Wednesday, August 27, 2025

Ethiopia

Ethiopia Population of 132 million people.  (Egypt has 116 million) (Nigeria, the largest has pop of 233 million people) (DRC has 109 million). Amongst neighbors, Uganda has 50 million, Sudan has 50 million, Kenya 56 million.  South Sudan (12m) and Somalia (19m) are smaller.

One million Ethiopians are expected to reach the age of 18 each year until 2050






Landlocked in Horn of Africa. Largest cities:  Addis Ababa ( population of 5.9 million).
Ethiopia is landlocked, and its primary sea-port is Djibouti


Economy
Size of economy: $117 billion.
Agriculture: 35.79%
Industry: 24.48%
Services: 36.98%
Agriculture remains significant but declining in share; industrial sectors include food processing, textiles, construction, energy, and tourism. Ethiopia is a leading coffee exporter; potential in tantalum mining and renewable energy remains largely untapped

Agriculture also provides the main source of exports

In 2023, the top exports of Ethiopia were Coffee ($1.31B), Dried Legumes ($329M), Cut Flowers ($258M), Other Oily Seeds ($246M), and Gold ($232M).The top destinations were United States ($487M), China ($402M), United Arab Emirates ($314M), Saudi Arabia ($304M), and Netherlands ($207M).

In 2023, the top imports of Ethiopia were Refined Petroleum ($2.5B), Mixed Mineral or Chemical Fertilizers ($700M), Raw Sugar ($667M), Cars ($653M), and Gas Turbines ($586M).
The top origins were China ($5.23B), Djibouti ($3.22B), India ($1.46B), Kuwait ($1.33B), and Saudi Arabia ($1.13B).




Historic Snapshot
  • Never colonized by a European power. (perhaps landlocked, not really rich in resources, quite isolated, Christian king)
  • "Ethiopia retained its sovereignty during the colonial scramble, maintaining trade connections via exports such as gold, ivory, and animal skins"
  • "The currency evolved: the modern birr was introduced in 1945 and officially termed “birr” in 1976"
  • Under the Monarchy (up to 1974), the economy of Ethiopia was primarily agricultural. The economy was based on a feudal system under which land ownership was highly inequitable. The major portion of farmland was in the hands of wealthy landlords. There were very few industries, most them owned by foreigners. 
  • The 1972–75 Wollo famine caused up to 250,000 deaths and contributed to civil unrest, fueling the fall of Emperor Haile Selassie
  • During the Military Regime (1974 – 1991), the economy shifted to a command economy where socialist principles and ideologies ruled. Substantial land reforms were introduced in the agricultural, industrial and financial sectors. The government owned all the large-scale manufacturing industries, banks and insurance companies. 
  • Under the Derg regime (1974–1991), Ethiopia adopted socialist planning but suffered economic stagnation and severe human costs
  • The 1983–85 famine was catastrophic: impacting ~1/5 of the population, resulting in 300,000–1.2 million deaths, amid government mismanagement and conflict. The economy was overwhelmingly agrarian—agriculture accounted for nearly half of GDP, 60% of exports, and 80% of employment
  • Since the assumption of power by EPRDF (1991), its government has followed a marketoriented economy. It has supported a process of economic reforms based on privatization of state enterprises, promotion of agricultural exports and deregulation (move towards free market) of the economy. 
  • From around 2005, Ethiopia revived development planning under a “developmental state” model—state-led investments enabled sustained, double-digit growth
  • Ethiopia achieved exceptionally rapid growth: averaging ~10% annually over 15 years into the mid‑2020s

After decades of stagnation, rapid growth has taken hold since the mid-2000s, supported by infrastructure investment and public-sector-led industrialization. Nonetheless, Ethiopia now faces mounting challenges—including geopolitical instability, macroeconomic fragility, and dwindling external support. The government is pursuing structural reforms, including liberalization and IMF-backed stabilization, but risks remain significant.



Interesting tangent - language adoption in sovereign countries. There are not many sovereign uncolonised countries in the world history - hence wondering about why a country adopts another language as one of their main languages.
  • Thus, unlike Francophone or Anglophone Africa, Ethiopia made a deliberate, independent choice about foreign language policy.
  • From the 1920s–1960s, Haile Selassie pursued Western-style modernization, particularly in education and administration.
  • He invited British and American educators, established schools modeled on British systems, and sent students abroad to English-speaking countries.
  • English became the language of secondary and higher education, displacing French, which had previously been favored by Ethiopian elites.
  • During the Italian occupation and subsequent Allied liberation (1941), British military and civil advisors entered Ethiopia.
  • The Anglo-Ethiopian Agreement (1942) temporarily increased British influence in logistics, administration, and technical areas.
  • Though Ethiopia remained independent, this exposure boosted the functional utility of English, especially among military, technical, and bureaucratic elites.


Interesting note - Only four countries in the world ever escaped colonisation or unequal treaties by a European power. Ethiopia being one. The other three are Thailand, Japan, Liberia.

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