Population (Millions)



GDP (Billion)



GDP Growth

10.8 %







Country Context
& Overview

Ethiopia’s location gives it strategic dominance as a jumping off point in the Horn of Africa, close to the Middle East and its markets. Bordering Eritrea, Somalia, Kenya, South Sudan, and Sudan, Ethiopia is landlocked, and has been using neighboring Djibouti’s main port for the last two decades. However, with the recent peace with Eritrea, Ethiopia is set to resume accessing the Eritrean ports of Assab and Massawa for its international trade.

With about 105 million people (2017), Ethiopia is the second most populous nation in Africa after Nigeria, and the fastest growing economy in the region. However, it is also one of the poorest, with a per capita income of $783. Ethiopia aims to reach lower-middle-income status by 2025.

Ethiopia’s economy experienced strong, broad-based growth averaging 10.3% a year from 2006/07 to 2016/17, compared to a regional average of 5.4%. Ethiopia’s real gross domestic product (GDP) growth decelerated to 7.7% in 2017/18. Industry, mainly construction, and services accounted for most of the growth. Agriculture and manufacturing made lower contribution to growth in 207/18 compared to the previous year.  Private consumption and public investment explain demand-side growth, the latter assuming an increasingly important role.

Higher economic growth brought with it positive trends in poverty reduction in both urban and rural areas. The share of the population living below the national poverty line decreased from 30% in 2011 to 24% in 2016. The government is implementing the second phase of its Growth and Transformation Plan (GTP II) which will run to 2019/20. GTP II aims to continue expanding physical infrastructure through public investments and to transform the country into a manufacturing hub. GTP II targets an average of 11% GDP growth annually, and in line with the manufacturing strategy, the industrial sector is set to expand by 20% on average, creating more jobs.

Innovation in Strategy 2

TMEA has nearly completed work at the border started in 2017 between Ethiopia and Kenya at Moyale, in conjunction with a major road development completed by African Development Bank. Also in 2017, as part of its Regional Integration Strategy of Ethiopia, GoE undertook a phased development plan for the Berbera Corridor. TMEA contributed to a Berbera Corridor Diagnostic Study, which led to a recommendation to upgrade Berbera Port and the road corridor from the port to Hargeisa to the border with Ethiopia. TMEA successfully secured a £25m grant from the UK’s Prosperity Fund, administered by DFID and implemented by TMEA. This project has completed its inception phase and is the first of TMEA’s in The Horn. These two projects create the foundation for a wider TMEA Programme in the Horn from 2019-2024.

Tadesse Yemamu

Ethiopia - Country Director

Tadesse is responsible for establishing the Ethiopia Country Programme and developing managing and monitoring programme delivery. Tadesse, a Transport Specialist previously worked as Director – Transport, Research and Development at the Ministry of Transport in Ethiopia. Prior to this, he worked as Director – Transport Policy and Director in Charge of Maritime transport. He also has wide experience in management and implementation of donor-funded transport projects. 

Email: tadesse.yimamu@trademarkea.com

Phone:+251 911 649 784

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