Ethiopias agriculture sector policy and investment. The ethiopian economy continued its strong expansion in fy14 with real gdp growing by 10. By african, standard rural development programme has long history in ethiopia. 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. The ethiopian economy is among the most vulnerable in subsaharan africa.
Role of agriculture in the economic development of a country. The agriculture sector in ethiopia economies africaines. 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 kinds of economic output that are included in gdp are broad, but what gdp excludes can also be quite significant. Agriculture has always been considered as the foundation of the ethiopian economy. Agriculture and the economic transformation of ethiopia africa portal. Agriculture is the backbone of ethiopias economy, accounting for 42% of gdp and nearly 80% of. Pdf agriculture, food insecurity and agricultural policy in. 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. The causal linkage between agriculture, industry and service. Deforestation and land degradation on the ethiopian. Ethiopias economy experienced strong, broadbased growth averaging 9. Dec 21, 2015 the future of ethiopias agriculture monday, 21 december 2015 09.
The sector share of agriculture, for instance in 1996, was 52% to the gross domestic product, 90% of the foreign. Especially after world war ii, tourism, banking, insurance, and transport began to contribute more to the. Ethiopias agriculture sector policy and investment framework. Emphasis on agriculture as the driver of economic growth. Ethiopia food and agriculture organization of the united nations.
The ethiopian economy is am ong the most vulnerable in subsaharan africa. Aug, 2018 agriculture is the mainstay of ethiopian economy involving major source of employment and gross national product. Ethiopia share of economic sectors in the gross domestic. The economy of ethiopia is a mixed and transition economy with a large public sector. This sector plays a pivotal role in the economy and exerts important effects on. Importance of irrigated agriculture to the ethiopian economy. Ethiopia s economy and the role of the agriculture sector 2.
Agriculture employment for ethiopia from the world bank for the world development indicators wdi release. Recent economic developments the ethiopian economy continued its strong expansion in fy14 with real gdp growing by 10. Agriculture is not just rural, but occurs on and within the margins of urban areas and major cities. The focus on the agricultural sector is necessitated by several factors. Cameroons economy is predominantly agrarian and agriculture with the exploitation of both renewable. Pdf impacts of climate change on agriculture in ethiopia. Growth was driven mainly by the services sector from the supply side and public investment from the demand side. Contribution of livestock sector in ethiopian economy. Climate change, agriculture, and economic development in ethiopia. Ethiopiaan agrarian economy in transition econstor. Ethiopia the second most populous country in africa is a oneparty state with a planned economy. The university is not new to working with the ethiopian. Annual economic report ethiopian economic association.
Ethiopia has an agriculturebased economy, wherein the agricultural sector accounts for 46. The challenges of agriculture and rural development in. The contribution of livestock to the ethiopian economy a. Agriculture provides about 52% of the country s gdp, 80% of its employment, and 90% of its export earnings world bank, 2000. 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. Ethiopian economic associaonethiopian economic policy research instutes. Pdf on jan 1, 2004, mulat demeke and others published agricultural. Ethiopia overview of economy, information about overview. 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. With the advent of oil, the share of agriculture in. The causal linkage between agriculture, industry and service sectors in ethiopian economy adisu abebaw degu department of economics, salale university, fiche, ethiopia email address.
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. Ethiopias real gross domestic product gdp growth decelerated to 7. With a population of about 92 million, ethiopia is the second most populous country in subsaharan africa. Productive capacity and economic growth in ethiopia. Agriculture is the mainstay of the ethiopian economy, contributing 41. Agriculture and the economic transformation of ethiopia. Ethiopia agriculture, information about agriculture in. Preface agriculture is the mainstay of the ethiopian population and a key sector of the countrys economy. Under haile selassie i reigned 193074, ethiopias economy enjoyed a modicum of free enterprise.
Potentials, constraints and suggested intervention measures. More than 70% of ethiopias population is still employed in the agricultural sector, but services have surpassed agriculture as the principal source of gdp. The structure of the ethiopian economy a sambased characterisation1 alemayehu seyoum taffesse and tadele ferede2 may 2004 i. It has already made a significant contribution to the economic prosperity of advanced countries and its role in the economic development of less. It is an oxdrawn culture which allowed for the continuation of the essence and substance of the ethiopian civilization. This, however, does not in any way imply that development effort in rural areas will be limited to agricultural development. Ethiopian agriculture and strategies for growth innovasjon norge. 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. This statistic shows the share of economic sectors in the gross domestic product gdp in ethiopia from 2008 to 2018. 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.
At present the economy is dominated by lowproductivity agriculture on. Challenges and prospects of agricultural production and productivity. The ethiopian economy grew by 8 in 201516 due to the recent drought affecting agricultural production with spillovers on the trade sector. Agriculture is the backbone of the ethiopian economy. Ethiopia has great agricultural potential because of its vast areas of fertile land, diverse climate, generally adequate rainfall, and large labor pool. 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. Nor has it been assured of staff continuity to execute its functions. Ethiopia is africas fastestgrowing economy world economic. Agriculture, food insecurity and agricultural policy in ethiopia belete, a. Agricultural production in ethiopia is characterized by subsistence orientation. Ranking of the country ethiopia at the global level is from the highest to the lowest data. Since agriculture currently dominates ethiopias economy and employment. The future of ethiopias agriculture monday, 21 december 2015 09. 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.
Ethiopia agriculture, information about agriculture in ethiopia. 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. 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. Industrialization and industrial policy in ethiopia. The stark contrast between rural subsistence farming in ethiopia and the sprawling city of addis ababa. This page provides ethiopia gdp from agriculture actual values, historical data, forecast, chart, statistics, economic calendar and news. This suggests that the industrial sector may be evolving to become the primary driver of the economy for the first time in ethiopia. This page provides forecast and historical data, charts, statistics, news and updates for ethiopia agriculture employment.
Since february 2011, the crge initiative, under the leadership of the prime. A timevarying parameter approach the objective of this study was to perform causality. 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. Agriculture is the dominant sector of the ethiopian economy, with 85% of the population living in the rural areas. About 70% of africans and roughly 80% of the continents poor live in the rural areas and depend mainly on agriculture for their livelihood. Some of the major role of agriculture in economic development of a country are as follows.
However, on account of climatic, social and institutional factors contributing to low production and productivity, agriculture is. An estimated 85 percent of the population are engaged in agricultural production. 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. Pdf essays on the ethiopian agriculture unitneprints. The growth opportunities and challenges of the ethiopian economy. A time varying parameter approach the objective of this study was to perform causality. 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. 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. Agriculture has been practiced for centuries in ethiopia. 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.
Poverty, peasantry and agriculture in ethiopia sciencedirect. It is heavily dependent on it is heavily dependent on the agricultural sector, which has suffered from recurre nt. It has also enjoyed a considerable attention by the government. 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. For decades, mere mention of the country has conjured up images of famine and conflict. June 22, 2016, with the officials of the federal democratic republic of ethiopia on economic developments and policies. Impacts of climate change on agriculture in ethiopia. Capturing the direct net benefits of irrigation fitsum hagos, godswill makombe, regassa e.
Its mission is to enable innovative entrepreneurship for sustainable, inclusive growth. The challenges of agriculture and rural development in africa. 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. Despite being more subsistence, agricultural production plays an important role in the economy. In 2018, the share of agriculture in ethiopias gross domestic product was 31. Since agriculture initially dominates the economy and employment, there is an issue as to what its role should be in getting from here to. Agricultural sector plays a strategic role in the process of economic development of a country. Industry, mainly construction, and services accounted for most of the growth. This sector plays a pivotal role in the economy and exerts important effects on other sectors. Important agricultural exports include coffee, hides and skins leather products. According to the food and agriculture organization fao 95 % of agricultural production comes from small farms.
Flagship initiatives and accomplishments within ethiopian agriculture 1. Construction and services sectors account for most of the growth from the supply side. Aug 01, 2016 role agriculture in ethiopian economy. Ethiopia gdp from agriculture 19992018 data 20192020. The causal linkage between agriculture, industry and service sectors in ethiopian economy. This particular sector determines the growth of all other sectors and consequently the. Ethiopia has the lowest level of incomeinequality in africa and one of the lowest in the world, with a gini coefficient. With help from usaid, more than 1,000 women are working in nurseries across southwestern ethiopia to produce highquality coffee seedlings. Economic development transforms an economy from one that is largely agricultural to one that is largely manufacturing and services. Socioeconomic context and role of agriculture ethiopia. Introduction since 1992 the government of ethiopia has introduced a variety of reforms aimed at improving. The ethiopian economy is highly dependent on agriculture.
The major weakness of the ethiopian economy is the dependence on agriculture, periodic serious droughts, and a wardamaged infrastructure. Agriculture is the mainstay of ethiopian economy involving major source of employment and gross national product. Government of the federal democratic republic of agriculture. It is concluded that the freer agriculture is from policy constraints, the higher its contribution becomes to growth in the manufacturing and services sectors. Food and agriculture organization ethiopia country programming. It has been one of the oldest civilizations in africa. The production and export of cash crops such as coffee were advanced, and importsubstituting manufactures such as textiles and footwear were established. 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. The overall farming system is strongly oriented towards grain production as source of livelihood and way of life.
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