The land of kings and legends, Ethiopia is the oldest independent country in Africa and the original home of coffee. It has been under colonial rule only for a brief period during Italian occupation from 1936 until 1941.

Political and economic reforms and the conclusion of a costly war against Eritrea should enable it to make economic progress.

Ethiopia not only holds the promise of becoming a significant exporter once it has fully utilized its resources but as Africa’s third most populous country-after Nigeria and Egypt- could develop into a major market for foreign products as per capita incomes rise. The new government has introduced economic reforms to lure foreign investors.

Country Profile

More than half of the Federal Democratic Republic of Ethiopia is at high altitudes. Its highest point, Ras Dashen (4620m) is Africa’s fourth highest mountain. The national capital, Addis Ababa, is 2,450 m above sea level. The mountainous region is bisected by the Great Rift Valley.

South of Addis Ababa a chain of freshwater and salt lakes extends along the valley floor to Lake Turnaka at the country’s southwestern corner. Numerous large rivers, including the Blue Nile, flow from east to west towards the Nile Basin. The highest rainfall (over 1,000 m) occurs in the west and southwest. Ethiopian society is a mixture of Caucasoid and Negroid peoples.

The three principal groups are the Ethiopian Semites, the Cushites and the Omotic cluster of peoples and tongues, with two subgroups, the Amhara and the Oromo, accounting for 70% of the total population. A much smaller group, the Tigray, speaking Tigrinya,

inhabits the far northern highlands and extends across the border into Eritrea. Half the population is Orthodox Christians, 35% are Muslims and the remainder adhere to ethnic beliefs.

Business Activity

Agriculture

Cereals, pulses, coffee, oilseed, sugar cane, potatoes, hides, cattle, sheep, goats.

Industries

Food processing, beverages, textiles, chemicals, metals processing, cement.

Natural Resources

Small reserves of gold, platinum, copper, potash, natural gas.

Exports

$1.2 billion (est. 2007): coffee, leather products, gold, oilseed, live animals.

Imports

$4.8 billion (est. 2007): food and live animals, petroleum and petroleum products, chemicals, machinery, motor vehicles and aircraft.

Major Trading Partners

China, Japan, Italy, Djibouti, Saudi Arabia, US, Germany.

Source: Les de Villiens, Africa 2009, Ninth Edition (A publication of The Corporate Council on Africa and Business Books International)