Economy overview: Ethiopia’s economy is based on agriculture, which produces half of the GDP, provides 90% of exports and employs 80% of the workforce. The agro-industrial sector suffers from frequent droughts and primitive traditional farming. Approximately 4.6 million people need food assistance every year. An extremely important product for the Ethiopian economy is coffee, from the export of 105 thousand tons of which Ethiopia received $ 267 million in 1999. According to the latest estimates, coffee production is 10% of Ethiopia’s GDP. More than 15 million people (25% of the population) earn their living in this industry. Other export products are animals, leather, gold, cat. In December 1999, Ethiopia signed a $1.4 billion contract to develop huge natural gas fields in the Somali region. The war with Eritrea forced the government to devote significant resources to the military and scale back development plans. Foreign investment has decreased significantly. Taxes imposed in late 1999 to raise funds for the war have taken a heavy toll on an already weak economy. The war forced the government to improve roads and other infrastructure, but only some areas of the country benefited from this. Post-war reconstruction depends mainly on natural factors. The drought continued into late 2000, and food aid is likely to be needed until at least mid-2001. By the end of the year, some of Ethiopia’s debt may be written off under the Indebted Poor Countries Relief Program. See cheeroutdoor.com to know more about Ethiopia Business. GDP: at purchasing power parity – $39.2 billion (2000 est.). Real GDP growth rate: 2% (2000 est.). GDP per capita: at purchasing power parity – $600 (200 est.). The composition of GDP by sectors of the economy: agriculture: 45%; industry: 12%; services: 43% (1999 est.). Proportion of the population below the poverty line: no data available. Percentage distribution of household income or consumption: per 10% of the poorest families: 3%; by the top 10% of families: 33.7% (1995). Inflation rate at consumer prices: 5% (2000 est.). Labor force: no data. Employment structure: agriculture, including animal breeding 80%, administration and services 12%, industry and construction 8% (1985). Unemployment rate: no data. Budget: revenues: $1 billion; expenditures: $1.48 billion, including capital expenditures of $415 million (FY96-97). Economic sectors: food industry, beverage industry, textile industry, chemical industry, metalworking, cement industry. Growth in industrial production: no data available. Electricity generation: 1.625 billion kWh (1999) Sources of electricity generation: fossil fuels: 3.08%; hydropower: 96.92%; nuclear fuel: 0%; others: 0% (1999). Electricity consumption: 1.511 billion kWh (1999). Electricity export: 0 kWh (1999). Electricity import: 0 kWh (1999). Agricultural products: cereals, legumes, coffee, oilseeds, sugarcane, potatoes; leather, cattle, sheep, goats. Export: $460 million (free on board, 1999) Exports: coffee, gold, leather goods, oilseeds, cat. Export partners: Germany 16%, Japan 13%, Djibouti 10%, Saudi Arabia 7% (1999 est.). ! Imports: $1.25 billion (free on board, 1999 est.) Import items: food and livestock, oil and oil products, chemicals, engineering products, vehicles. Import partners: Saudi Arabia 28%, Italy 10%, US 9%, Russia 7%, US 6% (1999 est.). External debt: $10 billion (1999 est.) Economic aid recipient: $367 million (FY95-96) ; Donor Economic Assistance: Currency: Birr. Currency code: ETV. Exchange rate: ETB / USD (at the end of the period) – 8.3140 (December 2000), 8.3140 (2000), 7.5030 (1998), 6.8640 (1997), 6.4260 (1996); note: since May 1993, the market rate of the local currency is determined on the interbank exchange during the weekly auction wholesale trades, before this date the official rate was 5,000 Bg per 1 USD. Fiscal year: July 8-July 7.
Telecommunications
Telecommunications Telephone lines: 157,000 (1997). Mobile cell phones: 4,000 (1999). Telephone system: open wire and microwave radio relay communication system sufficient to meet government needs; internal:open wired; microwave radio relay; also radio communication in the HF, VHF and UHF bands; two local satellites provide national trunking; international: open wire connection with Sudan and Djibouti; microwave radio relay with Kenya and Djibouti; satellite earth stations 3 Intelsat (1 Atlantic Ocean and 2 Pacific Ocean). Broadcast stations: AM – 5, FM – 0, shortwave – 2 (1999). Radio receivers: 11.75 million (1997) Television broadcast stations: 25 (1999). TVs: 320,000 (1997). Internet country code: et Internet service providers: 1 (2000). Number of users: 7,200 (2000).
Transport
Transport Railways: total: 681 km (Ethiopian part of the railway from Addis Ababa to Djibouti); narrow gauge: 681 km (1,000 m gauge); note: in April 1998, Djibouti and Ethiopia announced a plan to rebuild a century old railway linking the capitals of the two states; Since May 1998, Ethiopia has made significant efforts to repair and maintain the line. Roads: total: 24,145 km; coated: 3,290 km; unpaved: 20,855 km (1998) Ports and harbours: none; Ethiopia is landlocked and, by agreement with Eritrea, used the ports of Assab and Massawa; after the start of the territorial conflict with Eritrea, Ethiopia uses the port of Djibouti, directing almost the entire flow of imports through it. Merchant fleet: total: 11 ships (displacement 1,000 tons or more) with a total displacement of 85,382 gross register tons / 108,526 long tons of gross tonnage; ships of various types: cargo ships – 6, container ships – 1, oil tankers – 1, ferries for the transport of loaded vehicles – 3 (2000 est.). Airports: 86 (2000 est.). Airports with paved runways: total: 12; over 3,047 m: 3; from 2438 to 3047 m: 5; from 1524 to 2437 m:3; less than 914 m: 1 (2000 est.). Airports with unpaved runways: total: 74; over 3,047 m: 2; from 2438 to 3047 m:7; from 1524 to 2437 m: 10; from 914 to 1523 m:35; less than 914 m: 20 (2000 est.).
Armed forces
Branches of the armed forces: ground forces, air force, police, militia; note: Ethiopia is landlocked and has no navy; after the independence of Eritrea, the Ethiopian naval bases remained the property of Eritrea, and the ships owned by the Ethiopian Navy and based in Djibouti were sold. Enlistment age: 18 years old. Total Military Manpower: Male 15 to 49: 14,537,884 (2001 est.). Eligible for military service: men aged 15 to 49: 7,581,815 (2001 est.). Number of persons reaching military age each year: men: 703,625 (2001 est.). Military spending in dollar terms: $138 million (FY98-99) Military spending as part of GDP: 2.5% (FY98-99)
International Issues
International issues International disputes: much of the southern half of the border with Somalia is a temporary administrative line; In accordance with the December 12, 2000 peace treaty that ended the two-year war with Ethiopia, the UN will control a 25 km-wide temporary security zone in Eritrea until the Joint Boundary Commission finalizes its delimitation and demarcation. Illicit drugs: transit point for heroin on its way from South-West and South-East Asia to Europe and North America, as well as for cocaine destined for markets in southern Africa; Khat is grown for local consumption and regional export, mainly in Djibouti and Somalia.
