Ethiopian Commercial Bank Addis Abeba. Africa’s second most ethiopian economic policy pdf country. Many properties owned by the government during the previous regime have now been privatized and are in the process of privatization. Ethiopia’s population is under the age of 18, and even though education enrollment at primary and tertiary level has increased significantly, job creation has not caught up with the increased output from educational institutes.
The country must create hundreds of thousands of jobs every year just to keep up with population growth. Various groups and political parties have sought for full privatization of land, while other opposition parties are against privatization and favor communal ownership. The current government has embarked on a program of economic reform, including privatization of state enterprises and rationalization of government regulation. While the process is still ongoing, the reforms have begun to attract much-needed foreign investment. Despite recent improvements, Ethiopia remains one of the poorest nations in the world.
Some outside influences encouraging the use of coins is undeniable. GDP, 81 percent of exports, and 85 percent of the labour force. Many other economic activities depend on agriculture, including marketing, processing, and export of agricultural products. Production is overwhelmingly of a subsistence nature, and a large part of commodity exports are provided by the small agricultural cash-crop sector. Ethiopia’s coffee exports represented 0. Ethiopia is Africa’s second biggest maize producer. This has raised fears of food being exported to more prosperous countries while the local population faces its own shortage.
Forest products are mainly logs used in construction. Although total production has been continuously increasing since 2007, the fishing industry is a very small part of the economy. The mining sector is small in Ethiopia. In 2001 gold production amounted to some 3. 52 tonnes in western Ethiopia. Waterpower and forests are Ethiopia’s main energy sources.
The country derives about 90 percent of its electricity needs from hydropower, which means that electricity generation, as with agriculture, is dependent on abundant rainfall. Present installed capacity is rated at about 2000 megawatts, with planned expansion to 10,000 megawatts. Less than one-half of Ethiopia’s towns and cities are connected to the national grid. Petroleum requirements are met via imports of refined products, although some oil is being hauled overland from Sudan. Recent oil and gas discoveries across East Africa have seen the region emerge as a new player in the global oil and gas industry.
As exciting as the huge gas fields of East Africa are, however, the strong decline in oil prices and expectations for an L-shaped recovery with low prices over the coming years are increasingly challenging the economic viability of the industry in this region. The discoveries were expected to drive billions of dollars in annual investment to the region over the next decade. According to BMI estimates, the findings in the last few years are more than that of any other region in the world, and the discoveries are expected to continue for the next few years. However, falling global oil prices are threatening the commercial viability of many of these gas prospects. This sector constitutes about 4 percent of the overall economy, although it has shown some growth and diversification in recent years.
Much of it is concentrated in Addis Ababa. A program to privatize state-owned enterprises has been underway since the late 1990s. Mountainous terrain and the lack of good roads and sufficient vehicles make land transportation difficult. It serves 41 domestic airfields and has 65 international destinations. Aside from wholesale and retail trade, transportation, and communications, the services sector consists almost entirely of tourism. Developed in the 1960s, tourism declined greatly during the later 1970s and the 1980s under the military government. In 2008, the number of tourists entering the country had increased to 330,000.