Located in the Horn of Africa and officially named the Federal Democratic Republic of Ethiopia, Ethiopia’s imports amounted to 14.1 billion dollars in 2021, down by minus 13.9 percent since 2016 and down by minus 9.3 percent from 2019 to 2020.
Based on the average exchange rate for 2020, the Ethiopian birr has depreciated by minus 60.7 percent against the US dollar since 2016 and retreated by minus 74 percent from 2019 to 2020. Ethiopia’s weaker local currency made Ethiopian imports paid for in stronger US dollars relatively more costly for Ethiopian buyers. From a continental perspective, approaching three-quarters of 72.7 percent of Ethiopia’s total imports by value were purchased from Asian countries.
European trade partners supplied 14.4 percent of import purchases by Ethiopia while 6 percent worth of goods originated from fellow African nations. At 5.7 percent, a smaller percentage came from North America. Tinier percentages were sent to Ethiopia from Latin America worth 1.1 percent excluding Mexico but including the Caribbean, and also Oceania with 0.1 percent led by Australia. Given Ethiopia’s population of 97.2 million people, its total of 14.1 billion dollars in 2021 imports translates to roughly 150 dollars in yearly product demand from every person in the northeast African country.
Ethiopia’s Top Imports
The following product groups indicate Ethiopia’s import purchases with the largest monetary value in 2021. The percentage contribution of each product category in terms of overall imports into Ethiopia is also indicated. Machinery including computers: 1.8 billion dollars accounts for 13 percent of total imports
Mineral fuels including oil: 1.7 billion dollars accounts for 12.2 percent
Electrical machinery, equipment: 1.1 billion dollars accounts for 7.7 percent
Vehicles: 1 billion dollars accounts for 7.3 percent
Animal/vegetable fats, oils, waxes: 898.9 million dollars account for 6.4 percent
Cereals: 863.7 million dollars account for 6.1 percent
Iron, steel: 707.1 million dollars account for 5 percent
Plastics, plastic articles: 638.8 million dollars account for 4.5 percent
Pharmaceuticals: 580.5 million dollars account for 4.1 percent
Fertilizers: 507.4 million dollars account for 3.6 percent
Ethiopia’s top ten imports accounted for more than two-thirds of the total value of its product acquisitions from foreign nations which stands at 69.9 percent.
From 2019 to 2021, the cost of three popular imported goods categories increased.
Animal or vegetable fats, oils, and waxes were up by 107.9 percent, cereals went up by 10.7 percent, and fertilizers which came up by 10.7 percent were the top gainers.
Mineral fuels, such as oil, were among the biggest losers going down by minus 34.8 percent.
Ethiopia’s Top Exports
The Federal Democratic Republic of Ethiopia is located on the Horn of Africa, a peninsula in Northeast Africa.
In 2020, Ethiopia sent an expected 2.53 billion dollars in goods around the world, down by minus 3.4 percent from 2016.
The monetary number shows a minus 5.7 percent decline in Ethiopian export sales from 2019 to 2021 compared to the previous year.
The Ethiopian birr has declined by minus 60.7 percent against the US dollar from 2016, according to the average exchange rate for 2020, and has retreated by minus 74 percent from 2019 to 2021.
Ethiopian goods paid for in stronger US dollars were relatively less expensive for overseas purchasers due to the country’s weaker local currency.
Coffee, oil seeds, assorted fresh or cold vegetables, fresh or dried flowers for bouquets or aesthetic uses, and dried shelled vegetables were Ethiopia’s top export exports by value in 2021.
In all, these major exported items account for 71.6 percent of Ethiopia’s total exports.
This proportion indicates a narrow variety of exporting products.
In 2022, the following export product categories will make up the majority of Ethiopian global shipments.
Each export category’s percentage proportion of total Ethiopian exports is also stated here keep watching.
Coffee, tea, spices: 812 million dollars accounting for 32.1 percent of total exports
Vegetables: 553.3 million dollars which account for 21.9 percent
Oil seeds: 439.4 million dollars accounts for 17.4 percent
Live trees, plants, cut flowers: 216.7 million dollars accounts for 8.6 percent
Knit or crochet clothing, and accessories: 87.5 million dollars account for 3.5 percent
Meat: 66.6 million dollars accounts for 2.6 percent
Clothing, accessories: with 48 million dollars stands at 1.9 percent
Live animals: 42.4 million dollars account for 1.7 percent
Electrical machinery, equipment: with 35.1 million dollars account for 1.4 percent
Machinery including computers: 28.7 million dollars accounts for 1.1 percent
Ethiopia’s top ten exports account for 92.2 percent of the total value of Ethiopian international shipments.
Knit or crochet garments and accessories grew at the quickest rate among the top ten export categories, increasing by 18 percent between 2019 and 2021.
Oil seeds came in second with a 4.7 percent increase in export sales.
The only other increase among Ethiopia’s top shipments was a 1 percent increase in vegetables.
Machinery, including computers, was the biggest loser among Ethiopia’s top 10 export categories, with a minus 56.7 percent reduction year over year.
Coffee is Ethiopia’s most valuable export product, accounting for 31.5 percent of the country’s overall exports at the four-digit Harmonized Tariff System code level.
Oil seeds came in second with 15.4 percent, followed by miscellaneous fresh or chilled vegetables with 10.2 percent, fresh or dried flowers for bouquets or ornamental purposes with 7.5 percent, dried shelled vegetables with 7.5 percent, sweet potatoes, and similar root vegetables with 2.9 percent, sheep or goat meat with 2.5 percent, soya beans with 1.5 percent, miscellaneous live plants with 1.5 percent, knitted or crocheted t-shirts and vests with 1 percent, and knitted or crocheted t-shirts and vest also with 1 percent.
Ethiopia’s total exported goods account for 0.9 percent of the country’s overall Gross Domestic Product valued at 293.5 billion dollars in Purchasing Power Parity US dollars in 2021.
In PPP terms, exports will contribute 0.9 percent to the overall GDP in 2022, compared to 1.1 percent in 2021.
Those figures imply that Ethiopia’s entire economic performance is becoming less reliant on products sold on international markets, albeit over a short period.
The unemployment rate is another important measure of a country’s economic performance.
According to Trading Economics, Egypt’s average jobless rate for 2020 was 21 percent, up from 19.5 percent a year earlier. Addis Ababa is Ethiopia’s capital city.
Ethiopia’s Top Trading Partners
From a continental viewpoint, Asian countries received 1.2 billion dollars in Ethiopian exports, accounting for 42.7 percent of the total value, while European countries received 29.1 percent.
Ethiopia exported another 16.8 percent of its commodities to African countries, with 8.5 percent of its cargo going to consumers in North America.
Importers in Latin America excluding Mexico and the Caribbean bought a far smaller percentage of Ethiopian exports, at 0.9 percent.
Here is a list of Ethiopia’s top 15 trading partners, as well as the countries that imported the most Ethiopian shipments in terms of dollar value in 2019.
The percentage of total Ethiopian exports for each import nation is also indicated.
China: 288.2 million dollars accounts for 10.1 percent of total Ethiopian exports
Somalia: 243.6 million dollars accounts for 8.5 percent
United States: 227.3 million dollars accounts for 7.9 percent
Saudi Arabia: 206.2 million dollars accounts for 7.2 percent
Germany: 195.1 million dollars accounts for 6.8 percent
Netherlands: 188.9 million dollars accounts for 6.6 percent
United Arab Emirates: 127.6 million dollars accounts for 4.5 percent
Switzerland: 111.6 million dollars accounts for 3.9 percent
Japan: 101.1 million dollars accounts for 3.5 percent
Djibouti: 96 million dollars accounts for 3.4 percent
Belgium: 95 million dollars accounts for 3.3 percent
Israel: 79.9 million dollars accounts for 2.8 percent
Vietnam: 70.1 million dollars accounts for 2.5 percent
Kenya: 67.7 million dollars accounts for 2.4 percent
Italy: 61.3 million dollars accounts for 2.1 percent