Ethiopia, located in the Horn of Africa, is the continent’s second most populous nation, with approximately 126.5 million people as of 2023. The country has experienced significant economic growth, averaging nearly 10% annual real GDP growth between 2004 and 2018, primarily driven by substantial infrastructure investments. In the fiscal year 2022/23, the economy grew by an estimated 7.2%. Despite these advancements, Ethiopia remains one of the world’s poorest countries, with a per capita gross national income of $1,020.
The Ethiopian government has been implementing reforms to transition towards a more inclusive and private sector-driven economy. Notably, in late July 2024, the government shifted to a market-determined exchange rate and removed most current account restrictions. Additionally, in December 2024, legislation was passed allowing foreign banks to operate within the country, aiming to attract more foreign investment.
Politically, Ethiopia is a federal parliamentary republic. The current Prime Minister, Abiy Ahmed, has been in office since 2018 and has initiated significant political and economic reforms. However, the country has faced considerable internal strife. Between 2020 and 2022, a devastating conflict occurred in the Tigray region, resulting in widespread atrocities and an estimated 600,000 deaths. In November 2022, a peace agreement was signed, but challenges persist as the nation embarks on a transitional justice process to address past human rights abuses.
Beyond Tigray, Ethiopia has experienced conflicts involving militia groups in the Amhara and Oromia regions. These conflicts have led to significant humanitarian crises, including mass forced displacement and ethnic violence.
Despite these challenges, Ethiopia continues to pursue ambitious reforms and development goals, striving to achieve lower-middle-income status by 2025.
Sources
- worldbank.org
- reuters.com
- theguardian.com
- cfr.org
ILF’s Operations in Ethiopia
ILF operates in Ethiopia across multiple spheres of society, including Education, Business, Government, Family, Religion, Media, Sports, and Arts & Entertainment. Our work is primarily focused on Education, aiming to make a significant impact in this crucial sector.
ILF Ethiopia currently has 78 active associates and volunteer staff spread across the country. Their primary areas of operation include:
- The capital city, Addis Ababa
- The southern city of Hawassa
- Adama, in central Ethiopia
ILF’s initiatives aim to contribute to Ethiopia’s social and economic development by fostering educational growth and supporting the broader societal transformation efforts in the country.