Ethiopia

A weak rule of law means that Ethiopia is ‘repressed’ for economic freedom. Civil war has had a negative impact on output, but economic development has remained resilient, largely owing to a sound agricultural sector, although inflation remains very…

Tobacco in Ethiopia is dominated by the previously state-owned company National Tobacco Enterprise Ethiopia, which generates its revenues entirely from sales of cigarettes. While retail volume sales of tax-paid cigarettes are rising, retail sales…

Since the outbreak of COVID-19, there has been a behavioural shift in most consumers, in the sense that they have become more aware of hygiene and sanitation. However, in 2022, many categories are now being impacted by the global inflation rates…

Soaring inflation, due to the continuing civil war, as well as price pressures arising from the war in Ukraine, led to consumers cutting down on discretionary spending. On top of inflation, drought further aggravated supply chain disruptions. Within…

Coffee dominates retail volume sales of hot drinks in Ethiopia. Coffee has a long history in Ethiopia and is regularly consumed by most adults. Retail volume sales of coffee continued to expand in 2022, with the economic shock of the pandemic having…

Consumption of soft drinks continues to steadily grow in Ethiopia even though the country has faced major setbacks in terms of political stability, the COVID-19 pandemic and global inflation rates, and fuel price hikes. Urbanisation and population…

Consumer health witnessed strong growth in current value terms in 2022, largely fuelled by a high rate of inflation. Despite seeing solid GDP growth in 2022 the country faces numerous challenges including civil war, albeit a ceasefire was achieved in…

The snacks market is set to be hampered by high inflation in 2023, leading to muted growth of non-essential categories, such as boxed assortments. While the market is recovering from the economic shock of COVID-19, with sales maintaining positive…

Alcoholic drinks recorded robust growth in 2022 as sales continued to recover from the impact of COVID-19. Expanding local production, especially in wine and beer, has supported growth by offering consumers affordable options at a time when currency…

In 2022 tissue and hygiene products are experiencing growth in value sales due to inflation, further supported by population growth, rising income levels, and urbanisation. However, category performance remains inhibited by widespread poverty,…

Beauty and personal care continued to develop in 2022 as population growth, urbanisation and rising incomes due to economic development expanded the core consumer base in most categories. However, most local people demand only the absolute basics…

Retail volume sales of staple foods in Ethiopia are dominated by bread, with rice accounting for most of the remainder. Demand for breakfast cereals, processed meat, seafood and alternatives to meat and particularly processed meat and vegetables…

Amid the COVID-19 pandemic, health protocols had to be implemented altering the shopping experience of Ethiopians. The use of masks and social distancing among consumers and staff were strictly enforced in stores. The pandemic and the war in Tigray…

Ethiopia is experiencing a growing demand for dairy products. However, as a developing country, a large part of the residents do not have access to dairy products. While the industry has recovered from the pandemic in 2023, it now faces a fresh set…

Cooking ingredients and meals in Ethiopia saw the strongest rate of retail value sales growth in over a decade during 2022 mainly due to high inflation. Edible oils account for the bulk of overall sales. As an essential product it was not adversely…

The commodities country overview provides comprehensive data on production, consumption and price trends on key commodities markets. The commodities overview in Ethiopia covers production and consumption trends in agricultural commodities, energy…

Ethiopia ranks in the bottom third in the global Economic Freedom Ranking in 2022, due to an unfavourable business environment, with limited monetary and labour freedom. Skills shortages, poor transport and ICT infrastructure, as well as restrictive…

Mekele and Hawassa stand out as Ethiopia's most economically dynamic cities, while Dire Dawa emerges as the city with the greatest potential for future economic expansion. Ethiopian cities will face ongoing challenges. In the short term, these…

The number of households is set to increase rapidly in Ethiopia over 2021-2040, with couples with children remaining the dominant household type. Household earnings have already recovered from the COVID-19 impact, and the fastest household…

The report examines the economic landscape of Ethiopia and provides information on major monetary indicators, foreign trade, investment and government finance. The economy in Ethiopia expanded in real terms in 2022, driven by increasing private…