Country Info: Ethiopia
Economic Background
Ethiopia's economy is based on agriculture, which accounts for 46% of GDP and 85% of total employment. Coffee has been a major export crop. The agricultural sector suffers from poor cultivation practices and frequent drought, but recent joint efforts by the Government of Ethiopia and donors have strengthened Ethiopia's agricultural resilience, contributing to a reduction in the number of Ethiopians threatened with starvation.
The banking, insurance, and micro-credit industries are restricted to domestic investors, but Ethiopia has attracted significant foreign investment in textiles, leather, commercial agriculture and manufacturing.
Under Ethiopia's constitution, the state owns all land and provides long-term leases to the tenants; land use certificates are now being issued in some areas so that tenants have more recognizable rights to continued occupancy and hence make more concerted efforts to improve their leaseholds.
While GDP growth has remained high, per capita income is among the lowest in the world.
Ethiopia's economy continues on its state-led Growth and Transformation Plan under its new leadership after Prime Minister Mele's death.The five-year economic plan has achieved high single-digit growth rates through government-led infrastructure expansion and commercial agriculture development.
Ethiopia in 2013 plans to continue construction of its Grand Renaissance Dam on the Nile - the controversial multi-billion dollar effort to develop electricity for domestic consumption and export.
Ethiopia is the host country for the 2013 AGOA Forum.
Related News
Ethiopia: Institute says textile, garment market expanding
The Ethiopian Textile Industry Development Institute said the foreign currency generated from the textile sector has been steadily growing. Institute Communication Directorate director Bantihun Gessesse told The Ethiopian Heraldthat textile products have entered into Germany, Italy, China and United States through AGOA. In addition, Sudan and Kenya have become market...
Ethiopian footwear on the rise (includes latest data)
The East African nation is ramping up sourcing capabilities, positioning the region (includes neighboring Kenya) as an up-and-coming hub for footwear manufacturing. Low-cost labor pool? Check. Abundant raw materials? Check. Low electricity costs? Check. Shorter lead times to the United States market? Check. Lower minimums? Check. Heavy investment in infrastructure and...
The attraction of textile manufacturing in Ethiopia
Ethiopia attracted foreign investments of US$1.2 billion in the first six months of the 2016-2017 fiscal year, dominated by Chinese companies. The investment is helping Ethiopia develop as a manufacturing hub for the global textile market. Out of the 124 foreign investors that expressed an interest in Ethiopia’s textile and clothing sector over the past three months, 71...
Can you build a fashion business with a manufacturing base in Africa?
Liya Kebede made her first Lemlem garment in 2007 as a way to give back to Ethiopia, where the successful model was born and raised; a crucial stop before starring in Tom Ford campaigns and walking Miuccia Prada’s runway. She found a group in Addis Ababa, her hometown and the sub-Saharan African country’s largest city, to produce garments handwoven in the traditional...
Ghana: Apparel industry losing out on the US market to Ethiopia
The Chief of Party of the West Africa Trade and Investment Hub, Mrs Carol Adoum, has advised the government to provide more assistance to the textile and apparel industry in order to position industries in that sector to fully take advantage of the African Growth Opportunity Act (AGOA). She said the opportunities that AGOA was giving to the industry could make a huge...
AGOA: US investments in Ethiopia climb to $4 billion in 2015
U.S. investments in Ethiopia climbed to $4 billion last year helped by several companies taking advantage of the renewed Africa Growth and Opportunity Act (AGOA) to venture into the East African nation, the country’s ambassador to the US said. Girma Biru said several U.S. companies including Corbetti Geothermal Company, KKR & CO., l.P Horticulture, Blackstone and Coca...