Skip to content

About Ethiopia

In the menu to the left, you can find more information about Ethiopian history and the cooperation between Denmark and Ethiopia. The text below is a short description of the political and economic situation of Ethiopia.

Ethiopia has had strong and sustained economic growth, averaging more than 10 % per annum since 2002[1], and the country is among the fastest growing economies in the World[2]. This has helped Ethiopia lifting a large share of its population out of poverty and achieving most of the Millennium Development Goals[3]. The pace of poverty reduction has been impressive, but a large share of the population – approximately 30 million people[4] – still lives below the poverty line. Among low income and lower-mid income countries, Ethiopia has one of the lowest levels of income inequality, and this has largely been sustained during the past 10-15 years of high economic growth.[5]

In 2010, the Ethiopian Government introduced a first economic and development plan, The Growth and Transformation Plan (GTP). Its successor, the Growth and Transformation Plan II (GTPII) is the main economic framework for Ethiopia 2016-2020. One of the main components in the GTPII is the development of Ethiopia’s agricultural sector, which accounts for about 38.5 percent of Ethiopia’s GDP and up to 90 percent of export earnings[6]. Between GTPI and GTPII, there has been an increased focus on the manufacturing sector, which is expected to grow from 15.6 % to 20 % of GDP[7]. The goal of GTPII is to lower the share of population living below the poverty line to 16.7 %[8]. Ethiopia is in the application process for full membership of the World Trade Organization.

The Ethiopian constitution, which was endorsed in 1994, defines Ethiopia as an ethnic-based federal system and divides the country into 10 relatively autonomous regions. Ethiopia has had national parliamentary elections in 1995, 2000, 2005, 2010 and latest in May 2015. The next parliamentary election is expected to be in 2020. The Ethiopian People's Revolutionary Democratic Front (EPRDF), with Prime Minister Hailemariam Desalegn in front, retains power to this day. 

--------------------------------------------------------------------------------

[1] The World Bank, “Ethiopia Economic Update II: Laying the Foundation for Achieving Middle Income Status”, June 2013

[2] ODI, “One foot on the ground, one foot in the air - Ethiopia’s delivery on an ambitious development agenda”, september 2015

[3] National Planning Commission and the United Nations in Ethiopia, 2015 “MDG Report 2014 – Ethiopia”, downloaded from http://www.undp.org/content/undp/en/home/librarypage/mdg/mdg-reports/africa-collection.html

[4] The Federal Democratic Republic of Ethiopia, Central Statistical Agency “Welfare monitoring survey 2011”

[5] ODI, “One foot on the ground, one foot in the air - Ethiopia’s delivery on an ambitious development agenda”, september 2015

[6] Growth and Transformation Plan II (full text only available in Amharic)

[7] Growth and Transformation Plan II (full text only available in Amharic)

[8] The Federal Democratic Republic of Ethiopia “The Second Growth and Transformation Plan (GTP II) 2015/16-2019/20”, September 2015

Last updated 04.05.2016

Contact

Embassy of Denmark in Addis Ababa

Tel.: +251 911 255 587

addamb@um.dk