What is grown in Ethiopia
The economy of Ethiopia is characterized by agriculture. The agricultural sector is the largest sector and employs over 70% of the population. It has a share of almost 36% of the gross domestic product (GDP) and consists mainly of small-scale subsistence farming, shifting cultivation and pastoralism. The main crops are various types of millet (e.g. teff), sorghum, maize and wheat.
Ethiopia has millions of hectares of grassland and woodland, fertile soil and, in many parts of the country, a climate that allows for several harvest cycles per year. The main difficulty is the appropriate use of the land. The government's goal is management that can feed the growing population and bring in foreign currency through exports, but the challenges are diverse.
The country is known for leasing large areas to foreign investors at particularly good conditions. However, this is not without controversy and is also known as "land grabbing", sometimes also as "land grab" or "land grab": The investors who have received the land from the government produce tons of food with the help of the most modern equipment, irrigation systems and pesticides Cut flowers and other products for export. The people who used to farm this land work as employees or day laborers on the farms. Since the low wages are not enough to make a living, they are fed with food that the government finances with the help of foreign exchange brought in through exports.
Livestock farming is also of considerable economic importance. Ethiopia has the largest number of livestock in Africa.
Services contribute 42% to GDP. The retail sector has the largest share, followed by public administration and banking.
The industrial sector is developing relatively quickly, now contributing over 22% of GDP. So far it has largely been light industry (food, textiles, leather processing). The GDP growth rate remains very high, but GDP per capita (PPP) in Ethiopia is among the lowest in the world.
The mining sector has so far not played a major macroeconomic role in Ethiopia, but it is developing noticeably. Gold is one of the main sources of foreign exchange, iron and tantalum as well as various industrial minerals are also gaining in importance.
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