Ethiopia: An African powerhouse on the rise

Ethiopia is the second most populous country in Africa, with a population of 127 million, and is a development success on several measures.

Prior to the Covid-19 pandemic, Ethiopia was one of the fastest-growing economies in the world, and the fastest-growing in Africa, with an annual growth rate of 9.1% over the decade to 2019/20.

This economic growth was influenced by a shift in government strategy in 2010 from agriculture-led to manufacturing-led growth, supported by significant public infrastructure investment.

This growth has helped boost life expectancy and led to gradual poverty reduction, a decrease in gender inequality and an overall rating improvement on the United Nations Human Development Index.

Ethiopia’s watershed moment in international trade

Ethiopia has followed a conservative approach in opening its market to the global economy. Besides being a member of one regional economic community (COMESA) and having bilateral agreements with a few neighbouring countries, Ethiopia is not a party to any other regional or multilateral trade agreements.

Hence the country’s decision to be one of the earlier signatories to the AfCFTA agreement is a watershed moment in its international trade relations.

How GIZ is supporting Ethiopia’s implementation of the AfCFTA

The GIZ supports Ethiopia at a national level. In collaboration with the government, the GIZ’s AfCFTA team aims to achieve sustainable development in Ethiopia through regional economic integration.

Key activities include:

Facilitating evidence-based policymaking through the preparation of a national strategy and position paper; and conducting impact and gap assessments and a sectoral

Providing technical support in the preparation of negotiation documents and the implementation of trade-related aspects of intellectual property rights (in the context of the AfCFTA)

Strengthening the capacity to implement commitments made in the context of trade in goods

Building private sector and civil society capacity around AfCFTA negotiation and implementation topics

Supporting SMEs and women business owners to explore potential market opportunities

In Ethiopia, the GIZ programme is supporting the country’s AfCFTA national committee with negotiations on and implementation of the AfCFTA. The project is also helping Ethiopian businesses take advantage of the opportunities offered by the AfCFTA.

What we have achieved so far:

The creation of stronger structures for facilitated AfCFTA negotiations

Improved framework conditions to implement commitments for trade in goods and services

Enhanced private sector and civil society involvement in the AfCFTA negotiation and implementation process

“Effective implementation of the Continental Free Trade Agreement immensely contributes to Africa’s industrialisation, private sector growth, job creation and balanced trade… it is high time to expedite its implementation … to unleash a complementary economic ecosystem among African nations to utilise the full potential of the continent in becoming a leading exporter in international trade.”

– Ethiopian President Sahle-work Zewde, speaking at the World Export Development Forum in Addis Ababa, 2019

Facts and figures

The AfCFTA will help Ethiopia boost its intra-African trade, which currently accounts for a relatively small proportion of the country’s imports and exports.

Ethiopia’s total intra-African trade (2022):
USD 2.48 billion (12.64% of its total trade)

Top African countries that export from Ethiopia (2022):
Somalia, Djibouti, Kenya and Sudan (together accounted for over 89% of Ethiopia’s exports to Africa)

Top African countries that import to Ethiopia (2022):
Morocco, Egypt and Djibouti

Ethiopia’s key African export products (2022):
 vegetables, coffee, tea, maté and spices

Ethiopia’s key African import products (2022):
fertilisers; animal, vegetable or microbial fats and oils; and mineral fuels and oils

Our partners in Ethiopia

Ministry of Trade and Regional Integration

Ethiopian Chamber of Commerce and Sectoral Associations

Addis Ababa University School of Law

Center for Accelerated Women's Economic Empowerment

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