Economy

Since mid-1991, the economy of Ethiopia has evolved toward a decentralised, market-oriented economy, emphasising individual initiative, which was intended to reverse a decade of economic decline. In 1993, gradual privatisation of business, industry, banking, agriculture, trade and commerce was underway.

Agriculture accounts for almost 41% of the gross domestic product (GDP), 80% of exports and 80% of the labour force. Many other economic activities depend on agriculture, including marketing, processing and export of agricultural products. Production is overwhelmingly of a subsistence nature, and a large part of commodity exports are provided by the small agricultural cash-crop sector. Principal crops include coffee, pulses, oilseeds, cereals, potatoes, sugarcane and vegetables. Exports are almost entirely agricultural commodities, and coffee is the largest foreign exchange earner. Ethiopia's livestock population is believed to be the largest in Africa, and as of 1987 accounted for about 15% of the GDP.