Updated January 21, 2020
Ethiopia
Ethiopia is one of Africa’s fastest growing economies, its
Figure 1. Ethiopia: Key Facts
second most populous country, and its oldest independent
state. It is an important regional development and regional
security partner for the United States, but also a source of
concern regarding democratic governance and human
rights. Protests, fueled by repression and a violent
crackdown on dissent, shook the country in 2016 and 2017,
prompting concerns about its stability. Growing pressure on
the government led to a leadership transition that has stirred
cautious optimism regarding prospects for change.
Abiy Ahmed, Ethiopia’s charismatic prime minister since
2018, has committed to opening the country politically and

economically. He won the Nobel Peace Prize in 2019 for
Source: CRS map. Data (2019) from CIA and IMF databases.
his pursuit of peace with neighboring Eritrea—a longtime
enemy—as well as for reforms at home and his efforts to
Efforts to suppress dissent intensified from late 2015 into
resolve other disputes in the region. Prime Minister Abiy
2016, as protests over the perceived marginalization of
faces high expectations and serious challenges, though, and
Oromo and Amhara communities (the country’s first and
some have criticized his response to rising ethnic violence.
second largest ethnic groups) escalated. The government
responded with force and mass arrests: over 1,000 people
Ethiopia plays a key leadership role in the region. It hosts
were reportedly killed in the unrest and 29,000 were
the African Union (AU) and is the world’s largest troop
detained under a state of emergency in which restrictions on
contributor to U.N. peacekeeping operations. It has
expression and assembly increased. The protests surged
deployed peacekeepers along the volatile Sudan-South
again in late 2017 as ethnic violence also flared in parts of
Sudan border and in U.N. missions in Darfur and South
the country, spurring large-scale displacement and
Sudan. Ethiopia also plays a critical role in efforts to
increasing pressure on the government.
counter Al Qaeda affiliate Al Shabaab in Somalia. It hosts
one of Africa’s largest refugee populations: over 735,000
The unrest shook the foundations of the EPRDF. The
refugees from South Sudan, Somalia, Eritrea, and Sudan.
coalition, under public pressure and internal strain, pledged
reforms. In early 2018, then-Prime Minister Hailemariam
Background
Desalegn (Meles’ former deputy, who replaced him in
In the past century, Ethiopia’s politics were dominated by
2012) released hundreds of political prisoners, then
three leaders: Emperor Haile Selassie (1930 to 1974),
resigned to pave the way for reforms. The EPRDF’s first
military dictator Mengistu Haile Mariam (1977-1991), and
contested leadership election followed, and Abiy emerged
Prime Minister Meles Zenawi. Meles seized power from
as its first Oromo leader. In April 2018, the legislature
Mengistu’s socialist Derg regime in 1991 and ruled until
elected him prime minister.
his death in 2012. As leader of both the Ethiopian Peoples’
Current Political Context
Revolutionary Democratic Front (EPRDF) coalition and
one of its ethno-regional components, the Tigray Peoples’
Abiy, 43, is currently Africa’s youngest leader. A military
Liberation Front (TPLF), Meles was a powerful figure in
veteran with a doctorate in philosophy, he attracted
Ethiopian and regional politics, and his policies contributed
international headlines with fast-paced announcements of
to rapid economic growth. Critics accused him of stifling
political and economic reforms. In his first 100 days, the
dissent and ensuring that his minority Tigray ethnic group
government released tens of thousands of political
dominated the government and senior security posts.
prisoners, lifted the state of emergency, removed terrorist
designations that had been placed on opposition groups,
The EPRDF increasingly suppressed dissent after contested
closed a notorious detention facility, and granted amnesty
elections in 2005, following a brief democratic opening in
to jailed dissidents. He invited exiled critics and former
the early 2000s. The opposition rejected the 2005 results as
insurgents back into the country. He replaced top security
rigged, and security forces killed roughly 200 people in
chiefs and fired prison officials. The government opened
protests that followed, detaining thousands of opposition
access to over 260 blocked websites, blogs, and broadcasts.
members, journalists, and civic activists. Some faced
treason charges. The EPRDF won 99.6% of legislative seats
In his inaugural address, Abiy acknowledged critiques of
in the 2010 elections and 100% in 2015, leveraging
EPRDF governance and “the need to address existing
repressive laws and electoral regulations to retain its
inequities that led to recent unrest,” declaring that
political advantage. Ethiopia ranked among the world’s
“democracy cannot be realized in the absence of rights.” He
most censored countries until 2018, with opposition
shocked many when he admitted, in an address to
activists and journalists jailed on national security charges.
parliament, that the government had tortured prisoners.
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Ethiopia
Civil society advocates welcomed the legislature’s passage
Regional Tensions
in early 2019 of a key reform measure, the Civil Society
Construction of Africa’s largest hydroelectric power
Proclamation, which opened space for human rights groups
project, the Grand Ethiopian Renaissance Dam (GERD), is
and lifted funding restrictions imposed in 2009.
nearing completion. The project, which would significantly
Abiy’s appointments have been unprecedented for Ethiopia
expand Ethiopia’s domestic power capacity and allow it to
in terms of gender, ethnic, and religious diversity. Half of
export electricity to neighbors, has been a source of serious
his cabinet are women. He named a prominent women’s
tension with Egypt. Egypt is concerned the dam will stem
rights advocate to be chief justice and appointed the
the flow of the Nile, a critical source of water. In late 2019,
country’s first female president (a largely ceremonial post).
Treasury Secretary Mnuchin invited officials from Ethiopia,
Egypt, and Sudan (through which the Blue Nile runs) for
Abiy has pledged a more level playing field ahead of
talks on the dam, after Egypt’s president asked President
elections, scheduled for August 2020. He appointed former
Trump to engage. The parties reported progress toward a
opposition leader and judge Birtukan Mideksa (who had
deal on the GERD’s filling and operation in early 2020.
been living in exile in the United States) to lead the
electoral commission. In late 2019, he prompted the merger
Another key concern for Ethiopia has been its relationship
of the EPRDF’s component parties and allied groups into a
with Eritrea, which seceded from Ethiopia in 1993. An
national Prosperity Party, effectively signaling the end of
unresolved border war between the two countries (1998-
the EPRDF. The TPLF, once the coalition’s dominant
2000) led to a standoff between the two governments,
party, has broken away. Meanwhile, opposition coalitions
which supported proxy forces in the region against each
are forming as the elections approach.
other, including in Somalia. Abiy extended an olive branch
in June 2018, announcing that Ethiopia would comply with
The 2020 elections could be Ethiopia’s most competitive in
a peace deal signed in 2000 with Eritrea and cede disputed
at least 15 years, but they may also be a flashpoint. Ethnic
territories; the countries have since moved to restore ties.
violence has flared in parts of the country since 2017,
See also CRS In Focus IF10466, Eritrea.
displacing as many as three million people. The political
opening under Abiy has allowed Ethiopians to vent
Instability in neighboring Somalia is a security concern for
grievances, but there also has been score-settling and a rise
Ethiopia. It deployed troops there in 2006, with tacit U.S.
in hate speech. Some call Abiy’s response to the ethnic
backing, to oust a network of Islamist militias that had
violence insufficient, while others raise concerns that the
seized control of Somalia’s capital. That led to a long
government may revert to authoritarian tactics to stem
campaign against Al Shabaab and other insurgents. Ethiopia
unrest. The assassinations of state officials in the Amhara
joined the U.N.-mandated African Union Mission in
region and the head of Ethiopia’s military in mid-2019, as
Somalia (AMISOM), to which it contributes over 4,000
well as more recent tensions in Abiy’s own Oromia region,
troops, in 2014. Ethiopian interests in Somalia are linked to
underscore fault lines that could derail Ethiopia’s transition.
domestic considerations regarding its own ethnic Somali
population and other factors, including regional influence,
The Economy
economic opportunities, and port access.
Ethiopia has been among the world’s fastest growing
U.S. Policy and Foreign Assistance
economies for over fifteen years. Its per capita income,
though, remains among the world’s lowest, and
Ethiopia’s stability and prosperity have been key priorities
unemployment is high. Development indicators—literacy
for U.S. engagement, given its size, susceptibility to food
levels, rates of infant mortality, life expectancy—are poor
insecurity, and position in a volatile but strategic region.
but improving. Ethiopia suffers from recurrent drought. Of
Relations have centered on efforts to alleviate humanitarian
the 8.4 million Ethiopians estimated to need aid in 2020,
crises and endemic poverty, and respond to regional
6.2 million face acute food insecurity.
instability and terrorist threats. Human rights concerns
complicated the relationship prior to the political opening in
Agriculture accounts for 70% of employment and a third of
2018, leading Congress to condition some types of aid.
GDP. Coffee is the largest export. The EPRDF sought to
transform the economy through large-scale infrastructure
U.S. bilateral aid to Ethiopia, most of it for development,
and electrification projects—with the aim of making
health, and food programs, totaled over $900 million in
Ethiopia a manufacturing hub—and by leasing large swaths
FY2016, $750 million in FY2017, and $600 million in
of agricultural land to foreign investors. The deals, which
FY2018 appropriations. The Administration’s FY2020
have displaced farmers, have been controversial.
budget request of $204 million reflected, in part, the
Administration’s
Environmental and rights activists have also raised
proposed changes to global food aid
concerns over the impact of major hydroelectric projects on
programs, but also proposed cuts to health, education,
local communities.
agriculture, and governance support. Country-specific
budget requests do not include emergency humanitarian aid,
While Ethiopia’s ambitious development agenda has fueled
which is allocated according to need during the fiscal year.
economic growth, it has led to a risk of debt distress.
Such aid for Ethiopia totaled over $495 million in FY2019.
Ethiopia owes roughly half of its external debt to China,
Ethiopia continues to benefit from the USAID-led Feed the
which has provided over $13 billion in financing. As noted
Future and Power Africa initiatives, which fund agricultural
above, Abiy has sought to move away from Meles’ state-
development and energy projects.
centric approach and liberalize the economy, opening some
sectors and state enterprises to foreign investors.
Lauren Ploch Blanchard, Specialist in African Affairs
IF10185
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Ethiopia


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https://crsreports.congress.gov | IF10185 · VERSION 13 · UPDATED

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