As an expert in international trade and development, I have a keen interest in the economic landscapes of various countries. When it comes to Ethiopia, a nation with a rich cultural heritage and a diverse economy, it's important to understand that the main industry has traditionally been agriculture, which plays a vital role in the country's economy. Agriculture is the backbone of Ethiopia's economy, contributing to more than 80% of its total employment and accounting for about 40% of the GDP. The sector is predominantly rain-fed, relying on natural rainfall, which makes it susceptible to fluctuations in weather patterns and climate change. However, the Ethiopian government has been making significant strides in modernizing the agricultural sector to increase productivity and sustainability. Coffee stands out as the most significant agricultural export and a primary source of foreign exchange for Ethiopia. The country is the birthplace of coffee, and its unique highland terroir gives Ethiopian coffee a distinctive flavor profile that is highly sought after in international markets. As of the latest available data from 2005/2006, Ethiopia's coffee exports represented 0.9% of the world's exports, making it a substantial player in the global coffee trade. In addition to coffee, Ethiopia has been diversifying its agricultural exports. The flower industry has emerged as a new and promising sector. Ethiopia's high-altitude climate, combined with its equatorial location, provides ideal conditions for growing a wide variety of flowers. The industry has been growing rapidly, and flowers have become an important export commodity, contributing to the country's revenue. For the same period mentioned earlier, oilseeds and flowers each represented 0.5% of the world exports, indicating the diversification and growth potential within Ethiopia's agricultural sector. The Ethiopian government has also been focusing on developing other sectors of the economy to reduce dependency on agriculture and to create a more balanced economic structure. This includes efforts to expand manufacturing, particularly in textiles and garments, leveraging the country's comparative advantage in labor costs. Additionally, there has been a push towards the service sector, particularly tourism, which capitalizes on Ethiopia's rich cultural and natural attractions. However, it's important to note that despite the progress in diversification, agriculture remains the mainstay of Ethiopia's economy. The country's development strategy is increasingly focusing on value addition within the agricultural sector, such as processing and exporting higher-value products, to boost the economy further. In conclusion, while agriculture, particularly coffee, is the main industry in Ethiopia, the country is actively working towards diversifying its economy and leveraging its strengths in other sectors. The flower industry, in particular, has shown significant growth and has the potential to become a major contributor to Ethiopia's economic development. read more >>

Exports are almost entirely agricultural commodities, with coffee as the largest foreign exchange earner, and its flower industry becoming a new source of revenue: for 2005/2006 (the latest year available) Ethiopia's coffee exports represented 0.9% of the world exports, and oilseeds and flowers each representing 0.5%.read more >>