Overview of Ethiopia
With a population of more than 100 million people, Ethiopia is the second most populous country in Africa after Nigeria. Over the past decade, Ethiopia’s economy has experienced significant growth, with an average annual growth rate of 14%. In 2019, Ethiopia’s real Gross Domestic Product (GDP) expanded by 9%, but due to the Covid-19 pandemic, growth is expected to decrease to 6.3% in 2020. Ethiopia was ranked 159th out of 190 countries in the World Bank’s Ease of Doing Business report, an improvement of two positions from 2018.
The country’s new leadership is determined to improve this ranking by addressing challenges such as burdensome customs administrative procedures, high logistics costs, and limited access to credit and foreign exchange, which pose major obstacles to small and medium-sized enterprises (SMEs). Although the rapidly growing economy of Ethiopia presents many opportunities, there are also challenges to doing business in the country.
Economic Snapshots
Ethiopia is a country that faces many challenges as a low-income nation, with its citizens struggling to meet their basic needs. However, despite these obstacles, the country has a rich culture, diverse agricultural sector, and a rapidly growing economy. While ranked 159th out of sub-Saharan African countries in terms of ease of doing business, the country is taking steps to improve its position and attract more foreign investment.
Ethiopia’s official languages, Oromo and Amharic, reflect the cultural richness of the country, which produces a variety of agricultural products such as coffee, cereals, cotton, and sugarcane. Although its industrial sector is less developed, Ethiopia has industries in food processing, textiles, and more. What’s more, the country has a young and vibrant population, with 60% of Ethiopians under the age of 25.
Despite its challenges, Ethiopia is a land of opportunity, and its people are working hard to overcome obstacles and build a brighter future. The vast majority of Ethiopian imports comes from Asia followed by Europe, the United States and other countries in Africa. Imports from China accounts for 26% of the country’s total foreign supplies.