Economy

The government's long-term economic development strategy – Agricultural-Development-Led-Industrialization (ADLI) – is geared to the transformation of the economic structure. The strategy involves an export-led external sector, and internal emphasis on agriculture to supply commodities for exports, domestic food supply and industrial output, and expand markets for domestic manufacturing. The development strategy is supported by an economic reform program developed in cooperation with the World Bank and the International Monetary Fund (IMF) and by a series of structural adjustment programmes. There have been major gains from the reform programme, and from liberalization of the economy, including low inflation, fiscal discipline and low government borrowing, infrastructure improvement and the growth of the private sector after a privatization program was initiated in 1995 under which a majority of former government-owned firms have been denationalized.

The current Growth and Transformation Plan (GTP), finalized in November 2010, was built on the implementation of previous poverty reduction strategies, the Sustainable Development and Poverty Reduction Program for 2002/03−2004/5 and the Plan for Accelerated and Sustained Development to End Poverty for 2005/06−2009/10 (PASDEP) which laid out the directions to achieve the Millennium Development Goals by 2015 and the basis for Ethiopia to reach ‘middle-income' status by 2020−25.  In March 2012, the IMF said Ethiopia would achieve this earlier if its rapid growth continued.

PASDEP provided for substantial progress in the provision of social services such as education, health and infrastructure through investing in physical and human capital formation and allocating over 60% of the budget to pro-poor expenditure. The spending on poverty-targeted sectors (both recurrent and capital) steadily increased during this period rising from 42.0% of total expenditure in 2002/03 to over 64% and this has continued.  The effects were visible in significantly improved education and healthcare services. Primary school net enrolment rose from 77 percent in 2004/05 to 82 percent in 2009/10, and is now over 96%; completion rates also increased steadily. Secondary enrolment also rose steadily. Tertiary level education increased sharply. The proportion of fully immunized children rose from 20 percent in 2006 to 66 percent in 2010; the percentage of births attended by healthcare workers increased from 16 percent to 29 percent during the same period. In 2005 the maternal mortality was 871 per 100,000 births; this declined to 590/100,000 by 2010. Under-five child deaths fell from 200/2000 to 75/2000 in 2009. Health service coverage increased from 30% to 89% during PASDEP.

 In 2004, Ethiopian GDP (Gross Domestic Product) was about 63% of Kenyan GDP and 4.6% of South African GDP; by 2009, the comparison was 97% and 10.1% respectively. Per capita income had increased from $138 to $344 in 2009. In 2009/2010 the economy grew by 10.4%, compared to the estimated growth rate of 6.0% for all Sub-Saharan Africa. Agriculture and allied activities contributed 30% to the increase while the service and industry sectors provided 56% and 13% respectively. Inflationary pressure continued to ease due to prudent monetary and fiscal policies and other government measures, and annual average inflation dropped to 2.8% in June 2010 against 36.4% a year earlier. It has since fluctuated sharply, rising sharply in 2011 and remaining a serious problem in 2012.

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Location and Boundaries

Location and Boundaries

Ethiopia is located in the centre of the Horn of Africa. It shares borders with the Sudan and South Sudan to the west; Eritrea to the north and north-east; Djibouti and Somaliland to the east; Somalia and Kenya to the south.

It covers an area of 1.14 million square Kilometers (944,000 square miles)

The population according to the 2007 Census was 73,918,505. The growth rate is estimated at 3.2% and the current population estimate is now 86 million, of which 46% fall within the 1-14 age range; 51% between 15 and 64; and 3% are over 65. Approximately 17% of the population is estimated to live in urban areas.

Nation and Nationalities

Ethiopia is home to over 80 different peoples and nationalities. According to the 2007 census the larger ones are: Oromo 25.5 million (35%); Amhara 20 million (27%); Somali 4.6 million 6.2%); Tigrean 4.5 million (6.1%) Sidama 3 million (4%); Gurage 1.9 million (2.5%); Welayta 1.7 million (2.3%); Hadiya 1.3 million (1.7%); Afar 1.3 million (1.7%); Gamo 1.1 million (1.5%).

Religion

Christians make up 62.8% of the population (43.5% follow the Ethiopian Orthodox Church and 19.3 other denominations); Muslims 33.9%; traditional faiths 2.6%; and others 0.6%.

Climate

Although Ethiopia lies within 15 degrees North of the Equator, overall the country enjoys moderate temperatures and a pleasant climate, with average temperature rarely exceeding 200C (680F), owing to the moderating influence of high altitude. The more sparsely populated lowlands tend to have sub–tropical and tropical climates; and parts of the Afar regional State in the east of the country which lie below sea level are considered to be the hottest place on earth with temperatures regularly reaching 500C (1200F) or more. 

At approximately 850mm (34inches), the average annual rainfall for the whole country is considered to be moderate by global standards. In most of the highland areas, rainfall occurs in two distinct seasons: the "small rains" (belg) during February and March and the "big rains" (kremt) from June to September. In the south east lowlands the rainy seasons are from March to May, the longer season (gu), and the short rainy season from October to December (deyr).

Communications

There are international airports at Addis Ababa (Bole International Airport), and at Dire Dawa, Bahr Dar, Gondar, Lalibela, Axum, Arba Minch, and Mekelle. The national carrier, Ethiopian Airlines, has an excellent international reputation and currently flies to 81 international destinations in America, Europe, Africa and Asia as well as 18 local flight destinations. It is now taking delivery of the latest Boeing 787 "Dreamliner" aircraft for its long haul flights.

The main entry points by road are at Moyale (from Kenya), Humera and Metema (from Sudan), Dewele (from Djibouti). All have full customs and immigration checks. Until Eritrea invaded Ethiopia in 1998, Humera, Rama, Zalembessa and Bure were entry points from Eritrea; in the absence of any effort by Eritrea to normalize relations, they remain closed.

Visas

All visitors to Ethiopia, except citizens of Kenya, require a visa to enter the country. These should be obtained in advance from an Ethiopian Embassy, though single entry, one to three month, tourist visas can be obtained at Bole International Airport, Addis Ababa. For information about business visas or multiply entry tourist visas, contact a local Ethiopian Embassy which will provide the relevant forms. Visas issued by embassies are valid from the day of issue not from the date of arrival in Ethiopia