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The Federal Democratic Republic of Ethiopia

Author(s):
International Monetary Fund
Published Date:
July 2008
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Basic Data

Ethiopia: Basic Data 1/

Area: 1,221,900 square kilometers

Population, 2006/07 estimate: 76.1 million

Population, 2001/02–2006/07 average annual growth: 2.82 percent

2002/032003/042004/052005/062006/07
National accounts(In millions of birr, unless otherwise specified)
GDP at current basic prices68,20479,18598,006121,974158,792
GDP at 1999/2000 basic prices66,58774,39783,80493,495104,177
(annual percentage change)-2.111.712.611.611.4
GDP deflator (annual percentage change)12.83.99.911.616.8
(In percent of GDP at current market prices)
Gross domestic expenditure117.8120.5120.0120.6119.3
Consumption96.095.097.096.394.4
Gross capital formation21.825.523.024.225.0
Net exports-14.1-16.7-20.4-22.7-19.4
Gross domestic savings4.05.03.03.75.6
(Annual percentage change, unless otherwise specified)
Prices
Consumer price index (annual average)15.18.66.815.817.0
Consumer price index (end of period)23.51.713.011.615.8
Exchange rates
Ethiopian birr per U.S. dollar (period average)8.588.628.658.688.80
Nominal effective exchange rate (–depreciation; end of period)-6.4-4.6-6.9-2.7-3.9
Real effective exchange rate (– depreciation; end of period)14.23.3-6.38.212.3
Central government finance(In millions of birr, unless otherwise specified)
Total revenue and grants15,70317,91820,14724,25030,274
Grants4,5544,0024,5654,7218,477
Total expenditure and net lending 2/20,50420,50424,79629,32535,608
Recurrent13,53611,96113,22915,23417,166
Development and net lending6,3138,27111,34314,04118,398
Special program6552722245044
Overall balance 2/
(including grants)-4,801-2,586-4,649-5,075-5,334
(excluding grants)-9,355-6,587-9,214-9,796-13,811
Overall balance (in percent of GDP)2/
(including grants)-6.5-3.0-4.4-3.9-3.1
(excluding grants)-12.7-7.6-8.7-7.4-8.1
Money and credit(In percent of beginning–period stock of broad money)
Domestic credit3/2.511.029.520.724.3
Government (net)5.77.19.37.19.0
Other sectors-3.23.920.213.615.4
Money and quasi–money (M3)10.410.919.617.419.7
Balance of payments(In millions of U.S. dollars, unless otherwise specified)
Current account balance-109-402-771-1,387-880
Excluding official transfers (net)-709-969-1,521-2,253-2,080
Exports, f.o.b.4836008471,0001,187
Imports, c.i.f.-1,856-2,587-3,633-4,593-5,126
Trade balance-1,374-1,986-2,786-3,592-3,939
Services (net)167310277149161
Income (net)-66-64-36-3813
Current transfers (net)1,1641,3381,7732,0962,885
Capital and financial account (net) 4/3846296751,037867
Foreign direct investment (net)123150150365482
Official long–term loan (net)359198271196239
Others-65164188-31-24
Overall balance275227-97-350-3
Current account balance (in percent of GDP)
(including official transfers)-1.3-4.0-6.3-9.1-4.5
(excluding official transfers)-8.3-9.6-12.4-14.9-10.6
Gross official international reserves (end of period)
In millions of U.S. dollars930.61,351.61,581.41,157.81,326.0
In months of next year’s imports3.73.83.52.22.0
External debt(In millions of U.S. dollars, unless otherwise specified)
Stock of external debt (end of period)5/6,7387,3716,0216,0052,292
(in percent of GDP)78.773.348.939.611.8
External debt service
(in percent of export of goods and non factor services)7.86.75.85.1
Memorandum item:
GDP (In millions of U.S. dollars)8,55810,05412,30715,16819,436
Sources: National Bank of Ethiopia, Central Statistical Agency and Ministry of Finance and Economic Development.

Data pertain to the period July 8–July 7 for the monetary survey and government finance data; and to the period July 1–June 30 for balance of payments, exchange rate and consumer prices data.

Including special programs.

In percent of beginning–of–period broad money stock.

Including errors and omissions.

Public medium– and long–term debt, including to the Fund.

Sources: National Bank of Ethiopia, Central Statistical Agency and Ministry of Finance and Economic Development.

Data pertain to the period July 8–July 7 for the monetary survey and government finance data; and to the period July 1–June 30 for balance of payments, exchange rate and consumer prices data.

Including special programs.

In percent of beginning–of–period broad money stock.

Including errors and omissions.

Public medium– and long–term debt, including to the Fund.

Table 1.Ethiopia: Gross Domestic Product by Economic Activity at Basic Prices, 2002/03–2006/071/
2002/032003/042004/052005/062006/07
(In millions of birr at 1999/2000 prices)
Agriculture and allied activities29,92034,99039,72944,06348,226
Industry9,33110,42011,40212,56113,943
Mining and quarrying346353367394418
Manufacturing3,6333,8724,3674,8305,335
Electricity and water1,5851,6901,8231,9842,255
Construction3,7674,5054,8455,3535,937
Services27,79929,53633,31237,76942,876
Distribution services13,84014,73216,89519,29222,330
Trade and related services9,94010,46011,80113,90916,540
Transportation and communications3,9004,2725,0945,3845,790
Other services13,95914,80416,41718,47720,546
Banking and insurance1,0291,2311,5292,0402,092
Real estate and ownership5,7856,0456,4927,4248,538
Public administration and defense3,1743,1803,5503,7774,116
Education1,8912,1082,3732,5782,935
Health606702821860912
Domestic and other1,2731,3341,4421,5741,713
Private households with employed persons201204210224240
Financial Intermediation Services Indirectly Measured463549639898868
Total GDP at 1999/2000 basic prices66,58774,39783,80493,495104,177
Of which
Nonagricultural GDP36,66739,40744,07549,43255,951
(Annual percentage change)
Agriculture and allied activities-10.516.913.510.99.4
Industry6.511.79.410.211.0
Mining and quarrying4.12.04.07.36.0
Manufacturing0.86.612.810.610.5
Electricity and water4.86.67.98.913.6
Construction13.619.67.510.510.9
Services6.06.212.813.413.5
Distribution services5.56.414.714.215.7
Other services6.56.110.912.511.2
Banking and insurance10.919.624.233.42.5
Real estate and ownership9.74.57.414.415.0
Public administration and defense1.40.211.66.49.0
Education11.611.512.68.613.9
Health-4.315.817.04.76.1
Domestic and other1.54.88.19.18.8
Private households with employed persons4.71.52.96.87.0
Total GDP at 1999/2000 basic prices-2.111.712.611.611.4
Of which
Nonagricultural GDP6.07.511.812.213.2
Source: Ministry of Finance and Economic Development.

Data pertain to the period July 8–July 7.

Source: Ministry of Finance and Economic Development.

Data pertain to the period July 8–July 7.

Table 2.Ethiopia: Expenditure on Gross Domestic Product at Current Market Prices, 2002/03 – 2006/07 1/
2002/032003/042004/052005/062006/07
(In millions of birr)
GDP at current market prices73,43286,661106,473131,672170,921
Of which: taxes on products, net5,2287,4768,4679,69812,129
Gross domestic expenditure86,535104,398127,800158,740203,927
Consumption70,49582,328103,317126,846161,277
Private60,64571,01390,251110,936143,148
Public9,85011,31513,06615,91018,129
Investment16,04022,07024,48331,89442,650
Resource gap-10,352-14,453-21,699-29,887-33,225
Exports of goods and nonfactor services9,77912,91416,07718,20521,857
Imports of goods and nonfactor services20,13127,36737,77648,09255,082
Statistical Discrepancy-2,751-3,2843722,819219
(In percent of GDP)
Gross domestic expenditure117.8120.5120.0120.6119.3
Consumption96.095.097.096.394.4
Private82.681.984.884.383.8
Public13.413.112.312.110.6
Investment21.825.523.024.225.0
Resource gap-14.1-16.7-20.4-22.7-19.4
Exports of goods and nonfactor services13.314.915.113.812.8
Imports of goods and nonfactor services27.431.635.536.532.2
Statistical Discrepancy-3.7-3.80.32.10.1
Memorandum items:(In millions of birr)
GDP at current basic prices68,20479,18598,006121,974158,792
GNP at current market prices72,86586,113106,163131,338171,036
Gross national income82,85197,646121,795149,529196,410
Gross domestic saving2,9374,3333,1564,8269,644
Private1,6381,7316401,2066,468
Public1,2992,6022,5163,6203,176
Gross national saving (including official grants)12,35615,31818,47822,68335,133
Private6,5278,3629,62312,07722,763
Public5,8296,9558,85510,60612,370
Source: Ministry of Finance and Economic Development.

Data pertain to the period July 8–July 7.

Source: Ministry of Finance and Economic Development.

Data pertain to the period July 8–July 7.

Table 3.Ethiopia: Estimates of Agricultural Production and Cultivated Area of Major Crops, 2002/03–2006/07
2002/032003/042004/052005/062006/07
Cultivated areaTotal productionYieldCultivated areaTotal productioYieldCultivated areaTotal productionYieldCultivated areaTotal productionYieldCultivated areaTotal productionYield
(Area in thousands of hectares; production in thousands of quintals)
Cereals6,32463,44010.06,99490,00712.97,643100,36513.18,081116,24214.48,462128,65815.2
Teff1,93114,1967.41,98916,7738.42,13620,2559.52,24621,7569.724052437710.1
Barley7896,9008.792010,79711.71,09513,28112.199812,70712.710191352113.3
Wheat99810,72110.71,09916,14414.71,39821,76615.61,46022,19115.214742463016.7
Maize1,19117,88015.01,36725,43018.61,39924,06717.21,52633,36821.916943776422.3
Sorghum1,07210,3989.71,28417,42513.61,25717,10113.61,46821,73614.814642316015.8
Finger Millet3083,09210.03053,05110.03133,32910.63333,97011.9374484413.0
Oats302528.43038712.94556712.6444029.03236211.3
Rice50-00-00-611218.0
Pulses1,0658,2327.71,10010,3739.41,34913,49610.01,29212,7129.81,37515,78111.5
Faba beans3903,6179.33824,26911.24635,52011.94575,12811.2459576112.6
Chickpeas1401,1418.11541,3598.81681,6169.62012,10610.5200253812.7
Haricot beans1851,1176.01841,7229.42462,1148.61641,3848.5223222710.0
Field peas2071,3946.72121,7048.12542,2839.02331,8237.822121009.5
Lentils512264.4523536.8775467.1855766.8978108.4
Grass peas545319.8837909.51121,25011.11231,45911.8124183714.8
Fenugreek261174.6171257.3161167.112756.3201638.2
Soybeans177.4154.5383.233811.56589.7
Gibto11827.715483.210434.1141238.82528711.5
Oilseeds4741,9664.15713,1295.58255,2666.47964,8646.17394,9656.7
Neug2508543.42821,1904.23591,8725.23071,4714.827414775.4
Linseed/flax1324283.21437745.42511,5196.12151,2595.917410826.2
Rapeseed1719811.52629311.3423588.6252449.7302929.7
Sunflower4164.48506.010707.29606.7131118.5
Groundnuts141077.62020710.22729110.7353429.63751013.8
Sesame583636.3926156.71371,1568.42051,4897.321114937.1
Total7,86373,6388,664103,5099,817119,12710,170133,81810,576149,404
(Annual percentage change)
Cereals-0.7-27.1-26.610.641.928.39.311.52.05.715.89.54.710.75.7
Pulses4.7-19.4-23.03.226.022.122.730.16.0-4.2-5.8-1.66.424.116.7
Oilseeds11.3-3.8-13.620.459.132.244.668.316.4-3.5-7.6-4.3-7.22.110.0
Total0.6-25.9-10.240.6-13.315.1-3.612.3-4.011.6-
Source: Central Statistical Agency.
Source: Central Statistical Agency.
Table 4.Ethiopia: Estimates of Coffee Production, Marketing, and Stocks, 2002/03–2006/071/
2002/032003/042004/052005/062006/07
(In thousands of metric tons)
Opening stocks12499795456
Production250260300300321
Domestic consumption-110-110-110-110-110
Exports 2/-137-142-157-162-166
Unwashed-99-96-106-116-117
Washed-38-46-51-46-49
Adjustments 3/-28-28-58-26-41
Closing stocks9979545660
Source: Ministry of Agriculture and Rural Development.

Estimates (except exports) based on the findings of the Coffee Sector Survey; coffee year begins in October.

As recorded on loading at port rather than at customs stations.

Represents, among other factors, unofficial exports and handling losses.

Source: Ministry of Agriculture and Rural Development.

Estimates (except exports) based on the findings of the Coffee Sector Survey; coffee year begins in October.

As recorded on loading at port rather than at customs stations.

Represents, among other factors, unofficial exports and handling losses.

Table 5.Ethiopia: Monthly Coffee Prices, July 2005 –December 2007
Estimated

Producer

Price 1/
Auction

Price 2/
ICO

Composite

Price 3/
(Birr per metric ton)
2005/06July11,04915,96888
August11,61116,61285
September11,09615,85879
October9,67516,11183
November1101616,86487
December11,25817,57489
January12,86119,462101
February11,59417,94797
March11,34717,73693
April10,87417,41994
May10,49316,69890
June9,99115,96786
2006/07July9,53715,57989
August9,53315,75196
September9,51015,74596
October9,43515,58996
November12,76418,792103
December16,29022,701108
January14,84621,329106
February12,72019,094104
March11,20017,712100
April11,48518,10199
May11,94618,874100
June11,93619,156107
2007/08July12,40820,335106
August12,77920,705108
September13,68722,521113
October14,98223,215116
November19,61126,515114
December18,87626,234118
(Annual average, based on coffee year) 4/
2001/025,2686,47245
2002/036,2777,77852
2003/048,27310,11158
2004/0512,40715,87182
2005/0610,64116,90492
2006/0712,62519,576104
(Annual percentage change, based on coffee year) 4/
2001/02-40.3-36.4-5.1
2002/0319.220.215.3
2003/0431.830.010.5
2004/0550.057.041.6
2005/06-14.26.512.2
2006/0718.615.813.5
Source: Ministry of Agriculture and Rural Development.

Auction price less estimated transport and handling costs.

For unwashed and washed coffee, combined (mostly unwashed at Addis Ababa and weighted by same month’s arrival).

ICO is the International Coffee Organization; in U.S. cents per pound.

October–September.

Source: Ministry of Agriculture and Rural Development.

Auction price less estimated transport and handling costs.

For unwashed and washed coffee, combined (mostly unwashed at Addis Ababa and weighted by same month’s arrival).

ICO is the International Coffee Organization; in U.S. cents per pound.

October–September.

Table 6.Ethiopia: Approved Investment Projects, 2002/03 – 2006/07 1/
Number

of

Projects
Capital Cost 2/Permanent

Employment
Temporary

Employment
Capital–

Labor

Ratio3/
Average

Project

Employment 3/
2002/03
Approved1,12912,83147,61420,4390.2742.2
Implementation phase707603,2403090.2346.3
Operational1422,0987,36618,8500.2851.9
2003/04
Approved2,15720,564132,964150,1090.1561.6
Implementation phase1922,73518,48366,7640.1596.3
Operational2703,24918,85022,4750.1769.8
2004/05
Approved3,08938,786137,789612,6020.2844.6
Implementation phase1753,27712,69313,3530.2672.5
Operational2932,44010,30218,7150.2435.2
2005/06
Approved5,81179,773209,592335,7400.3836.1
Implementation phase422951,4333,6840.2134.1
Operational2038023,9495,5670.2019.5
2006/07
Approved6,899101,284378,050749,5230.2754.8
Implementation phase586522,5535,3940.2644.0
Operational1931,6988,65320,9310.2044.8
Source: Ethiopian Investment Agency.

Excludes projects with initial investment of less than Br 250,000.

As stated in the project application; in thousands of birr.

Capital – labor ratio and average employment per project are calculated using permanent employment.

Source: Ethiopian Investment Agency.

Excludes projects with initial investment of less than Br 250,000.

As stated in the project application; in thousands of birr.

Capital – labor ratio and average employment per project are calculated using permanent employment.

Table 7.Ethiopia: Prices of Petroleum Products, June 2003–January 2008 1/
Regular

Gasoline
Gas Oil

(Diesel)
Fuel

Oil
Lighting

Kerosene
(In birr per liter, unless otherwise indicated)
June 2003 – October 2003
Import border price1.921.821.571.75
Addis Ababa4.402.722.302.00
(in percentage change)0.000.000.000.00
(in U.S. dollars per liter)0.510.320.270.23
November 2003 – March 2004
Import border price1.771.851.641.87
Addis Ababa4.402.722.302.00
(in percentage change)0.000.000.000.00
(in U.S. dollars per liter)0.510.320.270.23
April 2004 – August 2004
Import border price2.272.161.652.17
Addis Ababa4.693.022.562.15
(in percentage change)6.5911.0311.307.50
(in U.S. dollars per liter)0.540.350.300.25
September 2004 – November 2004
Import border price2.752.661.812.81
Addis Ababa5.123.633.172.69
(in percentage change)9.1720.2023.8325.12
(in U.S. dollars per liter)0.590.420.370.31
December 2004 – May 2006
Import border price2.933.211.883.45
Addis Ababa5.504.313.523.00
(in percentage change)7.4218.7311.0411.52
(in U.S. dollars per liter)0.640.500.410.35
May 2006 – August 2006
Import border price3.964.483.224.63
Addis Ababa6.584.784.193.45
(in percentage change)19.6010.9019.0015.00
(in U.S. dollars per liter)0.750.550.480.40
August 2006 – January 2007
Import border price4.855.083.205.23
Addis Ababa8.175.444.194.12
(in percentage change)24.1613.810.0019.42
(in U.S. dollars per liter)0.940.630.480.47
January 2007–December 2007
Import border price3.534.202.674.59
Addis Ababa7.775.444.194.12
(in percentage change)-4.900.000.000.00
(in U.S. dollars per liter)0.880.620.480.47
January 2008–
Import border price6.656.804.816.90
Addis Ababa9.616.905.905.72
(in percentage change)23.6826.8440.8138.83
(in U.S. dollars per liter)1.040.750.640.62
Source: Ethiopian Petroleum Enterprise.

Retail prices vary, depending on transportation costs.

Source: Ethiopian Petroleum Enterprise.

Retail prices vary, depending on transportation costs.

Table 8.Ethiopia: Consumer Price Index, January 2007–May 2008
NationalAddis Ababa
OverallFoodNonfoodGeneralFoodNonfood
(December 2006=100)
2007January100.4100.0100.9100.5100.5100.5
February102.3102.9101.5101.8102.4101.3
March104.3105.4102.9103.6107.9100.6
April105.8107.7103.3105.1110.2101.6
May106.3107.9104.1107.1113.2102.8
June107.4109.5104.5107.3111.9104.1
July109.6113.0105.1109.3116.3104.5
August112.7118.1105.6111.2120.9104.5
September115.3121.9106.5113.2126.0104.3
October117.1124.4107.5113.0124.6105.0
November117.2123.8108.5111.8118.1107.4
December118.4125.7108.8115.3123.2109.7
2008January120.2127.9109.9116.0124.3110.2
February125.7133.9114.9122.2131.1116.0
March135.1146.9119.6129.7142.6120.8
April137.1149.7120.3130.2143.2121.2
May147.8166.3123.3140.8165.2123.8
(Annual percentage change; end of period)
2007January16.617.814.821.026.515.7
February17.520.013.919.625.114.6
March18.621.514.421.130.014.0
April20.023.715.022.431.015.5
May16.018.812.221.531.813.9
June15.118.210.917.324.112.2
July14.318.38.817.727.310.9
August16.021.98.117.829.69.5
September17.725.07.915.431.24.4
October18.726.18.813.525.85.0
November18.124.89.212.319.77.3
December18.425.68.815.323.29.7
2008January19.727.99.015.423.79.6
February22.930.213.220.128.014.5
March29.639.416.225.232.220.0
April29.639.116.523.830.019.3
May39.154.118.531.545.920.4
(Annual percentage change; annual average)
2007January12.914.011.315.220.710.4
February13.514.512.016.021.411.2
March14.215.312.716.922.512.0
June15.817.513.519.225.414.0
July15.917.913.219.526.114.1
August16.118.612.819.827.014.0
September16.519.612.319.527.813.0
October16.920.611.918.927.912.1
November17.121.311.518.227.311.3
December17.221.911.017.727.010.9
2008January17.522.810.517.326.710.4
February18.023.610.517.327.010.4
March19.025.210.717.827.211.0
April19.826.610.818.027.211.4
May22.029.711.218.928.711.9
(Monthly percentage change)
2007January0.40.00.90.50.50.5
February1.92.90.61.21.90.8
March2.02.51.41.85.3-0.7
April1.42.10.41.52.11.0
May0.40.20.81.92.81.2
June1.01.50.40.2-1.21.2
July2.13.10.61.93.90.3
August2.94.50.51.84.00.0
September2.33.30.81.84.2-0.2
October1.62.01.0-0.2-1.10.7
November0.1-0.50.9-1.1-5.22.3
December1.01.50.33.14.32.2
2008January1.51.81.10.60.90.4
February4.64.74.55.45.55.3
March7.59.74.26.28.84.1
April1.41.90.60.40.40.4
May7.811.12.58.115.42.1
Sources: Central Statistical Agency, and National Bank of Ethiopia.
Sources: Central Statistical Agency, and National Bank of Ethiopia.
Table 9.Ethiopia: Summary of General Government Finances, 2002/03–2006/07 1/
2002/032003/042004/052005/062006/07
(In millions of birr)
Total revenue and grants15,70317,91820,14724,250.030,274
Revenue11,15013,91715,58219,529.421,797
Tax revenue8,24310,90612,39814,15917,354
Nontax revenue2,9073,0103,1845,3714,443
Grants4,5544,0024,5654,720.78,477
Total expenditure and net lending (cash basis)20,50420,50424,79629,32535,608
Recurrent expenditure13,53611,96113,22915,233.817,165.9
Capital expenditure6,3138,27111,34314,041.418,398.0
Special programs6552722245044
Overall balance
Including grants-4,801-2,586-4,649-5,075.2-5,334
Excluding grants-9,355-6,587-9,214-9,796-13,811
Financing4,8012,5864,6495,075.25,334
Net external financing3,8652,3992,3841,512.31,916
Net domestic financing1,6532,1473,4921,746.45,357
system1,6512,1553,1562,876.13,369
sources2-8336-140.71,988
MDRI, account held at NBE000-9890
Privatization8111000
Float/unidentified financing-725-1,971-1,2371,816-1,939
(In Percent of GDP)
Total revenue and grants21.420.718.918.417.7
Revenue15.216.114.614.812.8
Tax revenue11.212.611.610.810.2
Nontax revenue4.03.53.04.12.6
Grants6.24.64.33.65.0
Total expenditure and net lending (cash basis)27.923.723.322.320.8
Recurrent expenditure18.413.812.411.610.0
Capital expenditure8.69.510.710.710.8
Special programs0.90.30.20.00.0
Overall balance
Including grants-6.5-3.0-4.4-3.9-3.1
Excluding grants-12.7-7.6-8.7-7.4-8.1
Financing6.53.04.43.93.1
Net external financing5.32.82.21.11.1
Domestic (net)2.32.53.31.33.1
system2.22.53.02.22.0
sources0.00.00.3-0.11.2
Privatization0.00.00.00.00.0
Float/unidentified financing-1.0-2.3-1.21.4-1.1
Source: Ministry of Finance and Economic Development.

Ethiopian fiscal year ending July 7.

Source: Ministry of Finance and Economic Development.

Ethiopian fiscal year ending July 7.

Table 10.Ethiopia: General Government Revenues and Grants, 2002/03–2006/07 1/
2002/032003/042004/052005/062006/07
(In million of Birr)
Tax revenue8,24310,90612,39814,15917,354
Direct taxes3,0103,4313,9304,4615,168
Income and profits tax2,8783,1313,5693,8194,868
Personal income8339481,1321,4141,828
Rental income tax525378322 6
Business profits1,6391,3031,7141,7412,305
Withholding income tax on imports228448415407433
Agriculture income721381508298
Other income242043786110
Interest income tax212023295 2
Capital gains tax1017202916
Rural land use fee89114140124130
Urban land lease fee44186221517170
Indirect taxes5,2337,4768,4689,69812,186
Domestic indirect taxes1,6682,2002,7213,1113,997
Sales/excise taxes1,1441,5342,0032,3012,863
Petroleum products00
Alcohol and tobacco278279322442528
Other goods8661,2551,6811,8592,335
Services sales tax397505533597856
Stamp duties127161185213278
Import duties and taxes3,5645,2765,7466,5878,189
Custom duties1,6062,4342,5032,9543,298
Sales/excise taxes1,8882,8333,2423,6334,398
Surtax on imports701010492
Export taxes10000
Non–tax revenue2,9073,0103,1845,3714,443
Charges and fees252321616379342
Sales of goods services330376856433250
Residual surplus, capital charge, interest
payments and state dividend1,1021,2501,1063,1362,682
Pension contributions0
Reimbursement property sales204185193310168
Miscellaneous484716400172327
Other revenue53516314941674
Privatization proceeds (below the line for IMF tables)000
Total revenue11,15013,91715,58219,52921,797
External grants4,5544,0024,5654,7218,477
Grants in kind/earmarked4,0871,7462,2342,7823,492
Untied cash CPF/grants4672,2552,3319504,985
Multilateral Debt Relief Initiative0009890
Total revenue and grants15,70317,91820,14724,25030,274
(In percent of total revenue)
Tax revenue73.978.479.672.579.6
Direct taxes27.024.725.222.823.7
Indirect taxes46.953.754.349.755.9
Non–tax revenue26.121.620.427.520.4
(In percent of GDP)
Tax revenue11.212.611.610.810.2
Direct taxes4.14.03.73.43.0
Income and profits tax3.93.63.42.92.8
Rural land use fee0.10.10.10.10.1
Indirect taxes7.18.68.07.47.1
Domestic indirect taxes2.32.52.62.42.3
Import duties and taxes4.96.15.45.04.8
Export taxes0.00.00.00.00.0
Non–tax revenue4.03.53.04.12.6
Residual surplus, capital charge, interest1.51.41.02.41.6
Other extraordinary0.70.20.00.70.4
Grants6.24.64.33.65.0
Source: Ministry of Finance and Economic Development.

Ethiopian fiscal year ending July 7.

Source: Ministry of Finance and Economic Development.

Ethiopian fiscal year ending July 7.

Table 11.Ethiopia: General Government Current Expenditures by Economic Classification, 2002/03–2006/07 1/
2002/032003/042004/052005/062006/07
(In millions of birr)
Wages and operating expenses8,7649,60710,77712,87614,838
Wages and salaries4,0015,1625,9497,9959,349
Materials4,7624,4454,8284,8815,489
Grants and contributions410346392294271
Pensions254234328425438
Interest and charges1,2191,0801,0111,0541,207
Domestic debt625576525621727
External debt594504486433480
External assistance2,890699721586411
Total current expenditure13,53611,96113,22915,23417,166
(In percent of total current expenditure)
Wages and operating expenses64.780.381.584.586.4
Wages and salaries29.643.245.052.554.5
Materials35.237.236.532.032.0
Grants and contributions3.02.93.01.91.6
Subsidies0.00.00.00.00.0
Pensions1.92.02.52.82.6
Interest and charges9.09.07.66.97.0
External assistance21.45.85.53.82.4
(In percent of GDP)
Wages and operating expenses11.911.110.19.88.7
Wages and salaries5.46.05.66.15.5
Materials6.55.14.53.73.2
Grants and contributions0.60.40.40.20.2
Subsidies0.00.00.00.00.0
Pensions0.30.30.30.30.3
Interest and charges1.71.20.90.80.7
External assistance3.90.80.70.40.2
Total current expenditure18.413.812.411.610.0
Source: Ministry of Finance and Economic Development.

Ethiopian fiscal year ending July 7.

Source: Ministry of Finance and Economic Development.

Ethiopian fiscal year ending July 7.

Table 12.Ethiopia: General Government Expenditures by Functional Classification, 2002/03–2006/07 1/
2002/032003/042004/052005/062006/07
(In millions of birr)
Current expenditure13,53611,96113,22915,23417,166
General services4,6795,0445,8166,5227,073
Defense2,3412,4522,9203,0093,005
Public order and security7927668921,2011,362
General services 2/1,5451,8262,0042,3112,706
Economic services1,3371,3611,5162,0092,201
Agriculture and natural resources7308701,1581,5661,703
Trade, Industry and tourism235125117152177
Mines and energy4744263841
Transport and communications155161653354
Urban development and construction139132132198187
Economic development studies3028192139
Social services3,1833,2533,8394,9966,198
Education2,2762,5112,9813,9064,896
Culture and sport52716482135
Health5265326968221,009
Labor and social welfare617657143107
Relief and rehabilitation26863404250
Pension payments00000
Interest and charges1,2191,0801,0111,0541,207
External assistance 3/2,890699721586411
Miscellaneous2305253256776
Capital expenditure 4/6,3138,27111,34314,04118,398
Economic development4,1244,7737,6559,72811,367
Agriculture9291,8762,8893,3593,410
Natural resources5914051,1091,2961,484
Mining and energy526457862641,288
Trade, Industry and tourism40112277176234
Transport construction1,8961,8362,6373,4454,820
Transport and communications141876581,188130
Financial agencies00000
Social development1,7452,2333,2903,7965,998
Education1,0171,6661,8962,4793,514
Public health4883465055191,341
Urban development and housing2101658287141,038
Social welfare102624514
Culture and sport2029373399
General services and compensation4441,2653975171,033
External assistance 5/1,1971,0471,5132,1963,081
Total expenditure19,84920,23224,57229,27535,564
(In percent of total expenditure)
Current expenditure68.259.153.852.048.3
General services 2/23.624.923.722.319.9
of which: defense11.812.111.910.38.4
Economic services6.76.76.26.96.2
Social services16.016.115.617.117.4
Interest and charges6.15.34.13.63.4
Other15.76.14.32.21.4
Capital expenditure 4/31.840.946.248.051.7
Economic development20.823.631.233.232.0
Social development8.811.013.413.016.9
General services and compensation2.26.31.61.82.9
External assistance 5/6.05.26.27.58.7
Total social spending (current and capital)43.350.357.060.162.9
Education16.620.619.821.823.6
Health5.14.34.94.66.6
Other21.625.332.333.732.6
(In percent of GDP)
Current expenditure18.413.812.411.610.0
General services 2/6.45.85.55.04.1
of which: defense3.22.82.72.31.8
Economic services1.81.61.41.51.3
Social services4.33.83.63.83.6
Interest and charges1.71.20.90.80.7
Other4.21.41.00.50.3
Capital expenditure 4/8.69.510.710.710.8
Economic development5.65.57.27.46.7
Social development2.42.63.12.93.5
General services and compensation0.61.50.40.40.6
External assistance 5/1.61.21.41.71.8
Total social spending (current and capital)11.711.713.213.413.1
Education4.54.84.64.84.9
Health1.41.01.11.01.4
Other 6/5.85.97.47.56.8
Source: Ministry of Finance and Economic Development.

Ethiopian fiscal year ending July 7.

Includes organs of state and judiciary.

Imputed value of goods and services provided through external grants, mainly aid in kind.

Includes outlays other than investment proper, such as operating expenses of certain development agencies.

Details across sectors unavailable. However, the 2003/04 estimate for external assistance is incorporated in sector estimates.

Includes culture and sports, labor and social welfare, relief and rehabilitation, and urban development and housing.

Source: Ministry of Finance and Economic Development.

Ethiopian fiscal year ending July 7.

Includes organs of state and judiciary.

Imputed value of goods and services provided through external grants, mainly aid in kind.

Includes outlays other than investment proper, such as operating expenses of certain development agencies.

Details across sectors unavailable. However, the 2003/04 estimate for external assistance is incorporated in sector estimates.

Includes culture and sports, labor and social welfare, relief and rehabilitation, and urban development and housing.

Table 13:Ethiopia. Summary of Regional Government Finances, 2002/03–2006/071/
2002/032003/042004/052005/062006/07
(In millions of birr)
Total Revenue2,1053,0883,5714,3974,385
Tax Revenue1,5652,1652,6862,8543,234
Income and profits tax1,1971,4991,7771,6372,093
Land use fee132300361640300
Domestic sales and excise taxes161265438448667
Stamp duties75101110129174
Non tax revenue5409248851,5421,151
Total Expenditure6,2347,7178,84911,23313,387
Current Expenditure4,7645,7996,3488,2369,718
General Services1,4181,7221,8822,3892,825
Economic Services7799831,2411,6931,828
Social Services2,3962,6283,1444,1095,027
Pension payments
Miscellaneous171466814539
Capital Expenditure1,4701,9182,5012,9973,668
Economic development7919781,1611,4661,621
Social development4844521,1351,2901,640
General development196488206241407
Overall balance-4,129-4,629-5,278-6,837-9,002
(In percent of GDP)
Total Revenue2.93.63.43.32.6
Tax Revenue2.12.52.52.21.9
Non tax revenue0.71.10.81.20.7
Total Expenditure8.58.98.38.57.8
Current Expenditure6.56.76.06.35.7
Of which: Social Services3.33.03.03.12.9
Capital Expenditure2.02.22.32.32.1
Of which: Social development0.70.51.11.01.0
Overall balance-5.6-5.3-5.0-5.2-5.3
(In percent of general government total)
Total Revenue13.417.217.718.114.5
Tax Revenue19.019.821.720.218.6
Non tax revenue18.630.727.828.725.9
Total Expenditure30.437.635.738.337.6
Current Expenditure35.248.548.054.156.6
Of which: Social Services75.380.881.982.281.1
Capital Expenditure23.323.222.021.319.9
Of which: Social development27.720.334.534.027.3
Source: Ministry of Finance and Economic Development.

Ethiopian fiscal year ending July 7.

Source: Ministry of Finance and Economic Development.

Ethiopian fiscal year ending July 7.

Table 14.Ethiopia: Monetary Survey, 2002/03–2006/07 1/2/
2002/032003/042004/052005/062006/07
(In millions of birr, unless otherwise specified)
Foreign assets (net)11,29014,00013,89613,25113,927
National Bank of Ethiopia6,2739,1819,6707,3128,179
Assets8,00311,66513,4779,38911,807
Liabilities1,7312,4843,8072,0773,628
Commercial banks5,0184,8204,2275,9395,748
Assets6,7316,7136,1337,6847,719
Liabilities1,7131,8931,9061,7451,971
Domestic credit28,33231,68141,65250,04461,585
Claims on government (net)17,85520,00923,15626,04030,290
National Bank of Ethiopia9,8049,38319,07118,80424,065
Commercial banks8,05210,6274,0857,2366,225
Claims on nongovernment10,47711,67218,49624,00331,295
National Bank of Ethiopia11454000
Commercial banks10,36411,61818,49624,00331,295
Other items (net)-9,117-11,858-15,095-15,810-18653
Broad money30,50633,82240,45247,48556,861
Money16,81518,13721,42924,70129,774
Currency outside banks7,7267,89110,06311,36013,704
Demand deposits9,08910,24611,36613,34116,070
Quasi–money13,69115,68419,02322,78427,087
Savings deposits12,52914,44717,40420,68823,759
Time deposits1,1621,2371,6192,0973,328
(Annual percentage change with respect to beginning–period broad money)
Foreign assets (net)10.88.9-0.3-1.61.4
Domestic credit2.511.029.520.724.3
Claims on government (net)5.77.19.37.19.0
Claims on nongovernment-3.23.920.213.615.4
Broad money10.410.919.617.419.7
Money4.94.39.78.110.7
Quasi money5.56.59.99.39.1
(In millions of birr, unless otherwise specified)
Memorandum items:
Net domestic assets19,21619,82326,55634,23542,932
Reserve money12,66413,16822,90220,57026,211
Excess reserves (in percent of deposits) 3/11.110.028.513.616.5
Quasi money/broad money (in percent)44.946.447.048.047.6
Velocity (GDP/broad money)2.42.62.62.83.0
Source: National Bank of Ethiopia.

Ethiopian fiscal year ending July 7.

Net foreign assets exclude net claims on the Bank of Eritrea; from 2000/01, currency in circulation excludes old notes of Birr 1,036.5 million, redeemed in Eritrea and unclaimed in Ethiopia.

Including government deposits.

Source: National Bank of Ethiopia.

Ethiopian fiscal year ending July 7.

Net foreign assets exclude net claims on the Bank of Eritrea; from 2000/01, currency in circulation excludes old notes of Birr 1,036.5 million, redeemed in Eritrea and unclaimed in Ethiopia.

Including government deposits.

Table 15.Ethiopia: Loan Portfolio of the Banking System, 2002/03–2006/07 1/2/
2002/032003/042004/052005/062006/07
(In millions of birr)
Claims on the government (net)17,85520,00923,16526,03230290
Development Bank of Ethiopia advances11454000
Nongovernment13,11813,88117,70521,02525,374
Nonfinancial public enterprises 3/7851,5722,4472,5252639
Financial public enterprises 4/449404302275226
Cooperatives3143368171,4771748
Private sector11,57011,56814,13916,74820761
Total31,08733,94440,87047,05755,664
(In percent of total)
Claims on the government (net)57.458.956.755.354.4
Development Bank of Ethiopia advances0.40.20.00.00.0
Nongovernment42.240.943.344.745.6
Nonfinancial public enterprises 3/2.54.66.05.44.7
Financial public enterprises 4/1.41.20.70.60.4
Cooperatives1.01.02.03.13.1
Private sector37.234.134.635.637.3
(Percentage change with respect to total net claims of the banking system at beginning of the fiscal year)
Claims on the government (net)5.36.99.37.09.0
Development Bank of Ethiopia advances-0.9-0.2-0.20.00.0
Nongovernment-0.52.511.38.19.2
Nonfinancial public enterprises 3/-1.02.52.60.20.2
Financial public enterprises 4/-0.2-0.1-0.3-0.1-0.1
Cooperatives0.00.11.41.60.6
Private sector0.70.07.66.48.5
Total3.89.220.415.118.3
Source: National Bank of Ethiopia.

Ethiopian fiscal year ending July 7.

Includes provision for doubtful loans and loans to public banks, except the Development Bank of Ethiopia.

Excludes equity investment.

Excludes deposit claims on specialized banks.

Source: National Bank of Ethiopia.

Ethiopian fiscal year ending July 7.

Includes provision for doubtful loans and loans to public banks, except the Development Bank of Ethiopia.

Excludes equity investment.

Excludes deposit claims on specialized banks.

Table 16.Ethiopia: Sectoral Breakdown of Commercial Bank Claims on Nongovernment Sectors, 2002/03–2006/07 1/2/
2002/032003/042004/052005/062006/07
(In millions of birr)
Agriculture1,2031,1622,0183,4184218
Manufacturing2,7504,2085,1366,3206997
Exports8569451,4601,5812334
Imports1,7032,4523,1483,7444166
Construction1,8972,0392,2183,2073791
Domestic trade and services2,8803,3023,8645,2716,908
Domestic trade1,9482,1932,6603,3463,821
Transport6007738731,5782,370
Hotel and tourism318323317317676
Other services1414143141
Personal555811593147
Others4,2003,5853,7903,1172,542
Total reported15,54317,75021,74926,75131,102
(In percent of total)
Agriculture7.76.59.312.813.6
Manufacturing17.723.723.623.62 2.5
Exports5.55.36.75.97.5
Imports11.013.814.514.01 3.4
Construction12.211.510.212.012.2
Domestic trade and services18.518.617.819.722.2
Domestic trade12.512.412.212.51 2.3
Transport3.94.44.05.97.6
Hotel and tourism2.01.81.51.22.2
Other services0.10.10.10.10.1
Personal0.40.30.50.30.5
Others27.020.217.411.78.2
Source: National Bank of Ethiopia.

Data for each year pertain to June 30.

Includes provision for doubtful loans and loans to public banks, except the Development Bank of Ethiopia.

Source: National Bank of Ethiopia.

Data for each year pertain to June 30.

Includes provision for doubtful loans and loans to public banks, except the Development Bank of Ethiopia.

Table 17.Ethiopia: Commercial Bank Lending and Deposits, 2002/03–2006/071/2/
2002/032003/042004/052005/062006/07
Lending(In millions of birr)
Central government10,27513,7438,33713,22013,161
Other sectors13,11813,88117,70521,02525,374
Nonfinancial public enterprises 3/7851,5722,4472,5252,639
Financial public enterprises 4/449404302275226
Cooperatives3143368171,4771,748
Private sector11,57011,56814,13916,74820,761
Total lending23,39327,62426,04234,24538,535
(In percent of total lending)
Central government43.949.832.038.634.2
Other sectors56.150.268.061.465.8
Nonfinancial public enterprises 3/3.45.79.47.46.8
Financial public enterprises 4/1.91.51.20.80.6
Cooperatives1.31.23.14.34.5
Private sector49.541.954.348.953.9
Deposits(In millions of birr)
Demand deposits13,39615,62118,06021,58725,598
Public enterprises3,6373,7354,0624,2345,259
Cooperatives4326007899261,137
Private sector4,3925,1866,3417,8139,450
Central government2,2153,1084,2455,9846,928
Other 5/2,7212,9912,6242,6312,824
Savings deposits12,52914,44717,40320,68823,760
Public enterprises5215425240
Cooperatives268378895603895
Private sector12,19914,03916,42919,89022,757
Other 5/10153614368
Time deposits1,1701,2451,6272,1053,336
Public enterprises113138165210504
Cooperatives3352473870
Private sector556616794888968
Central government88888
Other 5/4594326139601,785
Total deposits27,09531,31337,09044,38052,694
(In percent of deposits)
Demand deposits49.449.948.748.648.6
Savings deposits46.246.146.946.645.1
Time deposits4.34.04.44.76.3
Source: National Bank of Ethiopia.

Ethiopian fiscal year ending July 7.

Includes provision for doubtful loans and loans to public banks, except the Development Bank of Ethiopia.

Excludes equity investment.

Excludes deposit claims on specialized banks.

Includes domestic financial agencies and nontransferable accounts of nonresidents.

Source: National Bank of Ethiopia.

Ethiopian fiscal year ending July 7.

Includes provision for doubtful loans and loans to public banks, except the Development Bank of Ethiopia.

Excludes equity investment.

Excludes deposit claims on specialized banks.

Includes domestic financial agencies and nontransferable accounts of nonresidents.

Table 18.Ethiopia: Reserve and Liquidity Position of Commercial Banks, 2002/03–2006/07
2002/032003/042004/052005/062006/07
(In millions of birr, unless otherwise indicated)
Reserve requirement
Net deposits 2/26,40630,98736,56842,41951850
Reserve requirement 3/1,3201,5491,8282,1212,593
Actual reserves3,8174,91112,8568,45211,734
Excess reserves2,4973,36211,0276,3319,142
Actual reserve ratio (in percent)14.515.835.219.922.6
Liquidity requirement
Net current deposits 4/25,25829,75934,94840,33148523
Liquidity requirement 5/3,7894,4645,2426,0507,278
Actual liquid assets16,46120,26422,41724,12927,597
Excess liquidity12,67215,80017,17518,07920,319
Actual liquidity ratio (in percent)65.268.164.159.856.9
Source: National Bank of Ethiopia.1/ Data for each year pertain to June 30.

Demand, savings, and time deposits, less uncleared checks paid, and less uncleared effects (foreign).

Five percent of net deposits.

Net deposits, less deposits at notice (deposits that can be withdrawn after 30 days’ notice).

Fifteen percent of net current deposits.

Source: National Bank of Ethiopia.1/ Data for each year pertain to June 30.

Demand, savings, and time deposits, less uncleared checks paid, and less uncleared effects (foreign).

Five percent of net deposits.

Net deposits, less deposits at notice (deposits that can be withdrawn after 30 days’ notice).

Fifteen percent of net current deposits.

Table 19.Ethiopia: Structure of Interest Rates, Jun. 2003–March 2008 1/
2002200320042004/052005/062006/072007/08
Jun.Jun.Jun.Sep.Dec.Mar.Jun.Sep.Dec.Mar.Jun.Sep.Dec.Mar.Jun.Sep.Dec.Mar.
Deposit rates(In percent per annum)
Savings deposits2/3.003.003.003.003.003.003.003.003.003.003.003.003.003.003.004.004.004.00
Time deposits 3/
Less than 12 months3.303.353.403.363.383.453.473.493.483.523.603.583.593.633.644.614.594.68
1 year to less than 2 years3.513.623.643.603.643.693.713.743.733.794.014.014.024.074.115.165.135.25
2 years and above3.573.823.843.813.863.923.943.993.994.064.304.404.424.444.495.525.475.61
Lending rates
Bank lending rates7.507.007.007.007.007.007.007.007.007.007.007.007.007.007.008.008.008.00
Minimum14.0014.0014.0014.0014.0014.0014.0014.0014.0014.0014.0014.0014.0014.0014.0015.0015.0015.00
Maximum10.7510.5010.5010.5010.5010.5010.5010.5010.5010.5010.5010.5010.5010.5010.5011.5011.5011.50
Average
Treasury bill yield1.981.310.590.440.150.080.050.040.040.040.040.040.420.810.791.010.570.50
Source: National Bank of Ethiopia.

Data for end–year pertain to June 30.

Minimum rate.

Weighted rate, but the weighting does not take in to account the structure of deposits.

Source: National Bank of Ethiopia.

Data for end–year pertain to June 30.

Minimum rate.

Weighted rate, but the weighting does not take in to account the structure of deposits.

Table 20.Ethiopia: Exchange Rate Developments, 1990/91–2006/07 1/
2002/032003/042004/052005/062006/07
(Period average; 1996/97 =100)
Effective exchange rates
Nominal96.592.085.683.480.10
Real97.4100.694.3102.0114.50
(Annual percentage change; – depreciation)
Nominal-6.4-4.6-6.9-2.7-3.9
Real14.23.3-6.38.212.3
Memorandum items: 2/(In units indicated)
Birr per U.S. dollar, end of period8.618.638.678.699.03
Birr per U.S. dollar, period average8.588.628.658.688.80
Birr per SDR, end of period 3/12.0512.6612.6212.8213.70
Birr per SDR, period average11.6612.5012.9712.6713.20
(Annual percentage change; – depreciation)
Birr per U.S. dollar, end of period-0.5-0.2-0.5-0.3-3.7
Birr per U.S. dollar, period average-0.4-0.5-0.4-0.3-1.3
Birr per SDR, end of period-5.4-4.80.3-1.6-6.4
Birr per SDR, period average-6.9-6.7-3.62.4-4.0
Sources: National Bank of Ethiopia and International Monetary Fund.

Data pertain to the period July 1–June 30.

Since May 1993, marginal rates at foreign exchange auctions; since October 2001, rates in the interbank market.

Data on Birr/SDR for 1989/90 – 2004/05, International Monetary Fund. For 2005/06 and 2006/07 average of buying and selling rate of the Birr against the SDR was considered.

Sources: National Bank of Ethiopia and International Monetary Fund.

Data pertain to the period July 1–June 30.

Since May 1993, marginal rates at foreign exchange auctions; since October 2001, rates in the interbank market.

Data on Birr/SDR for 1989/90 – 2004/05, International Monetary Fund. For 2005/06 and 2006/07 average of buying and selling rate of the Birr against the SDR was considered.

Table 21.Ethiopia: Balance of Payments, 2002/03–2006/07 1/
2002/032003/042004/052005/062006/07
(In millions of U.S. dollars)
Current account balance-109-402-771-1,387-870
(excluding official transfers)-709-969-1,521-2,253-2,069
Merchandise trade balance-1,374-1,986-2,786-3,592-3,939
Exports4836008471,0001,187
Coffee165223335354424
Other318377512646763
Imports1,8562,5873,6334,5935,126
Fuel288311669861875
Cereals189206160195161
Aircraft171261396838
Other1,3621,9442,6663,4704,053
Services (net)167310277149161
Income (net)-66-64-36-3814
Of which: Official interest payments-72-62-51-62-35
Current transfers (net)1,1641,3381,7732,0962,895
Private transfers (net)5647711,0231,2291,696
Official transfers (net)6005677508661,199
Capital account balance417512609530697
Investment assets and liabilities (net)417512609530697
Official, medium and long term359198271196239
Disbursements443298344343345
Amortization8410073148106
Other public long term (net) 2/-4190193-70
Long–term private (net, including foreign direct investment)123150150365482
Short–term public and private (net)-61-26-6-24-24
Errors and omissions (net)-3411766507170
Overall balance275227-97-350-3
Financing-275-227973503
Change in net foreign assets (increase –)-345-30812217-85
Central bank-236-334-44284-39
Reserves (increase –)-266-420-231424-168
Liabilities3086187-140129
Commercial banks-1082556-67-46
Change in arrears10000
Debt relief 3/69828413388
(In percent of GDP, unless otherwise indicated)
Current account balance-1.3-4.0-6.3-9.1-4.5
(excluding official transfers)-8.3-9.6-12.4-14.9-10.6
Merchandise trade balance-16.1-19.8-22.6-23.7-20.3
Exports5.66.06.96.66.1
Imports21.725.729.530.326.4
(excluding external cereals/aid in kind)19.523.728.229.025.5
Capital account balance4.95.14.93.53.6
Overall balance3.22.3-0.8-2.30.0
Memorandum item:
GDP (in millions of U.S. dollars)8,55810,05412,30715,16819,436
Gross official reserve (End of period)
In million U. S. dollars9311,3521,5811,1581,326
In months of next year’s imports3.73.83.52.22.0
Sources: National Bank of Ethiopia, and Ministry of Finance and Economic Development.

Data for the period July 1–June 30.

Ethiopian Airlines and other public enterprises.

Includes a Paris Club rescheduling agreement in 1997/98.

Sources: National Bank of Ethiopia, and Ministry of Finance and Economic Development.

Data for the period July 1–June 30.

Ethiopian Airlines and other public enterprises.

Includes a Paris Club rescheduling agreement in 1997/98.

Table 22.Ethiopia: Exports, 2002/03–2006/07 1/2/
2002/032003/042004/052005/062006/07
(Value in millions of U.S. dollars; volume in thousands of metric tons; and price in U.S. dollars per thousand metric tons)
Coffee165.2223.6335.2354.3424.2
Volume126.1156.4161.1147.7176.4
Price1.31.42.12.42.4
Pulses19.926.735.437.070.3
Volume66.277.8121.7110.4158.8
Price0.30.30.30.30.4
Oilseeds46.583.6125.0211.4187.4
Volume83.0102.8170.8265.7235.0
Price0.60.80.70.80.8
Sugar and molasses17.710.3
Volume77.016.0
Price0.20.6
Leather and leather products52.044.367.675.089.6
Volume10.513.115.615.415.8
Price5.03.44.34.95.7
Live animals0.52.112.827.636.8
Volume0.63.121.233.343.7
Price0.80.70.60.80.8
Meat, canned and frozen2.47.714.618.515.5
Volume1.74.07.38.05.9
Price1.41.92.02.32.6
Fruits and vegetables9.67.216.113.216.2
Volume25.329.437.934.840.9
Price0.40.20.40.4
Flowers7.821.863.6
Volume2.56.313.6
Price3.13.54.7
Chat57.588.0100.289.192.8
Volume11.013.819.422.322.7
Price5.26.45.24.04.1
Gold42.148.759.464.797.0
Volume5.06.26.05.05.6
Price8.47.99.913.017.4
Other exports 3/69.458.373.287.893.6
Total exports482.8600.5847.41000.31187.1
excluding coffee)317.5377.0512.0646.0762.9
(In percent of GDP)
Coffee exports1.92.22.72.32.2
Noncoffee exports3.73.74.24.33.9
(In percent of total exports)
Coffee34.237.239.635.435.7
Pulses4.14.44.23.75.9
Oilseeds9.613.914.821.115.8
Leather and leather products10.87.48.07.57.5
Chat11.914.711.88.97.8
Gold8.78.17.06.58.2
Other20.614.214.716.919.0
Sources: National Bank of Ethiopia and Ethiopian Customs Authority.

Data for the period July 1–June 30.

Data based on customs records, except gold, for which data are reported by the National Bank of Ethiopia.

Includes textiles, essence oils, and spices.

Sources: National Bank of Ethiopia and Ethiopian Customs Authority.

Data for the period July 1–June 30.

Data based on customs records, except gold, for which data are reported by the National Bank of Ethiopia.

Includes textiles, essence oils, and spices.

Table 23.Ethiopia: Imports, c.i.f., by End Use, 2002/03–2006/07 1/2/
2002/032003/042004/052005/062006/07
(In millions of U.S. dollars)
Raw materials21.826.049.177.2148.6
Semifinished goods274.6435.2664.7821.6765.5
Fuel287.7310.5668.7860.5875.1
Capital goods549.5876.61,199.41,452.81,868.5
Transport174.0298.3371.6429.9633.8
Of which: aircraft17.3126.1139.567.537.7
Agricultural5.910.824.438.733.0
Industrial369.6567.5803.4984.21,201.7
Consumer goods654.3895.6986.11,281.91,317.0
Durable183.6294.6337.3415.7520.7
Nondurable470.8601.0648.8866.2796.3
Of which:food231.7269.0247.2332.7258.5
Miscellaneous 3/68.443.165.398.5151.5
Total imports, c.i.f.1,856.42,586.93,633.34,592.55,126.2
(excluding fuel)1,568.72,276.42,964.63,732.04,251.1
(In percent of GDP)
Nonfuel imports18.322.624.124.621.9
Fuel imports3.43.15.45.74.5
(In percent of total)
Raw materials1.21.01.41.72.9
Semifinished goods14.816.818.317.914.9
Fuel15.512.018.418.717.1
Capital goods29.633.933.031.636.5
Consumer goods35.234.627.127.925.7
Miscellaneous3.71.71.82.13.0
Sources: National Bank of Ethiopia and Ethiopian Customs Authority.

Data for the period July 1–June 30.

Data based on customs records.

Includes military imports.

Sources: National Bank of Ethiopia and Ethiopian Customs Authority.

Data for the period July 1–June 30.

Data based on customs records.

Includes military imports.

Table 24.Ethiopia: Imports by Country of Origin, 2002/03–2006/07 1/
2002/032003/042004/052005/062006/07
(In millions of birr)
European Union 2/4,2954,9766,5808,01610,242
Belgium and Luxembourg393335592918900
France224528655777805
Germany6918361,0441,4981,656
Italy1,0911,1331,3342,1993,469
Netherlands424534460621620
United Kingdom717767860873777
Other7558441,6371,1312,015
Eastern Europe 2/2983651,054960953
Russia216218373286433
Other82146681674521
Other Europe4829211,3282,1751,302
Turkey281606972882798
Other2003153561,293504
Total Europe5,0746,2638,96311,03412,497
Western Hemisphere1,1922,8133,7633,7692,619
Canada555415411373
United States9592,6193,3103,1821,694
Other177140298474852
Asia and Middle East7,30510,53516,43622,62227,050
China1,4812,3033,5255,0087,647
India8911,3991,9142,8173,133
Japan1,0431,0141,0521,2852,778
Korea242318348601970
Saudi Arabia1,3081,8765,3487,3326,839
Other2,3423,6264,2475,5805,683
Africa1,2421,3422,0842,3662,821
Djibouti571490469726494
Kenya161187221324435
Other5116651,3951,3161,892
Australia4742825687
Other (including unspecified)1,0691,3021072420
Total imports, c.i.f.15,93022,29831,43439,87045,094
(In percent of total)
European Union27.022.320.920.122.7
Belgium and Luxembourg2.51.51.92.32.0
France1.42.42.11.91.8
Germany4.33.83.33.83.7
Italy6.95.14.25.57.7
Netherlands2.72.41.51.61.4
United Kingdom4.53.42.72.21.7
Other4.73.85.22.84.5
Eastern Europe1.91.63.42.42.1
Other Europe3.04.14.25.52.9
Total Europe31.928.128.527.727.7
Western Hemisphere7.512.612.09.55.8
Canada0.30.20.50.30.2
United States6.011.710.58.03.8
Other1.10.60.91.21.9
Asia and Middle East45.947.252.356.760.0
China9.310.311.212.617.0
India5.66.36.17.16.9
Japan6.54.53.33.26.2
Korea1.51.41.11.52.2
Saudi Arabia8.28.417.018.415.2
Other14.716.313.514.012.6
Africa7.86.06.65.96.3
Australia0.30.20.30.10.2
Other (including unspecified)6.75.80.30.10.0
Sources: National Bank of Ethiopia and Ethiopian Customs Authority.

Data for the period July 1–June 30.

Hungary, Poland, Czech Republic and Slovakia are classified both under European Union and Eastern Europe.

Sources: National Bank of Ethiopia and Ethiopian Customs Authority.

Data for the period July 1–June 30.

Hungary, Poland, Czech Republic and Slovakia are classified both under European Union and Eastern Europe.

Table 25.Ethiopia: Exports by Country of Destination, 2001/02–2005/06 1/
2001/022002/032003/042004/052005/06
(In millions of birr)
European Union 2/1,386.31,341.31,593.82,574.72,511.7
Belgium and Luxembourg118.876.6169.6375.4234.0
France111.3273.698.0127.2177.9
Germany437.9352.9560.31,068.7875.9
Italy391.9183.2307.0384.8473.9
Netherlands55.2142.079.4259.4334.9
United Kingdom139.876.7183.0219.6238.1
Other131.4236.3196.5139.7177.0
Eastern Europe 2/29.013.611.239.134.9
Russia0.00.49.517.914.4
Other29.013.21.721.220.5
Other Europe235.593.0628.3486.6715.8
Switzerland235.579.8434.1327.0577.5
Other13.2194.2159.6138.4
Total Europe1,650.81,447.92,233.33,096.13,256.80
Western Hemisphere216.2356.1288.0467.4482.4
United States165.9340.1254.7389.9418.0
Other50.316.033.377.564.4
Asia and Middle East1,292.5854.21,570.82,261.73,387.9
China91.022.5109.6362.81,166.7
Israel149.0201.0169.8179.9178.0
Japan294.6188.4530.4554.7676.1
Saudi Arabia229.5182.4293.6437.9531.1
Other528.4259.8467.4726.3836.0
Africa411.9792.1910.71,033.81,460.0
Djibouti272.1289.8533.8359.2498.4
Kenya0.2134.32.417.921.1
Other139.6367.9374.5656.7940.4
Australia7.94.411.712.028.5
Other (including unspecified)285.0687.7162.2460.269.7
Total exports, f.o.b.3,864.34,142.45,176.77,331.38,685.4
(In percent of total)
European Union35.932.430.835.128.9
Belgium and Luxembourg3.11.83.35.12.7
France2.96.61.91.72.0
Germany11.38.510.814.610.1
Italy10.14.45.95.25.5
Netherlands1.43.41.53.53.9
United Kingdom3.61.93.53.02.7
Other3.45.73.81.92.0
Eastern Europe0.70.30.20.50.4
Other Europe6.12.212.16.68.2
Total Europe42.735.043.142.237.5
Western Hemisphere5.68.65.66.45.6
United States4.38.24.95.34.8
Other1.30.40.61.10.7
Asia and Middle East33.420.630.330.839.0
China2.40.52.14.913.4
Israel3.94.93.32.52.0
Japan7.64.510.27.67.8
Saudi Arabia5.94.45.76.06.1
Other13.76.39.09.99.6
Africa10.719.117.614.116.8
Australia0.20.10.20.20.3
Other (including unspecified)7.416.63.16.30.8
Sources: National Bank of Ethiopia and Ethiopian Customs Authority.

Includes reexports. Data pertain to the period July 1–June 30.

Hungary, Poland, Czech Republic and Slovakia are classified both under European Union and Eastern Europe.

Sources: National Bank of Ethiopia and Ethiopian Customs Authority.

Includes reexports. Data pertain to the period July 1–June 30.

Hungary, Poland, Czech Republic and Slovakia are classified both under European Union and Eastern Europe.

Table 26.Ethiopia: Public and Publicly Guaranteed External Debt Outstanding, 2002/03–2006/07
2002/032003/042004/052005/062006/07
Debt stockOf which:arrears1/Debt stockOf which:arrears1/Debt stockOf which:arrears1/Debt stockOf which:arrears1/Debt stockOf which:arrears1/
(In millions of U.S. dollars)
Multilateral4,249-4,670-4,881-4,878-1,130-
IMF141-150-168-----
IDA2,939-3,258-3,362-3,513-621-
AfDB/AfDF922-1,003-1,073-1,100-213-
Other246-260-279-264-295-
Official bilateral2,4474802,448-788391773374821374
Paris Club1,880-1,886-229-336-371-
Other official bilateral567480562-559391437374450374
Commercial4242253-353313543130131
Total6,7385227,371-6,0214226,0054052,252405
(In percent of GDP)
Multilateral49.60.046.40.039.70.032.20.05.80.0
Official bilateral28.65.624.30.06.43.25.12.54.21.9
Commercial0.50.52.50.02.90.32.30.21.50.2
Total78.76.173.30.048.93.439.62.711.62.1
(In percent of total)
Multilateral63.10.063.40.081.10.081.20.050.20.0
Official bilateral36.391.933.20.013.192.712.992.336.592.3
Commercial0.68.13.40.05.97.35.97.713.47.7
Source: Ministry of Finance and Economic Development.

Includes debt under negotiation to ensure comparable treatment.

Source: Ministry of Finance and Economic Development.

Includes debt under negotiation to ensure comparable treatment.

Table 27:Ethiopia – Financial Soundness Indicators for the Banking Sector, 2003/04–2006/07
2003/042004/052005/062006/07
Capital adequacy
Capital to risk–weighted assets11.711.511.420.4
Capital to assets11.68.49.510.2
Asset composition and quality
Total loans and advances to total assets37.337.740.035.6
Sectoral distribution of loans to total loans
Manufacturing23.723.623.622.5
Construction11.510.212.012.2
Agriculture6.59.312.813.6
Transport4.44.05.97.6
Hotel and tourism1.81.51.22.2
Foreign exchange loans to total loans---
Gross nonperforming loans to gross loans27.820.014.010.1
NPLs net of provisions to total capital83.163.745.47.6
Large exposures to total capital135.7179.2138.079.2
Earnings and profitability
ROA1.62.02.82.3
ROE21.832.141.128.4
Interest margin to gross income35.431.935.835.4
Noninterest expenses to gross income41.128.731.633.5
Personnel expenses to noninterest expenses30.342.643.143.8
Trading and fee income to total income43.347.545.946.4
Interest rate earned on loans and advances9.08.78.710.5
Interest rate paid on nonbank deposits3.93.94.03.6
Spread (lending minus deposit rates)5.14.84.76.9
Liquidity
Liquid assets to total assets52.747.344.640.4
Liquid assets to total short–term liabilities82.177.971.175.2
Total loans to customer deposits55.358.860.050.0
Foreign exchange liabilities to total liabilities0.70.90.90.6
Sources: National Bank of Ethiopia; and IMF staff calculations.
Sources: National Bank of Ethiopia; and IMF staff calculations.
Ethiopia: Summary of the Tax System as of end–June 2008
TaxNature of TaxDeductions and ExemptionsRates
1. Taxes on income and profits. Income Tax Proclamation No. 286/2002
1.1 Income tax on employmentTax on income from employment, including, without limitations, salaries, wages, allowances, directors’ fees, and other personal emoluments. Tax is withheld by employer.(1) The first Br 150 of monthly income should be deducted prior to the calculation of the tax.The marginal tax rates are as follows:
Proclamation No.286/2002.(2) Income from employment received by casual employees who are not regularly employed provided that they do not work for more than one month for the same employer in any twelve months.



(3) Pension contribution, provident fund and all forms of retirement benefits contributed by employers in an amount that does not exceed 15% of the monthly salary of the employee.



(4) Subject to reciprocity, income from employment, received for services rendered in the exercise of their duties by:



(a) diplomatic and consular representatives, and



(b) other persons employed in any Embassy, Legation, Consulate or Mission of a foreign state performing state affairs, who are national of that state and bearers of diplomatic passports or who are in accordance with international usage or custom normally and usually exempted from the payment of income tax



(5) Income specifically exempted from income tax by:



(a) a law in Ethiopia, unless specifically amended or deleted by this Proclamation;



(b) an international treaty; or



(c)an agreement made or approved by the Minister.



(6) The Council of Ministers may by regulations exempt any income recognized as such by this Proclamation for economic, administrative or social reason.

(7) Payments made to a person as compensation or a gratitude in relation to:



(a) personal injuries suffered by that person;



(b) the death of another person.
No.

1

2

3

4

5

6
Monthly taxable income (birr)151 – 650

1,400 – 2,350

2,350 – 3,550

3,550 – 5,000

Over 5,000
Marginal tax rate (%)

10

20

25



30

35
1.2 Taxes on income from rental of buildings
1.2.1 Incorporated business

Proclamation No.286/2002.
Tax on income derived from the rent of houses or office buildings, manufacturing plants, materials and goods, etc. The tax is computed on the basis of annual rent income after deducting allowable expenses.The following amounts shall be deducted from income in computing taxable income:

1) Taxes paid with respect to the land and buildings being leased; except income taxes;

(2) For taxpayers not maintaining books of account, one fifth of the gross income received as rent for buildings furniture and equipment as an allowance for repairs, maintenance and depreciation of such buildings, furniture and equipment;

(3) For taxpayers maintaining books of accounts, the expenses incurred in earning, securing, and maintaining rental income, to the extent that the expenses can be proven by the taxpayer and subject to the limitations specified by this Proclamation; deductible expenses include (but are not limited to) the cost of lease (rent) of land, repairs, maintenance, and depreciation of buildings, furniture and equipment in accordance with Article 23 of this Proclamation as well as interest on bank loans, insurance premiums.

(4) The first Br 1,800 of annual income should be deducted prior to the calculation of the tax.
Thirty percent (30%) of taxable income.
1.2.2 Unincorporated/ Persons

Proclamation No.286/2002.
As in 1.2.1As in 1.2.1No.

1

2

3

4

5

6
Annual taxable income (birr)

1,801–7,800

7,800–16,800

16,800–28,200

28,200–42,600

42,600–60,000

Over 60,000
Marginal tax rate (%)

10

15

20

25

30

35
1.3 Tax on business and other profits
1.3.1 Unincorporated business

Proclamation No.286/2002.
Tax imposed on the taxable business income realized from

entrepreneurial activity. The taxable income is determined per tax period on the basis of the profit and loss account or income statement, which shall be drawn in compliance with the Generally Accepted Accounting Standards, subject to the provisions of this Proclamation and directives issued by the Tax Authority.
The first Br 1,800 of annual income should be deducted prior to the calculation of the tax.

The following categories of income shall be exempt of business income tax:

(1) Awards for adapted or suggested innovations and cost saving measures

(2) Public awards for outstanding performance tax of any field

(3) Income specifically exempted from income tax by the law in force in Ethiopia, by international treaty or by an agreement made or approved by the Minister.

(4) The revenue obtained by:

(a) the Federal, Regional and Local Governments of Ethiopia;

(b) the National Bank of Ethiopia from activities that are incidental to their operations shall be exempt from tax on business income.
No.



1

2

3

4

5

6
Annual taxable income (birr)

1,801 –7,800

2 7,800–16,800

16,800–28,200

28,200–42,600

42,600–60,000

Over 60,001
Marginal tax rate (%)

10

15

20

25

30

35
1.3.2 Incorporated business Proclamation No. 286/2002.As in 1.3.1As in 1.3.130 percent of taxable income.
1.4 Taxes on Other Incomes
1.4.1 Tax on income from mining activities (Royalties)Tax collected from Royalty. Where Royalty means a payment of any kind received as a consideration for the use of, or the right to use, any copyright of literary, artistic or scientific work, including cinematography films, and films or tapes for radio or television broadcasting, any patent, trade work, design or model, plan, secret formula or process, or for the use or for the right to use of any industrial, commercial or scientific equipment, or for information concerning industrial, commercial or scientific experience.

The withholding Agent who effects payment shall withhold the foregoing tax and account to the Tax Authority with in the time limit set out in this Proclamation.
Artisan mining is exempted.5 Percent on income earned from Royalty.
1.4.2 Income tax on Income from Rendering of Technical Services to organizations in Ethiopia by non–resident persons or organizations.Tax liable on all payments obtained in consideration of any kind of technical services rendered outside Ethiopia to resident persons in any form. Where "Technical service" means any kind of expert advise or technological service rendered.None.10 Percent on the payment made.
1.4.3 Tax on Income from Games of ChanceTax on income derived from winning at games of chance (for example, lotteries, tombolas, and other similar activities)Tax is not paid on winnings of less than 100 Birr.15 Percent
1.4.4 DividendsTax on income derived from dividends from a share company or withdrawals of profits from a private limited company. The withholding Agent shall withhold or collect the tax and account to the Tax Authority.None.10 Percent
1.4.5 Tax on income from Rental of PropertyTax on income derived from the causal rental of property (including any land, building, or movable asset) not related to a business activity taxable under 1.2 above.None.15 Percent on the annual gross income
1.4.6 Tax on Interest Income on DepositsTax on income derived from interest on deposits. The payer shall withhold the tax and account to the Tax Authority.None.5 Percent
1.4.7 Tax on the Gain on the Transfer of Certain Investment PropertyIncome tax on gains obtained from the transfer (sale or gift) of property.Gains obtained from the transfer of building held for residence is exempt.The following rates are levied:

(a) 15 Percent for building held for business, factory, and office.

(b) 30 Percent for shares of companies.
1.5 Rural land and agricultural activities income taxVaries from region to region.
2. Taxes on goods and services
2.1 Excise tax

Proclamation No.307/2002;

Proclamation No. /2008
Excise tax is levied on selected list of locally

produced and imported goods. The tax base is the cost of production for goods produced locally and C.I.F

value and Customs Duty Payable for imported goods while in calculating the Excise Tax payable on textile and textile products locally produced in a factory and vehicles assembled locally, the tax paid on import of inputs that are used to produce such goods shall be deducted. The tax is collected within thirty days from the date of production for locally produced goods and at the time clearing the goods from Customs area for imported goods. However, if the tax payer requests for permission to deposit goods produced in a bonded warehouse without payment of tax and if the request is approved by the Tax Authority the payment of the tax on such goods so deposited shall be effected at the time they are being removed from the Bonded warehouse.
None.Goods

1. Any type of sugar in solid form, excluding molasses

2. Drinks
  • 2.1 All types of soft drinks (except fruit juices)
  • 2.2 Powder soft drinks
  • 2.3 Water bottled or canned in a factory
  • 2.4 Alcohol Drinks
    • 2.4.1 All types of beer and stout
    • 2.4.2 All types of wine
    • 2.4.3 Whisky
    • 2.4.4 Other alcoholic drinks
3. All types of pure alcohol

4. Tobacco Tobacco Products:
  • 4.1 Tobacco leaf
  • 4.2 Cigarettes, cigar, cigarillos, pipe tobacco and its products
5. Salt

6. Fuel–Jet fuel, Super Benzene, Regular Benzene, Petrol, Gasoline and other Motor Spirits

7. Perfumes and Toilet Waters

8. Textile and Textile Products produced in a factory

9. Personal adornment made of gold, silver or other materials

11. Washing machines of a kind for domestic purposes

12. Video decks

13. Television Video Cameras

14. Television broadcast receivers whether or not combined with gramophone, radio, or sound receivers and 10 reproducers

15. Motor passenger cars, Station Wagons, utility cars, and Land Rovers, Jeeps pickups, similar vehicles (including motorized caravans), whether assembled, together with their appropriate initial equipment:

15.1 Up to 1,300 cc

15.2 1,300–18,00 cc

17. Asbestos and Asbestos Products

15.3 above 1800 cc

16. Carpets

17. Asbestos and Asbestos Products

18. Clocks and watches

19. Dolls and toys
Tax rate (%)



33



30



30



20



50



50



50



100



75



20



75



30



30



100



10



20



80



30



40



40



10



30



20



20



20
2.2 Value Added Tax (VAT) on Goods and Services Proclamation No.285/2002.Levied on locally produced goods at the manufacturing level or on imported goods at the import gate. The bases for taxation are the producer’s wholesale price plus excise tax for local goods or the c.i.f. value plus customs duty and excise tax for imports. There is arefund for sales tax paid on raw materials used in the production of local goods, except for pure alcohol used as raw material. The tax is payable monthly within three to five days of the end of the month. For imported goods, the tax is collected at the same time as the customs duty.The following taxable transactions are zero rated:
  • Export of goods/services to the extent provided in regulation;
  • The rendering of transportation or other services directly connected with international transport of goods or passengers, as well as the supply of lubricants and other consumable technical supplies taken on board for consumption during international flights;
  • The supply of gold to the National Bank of Ethiopia; and
  • A supply by a registered person to another registered person in a single transaction of substantially all of the assets of a taxable activity or an independent functioning part of a taxable activity as a going concern, provided a notice in writing signed by the transferor and transferee is furnished to the Authority within 21 days after the supply takes place and such notice includes the details of the supply.


The following types of supplies of goods or rendering of services are exempted:

  • The sale or transfer of a used dwelling, or the lease of a dwelling;
  • The rendering of financial services;
  • The supply or import of national or foreign currency (except for that used for numismatic purposes), and of securities;
  • The import of gold to be transferred to the National Bank of Ethiopia;
  • The rendering by religious organizations of religious or church related services;
  • The import or supply of prescription drugs specified in directives issued by the Minister of Health, and the rendering of medical services;
  • The supply of goods and rendering of services in the form of humanitarian aid, as well as import of goods transferred to state agencies of Ethiopia and public organizations for the purpose of rehabilitation after natural disasters, industrial accidents, and catastrophies;
  • The supply of electricity, kerosene, and water;
  • Goods imported by the government, organizations, institutions or projects exempted from duties and other import taxes to the extent provided by law or by agreement;
  • Supplies by the post office authorized under the Ethiopian Postal Services Proclamation, other than services rendered for a fee or commission;
  • The provision of transport; – Permits and license fees;
  • The import of goods to the extent provided under Schedule 2 of the Customs Tariffs Regulations;
  • The supply of goods or services by a workshop employing disabled individuals if more than 60 percent of the employees are disabled; and
  • The import or supply of books and other printed materials to the extent provided in regulations.
15% (Fifteen percent) on each transacted sale of goods and services.
2.3 Turn Over Tax (ToT)
2.3.1 ToT on Goods sold locallyThe tax is levied on the gross receipts of goods supplied locally
  • Transfer of a dwelling used for a minimum of two years;
  • The supply of prescription drugs specified in directive issued by the relevant agency, and the rendering of medical services;
  • The supply of goods and rendering of services in the form of humanitarian aid
  • The supply of electricity, kerosene, and water;
  • The supply of goods or services by workshop employing disabled individuals if more than 60% of the employees are disabled; and
  • The supply of books
Two percent (2%) on annual turnover of the goods supplier.
2.3.2 ToT on Services rendered locallyThe tax is levied on the services rendered locally
  • The lease of a dwelling;
  • Rendering of financial services
  • The supply of national currency (except for that used for numismatic purposes) and securities;
  • The rendering by religious organizations of religious or other related services;
  • The rendering of educational services provided by educational institutions, as well as child care services for children at pre-school institutions;
  • The provision of transport; and
  • Permits and license fees
(a) Two percent (2%) on Contractors, grain mills, tractors and combine–harvesters.

(b) Ten percent (10%) on other services
3. Tax on International Trade
3.1 Taxes on imports
3.1.1 Customs Duty Tariff Regulation 80/2002. Tariff Regulation/2008.The customs tariff applies to all imports. Items are classified according to a schedule of 97 chapters, based on the Harmonized System of Tariffs Classification Code.Diplomatic and consular missions, personal effects, grants and gifts to Ethiopia, firefighting instruments and appliances, trade samples, defense and public security equipment, materials and equipment for the handicapped, and sheath contraceptives are exempted. Exemptions and concessions are granted to certain organizations and items.Ad valorem duty on imports consisting of six rates, ranging from 0 to 35 percent, as follows:

Imports

Raw materials, capital goods, pharmaceuticals, and chemicals

Durable and nondurable consumer goods

Luxuries and goods that can be produced locally
Tax rate (%)

0–20

20–3 5

30–35
3.1.2 Import excise taxesLevied on selected imported goods.None.As specified in (2.1)
3.1.3 Import Value Added TaxSales tax levied on imports; the basis for taxation is the c.i.f. value plus the customs duty and excise tax paid.See items in (2.2) for exemptions.As specified in (2.2)
3.2 Taxes on exportsAll export duties and taxes are abolished except on export of raw and semi–processed hides skins; the objective being to encourage export of finished goods of hides and skin. A duty draw back and duty free import schemes have been introduced. Under the duty drawback scheme, goods produced for export, re–exporting or raw materials imported upon payment of duties are subject to refund of the duty paid. Ninety–five percentof the duty drawn back is refunded for raw materials or commodities if re–exported and 100 percent if exported after being processed or used for packing or containing. Under the duty free import scheme, persons or organizations wholly engaged for supplying their products to foreign markets are allowed a duty free purchase of local or imported raw material for their production, and the product should be exported within one year of the purchase of such raw materials.None.On the value of the following items:Items

Rawhideandskin

WetblueHide

PickledSheepSkin

WetblueSheepskin

WetblueGoatSkin
Rates

15

20

10

5

5
4. Other taxes
4.1 Stamp duties

Decree No. 26/1975, as amended by Proclamation No.110/1998.
Obligatory use of stamped paper for many legal documents, such as contracts or papers in court proceedings; requirement that stamps be affixed to other documents, such as property titles, power of attorney, notary acts, etc.Stamp duties are not levied on documents where the Ethiopian government, foreign embassies, consulates, etc.., would be the party subject to duty.Varies according to the type of document and value of transaction.
4.2 Withholding tax: Current payments of income tax at time goods are imported. Proclamation 227/2001Tax collected at the time of import of goods for commercial use, where the collected tax is treated as tax withhold that is creditable against the tax payer.Three percent
4.3 Income tax: Withholding of income tax on payments. Proclam ation 227/2001Category “A” taxpayers, government agencies, private nonprofit institution and NGOs withhold income tax on payments made to persons within categories specified, in the regulation No.75/2001.Two Percent

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