The economy of Ethiopia is based on agriculture, which accounts for half of gross domestic product (GDP), 43% of exports, and 85% of total employment.
Ethiopia has – almost uniquely in Africa – virtually no private sector business at all. There are no patent laws. Many properties owned by the government during the previous regime have now been transferred to pro-government enterprises in the name of privatization. Telecommunications remain a state monopoly. In financial services, no foreign banks are allowed and it remains almost impossible to find start-up loans for small and medium businesses. Youth unemployment is estimated to be as high as 70%. 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. Various groups and political parties have sought for full privatization of land, while other opposition parties are against privatization and favor communal ownership.
The current government has embarked on a program of economic reform, including privatization of state enterprises and rationalization of government regulation. While the process is still ongoing, the reforms have begun to attract much-needed foreign investment. Despite recent improvements, with an exploding population Ethiopia remains one of the poorest nations in the world.
Read more about Economy Of Ethiopia: Macro-economic Trend, External Trade
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