How do ethiopians make their money

The economy of Ethiopia is a mixed and transition economy with a large public sector. Ethiopian government is in the process of privatizing many of the state-owned businesses and moving toward a market economy.

The country must create hundreds of thousands of jobs every year just to keep up with population growth. The Ethiopian constitution defines the right to own land as belonging only to "the state and the people", but citizens may only lease land up to 99 years , and are unable to mortgage, sell, or own it. The current government has embarked on a program of economic reform, including privatization of state enterprises and rationalization of government regulation.

Despite recent improvements, Ethiopia remains one of the poorest nations in the world. Though the issuing of minted coins didn't begin until around , metal coins may have been used in Aksum centuries prior to centralized minting.

The Periplus of the Erythraean Sea mentions that Aksum imported brass "which they use[d] for ornaments and for cutting as money", and that they imported "a little money denarion for [use with] foreigners who live there.

Roman , Himyarite , and Kushana coins have all been found in major Aksumite cities. The minting of coins began around CE , beginning with the reign of Endubis. Around the 5th—8th century, the coffee plant was introduced into the Arab world from Ethiopia. Long before the cultivation of coffee, however, other food crops like finger millet , teff , sorghum , lablab bean and castor bean were domesticated and cultivated in Ethiopia.

As of [update] , agriculture accounts for almost Production is overwhelmingly of a subsistence nature, and a large part of commodity exports are provided by the small agricultural cash-crop sector.

Principal crops include coffee , pulses e.

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Exports are almost entirely agricultural commodities, with coffee as the largest foreign exchange earner, and its flower industry becoming a new source of revenue: As of [update] , some countries that import most of their food, such as Saudi Arabia , had begun planning the development of large tracts of arable land in developing countries such as Ethiopia.

Forest products are mainly logs used in construction. The silvicutural properties are used in construction and manufacturing , and as energy sources. Ethiopia's fisheries are entirely fresh water , as it has no marine coastline.

Although total production has been continuously increasing since , the fishing industry is a very small part of the economy.

Fishing is predominantly artisanal. The mining sector is small in Ethiopia. The country has deposits of coal , opal , gemstones , kaolin , iron ore , soda ash , and tantalum , but only gold is mined in significant quantities. In gold production amounted to some 3. On 30 August it was announced that British firm Nyota Minerals was about to become the first foreign company to receive a mining licence to extract gold from an estimated resource of 52 tonnes in western Ethiopia.

Waterpower and forests are Ethiopia's main energy sources. The country derives about 90 percent of its electricity needs from hydropower, which means that electricity generation, as with agriculture, is dependent on abundant rainfall. Present installed capacity is rated at about megawatts, with planned expansion to 10, megawatts. In general, Ethiopians rely on forests for nearly all of their energy and construction needs; the result has been deforestation of much of the highlands during the last three decades.

Petroleum requirements are met via imports of refined products, although some oil is being hauled overland from Sudan. Oil exploration in Ethiopia has been underway for decades, ever since Emperor Haile Selassie granted a year concession to SOCONY-Vacuum in September Recent oil and gas discoveries across East Africa have seen the region emerge as a new player in the global oil and gas industry. As exciting as the huge gas fields of East Africa are, however, the strong decline in oil prices and expectations for an L-shaped recovery with low prices over the coming years are increasingly challenging the economic viability of the industry in this region.

The discoveries were expected to drive billions of dollars in annual investment to the region over the next decade. However, falling global oil prices are threatening the commercial viability of many of these gas prospects.

This sector constitutes about 4 percent of the overall economy, although it has shown some growth and diversification in recent years. Much of it is concentrated in Addis Ababa. Food and beverages constitute some 40 percent of the sector, but textiles and leather are also important, the latter especially for the export market. A program to privatize state-owned enterprises has been underway since the late s. Prior to the outbreak of the — Eritrean—Ethiopian War , landlocked Ethiopia mainly relied on the seaports of Asseb and Massawa in Eritrea for international trade.

As of [update] , Ethiopia uses the ports of Djibouti , connected to Addis Ababa by the Addis Ababa — Djibouti Railway , and to a lesser extent Port Sudan in Sudan. In May , the Ethiopian government began negotiations to use the port of Berbera in Somaliland. Mountainous terrain and the lack of good roads and sufficient vehicles make land transportation difficult.

However, the government-owned airline, Ethiopian Airlines , is Africa's largest airline. Telecommunications are provided by a state-owned monopoly, Ethio Telecom, formerly the Ethiopian Telecommunications Corporation. Aside from wholesale and retail trade, transportation, and communications, the services sector consists almost entirely of tourism. Developed in the s, tourism declined greatly during the later s and the s under the military government.

Recovery began in the s, but growth has been constrained by the lack of suitable hotels and other infrastructure, despite a boom in construction of small and medium-sized hotels and restaurants, and by the impact of drought, the — war with Eritrea , and the specter of terrorism.

The following table displays the trend of Ethiopia's gross domestic product at market prices, according to estimates by the International Monetary Fund with figures in millions of Ethiopian Birr. Until , the major agricultural export crop was coffee , providing about In the beginning of , oilseeds exports have been more important. Other exports include live animals, leather and leather products, chemicals, gold , pulses , oilseeds, flowers, fruits and vegetables and khat or qat , a leafy shrub which has psychotropic qualities when chewed.

Cross-border trade by pastoralists is often informal and beyond state control and regulation. Furthermore, the government of Ethiopia is purportedly unhappy with lost tax revenue and foreign exchange revenues.

Dependent on a few vulnerable crops for its foreign exchange earnings and reliant on imported oil, Ethiopia lacks sufficient foreign exchange.

The financially conservative government has taken measures to solve this problem, including stringent import controls and sharply reduced subsidies on retail gasoline prices. Nevertheless, the largely subsistence economy is incapable of supporting high military expenditures, drought relief, an ambitious development plan, and indispensable imports such as oil; it therefore depends on foreign assistance. By the year , however, implementation failed to progress and Petronas sold its share to another oil company.

From Wikipedia, the free encyclopedia. Economy of Ethiopia Commercial Bank of Ethiopia in Addis Ababa.

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Population below poverty line. CIA World Fact Book All values, unless otherwise stated, are in US dollars. Agriculture , Fishing , and Forestry in Ethiopia. Telecommunications , Media , and Internet in Ethiopia. Foreign aid to Ethiopia Famines in Ethiopia Growth and Transformation Plan List of companies of Ethiopia Special economic zone Trade unions in Ethiopia.

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