Economic reforms turn around Ethiopian agriculture

02 March 1998

Economic reforms turn around Ethiopian agriculture

THE greatest impact of economic reforms in Ethiopia is on the agricultural
sector which accounts for about 50% of gross domestic product.

Coffee is the countrys biggest export which brings in two-thirds of foreign exchange earnings, according to a special survey on the country, in the Financial Times

Reforms have seen food production grow from 6 million tonnes five years ago to 11.7 million in 1996/97. And farmers have got better prices for coffee which have helped trigger higher production

Marketing bonds, which did not give farmers a fair price for their crops,
have been scrapped. The government aims to limit the impact of droughts by improving irrigation, terracing land to stop erosion and upgrading roads so that areas with surpluses can sell to needy regions.

  • Financial Times 02/03/98 page 9-12 (Ethiopia survey)

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