Human Capital and Labour Report Ethiopia

Ethiopia is located in the northeast area of Africa called the Horn of Africa. Ethiopia covers an expanse of 1,100,000 km2 (420,000 mi²) and is bordered by Kenya to the south, Sudan and South Sudan to the west, Eritrea to the north and northeast, and Djibouti and Somalia to the east. With a population of over 94 million, Ethiopia is the most populous landlocked country in the world and the second-most populated nation in Africa. Ethiopia has achieved remarkable social and economic progress in recent years with its economy growing by almost 10% between 2012 and 2013. Average annual real GDP growth rate for the decade was an impressive10.9%. Ethiopia has a young, growing population which is expected to increase to over 150 million people by 2035. Ethiopia’s population dividend is perhaps one of the country’s greatest assets as it provides the country with an increasing talent pool that can positively contribute to economic growth and development. Despite its impressive economic growth Ethiopia faces certain infrastructural challenges that need to be addressed in order to capitalize on its rich human capital base. Ethiopia’s education system while showing signs of improvement with increasing enrolment rates across all levels still faces challenges in terms of quality, with only 57% of teachers trained in 2012, in addition to high pupil-teacher ratios, and a low adult literacy rate of 49% in 2015. Furthermore healthcare in Ethiopia is a particular concern for the country with less than 1 doctor for every 10,000 people.

This country analysis focuses on broad human capital indicators including:

  • Country profile, including a brief overview of the country; corruption and governance indicators; and the business culture.
  • Economic indicators, including an overview of the economy; largest companies; foreign aid and foreign investment.
  • Socio-demographic indicators, including population parameters, standard of living and poverty measures.
  • Healthcare and wellness: The focus here is on the impact of Tuberculosis (TB), HIV/AIDS and malaria on the workforce and workplace; the availability of specialist healthcare and also primary and secondary healthcare.
  • Education trends, including the education level of the population and workforce; education standards and output; as well as the training and skills development framework.
  • Labour force, including the economically active population; job creation; employment sectors; skills shortages; employment of expatriates; brain drain; industrial relations; professional human resource management; economic empowerment and more.

Throughout the research, implications, challenges and recommendations are offered to employers, policy makers, donors, investors and the human resource management fraternity. This is all done within the context of the Ethiopian socio-economic realities.

Where appropriate, comparisons were made against South Africa, Nigeria and Kenya. Nigeria was selected because it is the largest economy in Africa; South Africa for being the second largest economy and most modern economy in Africa; and Kenya for its similar context. The data of these countries are used to provide context and perspective.

The country analysis refers only briefly to the Ethiopian economy, political situation or general risk factors. There are dozens of platforms, reports, research and publications available in that regard for those who wish to apprise themselves of information relating to those areas.

The research is unique by its predominant focus on the Ethiopian labour force.


Recently Updated