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Economy - overview:
Ethiopia's poverty-stricken economy is based on agriculture, accounting for half of GDP, 60% of exports, and 80% of total employment. The agricultural sector suffers from frequent drought and poor cultivation practices. Coffee is critical to the Ethiopian economy with exports of some $156 million in 2002, but historically low prices have seen many farmers switching to qat to supplement income. The war with Eritrea in 1998-2000 and recurrent drought have buffeted the economy, in particular coffee production. In November 2001, Ethiopia qualified for debt relief from the Highly Indebted Poor Countries (HIPC) initiative. Under Ethiopia's land tenure system, the government owns all land and provides long-term leases to the tenants; the system continues to hamper growth in the industrial sector as entrepreneurs are unable to use land as collateral for loans. Drought struck again late in 2002, leading to a 2% decline in GDP in 2003. Normal weather patterns late in 2003 helped agricultural and GDP growth recover in 2004-05. |
Trade Fairs,
Exhibitions, Conferences: |
Expo-Ethopia
This important business event of the year is highly expected to serve as a venue to explore and make use of new trade and investment opportunities not only within Ethiopia but also the enlarged COMESA market/ Common Market for Eastern and Southern Africa. It is a trade fair organised by the Ethiopia Chamber of Commerce at the Addis Ababa Fair Grounds. |
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