Ethiopia's economy is
based on agriculture, but the government is pushing to diversify
into manufacturing, textiles, and energy generation. Coffee is a
major export crop. The agricultural sector suffers from poor
cultivation practices and frequent drought. Although recent joint
efforts by the Government of Ethiopia and donors have strengthened
Ethiopia's agricultural resilience, changes in rainfall associated
with world-wide weather patterns continue to create food insecurity
for millions of Ethiopians.
The banking, insurance, telecommunications, 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, based on high saving and high
investment, per capita income is among the lowest in the world.
Ethiopia issued a second state-led Growth and Transformation
development plan in mid-2015, which prioritizes industrialization
and urbanization. Ethiopia has achieved high single-digit growth
rates for the last decade through government-led infrastructure
expansion and commercial agriculture development.
45.8% of GDP (2015 est.)
47.5% of GDP (2014 est.)
note: official data cover central government debt, including debt
instruments issued (or owned) by government entities other than the
treasury and treasury debt owned by foreign entities; the data
exclude debt issued by subnational entities, as well as
intragovernmental debt; debt instruments for the social funds are
not sold at public auctions
Commercial bank prime lending rate:
11.5% (31 December 2015 est.)
11% (31 December 2014 est.)
Stock of narrow money:
$11.53 billion (31 December 2015 est.)
$9.981 billion (31 December 2014 est.)
Stock of broad money:
$23.77 billion (31 December 2015 est.)
$20.75 billion (31 December 2014 est.)
Stock of domestic credit:
$27.75 billion (31 December 2015 est.)
$22.58 billion (31 December 2014 est.)
fossil fuel: 8.3% of
total installed capacity (2012 est.)
hydro: 88.2% of total installed capacity (2012 est.)
other renewable sources: 3.6% of total installed capacity (2012
est.)
nuclear: 0%