Ethiopia

Ethiopia or the Federal Democratic Republic of Ethiopia is located by the Horn of Africa; which has been landlocked ever since the independence of Eritrea last 1993. The country is being bordered by Sudan, Kenya, Djibouti and Somalia.

The Federal Democratic Republic of Ethiopia is considered as the world’s oldest nations. It is the 2nd most populous region of Africa. It is said that Ethiopia actually yielded some of humanity’s oldest races; which actually makes Ethiopia a very important area in the human evolution’s history. In fact, it was indicated that the current area called Addis Ababa used to be the focal point of the migrations of human beings worldwide.

Thus, like other African nations, Ethiopia is considered as one of the world’s poorest countries. There are various areas in the country that is famine-prone. You can also add the fact that the policies of their weak government have harmed their country even more. In fact, in the mid 1900s, under Haile Selassie’s imperial government, 200,000 Ethiopians actually died because of famine. Aside from this, under the Mengistu Haile Mariam government during the year 1980, another 300,000 Ethiopians were again reported as dead because of famine.

Ever since the change of government, during the year 1991, there were actually attempts already to improve Ethiopia’s economy. It is just that the critics were able to foresee the shortage on the private sector’s business developments. There were even claims that a lot of the government-owned properties from the previous regime were transferred to the pro-government enterprises. This is all for the sake of privatization. Thus, others actually praised the private sector’s gradual growth, particularly the ones in the urban areas.

When it comes to telecommunications, this area in Ethiopia still remains as an actual state monopoly. This has stifled the direct development of cell phones; which were already ubiquitous in most parts of Africa. When it comes to the financial services sector, there are no known foreign banks are ever allowed. This is why it is very difficult to find start-up loans for even small scaled up to medium scaled businesses in Ethiopia.

The unemployment area, especially on the youth sector in Ethiopia, is said to have reached 70%. This can be blamed on the population growth in the country; which should be balanced with having thousands of jobs available annually. 

When it comes to land, the constitution of Ethiopia even defines the actual right to own land in the country as land that would only belong to the state and the people of Ethiopia. Even so, they can still lease their land for an average of 99 years; but they are never allowed to sell, mortgage or have anyone else own that land. This is also why various political parties and groups were seeking the land’s full privatization. Thus, other opposition parties are actually against the so-called privatization and are more in favor of communal ownership.

In Ethiopia, 41% of their GDP would account for their agricultural aspect. 80% would be on exports and another 80% for their labor force.  Other economic activities in Ethiopia were dependent on processing, marketing and the exportation of their agricultural products. This also explains the fact that production is actually an overwhelming part of their subsistent nature. It plays a huge part in the exportation of commodities; which were being produced by the smaller agricultural cash crop sectors.

Ethiopia’s principal crops would include pulses, coffee, cereals, oilseeds, sugarcane, vegetables and potatoes. In fact, just recently, it was indicated that Ethiopia had fast growing GDP; and they were even regarded as an African nation that is the fastest growing non-oil dependent nation in the year 2007. Their exports were coffee, their largest earner of foreign exchange, and agricultural commodities. Aside from this, Ethiopia is also regarded as the 2nd biggest producer of maize in Africa. The livestock population of Ethiopia is also believed to be Africa’s largest. Amidst all these improvements, it is a wonder why Ethiopia is still one of the world’s poorest countries. Thus, the GNP per capita of Ethiopia, as per the UN, is believed to have reached $160. There was also a report that stated that the life expectancy in Africa has improved in the current years.  For men, the live expectancy would be 52. For women, it would be 54.

Other chief export commodities of Ethiopia would be gold, khat, oilseeds and leather products. Recently, they are even into floriculture. This means that Ethiopia has a strong potential to become one of the world’s top plant and flower exporters.

Designer leather goods like bags are also making its way into the big export business sector. This is because of the estimated growth in their private sectors. This even made Ethiopia the 1st luxury label designer in the region. Their small-scale products, which are also being exported, would include pulses, cereals, sugarcane, cotton, hides and potatoes. They are now into the exportation of electric power. They are doing this to help their neighbors. This is made possible through the construction of several new dams and the growing number of projects for hydroelectric power in the country.

Thus, amidst these other export products, coffee is still their most important exported product. In fact, they are the one dealing with Starbucks. This is why Ethiopia is planning to even increase their revenue from coffee. Others even regard the large water resources of Ethiopia as the country’s “white oil”; and as for their coffee resource, it is being regarded as the country’s “black gold”. Aside from this, Ethiopia has big mineral resources and the so-called oil potential in a few of their less inhabited areas. It is only their political instability that is doing harm to the potential progress of their nation.

With all the resources of Ethiopia that is being exported, plus the development of their infrastructures, it is really a wonder why this country is still poor. Some believe that it is because of the increasing rate of growth in their population that cannot be sustained by the number of jobs that are only available in the country. Others also believe that it has something to do with the communist government that they have. Thus, it is also believed that only minimal changes are needed until Ethiopia bolsters in the market. 

Kenya

Kenya or the republic of Kenya is situated in Eastern Africa. It is being bordered by Ethiopia, Somalia, Tanzania, Uganda, Sudan and the Indian Ocean. The name Kenya is derived from their famous Mount Kenya; which is a significant landmark in the region.

Kenya is a very beautiful area with a vast natural landscape. It is being regarded as a land area for wildlife habitat. An example would be the Masai Mara area; where in bovids and the Blue Wildebeest participate in actual large-scale annual migration. In fact, studies have shown that more that 250,000 of this blue wildebeest  would perish annually during the ardous and long movement in finding forage in Kenya’s dry season.

Kenya actually has the so-called “Big Five” animals. This would be the leopard, the lion, the elephant, the rhinoceros and the buffalo. There is also a significant population of reptiles, birds and wildlife in their national parks; as well as their actual game reserves. Thus, the beautiful environment of Kenya is said to be currently threatened by the increasing rate of population growth; along with its actual side effects.   

Moreover, after Kenya’s independence, the country was promoted with rapid economic growth; because of public investments, encouragements for smallholder production in agriculture, and private, foreign and industrial investments.

From 1963 up to 1973, Kenya’s GDP had an annual average growth of about 6.6%. Their agricultural production annual average grew to about 4.7%. This is through the redistribution of estates; which diffused newer crop strains, as well as have new areas being opened for cultivation.

Amidst these, Kenya is still being subjected to a lot of potential changes to resolve their economical problems; and possibly catch up with the economic giants of the Far East. Kenya faces several setbacks since the previous years. These challenges need a lot of work and should be acted upon immediately. The challenges that Kenya would need to encounter would include enacting on money laundering and anti-terrorism, taking action on corruption, building and rehabilitating infrastructure and bridging finance deficits. These actions may possibly help in the maintenance of sound macroeconomic policies. It can also rapidly speed up the acceleration of economic growth. Thus, the projected estimate last year was about 7.2%.

Nairobi is currently considered as the central hub of offices and other establishments in the region. There were actually attempts for Kenya to compete with the economic tigers in the future. It is just that problems with the government, especially the one that happened during their recent elections, have placed Kenya in a state of standstill.

Thus, last 2006, there was a contract signed with Kenya; which pertains to an actual oil exploration. The agreement is with Kenya and the Chinese President Hu Jintao. This would actually keep the natural resources of Africa flow into the booming economy of China.

The deal is about China’s CNOOC Ltd; which their state-controlled offshore oil and gas company, to actually look for oil prospects on Kenya. As of now, no oil was ever produced and there were no formal estimate on the possibility of reserves in Kenya.