Ethiopia

Ethiopia stands at a pivotal moment. 

As one of Africa’s greatest inclusive green-growth opportunities, its immense natural wealth can either fuel a new era of shared long-term prosperity or be lost to climate change and natural resource depletion. 

Home to about 127 million people, it’s one of the fastest-growing economies in Africa and one of the world’s most resource-rich countries. Twelve major river basins zigzag across its highlands. Forest ecosystems store about 2.5 billion metric tons of carbon and sustain the livelihoods of millions. Fertile land, immense renewable energy potential and a young, growing population position the nation for a prosperous future. 

Yet systemic barriers keep prosperity out of reach for most Ethiopians. 

At least one-fifth of the population faces food insecurity, with two in five children under the age of 5 affected by stunting. Fifty-six percent of Ethiopians don’t have access to basic electricity service. Rapid, unplanned urbanization, growing at a rate of 5.4% a year, is outpacing infrastructure, expanding informal settlements and leaving people without clean water and other essential services. Women have limited access to economic opportunities. 

Ethiopia also grapples with intensifying climate-related disasters. Droughts disrupt harvests and threaten water availability. Clearing trees and unsustainable agricultural practices fuel land degradation. As a result, recurrent droughts and floods are destroying livelihoods, damaging ecosystems and disrupting economic progress. 

There’s a better way. One that turns Ethiopia’s natural abundance into shared prosperity. 

Ethiopia is already moving in this direction. The government has committed to ambitious climate and development plans to steer the country toward sustainable, low-carbon growth. The Green Legacy Initiative has mobilized communities to plant more than 47 billion seedlings since 2019. Additionally, the government is committed to restoring 22 million hectares of degraded land by 2030 — about 20% of the country’s land area — under the Bonn Challenge and the New York Declaration. Ethiopia has pledged to reduce greenhouse gas emissions by 70.3% by 2035. And it aims to achieve 100% renewable electricity generation by 2030. 

All of this can help bring economic opportunities, better living conditions and more financial investment into the country. But fully seizing Ethiopia’s green growth possibilities requires systemic change. Through our seven-year strategy (2026–2032), we help Ethiopia preserve its natural wealth, secure shared prosperity for its people and become a leader in green growth.

Download WRI Ethiopia's Seven-Year Strategy