5 3 Trade and Transport in Ethiopia скачать в хорошем качестве

5 3 Trade and Transport in Ethiopia

5.3.1 Trade Trade is a basic economic concept involving the buying and selling of goods and services, with compensation paid by a buyer to a seller, or the exchange of goods or services between parties. Trade can take place within an economy between producers and consumers. In Ethiopia there are two main types of Trade Internal (Domestic) trade: Exchange of goods and services within the country. Internal trade is the base for foreign trade. b) External (Foreign) trade The process of trading, which involves the exchange of commodities among different countries. There is no country that is self sufficient in all demands, the movement of items from one country to another in the form of trade is unavoidable. 1. Export Trade Sector of Ethiopia Ethiopia's agrarian economy primarily relies on agricultural raw materials for export items like coffee, oilseeds, flower, chat, pulses, gold, and textiles. Despite a decline in coffee's share in total export since 2018/19, it remains the country's primary export source. The second and third positions in total export value were occupied by flower and oilseeds, respectively, at 14.1% and 11.5%, respectively, for 2019/20. 2. Import Trade sector of Ethiopia Ethiopia imports mainly finished products like machinery, transport equipment, and electronic goods. The total merchandise import bill for 2018/19 was $14.9 billion, but for 2019/20, it decreased by 8.1% due to lower import bills for fuel, capital goods, and consumer goods. However, payments for semifinished goods, raw materials, and miscellaneous goods registered annual increases.. Trade Balance of Ethiopia Trade balance is the yearly difference between the export and import values. If the yearly export value of a given country exceeds its yearly import value it will be a positive or surplus trade balance. If import exceeds export it will be a negative trade balance. Ethiopia import values exceed export values, hence the country experiences a trade deficit (negative trade balance). 5.3.2 Transportation in Ethiopia Transportation is the movement of materials, goods, or people to and from places with specific objectives. It is crucial for societal functioning and facilitates the movement of goods from surplus to deficit areas. The transport system plays a vital role in the expansion and development of socio-economic life at all levels. Advancements in transportation types and quality have enabled people to travel longer distances and travel faster, thereby facilitating the flow of ideas, beliefs, and innovations. Modes of Transport in Ethiopia Based on their stage of development the existing modes of transport in Ethiopia are broadly divided into two: Traditional modes of transport Include the use of pack animals and human porterage II. Modern modes of transport: the modern transport sector in Ethiopia Uses the following four different modes of transport. Road transport Railway transport Inland waterways Air transport Road transportation is the mode of freight and passenger transportation using buses, cars, and truck. Road transport is more widespread and more flexible than railway. Road transportation is most important to the Ethiopian economy. Roads are the most important transport infrastructure in providing access to rural and urban areas in Ethiopia. Ethiopia's road network has significantly improved since 2005/06, reaching 138,127 kms in 2018/19. The country's total road network comprises 55,808 kms (40.4%) Woreda road, 30,924 kms (22% Rural road), 28,699 kms (20.8% Federal road), and 22,697 kms (16.4% Urban road). The asphalt road network accounts for 11.5% of the network. Advancements in transportation have enabled longer travel times and facilitated the flow of ideas, beliefs, and innovations. Rail transport is a crucial mode of transportation in Ethiopia, as it facilitates the movement of bulky products. For over a century, Ethiopia had an international meter gauge railway from Addis Ababa to Djibouti, which was built from 1897-1917 and was primarily used for export-imports. The railway was outdated and single-lane, leading to its closure. In 2018, a new 752.7 km line was inaugurated in Djibouti, serving as the backbone of the Ethiopian National Railway Network. This new standard gauge railway provides Ethiopia with access to the sea, linking Addis Ababa with Djibouti and its Port of Doraleh. Addis Ababa Light Rail Transit (AA-LRT) is the first light rail and rapid transit in eastern and Sub-Saharan Africa, transporting about 60,000 people daily and reducing traffic congestion in Addis Ababa. The asphalt road network accounts for 11.5% of the country's road network. Advancements in transportation have enabled people to travel longer distances in shorter times and have also facilitated the flow of ideas, beliefs, and innovations.