Ethiopia’s country is based on agriculture. Agriculture makes up half of the country’s gross domestic product , sixty percent of its exports, and eighty percent of the country’s employment.

While it is the mainstay of the country’s economy, Ethiopia's agriculture is plagued by drought, soil degradation, deforestation, high population, high levels of taxation and a poor infrastructure which makes it difficult and expensive to get goods to the people. A potential exists for self-sufficiency in grains and for export development in livestock, grains, vegetables, and fruits. As many as 4.6 million people need food assistance annually.

In addition to agriculture, mining is also a big part of Ethiopia’s economy. Marble, gold, limestone, and tantalum are mined in Ethiopia. Other economical resources include large potash deposits, natural gas, iron ore, and there might even be petroleum and geothermal energy resources to take advantage of as well. Even though Ethiopia has good hydroelectric resources, it imports its oil. Prior to the Ethiopian–Eritrean war, Ethiopia has relied heavily on Eritrea for international trade. Between Ethiopia’s mountain terrain and a definite lack of good roads and adequate vehicles make transportation by land extremely challenging. However, Ethiopian Airlines serves 38 domestic airfields and has 42 international destinations and is considered by many to be excellent.

The current administration has started on a new program for economic reform. The program includes the privatization of state enterprises and the rationalization of governmental regulation. While they are still working on getting the bugs out of the process, the reforms proposed have begun to attract some much-needed foreign investment.

Then there is the Ethiopian Economic Association. The EEA is a non-profit organization whose main objective is to continue the development of Ethiopia.

The main objectives of the EEA include:

Contributing to the economic advancement of Ethiopia

To promoting the professional interest of its members

Promoting the study of economics in the country's educational institutions

Promoting economic research and assisting in the dissemination of the findings of such research in Ethiopia

Providing for a for the discussion of economic issues

Promoting professional contacts between Ethiopian economists and those of other countries.

The Ethiopian Economic Association also publishes the Ethiopian Journal of Economics. The Ethiopian Journal of Economics is a bi-annual journal, in which economic research findings are published. The Association has produced at least fourteen issues of the Journal. It also holds General Assemblies of its members every year where Association’s activities are discussed and future plans are approved. The EEA has established the Ethiopian Economic Policy Research Institute which serves as its research arm. The Ethiopian Economic Policy Research Institute is involved in research on a lot of issues that are incredibly important for Ethiopia's economic development. The EEA is also conducting research on a land policy, agriculture, human resource development and industrial policy. The EEA, along with the EEPRI, publishes an annual report on the state of the Ethiopian economy. The first report was published in 1999 and the second report was due out in early 2002.

 The Ethiopian people are very proud of their coffee and they show this in their well known coffee ceremonies. The Coffee Ceremony is a very important part of socializing in Ethiopia and to be invited to a coffee ceremony is always considered a sign of respect and friendship. Performing the ceremony for visitors is almost an obligation of whoever is hosting the get-together.