Ethiopia’s location gives it strategic dominance as a jumping off point in the Horn of Africa, close to the Middle East and its markets.

Since the end of 2020, an armed conflict has in the Tigray region between the Ethiopian army and the so-called People’s Liberation Front (TPLF) claimed thousands of lives. A peace agreement was signed in November 2022, but several million people in the region are still suffering from hunger.

What are the development challenges in Ethiopia?

Ethiopia’s main challenges are sustaining its positive economic growth and accelerating poverty reduction, which both require significant progress in job creation as well as improved governance. The government is devoting a high share of its budget to pro-poor programs and investments. Large scale donor support will continue to provide a vital contribution in the near-term to finance the cost of pro-poor programs. 

Source: World Bank, 2022