Ethiopia is located in the Horn of Africa and has a long history as one of the oldest kingdoms in the world. Agriculture is the primary economic activity, contributing over 40% to GDP. Coffee is a major export crop. The population is over 88 million with over 80 ethnic groups and numerous local languages. Amharic is the most widely spoken language. While Ethiopia has experienced civil unrest and famine, the economy has grown in recent years with infrastructure development opportunities in agriculture, electricity, and IT. Maintaining cooperative relations with Egypt over shared water resources will be important for continued regional stability and investment.

1. International Business Management
Ethiopia Profile
Professor Dr.:
Ashraf Emam
prepared by:
1- Khaled Nazeer
2-
3-
Amin El Khodary
Amir El Naghy
Cohort :
4
4- Ahmed Galal
Group: Cairo
Date: November 2012

2. Ethiopia Overview
National Name: Federal Democratic Republic of Ethiopia
Capital: Addis Ababa
Type of Government: federal republic
President: Girma Woldegiorgis (2001)
Prime Minister: Hailemariam Desalegn (2012)
Land area: 432,310 sq mi (1,119,683 sq km);
Total area: 435,186 sq mi (1,127,127 sq km)
Population (2010 est.): 88,013,491 (growth rate: 3.2%)
Birth rate: 43.3/1000
Infant mortality rate: 78.9/1000
Life expectancy: 55.8
Density per sq km: 69
Currency: birr (ETB) ($1 = Br 18.18)
Geography
Ethiopia is located in the Horn of Africa and is bordered on the north and northeast by Eritrea,
on the east by Djibouti and Somalia, on the south by Kenya, on the northwest by Sudan and on
the southwest by South Sudan. The country has a high central plateau that varies from 1,290 to
3,000 m) above sea level, with the highest mountain reaching 4,533 m. Elevation is generally
highest just before the point of descent to the Great Rift Valley, which splits the plateau
diagonally. A number of rivers cross the plateau—notably the Blue Nile rising from Lake Tana.
The plateau gradually slopes to the lowlands of the Sudan on the west and the Somali-inhabited
plains to the southeast.

3. Ethiopia History Profile
- Ethiopia is one of the oldest kingdoms in the world and
certainly the oldest independent country in Africa.
- Ancient Ethiopia is mentioned in Greek history as well as Hebrew
history. Ethiopia managed to avoid colonization from Europe unlike
most other African areas and countries.
- During World War II, Italy occupied the country for a few years, but
was removed when they lost the war.
- In modern times Ethiopia has been ravaged by famine and military
coups.
- For many years Ethiopia was a place of unrest and civil strife.
Refugees starved as different military regimes fought for power.
- Some peace was restored in 1995 with the establishment of a
constitution and multiparty elections.
- Ethiopia currently has a border dispute with Eritria

4. Ethiopia Demography Profile
A. - Ethnic groups: Oromo 40%, Amhara and Tigrean 32%,
Sidamo 9%, Shankella 6%, Somali 6%, Afar 4%, Gurage 2%,
other 1%
B. - Languages: Amharic, Tigrinya, Oromigna, Guaragigna,
Somali, Arabic, other local languages, English (major foreign
language taught in schools)
C. - Population: 88,013,491 (2010 est.)
D. - National Holiday: National Day (defeat of MENGISTU
regime), 28 May (1991)
E. - Literacy rate: 43% (2003 est.)

5. Ethiopia Economic Profile
Economic Summary (2011 est.)
GDP $31.7 billion
GDP per Capita 5%
Real growth rate 8%
Inflation 11%
Imports $7.3 billion
Exports $1.6 billion
Labor force 27.27 million
Budget - Revenues $5.355 billion (2011 est.)
Budget - Expenditures $5.988 billion (2011 est.)
Budget- Surplus(+) or Deficit (-) -2 of GDP (2011 est.)

6. Ethiopia Economic Profile Cont.
Main Economic Sectors
Year  1990 2000 2009 2010 2011
%Agriculture 54.3 49.9 50.8 47.7 41
%Industry 11.1 12.4 10.8 14.3 13
%Services 34.5 37.8 38.5 38 46
Agriculture :
Cereals, pulses, coffee, oilseed, cotton, sugarcane, potatoes, khat, cut
flowers; hides, cattle, sheep, goats; fish
Industries:
Food processing, beverages, textiles, leather, chemicals, metals processing,
cement
Natural resources:
Small reserves of gold, platinum, copper, potash, natural gas, hydropower

7. Ethiopia Investment Overview
The Ethiopian economy is predominantly agricultural and the production
in such sector constitutes a major part of the country’s economy, contributing
about 45 per cent for the country’s gross domestic product (GDP) and about 62 per cent for
total exports. It accounts for 85 per cent of total employment. Coffee, a major cash crop, is of
high quality and contributes about 62 per cent of total agricultural exports. So, it is a major
source of foreign-currency earnings. Manufacturing, mining, trade, tourism, construction,
services, etc., which make up the remaining 55 per cent of GDP, supplement agriculture.
Industry contributes only 11 per cent to GDP and 16 per cent to the total exports.
Exports:
$1.6 billion (2009 est.): coffee , qat, gold, leather products, live animals, oilseeds.
Imports:
$7.3 billion (2009 est.): food and live animals, petroleum and petroleum products, chemicals,
machinery, motor vehicles, cereals, textiles.
Major trading partners:
Djibouti, Germany, Japan, Saudi Arabia, U.S., UK, Italy, India, China (2006).
General Import/Export Regulations
All importers and exporters must be registered with the Ministry of Trade and Industry and
obtain a trading license. The Ministry regulates imports. Foreign exchange permits are
required for all importers.

8. Ethiopia Profile
Relation between Egypt & Ethiopia:
- The diplomatic relation between Ethiopia and Egypt has strengthened since the
aftermath of Egyptian Revolution that brought the Mubarek regime to its ends in
the 2011. There is at least a general understanding to stick to a win-win approach
particularly in connection with the utilization of the Nile Waters.
Our Recommendations:
- There are many potential investments in Ethiopia which lead the other countries to
think for investing in Ethiopia. The investment areas are in electricity, livestock
,agricultures and Information Technology (particularly in Gov. e-Payment Services.).
Egypt has long experience in electricity field especially after established high dam
and in IT field.
- Documents from Ethiopian Ministry of Water and Energy indicate that about 95 per
cent of the Nile Waters hasn’t been used yet. If there is common understanding
and cooperation among the people along the region to develop various projects
along it, the Nile will be the life of the entire people. It will be the life of Ethiopia,
the life of Egypt and the life of other basin countries.