GEOGRAPHY

Service sector in Ethiopia

Ethiopia is one of the fastest-growing economies in sub-Saharan Africa, with a population of

approximately 110 million people. The country’s economy is primarily based on agriculture, but the
service sector is slowly becoming a significant contributor to the nation’s growth and development.

The service sector accounts for about 40% of Ethiopia’s gross domestic product (GDP), with retail and
wholesale trade, transport, communication, and finance being the main subsectors. Other service
industries, such as tourism, healthcare, and education, are also growing rapidly, supported by the
government’s efforts to diversify the economy.

The transport and communication sector is another essential subsector of Ethiopia’s service industry,
accounting for approximately 10% of GDP. The Ethiopian Airlines, the national carrier, has expanded its
routes globally and has also increased its fleet size. The country’s telecommunication sector has also
grown significantly over the past decade, with companies such as Ethio Telecom and private providers
offering telephone, broadband internet, and mobile phone services.

The tourism industry in Ethiopia has also been growing over the years, with the government taking
necessary steps to promote the country’s rich cultural heritage and natural beauty. Ethiopia is home to
several UNESCO World Heritage Sites, which have been recognized for their historical and cultural
significance. Some popular tourist destinations include Lalibela, Axum, the Danakil Depression, and the
Simien Mountains.

Ethiopia’s service sector is gradually evolving and becoming an essential contributor to the country’s
economic growth and development. The government’s emphasis on diversifying the economy and
promoting various service industries has been vital in creating new jobs, boosting productivity, and
reducing poverty.

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 What is service sector?

The service sector refers to the part of the economy that provides intangible services to consumers or
other businesses. It includes a wide range of industries such as retail, tourism, finance, healthcare,
education, transportation, and professional services, among others. The service sector is often
contrasted with the manufacturing and primary sectors, which involve the production of goods and
extraction of natural resources, respectively. In many developed economies, the service sector has
become the largest sector in terms of employment and GDP contribution.

In this section, discussion will be made on the two of the service activities in Ethiopia: transportation
and communication and tourism.

Transportation and communication in Ethiopia: types, roles and characteristics

I. Transportation

Transportation in the service sector refers to the process of moving people, goods or services from one
place to another. This can be done through a variety of modes such as roadways, railways, airways,
waterways, pipelines or even through the internet. Transportation is a vital component of many service
industries such as logistics, tourism and hospitality, where it is necessary to move goods, cargo or
passengers from one location to another.

Transportation in Ethiopia

Ethiopia is a country located in the northeastern region of Africa, characterized by diverse geographical
features such as highlands, deserts, and savannahs. The country is the second-most populous in Africa,
with a population of over 112 million people. Transportation and communication are essential aspects
of any country’s growth and development, and Ethiopia is no exception. This essay will delve into the
different types, roles, and characteristics of transportation and communication in Ethiopia.

There are five different types of transport in Ethiopia. These are: traditional transport, Road transport,
railway, waterways, airways.

A. Traditional transport

It is estimated that more than half of Ethiopia’s produce is transported by pack animals, reflecting the
inadequacy of the country’s road network and the rugged terrain.

It includes the use of pack animals (donkeys, mules, horses, camel) and goods carried by humans. The
contribution of these means of transport to the national economy is not known in statistical terms. In
rural Ethiopia where modern transport systems are very few, it is obvious that they make immense
contributions. Even in urban areas like Addis Ababa, modern means of transport has not totally done
away with the traditional means.

B. Road transport

Road transportation is the most common mode of transport used in Ethiopia. The country has an
extensive road network covering over 120,000 km long. The roads are either paved or unpaved, and

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rural roads account for over 80% of the total road network. Road transport plays a crucial role in the
distribution of goods and services, agricultural produce, and passengers. It is also an essential mode of
transport for the rural population, facilitating access to markets and crucial facilities such as health
centers.

Road projects now represent around a quarter of the annual infrastructure budget of the Ethiopian
federal government. Additionally, through the Road Sector Development Program (RSDP), the
government has earmarked $4 billion to construct, repair and upgrade roads over the next decade.

As the first part of a 10-year Road Sector Development Program, between 1997 and 2002 the Ethiopian
government began a sustained effort to improve its infrastructure of roads. As a result, as of 2002
Ethiopia has a total (federal and regional) 33,297 km of roads, both paved and gravel. The share of
federally managed roads in good quality improved from 14% in 1995 to 31% in 2002 as a result of this
program, and to 89% in 2009 the road density increased from 21 km per 1000 km2 (in 1995) to 889 per
1000 km2 (in 2009) however, this is much greater than the average of 50 km per 1000 km2 for Africa.

The Ethiopian government had begun the second part of the Road Sector Development Program, which
was completed in 2007. This had involved the upgrading or construction of over 7,500 km of roads, with
the goal of improving the average road density for Ethiopia to 35 km per 1000 km2, and reducing the
proportion of the country area that is more than 5 km from an all-weather road from 75% to 70%.

The rugged terrain in Ethiopia makes road construction difficult and expensive. According to the
Government of Ethiopia, it has spent over 600 billion birr (US$50 billion, €30 billion) on infrastructure
since 1990.

In 2016/17, annual average distance from all-weather roads declined by 6.5 percent from 4.6 km in
2015/16 to 4.6 km. Similarly, the proportion of area more than 5 km from all-weather roads dropped to
33.5 percent from 31.6 percent last year. By 2019/20, it is envisaged to narrow the proportion of area
more than 5 Km from all-weather road to 13.5 percent.

Total (regional and federal): 144,391 km (2009)

Asphalt: 120,381 km[7] (2009) (89% of the roads in Ethiopia are asphalt)

Gravel: 11,023 km[7] (2009) (11% of the roads in Ethiopia are gravel)

Maintained by Regional government: 86,580 km (2009)

Major roads include:

 north east from Addis Ababa 853 km via Adama and Awash to Bure on Eritrean border
 north from Addis Ababa 1071 km via Dessie, Mek’ele and Adigrat to Axum
 north west from Addis Ababa across the Blue Nile at Dejen and again at Bahir Dar east around
Lake Tana 737 km to Gondar. Designated part of the Cairo-Cape Town Trans-African Highway 4
(TAH 4)
 west from Addis Ababa 510 km via Jimma to Metu
 south west from Jimma 216 km to Mizan Teferi
 south from Shashamane 214 km via Awasa to Hagere Mariam. Designated part of the Cairo-
Cape Town Trans-African Highway 4 (TAH 4)

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  east from Awash 572 km via Harar and Jijiga to Degehabur

Expressways

The Addis Ababa–Adama Expressway was completed in 2014 as the first expressway in Ethiopia. In
December 2015, construction began on a second expressway between Awasa and Mojo, where it will
connect to the existing expressway.

Although the road network has shown an increasing trend, the progress so far is still far below the need
compared to the large land area and population of the country. Network distribution per thousand sq.
km and per million people is only 115.2 km and 1.3 km, respectively. This makes the country one of the
least accessible in Sub-Sahara Africa.

C. Railway

Rail transport in Ethiopia is still in its early stages of development. The country has only one rail line
which links Addis Ababa, the capital city, to Djibouti. However, there are plans to expand the rail
network to other parts of the country. Rail transport serves as an essential mode of transporting goods,
especially those that require large quantities or are difficult to transport by road such as fertilizer, grains,
and fuel.

The railway network serves a strategic goal to allow Ethiopia a sustainable and stable economic
development. By 2030, the Ethiopian government hopes to invest about $74 billion into it’s
transportation. The railway network’s primary purpose is then both to connect landlocked Ethiopia to
the world market by ensuring a seamless access to one or several sea ports for trade and for
transporting most imports and exports. The primary port for Ethiopia is the Port of Djibouti in Djibouti.
More than 95% of Ethiopia’s trade passes through Djibouti.

The port of Djibouti is served by one international railway, the electrified standard gauge 756 km long
Addis Ababa – Djibouti Railway (of which 656 km run in Ethiopia). This railway has officially been opened
in October 2016 but it is in trial service with no regular traffic in 2017. Once operational by the end of

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2017 or in 2018, it will allow passenger transport and a travel time from Addis Ababa to Djibouti City in
less than twelve hours with a designated speed of 120 km/hour.

Another railway, the Awash – Hara Gebeya Railway will go into trial service over its first 270 km in 2018.
This second railway links Addis Ababa and the Addis Ababa – Djibouti Railway with the north of Ethiopia.
Once operational over its first 270 km, possibly 2018 or 2019, it will allow both freight and passenger
transport. A train ride from Addis Ababa to the twin cities of Kombolcha and Dessie will be possible in
around six hours with a designated speed of 120 km/hour.

The other important railway is Addis Ababa Light Rail Transit. It is the first light rail and rapid transit in
eastern and sub-Saharan Africa. The total length of both lines (north-south and eastwest) of the rail is
31.6 kilometres (19.6 mi), with 39 stations. The rail project was constructed by China Railway
Engineering Corporation Limited (CREC) and is currently operated by chinese firm Shenzhen Metro
Group Company. It is estimated that AALRT currently transports about 60,000 people daily, significantly
reducing traffic congestion in the capital, Addis Ababa.

D. Waterway transport

Inland waterways transport is any movement of goods using inland waterways vessels, which is
undertaken wholly or partly in navigable inland waterways.

Inland waterways are classified in to two i.e., rivers and lakes. Because of the nature of the topography
over which Ethiopian rivers flow, Ethiopian rivers with the exception of Baro and Omo in their lower
courses, cannot be used for transportation.

The Baro River is the main river used for transport.

 Total: 9 ships (with a volume of 1,000 GT or over) 81,933 GT/101,287 DWT (2003 est.)
 Ships by type: cargo ship 7; container ship 1; petroleum tanker 1; roll-on/roll-off ship 3

On some of the lakes like Tana and Abaya there is small-scale transportation. The contribution of inland
waterways to the Ethiopian economy is very small.

E. Airways transport

Airways transportation in Ethiopia has gone through a significant transformation over the past few
decades. The country has been making great strides in developing its aviation sector as it is recognized
as a crucial driver of economic growth and development.

Ethiopian Airlines is one of the oldest airlines in Africa, with its establishment going back to 1945. It was
founded by Emperor Haile Selassie, and it has grown to be one of the major airlines on the continent.
Initially, it was a small airline with only five planes, and it used to operate only domestic flights.

However, with time, the airline’s route network expanded and now operates international routes to
over 100 destinations globally. Ethiopian Airlines is the largest and most profitable airline in Africa, with
a revenue of around $4 billion per year.

Ethiopian Airlines is the dominant player in the Ethiopian aviation industry, commanding up to 80% of
the market share. The airline has a fleet of over 130 planes, including Boeing 787, 777, and 737 aircraft.

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Ethiopian Airlines serves over 90 international and domestic flights, and it has a hub at Bole
International Airport in Addis Ababa.

Despite the tremendous strides made in the Ethiopian aviation sector, there are still significant
challenges facing it. One of the main issues is the high cost of fuel, which is crucial for the operation of
airlines. This is partly due to high taxes and levies imposed on aviation fuel, and also due to the lack of
domestic production facilities for jet fuel.

Despite the challenges facing the aviation sector in Ethiopia, there are enormous opportunities for
growth and expansion. First, the country has a large population of around 115 million people, providing
a ready market for air transport services. The Ethiopian government has also been investing in
infrastructure development, including airports and road networks, to stimulate economic growth in the
country.

In sum, airways transportation in Ethiopia has come a long way, with Ethiopian Airlines being a
dominant player. Despite facing significant challenges, the aviation industry has enormous opportunities
for growth and expansion as the country opens itself up to more foreign investment and upgrades its
infrastructure further. Ethiopian air travel will continue to play an essential role in the country’s
economic development, providing crucial connections between Ethiopia and the rest of the world.

II. Communication

Communication in Ethiopia is essential for the country’s development and growth. The country has
different forms of communication, including traditional and modern modes of communication.

Traditional Communication

Ethiopia is a country with diverse cultures and ethnic groups, each with its unique language and
communication system. The traditional modes of communication include storytelling, dances, music,
and proverbs. These modes of communication have been used to pass on knowledge, preserve
traditions, cultural practices, and social values from one generation to another. Traditional
communication still plays a crucial role in daily life, especially in rural areas.

Modern Communication

Modern communication in Ethiopia has significantly evolved over the years. The country has mobile
phone networks that cover most regions, allowing people to communicate with each other and access
the internet. The government has also established a national television station (ETV) and radio stations
that broadcast in different languages, reflecting the country’s diverse ethnic groups. Internet
connectivity has improved, and more people have access to digital devices such as smartphones and
computers. Modern communication is an essential tool in enhancing trade and investment, educating
people, promoting public health, and engaging citizens in governance.

Role of Communication in Ethiopia

Communication plays a significant role in Ethiopia’s development and growth. It provides a platform for
exchanging ideas, sharing knowledge, and creating awareness on various issues affecting the country.
Communication also facilitates social integration among different ethnic groups, enhances cultural
exchange, and promotes national unity. Access to modern communication technologies has improved

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literacy levels, especially among the youth, which is crucial in advancing education and human
development.

Characteristics of Communication in Ethiopia

Communication in Ethiopia faces several challenges, including limited access to modern technology in
rural areas, low levels of digital literacy, and inadequate digital infrastructure. Internet connectivity
speeds are slow, and there is limited accessibility to broadband internet in some regions, hindering the
growth of e-commerce and digital entrepreneurship.

Tourism in Ethiopia: Types, major tourist attraction sites, challenges and prospects

UNWTO (2002) defined tourism as

 “Tourism comprises the activities of persons traveling to and staying in places outside their usual
environment for not more than one consecutive year for leisure, Business and other purposes. “

Tourism is one of the largest and most important industries in the world in terms of employment
creation and generation of foreign revenue. As a worldwide export category, tourism ranked fourth in
2013, after fuels, chemicals, food, and ahead of automotive products

Ethiopia is a country rich in history, culture, and natural beauty. It has a growing tourism industry that
highlights its diverse ethnic groups, pristine natural landscapes, ancient civilizations, and religious
traditions. In recent years, Ethiopia has become increasingly popular among tourists, with the
government actively promoting the country as a unique tourism destination.

Ethiopia has diverse types of tourism based on what travelers seek: cultural tourism, adventure tourism,
eco-tourism, heritage tourism, and religious tourism. Cultural tourism is the most popular among
tourists who come to experience Ethiopia’s unique cultures and ethnic groups. The Omo Valley is a
famous destination for cultural tourism, with its 16 tribes, each displaying their unique way of life,
language, and traditions.

Adventure tourism is another popular type of tourism in Ethiopia, which appeals to those who love
outdoor activities like hiking, trekking, and rock climbing. The Simien Mountains National Park is a
popular destination for adventure tourism, known for its spectacular views, wildlife, and trekking
opportunities. The Danakil Depression is also a popular adventure destination, with its extreme heat and
bubbling lava lakes.

Eco-tourism is a rising type, whereby visitors come to experience Ethiopia’s extensive lands of natural
beauty and wildlife. The Bale Mountains National Park and the Awash National Park are two prime
locations that draw in Eco-tourists due to their unique fauna and flora, breathtaking waterfalls, and
stunning scenery that are hard to find anywhere else.

Heritage tourism is another significant type of tourism, particularly ideal those interested in Ethiopia’s
glorious past, historic ruins and monuments, museums and libraries. Axum, Lalibela & Gondar are the
most popular destinations for their historical and cultural attractions, such as the 12th-century churches
hewn from solid rock, ruined castles, and royal palaces, including Stelle and Obelisks.

Finally, Religious tourism plays a significant role in preserving Ethiopia’s world-renowned Orthodox
Christian beliefs. Lalibela is home to one of the most significant religious sites globally, designed by King

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of the late 12th century and also known as the Eighth wonder of the world by UNESCO itself, enclosed by
13 rock-hewn churches.

Major Tourist attraction sites of Ethiopia

1. Historic Attraction sites

 The Obelisk of Axum: preserves an ancient history of the era of the Axumite powerful
empire having trade links as far as India and China. Visitors will enjoy the sites of these
Monolithic obelisks and many more wonders surrounding their history, notably the Bath
of the Legendary Queen of Sheba and archeological findings that depict the way of life
of the Axumite period that reigned from pre-Christ times up until the 11 th century AD.
 The Churches of Lalibela- the UNESCO has named the rock-hewn churches of Lalibela as
the 8th wonders of the world. Lalibela presents the site of a chain of rock carved out 11 th
century churches with astonishing architectural designs and interior decorations.
Ahistorical myth narrates King Lalibela; on his own (with the help of angels) completed
the construction of the churches. After his death the king has been designated as an
Ethiopian saint.
 The Castles of Gondar- built in the mid-17th century together with the surrounding
centuries-old churches depict yet another sophisticated architectural wonders. The
Castles are found in the city of Gondar, which has been the seat of government
following Axum and Lalibela.
 The Walls of Harar- built in the early 16th century, the walls are designated after the city
of Harar. The Walls have 5 arched gates inviting to the city’s popular basketworks
2. Natural Attraction site
 The Blue Nile Falls- locally known as Tississat, meaning ‘water that smokes’ presents a
spectacular water fall with an intense gash from more than forty-five meters (150feet)
peak, producing rainbows across the gorge. The area is also inhabited with fascinating
wild lives and birds.
 Simien Mountains- Simien mountains are home of Ethiopia’s highest peak Ras Dashen
with the height of 4,620 meters above sea level. With the assistance of a professional
guide, the area is ideal for mountain trekking. The endemic Walia Ibex and the Gelada
baboon are also found here.
 The Rift Valley Lakes- Ethiopia is one of the countries that the Great Rift Valley System
traverses. The Valley embraces the beautiful chains of lakes with abundant wildlife and
variety of birds. The Rift Valley comprises famous natural parks known as Abijatta-Shalla,
Nechisar, Mago and Omo national parks. Each national park presents a unique feature
for bird-watching, trekking and wild life scenery.
 The National Parks: Being a land of diverse geographic settings and rich natural
resources, National Parks in Ethiopia, present spectacular visiting opportunities for
tourists that are keen on admiring and enjoying nature.

Ethiopia’s tourism industry faces numerous challenges, including inadequate infrastructure, inadequate
availability of financial resources for promotion, inadequate development of natural attractions, lack of
awareness of potential international tourists, limited air access, and health concerns like Malaria making
it difficult to sell Ethioiaan tourist sites. Infrastructure development and finance remain crucial elements
to enhance the number of tourists and attract attention globally. The government has taken measures

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towards this, strides have been made toward to develop an extensive database of travel and
accommodation facilities, as well as plans to address the fractured roads for better connectivity
throughout the country.

Prospects for Ethiopian tourism are tremendously high. The Ethiopian government recognizes the
importance of promoting the tourism industry to contribute significantly to the nation’s economic
development. Tourism can assist in developing the country’s future by creating

In conclusion

Ethiopia's service sector has undergone remarkable growth in the past decade. With its relatively
untapped market potential and huge population size, Ethiopia offers vast opportunities for investors in
the service sector. The Ethiopian government's policies aimed at promoting a friendly investment
environment, coupled with the region's growing middle class, make the country a promising destination
for further investment and expansion. However, several challenges still face the sector such as low
quality of services, inadequate infrastructure, and an unskilled workforce. Addressing these challenges
will spur growth and attract more investors into the sector, thereby creating job opportunities and
contributing to overall economic development.

Transportation and communication are essential aspects of Ethiopia’s growth and development. The
country has made significant strides in expanding its transportation infrastructure, even though there
are still several challenges to overcome. The government’s efforts to develop modern communication
technologies are commendable, but more needs to be done in expanding internet connectivity and
digital literacy across the country. Despite the existing challenges, transportation and communication
remain critical elements in Ethiopia’s social, economic, and political landscape.

Reference

 Geography of Ethiopia and the Horn freshman module

 Wikipedia Ethiopian airlines
 Wikipedia transport in Ethiopia
 Wikipedia tourism in Ethiopia
 Ethiopia Transport Sector". International Trade Administration. Retrieved 30
June 2022
 Meseret, Elias (5 October 2016). “Ethiopia’s new coastal rail link runs through restive region”.
Associated Press. Archived from the original on 9 October 2016. Retrieved 13 August 2017.
 $700m Ethiopian highway gets started after four-year search for funding”. Global Construction
Review. 18 December 2015

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