Sustainability: Ethiopia

September 2021

Due to its extremely low electricity production, poor water equity and insufficient food availability, Ethiopia is at the bottom in the global Environmental Sustainability Index. Moreover, the country lacks coping mechanisms, and climate change is causing an increasing risk of droughts. Prolonged droughts are projected to have devastating effects on the country’s agriculture sector.

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The Country Briefings series examine market potential, economic and consumer trends impacting each country and how they are set to change.

Each Country Briefing covers one of these topics:

Economy, Finance and Trade: Understanding the structure, health and potential risks of an economy are important for decision-making within an existing operating environment as well as for expansion strategies. Real GDP growth, inflation and exchange rate fluctuations will directly impact consumer market potential. Import and export trade profiles help gauge how open an economy is to trade and investment, while analysis of government finances can be used to explore macroeconomic stability and susceptibility to economic shocks.

Income and Expenditure: Insights into income, wealth and expenditure of consumers are vital in helping businesses make strategic decisions with regards to which country (or even which region within a country) to enter, which consumer segment to target, which products or services to market, and at which price point. Other factors such as the size and expansion of the middle class and income inequality are also important in helping companies gauge the potential of a country market.

Households: Global shifts in gender, ageing, migration and housing are transforming the size, location,  general make-up as well as income and expenditure of households around the globe, with diverse implications for governments and companies. Households insights can help identify the decision-making processes and consumption tastes of different household groups and types within a country, and assess household appliance and digital readiness that is key for formulating market technology and internet strategies.

Business Dynamics: A stable and competitive business environment is vital to operate efficiently and attract inward investment. Businesses can assess these factors alongside challenges such as corruption, political instability and terrorism, also gain insight into business operating environment and make strategic investment decisions. Transport infrastructure, ICT readiness and labour force dynamics will also identify potential issues with a supply chain and the level of workforce skills.

Sustainability: Insights on key sectors directly related to the environmental sustainability of a country such as energy, water, pollution, environmental resilience, forest and biodiversity and food and agriculture help businesses to make strategic decisions in relation to environmental and sustainability trends, improve brand reputation and ensure long-term operations while ultimately growing the bottom line.

The briefings cover 103 countries and identify topics of crucial interest to planners, marketers and researchers.

Sustainability: Ethiopia



New hydropower plant on the way to accelerate Ethiopia electricity supply
Improving waste management in Ethiopia to remain the government’s focus
Record numbers of trees planted with the aim of reversing deforestation
Water availability remains low, as the infrastructure lacks significant investment
Civil war strikes Tigray region, further aggravating post-pandemic challenges
Droughts increase the number of displaced people, as temperatures continue to increase


Chart 1 Environmental Sustainability Index Ethiopia Chart 2 Global Sustainability Ranking: Ethiopia Chart 3 Energy Ranking: Ethiopia Chart 4 Energy Availability Landscape in Ethiopia Chart 5 Energy Efficiency, Security and Equity Landscape in Ethiopia Chart 6 Pollution Ranking: Ethiopia Chart 7 Air Pollution in Ethiopia Chart 8 Waste and Water Pollution Landscape in Ethiopia Chart 9 Forest and Biodiversity Ranking: Ethiopia Chart 10 Forest and Biodiversity Landscape in Ethiopia Chart 11 Water Ranking: Ethiopia Chart 12 Water Availability, Equity and Security Landscape in Ethiopia Chart 13 Water Security and Efficiency Landscape in Ethiopia Chart 14 Food and Agriculture Ranking: Ethiopia Chart 15 Food and Agriculture Landscape in Ethiopia Chart 16 Role of Agriculture in the Economy of Ethiopia Chart 17 Environmental Resilience Ranking: Ethiopia Chart 18 Environmental Resilience Landscape in Ethiopia

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