WEF_GrowAfrica_AnnualReport2014

2013 in Review 2013 in Review
THE LONG VIEW
Strong agricultural growth and investment must
still deliver on eliminating poverty and hunger
Agricultural GDP Growth Rates
Ag GDP Growth
20
15
CAADP Target
10
Agriculture makes up nearly half of Ethiopia’s economy,
making it one of the top 4 most agriculturally-based
economies in the world. Since 2005, growth in the
sector has stabilised at rates consistently above the
6% CAADP target. Roughly half of the rural population
is directly engaged in agriculture as an economic
activity, with a slight majority of that agricultural labour
force composed of men. Ethiopia’s agricultural sector
currently produces maize, sorghum, wheat, sugarcane
and pulses in significant quantities, generating 9% of
Africa’s annual maize production. Since 2004, Ethiopia
has significantly increased agricultural spending as
a percentage of its annual budget, raising it from 5%
to 21.2% and far exceeding the CAADP expenditure
target.
Ethiopia is placed 125th in global rankings and 11th
out of 47 in sub-Saharan Africa in the Ease of Doing
Business report. The country is particularly wellranked
with respect to contract enforcement. However,
CAADP TARGETS
Starting a Business and Protecting Investors are both
areas in need of particular improvement. Ethiopia
is one of the most attractive environments on the
continent for digital agribusiness services, with 22.1
million mobile GSM connections, 39% of which are
3G data connections, making it the most data-enabled
mobile market out of the Grow Africa countries.
For Ethiopia’s 96.5 million persons, extreme poverty
(percentage of people living on less than $1.25/day)
declined from 39% in 2005 to 30.7% in 2011. Child
malnutrition is still extraordinarily high compared to
other sub-Saharan countries, with 29.2% of children
under 5 being underweight.
Against this backdrop, Ethiopia’s stabilised agricultural
growth is integral for progress towards achieving the
Millennium Development Goals, especially for the vast
majority of citizens who live in rural areas.
5
0
-5
-10
-15
-20
-25
1982 1984 1986 1988 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008
Source: ReSAKKS 2014 - www.resakss.org
SNAPSHOT OF AGRICULTURAL ECONOMY
Rural Population
Total population:
96,506,000
2010
Population Economically Active in Agriculture
Total:
37,026,000
29.2% 30.7%
Child malnutrition:
% of children under 5 underweight
(World Development Indicators, 2011)
Poverty:
% living below $1.25/day
(World Development Indicators, 2011)
Rural population:
79,347,000
55.0% 45.0%
Public agriculture expenditure share in total public expenditure 1990 - 2010
Source:
FAO-STAT 2014 - http://faostat.fao.org/
Source:
FAO-STAT 2014 - http://faostat.fao.org/
Ethiopia
CAADP Target
Ease of Doing Business - Rank of 189 Countries
Top 10 Crops by Production (tonnes)
Overall 125
6,158,318 Maize
25
Starting a Business 166
3,604,262 Sorghum
20
Getting Credit 109
3,434,706 Wheat
15
10
Protecting Investors 157
Trading Across Borders 166
Enforcing Contracts 44
2,700,000 Sugarcane
2,690,165 Pulses
1,781,652 Barley
5
0
1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
Source: ReSAKKS 2014 - www.resakss.org
EASY 50 100
150
Source:
World Bank 2014 - http://www.doingbusiness.org/
HARD
1,185,050 Sweet Potatoes
863,348 Potatoes
742,297 Millet
350,000 Yams
Source:
FAO-STAT 2014 -
http://faostat.fao.org/
60
Ethiopia
Ethiopia
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