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Ethiopia Β· Section 1 of 9

Overview

Agriculture, forestry and fishing produced 32.8% of Ethiopia's GDP in the fiscal year 2024/25, and 69.4% of employed persons worked in agriculture in 2024/25. Coffee earned US$2.67 billion in 2024/25, 31.9% of merchandise export earnings. Banks and the Development Bank of Ethiopia directed 8.6% of their outstanding loans to agriculture on 30 June 2025, and the birr has been market-determined since 29 July 2024.

Agriculture share of GDP
32.8%
2024/251
Agricultural value added
41.5US$ bn
2024/252
Real agricultural growth
7.3%
2024/253
Employed persons in agriculture
69.4%
2024/254
Grain production, Meher season
32.8million t
2021/22, excluding Tigray5
Bank loans to agriculture
166.3ETB bn
β‰ˆ US$1.23 bn6
30 Jun 20253
Agriculture share of bank loans
8.6%
30 Jun 20253
Agri-food exports
2.57US$ bn
20237
1.1

At a glance

Agriculture produced about a third of GDP in 2024/25 and employed more than two thirds of workers. Agriculture, forestry and fishing generated ETB 4,953.8 billion of value added in the fiscal year 2024/25, 32.8% of GDP at current prices, worth US$41.5 billion on World Bank data812. Real value added in agriculture grew by 7.3% in 2024/25, against GDP growth of 9.2%3. The Ethiopian Statistics Service found 69.4% of employed persons working in agriculture in 2024/25, and the ILO's modelled estimate for 2025 is 60.1%49. The 2021/22 Agricultural Sample Survey, which did not cover Tigray, counted 19.74 million private peasant holders with an average of 0.90 hectares each10.

The latest crop survey covers the 2021/22 Meher season. Private peasant holdings outside Tigray harvested 32.8 million tonnes of grain in the 2021/22 Meher season, including 10.75 million tonnes of maize, 5.81 million tonnes of wheat and 5.61 million tonnes of teff5. No Meher crop survey after 2021/22 was published on the ESS website by October 202611. The Ministry of Agriculture reported 3.5 million hectares of dry-season irrigated wheat in 202512. The 2021/22 livestock survey counted 66.3 million cattle on private peasant holdings outside Tigray13.

Coffee led agricultural export earnings in 2024/25. Coffee exports earned US$2,665.1 million in the fiscal year 2024/25, 31.9% of merchandise exports, and agricultural commodities together 50.1% (own calculation)3. On UN Comtrade data Ethiopia exported US$2.57 billion of agri-food products in 2023 and imported US$2.38 billion, with fats and oils and cereals the largest import groups7.

Agriculture received 8.6% of outstanding bank credit in June 2025. Banks and the Development Bank of Ethiopia held ETB 166.3 billion of loans to agriculture on 30 June 2025, about US$1.23 billion at the IMF end-of-period rate (own calculation), and agriculture received 22.3% of the loans disbursed in 2024/2536. In 2024, 48.8% of adults had an account and 2.6% had borrowed from a formal financial institution1415. The National Bank of Ethiopia raised its policy rate from 15% to 16% on 13 July 2026 and removed its ceiling on credit growth1617.

Rainfall in 2022 was the lowest in the ERA5 record. On ERA5 data annual rainfall averaged 995 mm in 1991–2020, and 2022, at 783 mm, was the lowest in the ERA5 series for 1950–2025 (own calculation)18. UN OCHA reported about 6.85 million livestock deaths in the drought-affected south and east between late 2021 and March 202319. Agriculture accounted for 70.6% of greenhouse gas emissions excluding land use in 2023 (own calculation)20.

Out of every 100…
Agriculture's weight in jobs, output, land holdings and credit
69.4
employed persons worked in agriculture (2024/25)4
32.8
birr of GDP came from agriculture, forestry and fishing (2024/25)1
68.8
private peasant holders held 1 hectare or less (2021/22, excluding Tigray, own calculation)10
8.6
birr of outstanding bank loans went to agriculture (30 June 2025)3
US$2.67 bn
of coffee export earnings in 2024/25, 31.9% of merchandise exports3
32.8 Mt
of grain harvested by private peasant holdings in the 2021/22 Meher season, excluding Tigray5
66.3 m
cattle on private peasant holdings in 2021/22, excluding Tigray13
14.8%
year-on-year food inflation in September 202621
Agriculture's share of GDP
Agriculture, forestry and fishing value added, % of GDP at current market prices, 2010–2025 (World Bank)
Source: World Bank WDI Β· NBE β€” Ethiopian national accounts are compiled for fiscal years ending on 7 July, and the World Bank labels each fiscal year with the year in which it ends, so 2025 is the fiscal year 2024/2522. At constant 2015/16 basic prices the Ministry of Planning and Development puts the share at 31.3% in 2024/25, down from 34.9% in 2017/183.
Agriculture's share of bank lending
Share of outstanding loans and of loans disbursed during the year, banks and DBE, %, 2015/16–2024/25
Source: NBE β€” Own calculation from NBE Table 4.12 except 2020/21 (disbursed), 2023/24 and 2024/25, which NBE states in the text. The denominators change basis. Totals include government deficit financing to 2018/19 and corporate bonds from 2019/20 to 2023/24, and the conversion of corporate bonds into government bonds reduced the total in 2024/25. Excluding the CBE fertiliser financing scheme, agriculture took about 8% of bank loans disbursed in 2023/24 according to the NAFIR roadmap28.
1.2

Key issues for agricultural finance

A large sector with a smaller share of credit

Agriculture produced 32.8% of GDP in 2024/25 and held 8.6% of outstanding loans of banks and the Development Bank of Ethiopia on 30 June 202513.

Exchange rate reform in July 2024

The birr moved to a market-based regime on 29 July 2024, and the IMF end-of-period rate went from 57.33 birr per US$ in June 2024 to 135.37 in June 2025296.

Policy rate of 16% from July 2026

The National Bank Rate was introduced at 15% on 9 July 2024 and raised to 16% on 13 July 2026, when the credit growth ceiling was removed301617.

Land use rights as collateral

The Rural Land Administration and Use Proclamation No. 1324/2024 allows holders to pledge their land use right to financial institutions31.

Low formal borrowing

In 2024, 48.8% of adults had an account and 2.6% had borrowed from a formal financial institution1415.

Drought and flood exposure

About 6.85 million livestock died in the drought of late 2021 to March 2023, and the floods of October–December 2023 affected about 1.5 million people1932.
Notes on the data. Ethiopian fiscal years run from 8 July to 7 July, and the National Bank of Ethiopia closes its annual reports on 30 June. World Bank data label each fiscal year by the calendar year in which it ends. Crop figures are from the ESS Agricultural Sample Surveys of private peasant holdings in the Meher season, which leave out commercial farms and dry-season irrigated crops. Livestock figures are from the ESS livestock surveys of private peasant holdings in sedentary and pastoral areas. Neither survey covered Tigray in 2021/22. Bank credit by sector is from the NBE annual reports. Trade by partner is UN Comtrade data reported by Ethiopia for 2023, the latest year available. Birr amounts after the float of 29 July 2024 are converted at the rate of their date, and dollar series break at the float.

Sources cited on this page

  1. World Development Indicators – Agriculture, forestry and fishing, value added (% of GDP), NV.AGR.TOTL.ZS (API, JSON) β€” World Bankverified
  2. World Development Indicators – Agriculture, forestry and fishing value added (current US$), NV.AGR.TOTL.CD (API, JSON) β€” World Bankverified
  3. Annual Report 2024/25 (PDF) β€” National Bank of Ethiopia (NBE)verified
  4. Key Findings Report on Labour Market Indicators, National Integrated Household Survey (2024/25), Labour Force Module, September 2026 (PDF) β€” Ethiopian Statistics Service (ESS)verified
  5. Agricultural Sample Survey 2021/22 (2014 E.C.), Volume I, Report on area and production of major crops, private peasant holdings, Meher season, Statistical Bulletin 593, April 2022 (PDF) β€” Ethiopian Statistics Service (ESS)verified
  6. IMF, Exchange Rates (ER) dataset – Ethiopia, domestic currency per US$ (end of period and period average) β€” International Monetary Fund (IMF), Statistics Departmentverified
  7. UN Comtrade – Ethiopia, agri-food trade (HS chapters 01–24) by partner, 2023 (public preview API, JSON) β€” United Nations Statistics Divisionverified
  8. World Development Indicators – Agriculture, forestry and fishing value added (current LCU), NV.AGR.TOTL.CN, and DEC alternative conversion factor (LCU per US$), PA.NUS.ATLS (API, JSON) β€” World Bankverified
  9. World Development Indicators – Employment in agriculture (% of total employment, modelled ILO estimate), total, female and male, SL.AGR.EMPL.ZS, SL.AGR.EMPL.FE.ZS, SL.AGR.EMPL.MA.ZS (API, JSON) β€” World Bankverified
  10. Agricultural Sample Survey 2021/22 (2014 E.C.), Report on Land Utilization, Private Peasant Holdings, Meher Season (PDF) β€” Ethiopian Statistics Service (ESS)verified
  11. Agriculture statistics, Agricultural Sample Survey reports (web page) β€” Ethiopian Statistics Service (ESS)landing page verified
  12. Wheat Initiative (web page) β€” Ministry of Agriculture (MoA)verified
  13. Agricultural Sample Survey 2021/22 (2014 E.C.), Volume II, Report on livestock and livestock characteristics, private peasant holdings, Statistical Bulletin 594, March 2022 (PDF) β€” Ethiopian Statistics Service (ESS)verified
  14. Global Findex, Account ownership at a financial institution or with a mobile-money-service provider (% of population ages 15+), FX.OWN.TOTL.ZS, World Bank API (Findex 2025 database) β€” World Bankverified
  15. Global Findex database (source 28), borrowing indicators fin22a, fin22a_1, fin22a.22a1.22g.d, borrow.any.t.d, fin22b (% age 15+), World Bank API β€” World Bankverified
  16. Press release, Monetary Policy Committee meeting no. 7, 13 July 2026 (PDF) β€” National Bank of Ethiopia (NBE)verified
  17. Governor's statement, Monetary Policy Committee seventh meeting, 13 July 2026 (PDF) β€” National Bank of Ethiopia (NBE)verified
  18. ERA5 reanalysis country-average annual precipitation and mean temperature, Ethiopia, 1950-2025 (API, JSON) β€” World Bank Climate Change Knowledge Portalverified
  19. Ethiopia, Drought Situation Update #1, as of 10 March 2023 (ReliefWeb page) β€” United Nations Office for the Coordination of Humanitarian Affairs (OCHA)verified
  20. Historical GHG emissions by sector, Ethiopia, 1990-2023 (API, JSON) β€” World Resources Institute, Climate Watchverified
  21. Consumer Price Index, September 2026, monthly news release, Statistical Bulletin Issue No. 39/2019 (September EFY2019) (PDF) β€” Ethiopian Statistics Service (ESS)verified
  22. World Development Indicators – Ethiopia country metadata (national accounts base year, special notes, SNA) (API, JSON) β€” World Bankverified
  23. Annual Report 2016/17 (PDF) β€” National Bank of Ethiopia (NBE)verified
  24. Annual Report 2018/19 (PDF) β€” National Bank of Ethiopia (NBE)verified
  25. Annual Report 2020/21 (PDF) β€” National Bank of Ethiopia (NBE)verified
  26. Annual Report 2022/23, Table 4.12 Loans and Advances by Economic Sectors (PDF) β€” National Bank of Ethiopia (NBE)verified
  27. Annual Report 2023/24 (PDF) β€” National Bank of Ethiopia (NBE)verified
  28. National Agri-Finance Implementation Roadmap (NAFIR) 2025–30, July 2025 (PDF) β€” National Bank of Ethiopia (NBE) and Ministry of Agriculture (MoA)verified
  29. Press release, The NBE announces a reform of the foreign exchange regime with immediate effect, 29 July 2024 (PDF) β€” National Bank of Ethiopia (NBE)verified
  30. Press release, The NBE announces the launch of a new monetary policy framework, 9 July 2024 (PDF) β€” National Bank of Ethiopia (NBE)verified
  31. Rural Land Administration and Use Proclamation No. 1324/2024, Federal Negarit Gazette 30th Year No. 58 (PDF) β€” Federal Democratic Republic of Ethiopia (FAOLEX copy)verified
  32. Ethiopia, Oct-Nov-Dec rainy season, Flash Update 1, as of 18 December 2023 (ReliefWeb page) β€” United Nations Office for the Coordination of Humanitarian Affairs (OCHA) and Ethiopian Disaster Risk Management Commission (EDRMC)verified
β“˜
AI-assisted content, human-reviewed: This page was generated with the assistance of artificial intelligence and reviewed by a human editor. (last review: October 2026) Despite review, errors or outdated values may remain; please verify critical figures against the linked primary sources before relying on them. Nothing here is investment, legal or financial advice.

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