Ethiopia has been one of the world’s poorest countries for centuries, but it is now on the brink of becoming a middle-income country. Its economy has been growing rapidly in recent years, and it is now the world’s fastest-growing non-oil-exporting country.
One of the main drivers of this economic growth has been the expansion of the country’s agricultural sector. Ethiopia is now Africa’s top coffee producer, and its coffee exports have grown tenfold over the past decade. The country is also a major producer of teff, a grain that is essential to Ethiopian cuisine.
In addition to agriculture, Ethiopia has also developed a thriving manufacturing sector. Ethiopian textile and footwear companies have been some of the biggest beneficiaries of the African Growth and Opportunity Act (AGOA), which gives preferential access to the US market for African exports.
The expansion of Ethiopia’s economy has led to a rapid increase in its urban population. Addis Ababa, the capital, is now home to more than four million people, and it is estimated that 70% of Ethiopians will be urban dwellers by 2030.
This economic growth has been accompanied by social progress. Ethiopia has achieved universal primary education, and its gender parity index (GPI) has improved from 0.42 in 2000 to 0.51 in 2015. The GPI measures gender equality in education, health, political participation, and labour force participation. Ethiopia’s GPI ranks it as the second most gender-equal country in Africa, after Rwanda.
The government has also made progress in reducing child mortality rates. In 2000, Ethiopian children under five years old were three times more likely to die than they are today. The government’s efforts to improve child health have been helped by increasing access to clean water and sanitation facilities, as well as by introducing new vaccines.
Despite these achievements, Ethiopia remains a very poor country. Over half of its population lives below the poverty line, and many Ethiopians do not have access to basic services such as electricity or clean water. Inequality is also a problem: although poverty rates have fallen among all groups over the past decade, they remain high among certain groups such as pastoralists and those living in rural areas.
The government is aware of these challenges and is taking steps to address them. It has set ambitious targets for reducing poverty and inequality, and it is investing heavily in education and health care. With continued economic growth and social progress, Ethiopia could become a middle-income country within a few years.
