Ethiopias agriculture sector policy and investment framework. Ethiopias economy and the role of the agriculture sector 2. In 2018, the share of agriculture in ethiopias gross domestic product was 31. This statistic shows the share of economic sectors in the gross domestic product gdp in ethiopia from 2008 to 2018. Food and agriculture organization ethiopia country programming. This sector plays a pivotal role in the economy and exerts important effects on. However, on account of climatic, social and institutional factors contributing to low production and productivity, agriculture is. Ethiopia the second most populous country in africa is a oneparty state with a planned economy. Productive capacity and economic growth in ethiopia 1 introduction ethiopia is one of the largest least developed countries ldcs in subsaharan africa, with a popula.
Ethiopias real gross domestic product gdp growth decelerated to 7. Capturing the direct net benefits of irrigation fitsum hagos, godswill makombe, regassa e. For decades, mere mention of the country has conjured up images of famine and conflict. Pdf on jan 1, 2004, mulat demeke and others published agricultural. Since agriculture currently dominates ethiopia s economy and employment, however, there is an issue as to what its role should be in getting from here to there. Ethiopia food and agriculture organization of the united nations. Ethiopia agriculture, information about agriculture in ethiopia. Ranking of the country ethiopia at the global level is from the highest to the lowest data.
By african, standard rural development programme has long history in ethiopia. Agriculture accounts for over half of ethiopian gdp, yet the case for agriculture as a focus of economic growth strategies must rely on identifying a set of intersectoral linkages through which agricultural growth contributes to the growth of non agriculture in the ethiopian economy. During this time, agricultural production resembled a feudal system since land ownership was highly inequitable, and the vast majority of ethiopians were obliged to till the fields of the wealthy landowners. Agriculture is the backbone of ethiopias economy, accounting for 42% of gdp and nearly 80% of. Preface agriculture is the mainstay of the ethiopian population and a key sector of the countrys economy. The contribution of livestock to the ethiopian economy a. Ethiopia has an agriculturebased economy, wherein the agricultural sector accounts for 46. The causal linkage between agriculture, industry and service sectors in ethiopian economy adisu abebaw degu department of economics, salale university, fiche, ethiopia email address. With the advent of oil, the share of agriculture in. Agriculture is the largest sector in the ethiopian economy, accounting for over 50% of gdp and employing over 85% of the labour force medac, 1999. The significance of smallholder agriculture agriculture is a major factor in sustainable global resource management in terms of land, water, biodiversity, and emissions to land, water, and the atmosphere. Previous studies have not gone past pointing the contribution of agriculture to economic growth such as supply of food, raw materials, foreign exchange and supply of labour for industrial employment.
Recent economic developments the ethiopian economy continued its strong expansion in fy14 with real gdp growing by 10. However, the banking, telecommunication and transportation sectors of the economy are dominated by governmentowned companies. The growth opportunities and challenges of the ethiopian economy. Ethiopian agriculture and strategies for growth innovasjon norge. Ethiopia overview of economy, information about overview.
Especially after world war ii, tourism, banking, insurance, and transport began to contribute more to the. This page provides forecast and historical data, charts, statistics, news and updates for ethiopia agriculture employment. About 70% of africans and roughly 80% of the continents poor live in the rural areas and depend mainly on agriculture for their livelihood. Nor has it been assured of staff continuity to execute its functions. Contribution of livestock sector in ethiopian economy. The ethiopian economy is among the most vulnerable in subsaharan africa. The sector share of agriculture, for instance in 1996, was 52% to the gross domestic product, 90% of the foreign.
Climate change, agriculture, and economic development in ethiopia. Request pdf contribution of agriculture in the ethiopian economy. The stark contrast between rural subsistence farming in ethiopia and the sprawling city of addis ababa. Dec 21, 2015 the future of ethiopias agriculture monday, 21 december 2015 09. The causal linkage between agriculture, industry and service sectors in ethiopian economy. More than 70% of ethiopias population is still employed in the agricultural sector, but services have surpassed agriculture as the principal source of gdp. Role of agriculture in the economic development of a country. According to the food and agriculture organization fao 95 % of agricultural production comes from small farms. Ethiopiaan agrarian economy in transition econstor. An estimated 85 percent of the population are engaged in agricultural production. Ethiopia has an agriculture based economy, wherein the agricultural sector accounts for 46. This particular sector determines the growth of all other sectors and consequently the. Impacts of climate change on agriculture in ethiopia. Agriculture has always been considered as the foundation of the ethiopian economy.
For this reason, igad and the ethiopian ministry of finance and economic development mofed undertook two consecutive studies on the contribution of livestock to the ethiopian economy. Ethiopia is africas fastestgrowing economy world economic. The challenges of agriculture and rural development in africa. The future of ethiopias agriculture monday, 21 december 2015 09. Agriculture is the mainstay of ethiopian economy involving major source of employment and gross national product. For more than a decade before 2016, gdp grew at a rate between 8% and 11% annually one of the fastest growing states among the 188 imf member countries. The ethiopian economy is am ong the most vulnerable in subsaharan africa. The major weakness of the ethiopian economy is the dependence on agriculture, periodic serious droughts, and a wardamaged infrastructure. Agriculture has been practiced for centuries in ethiopia. Agriculture, which constituted 46 percent of gdp and more than 80 percent of exports in 1998, is by far the most important economic activity in the ethiopian economy 1998 est. Flagship initiatives and accomplishments within ethiopian agriculture. Eiar ethiopian institute of agricultural research eprdf ethiopian peoples revolutionary democratic front era ethiopia railways corporation erhs ethiopia rural household survey ese ethiopian seed enterprise eslse ethiopian shipping and logistics services enterprise faostat food and agriculture organization statistics. Ethiopia has the lowest level of incomeinequality in africa and one of the lowest in the world, with a gini coefficient. Ethiopia share of economic sectors in the gross domestic.
Agriculture, food insecurity and agricultural policy in ethiopia belete, a. Growth was driven mainly by the services sector from the. Ethiopia has great agricultural potential because of its vast areas of fertile land, diverse climate, generally adequate rainfall, and large labor pool. It has been one of the oldest civilizations in africa. Aug 01, 2016 role agriculture in ethiopian economy. Agriculture accounts for over half of ethiopian gdp, yet the case for agriculture as a focus of economic growth strategies must rely on identifying a set of intersectoral linkages through which agricultural growth contributes to the growth of nonagriculture in the ethiopian economy. Ethiopias economy is dependent on agriculture, which accounts for 40 percent of the gdp, 80 percent of exports, and an estimated 75 percent of the countrys workforce.
Socioeconomic context and role of agriculture ethiopia. The ethiopian economy continued its strong expansion in fy14 with real gdp growing by 10. Flagship initiatives and accomplishments within ethiopian agriculture 1. The production and export of cash crops such as coffee were advanced, and importsubstituting manufactures such as textiles and footwear were established. Deforestation and land degradation on the ethiopian.
Pdf agriculture, food insecurity and agricultural policy in. Growth was driven mainly by the services sector from the supply side and public investment from the demand side. Its mission is to enable innovative entrepreneurship for sustainable, inclusive growth. Based on information available at the time of these discussions, the staff report was completed on august 30, 2016. First, agriculture dominates the ethiopian economy and the overall economic. The agriculture sector in ethiopia economies africaines. Industrialization and industrial policy in ethiopia. The kinds of economic output that are included in gdp are broad, but what gdp excludes can also be quite significant. This suggests that the industrial sector may be evolving to become the primary driver of the economy for the first time in ethiopia. The challenges of agriculture and rural development in. Cameroons economy is predominantly agrarian and agriculture with the exploitation of both renewable. Construction and services sectors account for most of the growth from the supply side.
Government of the federal democratic republic of agriculture. Namara and seleshi bekele awulachew introduction heavy reliance on rainfed agriculture, during conditions of very variable rainfall and recurrent droughts, affects agriculture and, hence, has. Poverty, peasantry and agriculture in ethiopia sciencedirect. Since agriculture currently dominates ethiopias economy and employment, however, there is an issue as to what its role should be in getting from here to there. Introduction since 1992 the government of ethiopia has introduced a variety of reforms aimed at improving. Annual economic report ethiopian economic association. Agriculture is the dominant sector of the ethiopian economy, with 85% of the population living in the rural areas. Agriculture is the backbone of the ethiopian economy. Aug, 2018 agriculture is the mainstay of ethiopian economy involving major source of employment and gross national product. Under haile selassie i reigned 193074, ethiopias economy enjoyed a modicum of free enterprise. With a population of about 92 million, ethiopia is the second most populous country in subsaharan africa. Socioeconomic context and role of agriculture the federal democratic republic of ethiopia is a landlocked country in the horn of africa and is one of the most biologically and culturally diverse countries on the continent.
Important agricultural exports include coffee, hides and skins leather products. The overall farming system is strongly oriented towards grain production as source of livelihood and way of life. The ethiopian economy is highly dependent on agriculture. It is heavily dependent on it is heavily dependent on the agricultural sector, which has suffered from recurre nt. Agriculture employment for ethiopia from the world bank for the world development indicators wdi release. Indeed, in order to facilitate agricultural development. The government of ethiopia is in the process of privatizing many of the stateowned businesses and moving toward a market economy. Emphasis on agriculture as the driver of economic growth. Ethiopia agriculture, information about agriculture in. Ethiopia s economy and the role of the agriculture sector 2.
Industry, mainly construction, and services accounted for most of the growth. Frameworks, strategies, and plans for agricultural development 3. Since agriculture currently dominates ethiopias economy and employment. Agricultural production in ethiopia is characterized by subsistence orientation. Ethiopias agriculture sector policy and investment. Contribution of agriculture in the ethiopian economy. Agriculture and the economic transformation of ethiopia africa portal. The economy of ethiopia is a mixed and transition economy with a large public sector. Agricultural sector plays a strategic role in the process of economic development of a country. The causal linkage between agriculture, industry and service. This sector plays a pivotal role in the economy and exerts important effects on other sectors.
It has also enjoyed a considerable attention by the government. June 22, 2016, with the officials of the federal democratic republic of ethiopia on economic developments and policies. Since february 2011, the crge initiative, under the leadership of the prime. It is an oxdrawn culture which allowed for the continuation of the essence and substance of the ethiopian civilization.
With help from usaid, more than 1,000 women are working in nurseries across southwestern ethiopia to produce highquality coffee seedlings. A time varying parameter approach the objective of this study was to perform causality. At present the economy is dominated by lowproductivity agriculture on. A timevarying parameter approach the objective of this study was to perform causality. It is committed to rapid growth of agriculture as a means of accelerating the economic transformation an agriculture led transformation of the economy see for example, mellor and lele 1972. Some of the major role of agriculture in economic development of a country are as follows. Pdf essays on the ethiopian agriculture unitneprints. The focus on the agricultural sector is necessitated by several factors. It is concluded that the freer agriculture is from policy constraints, the higher its contribution becomes to growth in the manufacturing and services sectors. Since agriculture initially dominates the economy and employment, there is an issue as to what its role should be in getting from here to. Challenges and prospects of agricultural production and productivity. Agriculture is the mainstay of the ethiopian economy, contributing 41.
The ethiopian economy grew by 8 in 201516 due to the recent drought affecting agricultural production with spillovers on the trade sector. This, however, does not in any way imply that development effort in rural areas will be limited to agricultural development. Put in perspective, ethiopia s key agricultural sector has grown at an annual rate of about 10% over the past decade. The structure of the ethiopian economy a sambased characterisation1 alemayehu seyoum taffesse and tadele ferede2 may 2004 i. Ethiopias economy experienced strong, broadbased growth averaging 9. Agriculture and the economic transformation of ethiopia. Productive capacity and economic growth in ethiopia. Agriculture provides about 52% of the country s gdp, 80% of its employment, and 90% of its export earnings world bank, 2000.
Under selassies rule, the ethiopian economy relied primarily on agriculture, particularly coffee production. Ethiopia gdp from agriculture 19992018 data 20192020. Potentials, constraints and suggested intervention measures. Before the beginning of crude oil exports in 1978, agriculture accounted for about 30% of the gross domestic product gdp and 80% of total exports. It has already made a significant contribution to the economic prosperity of advanced countries and its role in the economic development of less. But a new ethiopia is emerging from troubled times and the latest international monetary fund imf forecast says ethiopia will be the fastestgrowing economy in subsaharan africa in 2018. Importance of irrigated agriculture to the ethiopian economy. Ethiopia has therefore initiated the climateresilient green economy crge initiative to protect the country from the adverse effects of climate change and to build a green economy that will help realise its ambition of reaching middleincome status before 2025. This page provides ethiopia gdp from agriculture actual values, historical data, forecast, chart, statistics, economic calendar and news. Economic development transforms an economy from one that is largely agricultural to one that is largely manufacturing and services. Ethiopian economic associaonethiopian economic policy research instutes. Agriculture is not just rural, but occurs on and within the margins of urban areas and major cities. Pdf impacts of climate change on agriculture in ethiopia. The university is not new to working with the ethiopian.
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