Ethiopia
Capital: Addis Ababa
Population
About 126.5 million (2023)
Area
Approximately 1.1 million km²
Bordering Countries
6
Overview
Landlocked country in the Horn of Africa, bordered by Djibouti, Eritrea, Kenya, Somalia, South Sudan, and Sudan
Ethiopia, located in the Horn of Africa, is the continent's most populous landlocked country. It has experienced rapid economic growth but faces challenges from its landlocked status, political instability, and climate change pressures. It relies heavily on Djibouti for trade.
Bordering Countries: Djibouti, Eritrea, Kenya, Somalia, South Sudan, Sudan
Economic Profile
Primary Exports
Coffee, sesame seeds, textiles, and other agricultural products
Key Industries
Agriculture, manufacturing, services, and infrastructure development
Economic Challenges
Overvalued currency, unsustainable debt leading to default in late 2023, high inflation (double-digit), low human capital development, limited productivity growth, conflict-related displacement
Trade & Transit Infrastructure
Main Transit Corridors
Relies on Djibouti port for over 90% of maritime trade; investments in rail and road corridors
Port Access
Port of Djibouti for over 90% of imports and exports
Transport Infrastructure Quality
Expansion of roads, railways (Addis Ababa-Djibouti Railway), energy projects
Trade & Transit Challenges
Landlocked status, political instability, climate change pressures, limited logistics capacity
Key Statistics & Indicators
National Trade & Development Strategies
Pursuing macroeconomic stabilization, peacebuilding, democratic governance reforms, economic reforms (liberalization of telecommunications and banking sectors, privatization)
Ongoing and Planned Projects
Debt restructuring (IMF Extended Credit Facility of $3.4 billion approved in 2024), continued expansion of transport networks, energy projects (GERD), industrial parks, humanitarian response, transitioning from state-led to market-driven economy