Ethiopia

Federal Democratic Republic of Ethiopia

Amharic Ethiopian Birr (ETB) Civil law (based on European models)
AU, IGAD, COMESA, AfCFTA, BRICS (2024)
Ethiopia is Africa's second-most populous country and one of the fastest-growing economies on the continent, with average GDP growth exceeding 9% over the past decade. The economy is driven by agriculture (coffee is the world's birthplace of Arabica), a rapidly expanding manufacturing sector focused on textiles and garments, and massive infrastructure investments.

The country is undergoing significant economic reforms, including the landmark decision to float the birr in July 2024 and the launch of the Ethiopian Securities Exchange (ESX) in 2024, opening capital markets for the first time. The planned partial privatization of Ethio Telecom (40+ million subscribers) and the entry of Safaricom Ethiopia are transforming the telecom sector.

Ethiopian Airlines is Africa's largest and most profitable airline, serving as a major continental hub. The Grand Ethiopian Renaissance Dam (GERD) on the Blue Nile will be Africa's largest hydroelectric plant upon completion.

Snapshot

Population~110.1 MWorld Bank WDI
GDP (current USD)$109.5 BIMF WEO
GDP per Capita$1,020IMF WEO
GDP Growth6.10%IMF WEO
Inflation (y/y)~23.50%Central Bank / IMF
Policy Rate (National Bank of Ethiopia policy rate)15.00%Central Bank
Unemployment3.50%ILO / National Stats
Internet Use~25.00%World Bank WDI
Electrification~52.50%World Bank WDI
CPI Score (Rank)37.0/100 (#98)Transparency Intl
HDI (Rank)0.498 (#175)UNDP HDR
Credit RatingCCC+ (S&P) / Caa3 (Moody's)S&P / Moody's / Fitch
MarketEthiopian Securities Exchange (ESX, launched 2024)

Focus Sectors

Agriculture (coffee)
Manufacturing (textiles
garments)
Horticulture
Leather
Construction
Energy (GERD)
Telecommunications
Mining
Tourism
Air Transport (Ethiopian Airlines)

Trade

Top Export Partners (2023)

United States
10%
Saudi Arabia
9%
Germany
7%
Djibouti
6%
China
5%

Top Export Goods

CoffeeGoldCut flowersOilseedsKhatLeather

Top Import Partners (2023)

China
24%
India
9%
United States
5%
Turkey
5%
Kenya
4%

Top Import Goods

Refined petroleumMachineryVehiclesWheatIron and steelPharmaceuticals

Regulations & Taxes

Corporate Income Tax30% standard
VAT / Sales Tax15% standard
Withholding Tax10% dividends, 10% interest, 10% royalties

Talent

Median Age19.5 yrsUN Population
Adult Literacy51.80%World Bank UIS
Youth (<25)65.00%
LanguagesAmharic
Data Notes: Population, GDP, and GDP per capita are latest IMF WEO / World Bank estimates. Inflation is year-over-year. Trade data from UN Comtrade/OEC (2023). Tax rates from PwC/KPMG country guides. CPI from Transparency International. HDI from UNDP Human Development Report.
Narrative last updated: April 8, 2026.