Back

Country Reports

Ethiopia Country Report

Content provided by
IHS Markit Logo

Risk Level

Low
Moderate
Elevated
High
Very High
Severe
Extreme

Overview

Executive Summary

Prime Minister Abiy Ahmed was reappointed almost unanimously on 5 October 2018 as Chairperson of the ruling Ethiopian People's Revolutionary Front for Democracy (EPRDF). This indicated that the four ethno-linguistic member parties that comprise the EPRDF are unlikely to remain cohesive ahead of the 2020 legislative elections. An alliance within the EPRDF between Amhed's Oromo Democratic Party and the Amhara Democratic Party (ADP) probably will remain strong, despite both parties facing grassroots competition. The two parties together control 58% of seats in parliament. Changes to the Cabinet on 16 October 2018 indicate a gradual advance with the privatisation of state-owned enterprises and development of public-private partnerships to facilitate foreign investment into the construction, energy, and logistics sectors. ADP party-affiliated businesses face fewer constraints in accessing scarce foreign currency, with export-intensive sectors, such as coffee, usually being prioritised. Ethiopia faces shortages of foreign currency given the persistent imbalance between high import volumes and lower levels of exports. Between February and April 2018, earnings from exports of merchandise goods were USD739.3 million, while the total merchandise import bill reached USD3.5 billion. Ethiopia’s key export product remains agricultural commodities, prone to global price movements that cause volatility in foreign exchange earnings. Localised mob violence – involving edged weapons, arson, and vandalism – between rival political and ethnic groups in the Oromia and the Southern Nations region will probably become more frequent and widespread. This is likely around local polls in 2019, the 2020 legislative elections, and during consultations or referendums on creating new regional states or districts in the Sidama, Wolaita and Kaffa zones. Commercial assets will be largely unaffected, but such rioting will pose localised looting, vandalism, and arson risks against foreign-owned commercial cargo vehicles and property, including coffee-washing stations. Progress towards Eritrea and Ethiopia normalising relations has decreased risks of inter-state war. © 2018, IHS Markit Inc. All rights reserved. Reproduction in whole or in part without permission is prohibited.
Last update: November 28, 2018

Operational Outlook

The most likely targets for government investigations into slow project implementation and misappropriation of government funding are the state-owned Metals and Engineering Corporation (METEC) and state-directed and -owned conglomerates that have benefited from priority access to foreign exchange and more lenient credit provision from state-owned banks. The perceived success of protest movements in 2018 is likely driving increasingly assertive behaviour by unofficial labour groups and Qeerroo (youth) activists, particularly in Oromia. This will likely lead to increased strikes in public transportation and construction, demands for local ownership of projects, particularly during privatisations and contract renewals, and mining site invasions by (potentially armed) illegal miners andlooters.

Last update: December 4, 2018

Terrorism

High

The risk of small-arms attacks by anti-government militants, particularly against security forces and road cargo, has declined alongside decreased civil unrest in the Amhara and Oromia regions. Sporadic small arms violence by militant groups (particularly probable in Benishangul-Gumuz, Somali region, and Oromia) is unlikely to significantly effect commercial operations. The Ethiopia-Eritrea rapprochement has decreased risks of cross-border militant raids. Ethiopia's involvement in Somalia likely makes it an aspirational target for Al-Shabaab, which but successful attacks inside Ethiopia are unlikely. However, such attacks would be most likely in the Somali region and Addis Ababa, although the large security presence in the capital further decreases the likelihood there.

Last update: December 4, 2018

War Risks

Interstate war risks have significantly decreased following Eritrea and Ethiopia's July 2018 peace declaration, ending the 18-year 'No peace, no war' stalemate, and their subsequent (likely partial) withdrawals of troops from the border. Prime Minister Abiy Ahmed's consolidation of control over the security services, backed by TPLF chairman Debretsion Gebremichael, will likely allow him to continue ethnically diversifying the top ranks, without escalation to civil war. Disgruntled Liyu paramilitary police defections to armed bandit groups or forced removal of the new Somali region government would indicate increasing risk of civil war. War with Egypt is unlikely, despite Nile water disputes over Ethiopia's planned Grand Ethiopian Renaissance Dam.

Last update: December 4, 2018

Social Stability

Very high

Although commercial assets will be largely unaffected directly (particularly in well-guarded industrial parks), localised mob violence – involving edged weapons, arson, and vandalism – between rival political and ethnic groups will likely become more frequent and widespread in Ethiopia, including in (especially western) Oromia and Addis Ababa's outskirts, in the run-up to the 2019 local and 2020 legislative elections, and around the creation of new regional states or districts. Political competition between ruling and opposition parties will likely intensify, especially in Oromia, Amhara, and Afar regions, further driving protest risks. Central Addis Ababa protests will likely be peaceful and tightly controlled by police.

Last update: December 4, 2018

Health Risk

Severe

Vaccinations required to enter the country

Proof of vaccination against yellow fever is required if traveling from a country with risk of yellow fever transmission and over one year of age.

Routine Vaccinations

Hepatitis A: A vaccine is available for anyone over one year of age. The vaccine may not be effective for certain people, e.g. those born before 1945 and who lived as a child in a developing country and/or have a past history of jaundice (icterus). These people can instead get a shot of immune globulin (IG) to boost their immunity against the disease.

Hepatitis B: A vaccine is available for children at least two months old.

Diphtheria-Tetanus-Polio: A booster shot should be administered if necessary (once every ten years).

Yellow Fever: A vaccine is available for children over the age of one year.

Other Vaccinations

Typhoid Fever: If your travels take you to regions with poor sanitary conditions (for children two years old and up).

Rabies: For prolonged stays in an isolated region (for children from when they can walk).

Meningococcal Meningitis: For prolonged stays, or in case your travels will put you in close contact with a local population affected by an epidemic of the disease (for children over the age of two years).

Malaria: Recommended preventive medication - mefloquine (sometimes marketed as Lariam) or doxycycline (sometimes marketed as Vibramycin).

For Children: All standard childhood immunizations should be up-to-date. In the case of a long stay, the BCG vaccine is recommended for children over one month and the MMR (measles-mumps-rubella) vaccine for children over nine months.

Last update: November 26, 2013

Natural Risks

Very high

The country is affected by extreme climates; both the rainy season which frequently causes flooding, and periods of drought have devastating consequences. Some 7.7 million people are struggling with famine in Ethiopia amid a severe and deadly drought.

Furthermore, Ethiopia is situated in a seismic zone.

Last update: February 13, 2018

Transportation

Elevated

The transportation infrastructure in the country is largely obsolete, insufficient, and degraded. During the rainy season (June to September), a number of roads are not navigable. The danger on highways is worsened by a general lack of adherence to traffic laws, the poor condition of many of the vehicles, and the lack of health facilities. The absence of street lighting and traffic lights makes traveling at night inadvisable. Instigators of traffic accidents are liable to face a fine or prison sentence. Following an accident, one should remain at the site and call the police. In cases of injury to a third party, one is expected to take the victim directly to hospital. According to the World Health Organization (WHO), the mortality rate in Ethiopia is one of the highest in the world.

Outside of major cities, travel by road should be undertaken by day in an all-terrain vehicle (4x4), with a driver and preferably in convoy. One should also travel supplied with extra water and fuel. It is advisable to ensure that your vehicle is equipped with replacement parts (spare tire, cables, etc.) as well as telecommunications devices. Individuals should always carry a means of identification (e.g. passport and visa). During travel in the capital, it is advisable to communicate travel arrangements to a trusted confidant.     

Intercity travel via road can prove perilous. Official and unofficial roadblocks are frequent. Furthermore it is recommended to remain vigilant when traveling in isolated regions; cases of armed theft, carjacking, and the presence of bandits have been reported across the country.   

Public transport should be avoided. Taxis may be used provided that they have been ordered via telephone prior to being taken; taxis should not be hailed in the street. There is a railroad between Dire Daouna and Djibouti that has recently been constructed, however it is not advisable to use the rail system. 

The safest means of transport within the country is plane. Ethiopian Airlines provides flights connecting all major cities.

Last update: February 13, 2018

Practical Information

Climate

The west and east of the country experience persistently high temperatures during the summer months. Only the central plateau has a more temperate climate (mild temperatures during the day, cool at night). The rainy season begins in mid-June and lasts until mid-September. Lighter rain is common in March and April.

Useful Numbers

Country Code: +251
Police: 1 110 055
Ambulance: 1 613 622

Electricity

Voltage: 220 V ~ 50 Hz

Outlets:

Last update: December 6, 2013