Ethiopia’s economic growth benefits from its diverse agriculture. However, due to conflict from war and drought, there’s been weak business and trade, including poor environmental access. The war in Tigray that lasted two years caused significant devastation to Ethiopia’s political, social, and economic state. Climate change and lack of fighting against environmental difficulties hindered the agricultural trade. Ethiopia has an estimated 6.4% growth in 2021/22. “However, it also remains one of the poorest, with a per capita gross national income of $1,020.” During COVID-19, the GDP slowed and since then, there’s been a slight incline in the economy.
The reform plan to improve Ethiopia’s economy includes addressing food insecurity, high transportation costs, limited financial and telecommunications services, and land tenure insecurity. “USAID commits to creating jobs and increasing access to healthy diets, to ensure people can become more financially independent and provide a better standard of living for their families.” This agenda promotes welfare and overall support for the civilians, in order to encourage economic growth. Another aspect is focusing on agricultural trade along the border of Ethiopia and Djibouti. Alleviating congestion in the areas, increasing sanitation, and coordination between authorities will increase trade.
