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Ethiopia

Uncomfortable Truths

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According to the IMF, Ethiopia was one of the fastest growing economies in the world,

registering over 10% economic growth from 2004 through 2009. It was the fastest-growing
non-oil-dependent African economy in the years 2007 and 2008. In 2015, the World Bank

highlighted that Ethiopia had witnessed rapid economic growth with real domestic product
(GDP) growth averaging 10.9% between 2004 and 2014.

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In spite of fast growth in recent years, GDP per capita is one of the lowest in the world, and the

economy faces a number of serious structural problems. However, with a focused investment
in public infrastructure and industrial parks, Ethiopia's economy is addressing its structural

problems to become a hub for light manufacturing in Africa. In 2019 a law was passed
allowing expatriate Ethiopians to invest in Ethiopia's financial service industry.
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Ethiopia has 14 major rivers flowing from its highlands, including the Nile. It has the largest

water reserves in Africa. As of 2012, hydroelectric plants represented around 88.2% of the total
installed electricity generating capacity.

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Agriculture constitutes around 85% of the labour force.

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Production is overwhelmingly by small-scale farmers and enterprises, and a large part of

commodity exports are provided by the small agricultural cash-crop sector. Principal crops
include coffee, legumes, oilseeds, cereals, potatoes, sugarcane, and vegetables.

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Exports are almost entirely agricultural commodities (with the exception of Gold exports), and

coffee is the largest foreign exchange earner.
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Ethiopia also has the 5th largest inventory of cattle.
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Cross-border trade by pastoralists is often informal and beyond state control and regulation. In

East Africa, over 95% of cross-border trade is through unofficial channels.
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Most regard Ethiopia's large water resources and potential as its "white oil" and its coffee
resources as "black gold"

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In 2011, the Grand Ethiopian Renaissance Dam project was commenced. When completed, it

will provide surplus energy in Ethiopia which will be available for export to neighboring
countries.