How rich is Ethiopia?
With an annual growth rate of 10% over the last two decades, Ethiopia has continuously tapped into the potential of the nation. By 2025, the country will reach middle-income status. The country just needs to remain focused on its goals; by staying on track they will be achieved. In terms of resources, Ethiopia is very, very rich!
Agriculture
- Ethiopia is a very green fertile mountainous land, and the government is taking advantage of this by developing this sector.
- Ethiopia produces large volumes of coffee beans every year, about 384,000,000 kilograms. It is the largest exporter of coffee on the African continent and the 4th largest in the world. It is one of the main agricultural exports, which is appropriate for the country where coffee originally came from. Some of the major destinations of Ethiopian coffee are Germany, Saudi Arabia, Japan, USA, Belgium and France, importing over 70% of the country’s total coffee export
- Ethiopia also exports tea, and different types of cereals. Maize, for instance, is one of the most important crops in Ethiopia, of which the country is Africa’s second-biggest maize producer. Other important exported cereals are wheat and barley.
- Ethiopia also exports vast quantities of oilseeds, pulses like legume, fruits, vegetables, and honey, of which Ethiopia is Africa's largest honey consumer and producer. Herbs, spices, and cut flowers are also exported.
- Ethiopia is the second-largest flower exporter in Africa after Kenya, and will surpass the country in the coming years. The sector has generated 275.45 million USD in the last fiscal year, and is continuing to grow. The countries that have fully tapped into this industry make nearly a couple of billion dollars.
- All of this is despite the fact that the country is not tapping into its full potential when it comes to arable land. 12.8% of Ethiopia’s farmable land was used in 2005, and in 2014, 15.1% of farmable land was used. This is growing at an annual rate of 1.88%. There’s a huge amount of potential growth here.
Livestock and Fishery
- Ethiopia is home to the largest livestock population in Africa, and the tenth largest in the world.
- The Somali region of Ethiopia alone has a livestock population greater than 30.5 million. That’s 5 times more then the human population of the region!
- The leather industry is growing, as well as the exporting of red meat (beef, mutton and goat), eggs, milk and chicken.
- The country has also demonstrated potential for fishery development in its freshwater lakes, reservoirs and rivers.
Minerals/Metals
- Although this sector hasn’t been tapped into, it holds a huge potential.
- Ethiopia is abundant in gold, gemstones like opal, tourmaline, marble, amethyst, garnet, sapphire, aquamarine, diamond, ruby, topaz, peridot and emerald.
- The country is also rich in metals like platinum, copper, nickel, iron, phosphorus, sulphur and many more.
- The Somali region is rich in oil and gas. The gas resource potential is 4.6 trillion cubic feet. The region’s Precambrian and recent period rock formations are suitable for construction and industrial use.
Tourism
- Ethiopia has several national parks, which cover a wide array of biosphere reserves. The country has been named the best tourist destination for 2015. Tourism has continuously grown in Ethiopia over the last several years, at an annual rate of 3 billion USD. Visitor numbers have risen 12% a year in the past decade. In the coming, years regional rivals Kenya and Tanzania will be challenged.
- Ethiopia has nine UNESCO World Heritage sites, which is a testament to the unique ancient history of the nation.
Manufacturing
- Ethiopia has continued becoming investors' choice. This is particularly so in the textile and garment manufacturing industries.
- Ethiopia has targeted a billion USD annual investment in industrial parks over the next decade to boost exports and becoming Africa's top manufacturer.
- Government incentives, such as cheap electricity, tax holidays and cheap land, attract investments from the United Kingdom, Turkey, India and China.
- As a result, Ethiopia is set to become the largest manufacturing nation in Africa.
Energy
- Ethiopia has a huge potential in hydro, solar, wind and geothermal energy.
- The available renewable energy resources, if developed, could not only help meet the local energy demand, but also bring additional revenue from energy exports to countries in the region.
- The biggest project currently is the grand renaissance dam being built on the Blue Nile. It’s almost complete now, and at 6,450 MW, the dam will be the largest hydroelectric power plant in Africa, as well as the 7th largest in the world.
Sources:
Ethiopia: Why Ethiopia's Energy Future Is Optimistic
Ethiopia Agriculture, Information about Agriculture in Ethiopia
Ethiopia | International Hydropower Association
Ethiopia: Extracting Ethiopia's Minerals in GTP II
The country has been investing heavily in its infrastructure becoming the first country in sub-Saharan Africa with a light rail system. The metro light rail system is capable of transporting 60,000 people per hour.