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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~135.5 MWorld Bank, 2025
GDP (current USD)$126.4 BWorld Bank, 2025
GDP per Capita$933World Bank, 2025
GDP Growth9.77%World Bank, 2025
Inflation (y/y)~13.23%World Bank, 2025
National Bank of Ethiopia policy rate15.00%Central Bank
Unemployment3.32%World Bank, ILO modelled estimate, 2025
Internet Use~21.94%World Bank, 2024
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)

World Bank Indicators Compare with another country

GDP (current USD)$126.4 BWorld Bank, 2025
GDP growth (annual)9.77%World Bank, 2025
GDP per capita (USD)$933World Bank, 2025
Population, total135.5 MWorld Bank, 2025
FDI net inflows (USD)$4.0 BWorld Bank, 2024
Inflation (consumer prices)13.23%World Bank, 2025
Unemployment (% labour force)3.32%World Bank, 2025
Internet use (% of people)21.94%World Bank, 2024
Trade (% of GDP)33.46%World Bank, 2025

Climate Readiness Full ranking

42out of 100
Emerging
Climate adaptation readiness for Ethiopia, from 5 of 5 measured indicators.
Energy access5352.5% · 30% weight
Governance readiness3737 / 100 CPI · 20% weight
Human readiness500.498 HDI · 20% weight
Economic readiness31$933, 2025 · 15% weight
Digital readiness2525.0% · 15% weight
This scores climate adaptation readiness (adaptive capacity), following the readiness dimension of the ND-GAIN framework. It is built only from measured values already held on this profile and normalised 0-100. It does not measure emissions or physical climate vulnerability: the platform does not yet hold emissions, hazard-exposure or natural-capital series. Energy access is the single most climate-specific indicator held; the other four are governance, economic, human-development and digital readiness proxies. The economic sub-score is relative to the African countries the platform covers.
How this is computed

Adaptive capacity to absorb climate finance and adapt, following the readiness dimension of the ND-GAIN framework. Built only from measured values already held on each country profile. It is not a measure of emissions or physical climate vulnerability, which the platform does not yet hold.

  • Energy access (30%) — World Bank, access to electricity (% of population). The single most climate and energy specific signal held: SDG 7 and the clean-energy transition.
  • Governance readiness (20%) — Transparency International, Corruption Perceptions Index (0-100). ND-GAIN governance readiness: the capacity to govern and deploy climate finance. Higher is cleaner.
  • Human readiness (20%) — UNDP, Human Development Index (0-1). ND-GAIN social readiness: the adaptive capacity of the population.
  • Economic readiness (15%) — World Bank, GDP per capita (current US$), latest measured year. ND-GAIN economic readiness: the capacity to finance adaptation. Scored relative to the covered set.
  • Digital readiness (15%) — World Bank, individuals using the Internet (% of population). Information systems for early warning and adaptation.

A country is scored only when at least 4 of the five indicators are held. Sub-scores are weighted and renormalised over the indicators that are present; nothing is estimated for one that is absent.

Country Facts

CapitalAddis Ababa
RegionEast Africa
CurrencyEthiopian Birr (ETB)
FX RegimeManaged float (liberalized July 2024)
Stock ExchangeEthiopian Securities Exchange (ESX, launched 2024)
Investment Promotion AgencyEthiopian Investment Commission (EIC)
Legal SystemCivil law (based on European models)
Time ZoneAfrica/Addis_Ababa

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

Finance & Capital Markets

CurrencyEthiopian Birr (ETB)
National Bank of Ethiopia policy rate15.00%
FX regimeManaged float (liberalized July 2024)
ExchangeEthiopian Securities Exchange (ESX, launched 2024)

Major Banks

Commercial Bank of Ethiopia (CBE)State-owned
Dashen BankPrivate
Awash BankPrivate
Bank of AbyssiniaPrivate
Zemen BankPrivate

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