Ethiopia Facts and Figures

Ethiopia, located in the Horn of Africa, is bordered by Eritrea to the north, Djibouti and Somalia to the east, Kenya to the south, and Sudan and South Sudan to the west. Addis Ababa serves as its capital, while cities like Dire Dawa and Bahir Dar contribute to its urban diversity.

International Engagements
Ethiopia's global presence includes its membership in the United Nations since 1945, underlining its commitment to international diplomacy and peacekeeping efforts. Additionally, Ethiopia joined the African Union (AU) in 1963, playing a pivotal role in continental unity and development initiatives.

Historical Transformations
One of the most significant events in Ethiopia's history was the overthrow of the Derg regime in 1991, which ended a period of Marxist military dictatorship. This event marked a turning point as Ethiopia transitioned towards a more democratic governance structure and embarked on economic reforms to stimulate growth and development. The impact of this transformation resonates in Ethiopia's evolving political landscape and its efforts to modernize and attract foreign investment, particularly in sectors like agriculture and infrastructure.

Demographics Overview
Ethiopia, with a population exceeding 126.5 million as of 2023, has a population growth rate of 2.5% annually, reflecting rapid demographic expansion. The country maintains a population density of approximately 107 people per square kilometer. The country's working-age population comprises 57.2%, indicating a potential demographic dividend for economic development. The median age, at 19 years as of 2024, highlights Ethiopia's youthful population, necessitating investments in education and employment opportunities. Despite challenges, including a fertility rate of 4.1 and a high infant mortality rate of 33.9 per 1,000 live births, Ethiopia has made strides in improving life expectancy, which stands at 66 years. The country's urbanization rate was recorded at 23.2% in 2023, underscoring ongoing rural-urban migration trends and the need for urban infrastructure development.

Economic Overview
Ethiopia's economy, with a GDP totaling $163.7 billion in 2023 and a GDP ranking of 58th globally, exhibits robust growth with a GDP growth rate of 6.5%. Inflation rates were recorded at 30.2% in 2023 and 25.6% in 2024, indicating challenges in price stability. The country faces a deficit trade balance equivalent to $14.3 billion, importing goods worth $17.9 billion and exporting $3.6 billion in 2023. Unemployment rate was relatively low at 3.9% in 2021, demonstrating a stable labor market despite economic fluctuations. Agriculture remains a cornerstone, contributing 37.6% to GDP in 2022, while industry and manufacturing sectors contribute 22.7% and 4.2%, respectively. Services constitute the largest sector at 36.6% of GDP in 2022. It's essential to conduct market research in Ethiopia to navigate its evolving economy amidst structural reforms and external economic pressures effectively.


Fiscal Overview
In 2022, Ethiopia received Net ODA equal to 3.9% of its Gross National Income (GNI), underscoring the importance of foreign aid in its economy. The country's net lending/borrowing balance improved from -4.16% of GDP in 2022 to -2.54% in 2023, reflecting better fiscal management or increased revenue generation. Ethiopia's general government debt was 46.37% of GDP in 2022.

Military Overview
Ethiopia's military strength in 2016 included 138,000 personnel, accounting for 0.1348% of the population. Military spending has risen, from 0.5% of GDP in 2021 to 0.9% in 2022, indicating increased defense investments.

Conclusion
Ethiopia's evolving economy, growing digital landscape, and strategic military investments highlight the need for comprehensive market insights to navigate its complex market dynamics. Collaborating with a market research agency in Ethiopia is essential for businesses seeking to understand Ethiopian consumer behavior, market trends, and competitive landscapes.