Addis Ababa Science and Technology

University
Course: Geography of Ethiopia and The Horn

Assignment Title: Primary Economic Activities (GeES 1011)

Section: 13
Group Members Name ID No.

1. Gifti Tesfaye ________________________ ETS 0629/16

2. Habtamu Mulugeta ____________________ ETS 0635/16

3. Habtamu Shitaw _______________________ ETS 0636/16

4. Haile Abateneh ________________________ ETS 0638/16

5. Haimanot Mekonen ____________________ ETS 0644/16

6. Haleluya Desalegn ______________________ ETS 0645/16

Submitted to; Mr. Mekuriya Delelegn

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Table of Contents
Page
Introduction ----------------------------------------------------------------------------- 3
1. Primary Economic Activities in Ethiopia--------------------------------------5
1.1. Mining Activity in Ethiopia--------------------------------------------------5
1.1.1. Introduction---------------------------------------------------------------5
1.1.2. Status of the mineral sector investment in Ethiopia-----------------5
1.1.3 Importance of mining sector in Ethiopia ------------------------------6
1.1.4. Environmental issues and management related to mining ---------7
1.2. Forestry--------------------------------------------------------------------------8
1.2.1 Economic significance of forest----------------------------------------8
1.3. Fishery---------------------------------------------------------------------------8
1.3.1. Introduction----------------------------------------------------------------8
1.3.2. Demand and consumption of fish --------------------------------------9
1.3.3. Constraints and opportunities of the fishing sector ------------------10
1.4. AGRICULTURE IN ETHIOPIA --------------------------------------------12
1.4.1. Contributions, potentials and Characteristics of Agriculture in Ethiopia------12
1.4.2. Agriculture system in Ethiopia-----------------------------------------13
1.4.3. Major problems of Ethiopian agriculture-----------------------------16
Summary ----------------------------------------------------------------------------17
References---------------------------------------------------------------------------18

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 Introduction
Ethiopia, located in the Horn of Africa, boasts a diverse and vibrant economy
shaped significantly by its primary economic activities. These fundamental sectors
form the backbone of the nation's economic structure, providing livelihoods for a
substantial portion of the population and contributing significantly to its Gross
Domestic Product (GDP). The primary economic activities in Ethiopia primarily
revolve around agriculture, mining, forestry, and fishery, each playing a crucial
role in sustaining the country's economic development.
Agriculture is the cornerstone of Ethiopia's economy, contributing substantially to
GDP and employing a vast percentage of the population. The country's varied
agro-ecological zones, climatic conditions, and extensive grazing lands create an
ideal environment for the cultivation of a wide range of crops and the rearing of
livestock. Ethiopia's agricultural practices encompass diverse systems, including
highland mixed farming, lowland mixed agriculture, pastoralism, shifting
cultivation, and commercial agriculture. These practices not only fulfill domestic
food needs but also contribute to export earnings and rural development.
Mining activities in Ethiopia play a crucial role in the nation's economic landscape.
Rich in mineral resources such as tantalum, gold, and soda ash, Ethiopia has
attracted significant investments in its mining sector. With various minerals
contributing to both domestic consumption and international trade, the mining
industry generates revenue, foreign currency earnings, and employment
opportunities. The sector is characterized by both large-scale industrial mining
operations and artisanal mining, making it a diverse and dynamic contributor to the
Ethiopian economy.
Forestry activities in Ethiopia contribute to the national economy by providing
resources such as fuelwood, lumber, and charcoal. While facing challenges such as
deforestation and limited modern lumbering technology, Ethiopia's forests play a
crucial role in meeting domestic demands for wood-based products. The economic

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significance of forestry extends beyond its direct contributions, influencing various
industries and sectors reliant on wood resources.
Ethiopia's fishery sector, encompassing both inland lakes and rivers, plays a vital
role in providing food, employment, and economic well-being. The diverse water
bodies in the country harbor various fish species, contributing to both domestic
consumption and potential export opportunities. Despite facing challenges such as
limited stock assessment and low fish production, the fishery sector remains an
integral part of Ethiopia's primary economic activities.
In conclusion, Ethiopia's primary economic activities form a comprehensive and
interlinked system that sustains the livelihoods of its people, fuels economic
growth, and contributes to the nation's overall development. As the country
continues to navigate its path towards sustainable development, these primary
economic sectors will undoubtedly remain pivotal in shaping Ethiopia's economic
landscape.

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 1. Primary Economic Activities in Ethiopia
. The primary sector includes the production of raw material and basic foods.
Activities associated with the primary sector include agriculture (both subsistence
and commercial), mining, forestry, farming, grazing, hunting and gathering, fishing
and quarrying.
1.1. Mining Activity in Ethiopia
1.1.1. Introduction
With 1.5% of Ethiopia's GDP coming from mining, the country's economy
depends on it. Important minerals are mined, including tantalum, gold, and soda
ash. Significantly, the Lege-dembi gold mine produces 3.6 tons of gold a year.
More than 190 tons of tantalite concentrate are produced by Kenticha's columbo-
tantalite mine. Nearly ten percent of the world's tantalum demand is satisfied by
Ethiopia, a significant source. Since it was legalized in the 2000s, artisanal gold
mining has seen annual sales of roughly 1000 kg. Local industries also benefit
from the mining of feldspar, quartz, and kaolin in the Adola belt as well as the
extraction of soda ash around Lake Abiyata. The Ogaden Basin's gas resources also
have a lot of promise, and mining for other minerals including platinum and
gemstones occurs across the region.

1.1.2. Status of the mineral sector investment in Ethiopia

Ethiopia's mining laws have been revised twice, in 1993 and recently updated. The
goal of these revisions is to attract private investment by implementing transparent
licensing procedures. Since then, over $1.1 billion has been invested in precious
and industrial minerals with significant contributions from foreign sources. Key
players include the Ethiopian Mineral Development Share Company, Ezana
Mining
Development, Midrock Gold as well as the National Mining Corporation who are
eagerly involved in potash mining alongside companies such as Allana Potash and
Sainik Potash.
Exploration for iron, gold and base metals is currently underway across various
regions while new gold mines pop up continually which make Ethiopia an

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appealing option that caters to diverse investors' needs - whether junior exploration
firms or established industry gurus looking for mutual benefits leading toward
socioeconomic growth prospects within the region.
1.1.3. Importance of mining sector in Ethiopia
Mining has a lot of importance for one country
we can classify Importance of mining for our county Ethiopia as follow
1.Economic Benefit
Generates Revenue from Sales, Taxes, Royalty
The mining sector in Ethiopia generally generates revenue from sales, taxes royalty
from the inputs of the country since last few years, the federal government has
collected royalty amount of abound 48.5 million birr (4.4 million USD) from the
largescale production of gold
The regional administration also collects royalty from the small scale and artisanal
production of precious minerals, industrial and construction materials this is
estimated that the total amount of royalty collected by each region containing nine
regional states and two cities administration is in few tens of millions of birr (up to
three million US dollars)
Generates Foreign Currency Earnings
The mining sector has helped a lot in generating hard earned foreign currency
earnings. The export of minerals such as gold, tantalite concentrate platinum,
decorative dimension stones and gemstone has resulted in foreign currency
earnings of about 135 million dollars since last few years. The export of the
minerals contributes about 7 - 10% of the total export foreign currency earnings of
the country.
2, Employment Opportunity
The mining service sector activities have contributed less in the employment
opportunity. Since mining industry is not a labor-intensive industry the sector has
less importance in generating employment. However, the artisanal mining has
plans of employing several workers.
In Ethiopia, over 80% of population is engaged on Agriculture. The contribution
of the mining sector to the national economy has reached a maximum of 6% only.

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3, social Benefits
The employment opportunity in the mineral sector has significant role for the local
communities. There are more and employment opportunities for the semi-skilled
and skilled workers where there are mineral development activities in their nearby
areas.
The formal artisanal mining activity has helped in reducing the poverty level that
includes 30 to 40 percent of the women
With the development of gold, tantalum, salt and other major mining projects,
there has been development of roads, electric power from national grid and
telecommunication infrastructures
in different parts of the country.
Different health service center, schools as well as airstrips are built by the mine
developers that provides service to the mining community.
1.1.4. Environmental issues and management related to mining
It is inevitable that extraction of minerals from the earth leads to disturb the
environment. When
disturbing the environment there must be careful and systemic protection of the
whole system of
environment that assures sustainable use of the current resource and or ecosystem
and that bring
about either less or almost none destruction or pollution of the environment.
The mining legislation of Ethiopia, which came in to effect in 1993 has provision
that requires as
compulsory criteria to study, submit and get approval of Environmental Impact
Assessment from the respective Authority in order to develop large scale mining
project. The common environmental issues in Ethiopia to be considered in
development of the medium to large scale mining projects are the surface and
ground water system, the physical land management (soil, rock stability,
deforestation grass land, farm land, etc), spillage of strange chemicals/metals, air,
noise, dust, aesthetic values of the area, cultural and tourist heritages, the
communities as well as

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all other lives surround the mine proximity..Mining activities can have significant
environmental impacts, including habitat destruction, water and air pollution, soil
erosion, and waste generation. To mitigate these issues, mining companies should
conduct environmental impact assessments, implement measures to prevent
pollution, practice proper waste management, and engage with local communities.
By doing so, they can minimize the negative environmental effects of mining and
promote sustainable practices In principle the licensees shall ensure the financial
mobilization of the environmental management and mine closure plan. Therefore,
sinking fund is required to be pledged while the mining activity is going on and
management plan shall be implemented throughout the life of the Mine.

1.2. Forestry

The economic significance of forestry activities in Ethiopia, including the

collection of fuelwood, the production of lumber, the production of charcoal, and
the building of houses, is highlighted in this section. The emphasis here is on their
major contribution to the national economy

1.2.1 Economic significance of forest

Forests and forest products play a significant role in Ethiopia's local economy,
contributing around 2.5% to the GDP. However, their primary use is for domestic
purposes such as fuelwood, timber for household furniture, and construction
materials. Commercial exploitation of forest resources remains limited due to
factors including rapid deforestation, low demand for timber, lack of modern
lumbering technology, and the inaccessibility of natural forests. As a result, forest
products are mostly sold at lower prices in local markets.
1.3. Fishery
1.3.1. Introduction
A fishery is an area where fish are caught for commercial or recreational purposes.
It can be a defined body of water or a collection of fishing activity that have been

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agreed upon by countries and fishers. You often have different fisheries for each
target species of fish or shellfish.
Fishing is a primary economic activity that involves harvesting of fish resources
from water bodies.Fisheries and aquaculture provide a vital source of healthy food,
employment, recreation, trade and economic well-being for present and future
generations, which in turn enhances the rural development. Fish can provide an
important source of proteins in the diet for much of the world‟s population.
Fishing is known to be one of the oldest human activities. Still fishing is the most
widely spread economic activity both in private and modern societies. Due to the
presence of a number of lakes, river and reservoirs rich in fish resources, Ethiopia
has great potential for fishing. However, at present there is no reliable estimate due
to lack of exhaustive and systematic (regular) stock assessment. The total
estimated potential yield calculated from the surface area for major lakes is 60,000
tons per year. However, in the face of the above uncertainty the potential yield
stood between 30,000 and 45,000 tons per year for the main water bodies. 126 At
present in Ethiopia, more than hundred local fish species have been identified. The
bulk of the production is made of Tilapia, Bargus, Clarias and Labeo species. In
the two southern Rift Valley lakes, Chamo and Abaya, Nile Perch is caught in
significant quantity. Nile perch is also found in major riverine fisheries. Moreover,
principal physical characteristics and the recent estimate of potential yield of the
main water bodies are presented in the table given below.

1.3.2. Demand and consumption of fish

Fish consumption in Ethiopia has historical significance, with high demand and
consumption in fasting days, big cities, production areas, and specific towns,
especially in Hawassa, Zeway, Arbaminch, Bahir Dar and Addis Ababa.
However, the domestic market for fish is small.The factors affecting low local fish
consumption include:
 Fish has not been integrated into the diet of most of the population.
 Religious influences on consumption patterns, the demand for fish is only
seasonal.
 limited supply of the product and its high price.

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 Long distance of the fish production sites from densely populated areas and
major settlements, together with its perishability.
Despite challenges, the demand for fish is increasing, driven by population growth,
the progressive shortage of livestock products and a shift in dietary preferences.For
instance ,In 2003, the total demand for fish was about 67 thousand tonnes,
predicted to grow to 118 thousand tonnes in 2025.
Socio-economic contribution of the fishery sector
The fishery sector contributing only 0.1 percent to the GDP. But, plays a vital role
in employment, income generation, and national food supply.
· Trade: Cross-border fish trade, while not well-documented, has contributed to
exports and imports, with a per capital fish food supply below the regional average.
· Food security: Fisheries are essential for increasing animal protein consumption,
achieving food security.
· Employment: Providing employment to a considerable workforce.
· Fish meal as animal feed source: Fishmeal is an excellent source of protein for
animals
· Sport fishing as a recreational value: Fishmeal is used as animal feed, and
recreational fishing (sport fishing) has become common, particularly in the
southern part of Lake Tana.
1.3.3. Constraints and opportunities of the fishing sector
Ethiopia faces challenges like poverty, economic stagnation, and environmentally
unsustainable practices, posing constraints to fisheries development. However,
sufficient opportunities exist for the sector to help reverse national development
challenges by making a significant contribution to poverty alleviation, economic
growth, better nutrition and ecological improvement.
Some Examples of constraints are as follows:
 Factories, agriculture and sewage are the sources of major pollutants affecting
Ethiopian water bodies and their fisheries.
 Inadequate legal and policy frameworks have largely given rise to poor fishery
resource. For example, in some cases, in the overfishing of some important
species resulting exploitation. such as the Nile perch in Lake Chamo, and

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 tilapia in Lakes Hawassa and Ziway. Though there are fishery laws and
regulations currently in place, these legislations are inadequately implemented.
The sector also suffers from limited human resource availability, with an acute
shortage of trained personnel. This poses serious constraints on fishery
management and technical extension support services.
 The sector also suffers from limited human resource availability, with an acute
shortage of trained personnel. This poses serious constraints on fishery
management and technical and extension support services.
 .Public and private investment in fishery and aquaculture is low and the
infrastructure inadequate. For instance ,Traditional methods of fishing, Low
transportation and facilitating services. There is also an urgent need to invest in
modern value chain-based fish processing and marketing infrastructure.
Some examples of opportunities are as follows:

 Local fish demand can be greatly increased with a change in the people’s
food habit, in favour of fish. Improvement in fishing techniques, technology
transfer to fishers, training of fishery management personnel, attraction of
financial capital to the industry, fish value chain improvement, and
aquaculture, can all result to increased fish production, increased trade and
overall economic development of the country.
 Increased fish production, trade, and economic development can be achieved
through improved fish prices, diverse species, traditional knowledge, and
access to microfinance facilities.

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1.4. AGRICULTURE IN ETHIOPIA
Introduction
Ethiopia is a landlocked country in the Horn of Africa. The country has a strong
evonomic growth over the past decades. Agriculture is the majority holder of the
accounts for around 37 percent to GDP, one of the highest share in sub Saharan
Africa. Agriculture holds around 83.9 percent of exports.

1.4.1. Contributions, potentials and Characteristics of Agriculture in Ethiopia

Agriculture plays a significant role in Ethiopia. Here are some key aspects of the
contribution of agriculture in Ethiopia:
1. GDP Contribution
2. Employment
3. Export Earnings
4. Food Security
5. Rural Development
6. Investment and Modernization
7.provide raw materials
The Agricultural resource base\potential of Ethiopia
Ethiopia has abundant agricultural resource base due to its varied agro-ecological
zones. The varied climatic conditions and contrasts in elevation allow for the
cultivation of various crops ranging from cool weather crops to sub-tropical and
warm weather crops. The country has no less than 21soil types with varying
physical and chemical features, and in the alluvial beds of major rivers close to 16
percent of the country's area is suitable for irrigated agriculture. The country has
also vast grazing land and livestock largely unutilized potentials of livestock
resources with a vast (55 – 58 % of its total land area) grazing land. The country
has extensive livestock population.

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Land Use: Ethiopia has a total land area of about 113,000,000 hectares. There is no
comprehensive survey of land use Accepting the estimate that some 27.9 million-
hectare of land is already cultivated .
Agricultural Land Use in Ethiopia: Land resource is more crucial to the livelihood
of the people depending on agriculture. Agriculture is a land-based activity unlike
secondary and tertiary activities where contribution of land to its output is greater.
Characteristics of Ethiopian Agriculture
Ethiopia also possess some basic and general characteristics.
These basic attributes are:
1. Subsistence Orientation: It is found that peasants retain up to 80% of their
produce for home consumption and seeds.
2. Fragmentation of farm plots and Small size of Holdings: Because of the ever-
increasing population that gave rise to continuous generational division of land
through generations.
3.Low Use of Inputs: Ethiopian agriculture is characterized by low use of natural
and chemical fertilizers. Less than 60 percent of smallholder farmers used
commercial, chemical fertilizers while only 10 percent used organic fertilizers in
2016. Thus, only a small proportion of the cropland is fertilized.
4. Susceptibility to Disasters: Agriculture is Ethiopia is highly vulnerable to natural
disasters such as drought which affects the lives of millions of humans and animals
5. Limited practice of irrigation and dependence on rainfed agriculture: Although
Ethiopia has vast area of irrigable land, the proportion of cultivated land is so small
due to physical and human activity
1.4.2. Agriculture system in Ethiopia
Etiopia is an agricultural dominant country.The life of people Ethiopia is affected
to the extent that little progress can be made unless agriculture is directly
approached . Agriculture has the potential to increase physically but there are
obstacles in the development of agriculture.
Thus an agriculture system is practice and a way of life carried by rural people who
are confined to relatively similar agro-physical resource basis and share more
related socio cultural economic and livelihood structures and patterns.

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Ethiopia has diverse climatic and soil type which created an ideal condition for the
cultivation of different crops and rearing of animals.
The agriculture systems of ethiopia can be classified based on:
*The agro-ecological patterns to which the practices have been
confined.
*Dominant types of crops or animals reared or combination
*Farming methods and tools used for cultivation which are a reflection
of topographic and climatic influence
*level of technological input and disposal output.
*There are five major system;
1,Highland mixed farming system
2,Low land mixed farming system
3 Pastoral complex
4,shifting cultivation
5,commercial agriculture
1, Highland mixed farming system
The highland areas of over 1500m.a.s.1 are characterized by dega and woina dega
agro-ecological zones. The major characteristic feature of the farming activity Is
the integration of crops and livestock production. Sub components of the system
include:
A,Grain-plough complex
It is practiced in the central and northern parts of the country.Barley and wheat
dominate in the grain-plough complex of Arsi and Bale,while Teff is the most
important crop in the central and northern highland of Shoaand Gojam.
ploughing is practiced many times(2-6) before planting. Seeds are mainly
broadcast on the soil surface and then ploughed in.
sustainable agriculture in this system is adversely affected by drought, soil
degradation and the practice of removing crop residues for feeding animals and
using animal dung for fuel.

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 B, The Horticulture-Hoe complex

The agriculture culture system is primarily found in high rainfall humid region of
southern and southwestern parts of the country.The land is cultivated with home
for horticultural crops. The major crops grown include enset , coffee , chat and
various other horticultural crops.
2, Lowland mixed agriculture
Lowland agriculture is practiced in the mountain foothills and the lower valleys
below 1500m.a.s.1. The region is characterized by hot and dry condition and
shallow soils with poor water retention.
Lowland agriculture is common in Rift valley and northern areas of Awash
River.As response to the shortage and variability of rainfall,farmers diversify their
cropping patterns by growing several crop varieties; shifting to early maturing crop
varieties and drought tolerant ones,such as sorghum, maize, wheat, teff, oil crops
and low land pulses. Other source of income include sale of firewood and charcoal
and off-farm employment opportunities.
3, Pastoral Complex
The pastoral areas are usually, though not always, in the lower and drier parts of
the country. The average annual rainfall is less than 500mm by nomadic and semi
nomadic peoples of Afar, Somali, and Borena zone of Oromia and lowlands of the
southern region of southern Omo and Lake Turkana ares. Here large herds of
cattle, sheep and goats are kept, as well as camels in the driest areas.
About 90% of the live animals exported come from pastoral areas. In this area
there is a shortage of water especialy during the long dry season. Overgrazing has
also reduce the quantity, quality, accessibility and stability of the resource base.
4, Shifting Cultivation
This is the cut-and-burn cultivation system because clearing the plot until it's
natural fertility is exhausted .In Ethiopia shifting cultivation is practiced by some
ethnic groups living in western and south western fringes of the Ethiopian
highlands and lowlands.

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The scale of shifting cultivation in terms of size of people living by the practice is
presently on decline in the country , due to government intervention and settlement
programs.
5, Commercial agriculture
commercial agriculture is a modern farming practice involving the production of
crops or animal products for market by using some degree of mechanization and
hired laborers.
mechnized farms were concentrated in Awash valley , Arsi, southern Shoa and
industries.Lack of infrastructure is also a major barrier to the profit motivated
commercial farmers.

1.4.3. Major problems of Ethiopian agriculture

The Ethiopian agriculture has been characterized by low production and
productivity.The major obstacles to the development of this sector include;
Land degradation: because of the rugged topography, the soil in many areas has
lost some biological productivity and physical properties needs for optimal plant
growth.
Variable rainfall: The rain sometimes comes early or late and at other times it
falls short of the required number of falls.
Land fragmentation: the increasing population size of rural Ethiopia and the
limited total land area especialy in the high land farming area has been the cause
for declining parcapita landholding.
Back ward technology: In Ethiopia the smallholder farming is characterized by
dependence nontraditional tools and farming practice.
Poor rural infrastructure: transport and communication system area poorly
developed.
Land tenure insecurity

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Summary
We have explore that In Ethiopia, primary economic activities play a crucial role in
shaping the country's economy and supporting livelihoods. Agriculture stands out
as a cornerstone, employing a significant portion of the population and
contributing substantially to the country's GDP. With diverse agro-ecological
zones, Ethiopia engages in the cultivation of various crops, including cereals,
coffee, and horticultural products. Mining, though relatively underdeveloped, holds
promise as Ethiopia possesses substantial untapped mineral resources. The
extraction of minerals like gold, tantalum, and potash has the potential to boost
economic growth and attract foreign investment. Forestry is another vital
component of Ethiopia's primary economic activities, contributing to both
economic and environmental sustainability. The country's forests provide resources
such as timber, fuelwood, and non-timber forest products, while conservation
efforts are underway to protect biodiversity and maintain ecological balance.
Fishing, particularly in Ethiopia's lakes and rivers, contributes to food security and
supports local economies. Inland fisheries play a crucial role in providing protein
sources for communities, fostering economic activities around fish processing and
trade.
In conclusion, Ethiopia's primary economic activities, including agriculture,
mining, forestry, and fishing, collectively contribute to the nation's development
and livelihoods. Sustainable practices and strategic investments in these sectors
have the potential to further enhance economic growth, reduce poverty, and ensure
environmental conservation in the long run.

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