia has nine semi-autonomous administrative regions and two special city administrations (Addis Ababa and Dire Dawa), which have the power to raise their own revenues. The government redrew the regional boundaries in 1994 along ethnic lines, giving each major ethnic group its own regional administration.
Type: Federal Republic
Capital: Addis Ababa - 2.863 million (2009)
The Advanced Spaceborne Thermal Emission and Relfection Radiometer (ASTER) on NASA’s Terra satellite captured this image of Adis Abeba on December 16, 2007. In this false-color image, red indicates vegetation, blue-black indicates water, beige indicates bare ground, and blue-gray indicates buildings and/or paved surfaces.
Tree-lined waterways meander through the city, evidenced by the blue-black channels lined with robust red. Areas of robust vegetation also appear along the city’s northern fringes, but most of the areas along Adis Abeba’s outskirts consist of sparsely vegetated areas or bare ground. Vegetation is especially sparse in the center of this image, where the blue-gray shades of urbanization intensify.
Even before the major influx of immigrants into Adis Ababa in the mid-1970s, a shortage of suitable housing left many city residents living in slums. Over the years, the need for housing lead to illegal housing developments that eventually encroached on protected forests and reserves around the city’s margins. A report by the United Nations Environment Programme found that, while Ethiopia’s slum population increased between 1990 and 2001, sanitation services improved substantially over the same period. Source: NASA. Credit: NASA image created by Jesse Allen, using data provided courtesy of NASA/GSFC/METI/ERSDAC/JAROS, and U.S./Japan ASTER Science Team. Caption by Michon Scott.
9 ethnically based states (kililoch, singular - kilil) and 2 self-governing administrations* (astedaderoch, singular - astedader);
Independence Date: oldest independent country in Africa and one of the oldest in the world - at least 2,000 years
Legal System: based on civil law; currently transitional mix of national and regional courts; has not accepted compulsory ICJ jurisdiction
Suffrage: 18 years of age; universal
International Environmental Agreements
Ethiopia is party to international agreements on: Biodiversity, Climate Change, Climate Change-Kyoto Protocol, Desertification, Endangered Species, Hazardous Wastes, and Ozone Layer Protection. It has signed, but not ratified nternational agreements on Environmental Modification and the Law of the Sea.
Total Renewable Water Resources: 110 cu km (1987)
Freshwater Withdrawal : 5.56 cu km/yr (6% domestic, 0% industrial, 94% agricultural)
Per Capita Freshwater Withdrawal: 72 cu m/yr (2002)
Access to improved drinking water supplies: 38% of population
Access to improved sanitation facilities: 12% of population
Ethiopia's poverty-stricken economy is based on agriculture, accounting for almost 45% of GDP, and 85% of total employment.
The agricultural sector suffers from frequent drought and poor cultivation practices. Coffee is critical to the Ethiopian economy with exports of some $350 million in 2006, but historically low prices have seen many farmers switching to "khat" (qat) to supplement income
The major agricultural export crop is coffee, providing approximately 30.6% of Ethiopia's foreign exchange earnings in 2010-2011, down from 65% a decade ago because of the increase in other exports. Other traditional major agricultural exports are finished leather goods, pulses, oilseeds, and the traditional "khat," a leafy narcotic that is chewed. Cut flowers have become major export items in recent years.
Agricultural Products: cereals, pulses, coffee, oilseed, cotton, sugarcane, potatoes, qat, cut flowers; hides, cattle, sheep, goats; fish
Irrigated Lands: 2,900 sq km (2008)
Gold, marble, limestone, and small amounts of tantalum are mined in Ethiopia. Other resources with potential for commercial development include large potash deposits, natural gas, iron ore, and possibly oil and geothermal energy. Although Ethiopia has good hydroelectric resources, which power most of its manufacturing sector, it is totally dependent on imports for oil.
Natural Resources: small reserves of gold, platinum, copper, potash, natural gas, hydropower
arable land: 10.01%
permanent crops: 0.65%
other: 89.34% (2005)
Ethiopia is totally dependent on imports for oil. In recent years, there have been positive developments in harnessing hydropower potential through construction of mega dams that could increase Ethiopia’s current electricity production capacity of 2,000 megawatts to 10,000 megawatts by 2014-2015, generating sufficient power for Ethiopia to sell excess supply to its neighbors.
|Energy in Ethiopia|
3.715 billion kWh
3.357 billion kWh
(1 January 2011 est.)
0 cu m
0 cu m
0 cu m
0 cu m
113 billion cu m
(1 January 2011 est.)
|Source: CIA Factbook|
Ethiopia's poverty-stricken economy is based on agriculture, accounting for almost 45% of GDP, and 85% of total employment.
The agricultural sector suffers from frequent drought and poor cultivation practices. Coffee is critical to the Ethiopian economy with exports of some $350 million in 2006, but historically low prices have seen many farmers switching to qat to supplement income.
|Ethiopian Highlands. Source: Wikimedia Commons.|
|Nechisar National Park, Ethiopia. Source: Wikimedia Commons|
Under Ethiopia's constitution, the state owns all land and provides long-term leases to the tenants; the system continues to hamper growth in the industrial sector as entrepreneurs are unable to use land as collateral for loans.
In November 2001, Ethiopia qualified for debt relief from the Highly Indebted Poor Countries (HIPC) initiative, and in December 2005 the IMF forgave Ethiopia's debt.
The global economic downturn led to balance of payments pressures, partially alleviated by recent emergency funding from the IMF.
While GDP growth has remained high, per capita income is among the lowest in the world.
The current government has embarked on a cautious program of economic reform, including privatization of state enterprises and rationalization of government regulation. While the process is still ongoing, the government is continuously offloading public enterprises while at the same time creating others, such as sugar corporations, keeping the government heavily involved in the economy. The government is implementing its ambitious Growth and Transformation Plan (2010-2011 through 2014-2015), which aims to achieve an average growth rate of 11.2% and meet all millennium development goals. GDP growth for the past 5 years has averaged 11% annually, according to Ethiopian Government figures, though the World Bank and the International Monetary Fund have estimated GDP growth to be in the range of 7%-8%.
The major agricultural export crop is coffee, providing approximately 30.6% of Ethiopia's foreign exchange earnings in 2010-2011, down from 65% a decade ago because of the increase in other exports. Other traditional major agricultural exports are finished leather goods, pulses, oilseeds, and the traditional "khat," a leafy narcotic that is chewed. Cut flowers and gold exports have become major export items in recent years. Gold was Ethiopia's second-largest export in 2010-2011, earning 17% of export proceeds. Ethiopia's agriculture is plagued by periodic drought, soil degradation caused by inappropriate agricultural practices and overgrazing, deforestation, high population density, undeveloped water resources, and poor transport infrastructure. Commercial agriculture by large foreign firms has expanded, though this expansion has been marked by controversy over allegations of forced resettlements and adverse environmental impacts. Potential exists for self-sufficiency in grains and for export development in livestock, flowers, grains, oilseeds, sugar, vegetables, and fruits.
Gold, marble, limestone, and small amounts of tantalum are mined in Ethiopia. Other resources with potential for commercial development include large potash deposits, natural gas, iron ore, and possibly oil and geothermal energy. Although Ethiopia has good hydroelectric resources, which power most of its manufacturing sector, it is totally dependent on imports for oil. In recent years, there have been positive developments in harnessing hydropower potential through construction of mega dams that could increase Ethiopia’s current electricity production capacity of 2,000 megawatts to 10,000 megawatts by 2014-2015, generating sufficient power for Ethiopia to sell excess supply to its neighbors. A landlocked country, Ethiopia has relied on the port of Djibouti since the 1998-2000 border war with Eritrea. Ethiopia is connected with the port of Djibouti by road, and projects are ongoing to construct railway lines. Of the 49,000 kilometers of all-weather roads in Ethiopia, 15% are asphalt. Mountainous terrain and the lack of good roads and sufficient vehicles make land transportation difficult and expensive. Ethiopian Airlines serves 17 domestic airfields and has 64 international destinations.
Dependent on a few vulnerable crops for its foreign exchange earnings and reliant on imported oil and capital goods, Ethiopia often suffers from severe foreign exchange shortages. The largely subsistence economy is incapable of meeting the budget requirements for drought relief, an ambitious development plan, and indispensable imports such as oil. The financing gap has largely been covered through foreign assistance and loans.
GDP (Purchasing Power Parity): $94.76 billion (2011 est.)
GDP (Official Exchange Rate): $30.5 billion (2011 est.)
GDP- per capita: $1,100 (2011 est.)
GDP- composition by sector:
services: 39.6% (2011 est.)
Industries: food processing, beverages, textiles, leather, chemicals, metals processing, cement
Exports: coffee, qat, gold, leather products, live animals, oilseeds
Imports: food and live animals, petroleum and petroleum products, chemicals, machinery, motor vehicles, cereals, textiles
Currency: birr (ETB)