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Questions and Answers
What is a major pollutant affecting fisheries in water bodies like Lake Abijata?
What is one of the main consequences of inadequate legal and policy frameworks in the fishing sector?
Which factor is NOT a constraint of the fishing sector?
What is one of the economic benefits generated from large-scale gold production?
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What percentage of Ethiopia's GDP is accounted for by agriculture?
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Which sector employs traditional technology and low input systems?
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What percentage of total export foreign currency earnings does the export of minerals such as gold and tantalite contribute?
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What proportion of the land area in Ethiopia is intensively cultivated?
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Which of the following is a social benefit mentioned in the context of economic activities?
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What factor contributes to the limited exploitation of forest resources in Ethiopia?
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What is the main source of foreign exchange earnings in Ethiopia?
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Which species is mentioned as a main fish species in Ethiopia?
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Which of the following statements about agricultural land use in Ethiopia is true?
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What type of economic contribution does forestry make to the national economy?
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What is the primary activity involved in the fishery sector in Ethiopia?
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What is a potential challenge to the fishing industry in Ethiopia?
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What percentage of the total cereals output in Ethiopia is produced during the Meher crop season?
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Which of the following describes permanent crops?
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In which agro-ecological zone is the majority of Ethiopia's cattle and sheep population found?
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What is the primary reason for the fragmentation of farm plots in Ethiopia?
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What percentage of Ethiopian farmers utilize chemical fertilizers?
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Which of the following is a characteristic of Ethiopian agriculture?
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Which livestock population is fully concentrated in the lowlands of Ethiopia?
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Ethiopian agriculture is particularly vulnerable to which of the following natural disasters?
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What is a characteristic of traditional cottage industries in Ethiopia?
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Which type of industry constitutes the majority of manufacturing in Ethiopia?
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Which factors contribute to the prioritization of agro-processing industries in Ethiopia?
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What are the mechanisms for establishing industrial parks in Ethiopia?
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Which sector is NOT mentioned as a focus for industrial parks in Ethiopia?
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What is one of the contributions of industrial parks in Ethiopia?
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How do industrial parks in Ethiopia contribute to technology development?
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Which of the following is a misconception about manufacturing industries in Ethiopia?
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What is one of the major challenges facing industrial development in Ethiopia?
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Which factor contributes to the relatively inexpensive cost of doing business in Ethiopia?
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What is a common characteristic of the service sector in Ethiopia?
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Which type of transport is considered the most dominant in Ethiopia?
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What is one of the opportunities for industries in Ethiopia related to labor?
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Which form of transportation is NOT utilized in Ethiopia?
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Which aspect of Ethiopia's economy is mentioned as a challenge in meeting international standards?
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Which of the following is NOT a type of transportation mentioned in Ethiopia?
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Study Notes
Economic Benefits
- Federal government collects approximately 4.4 million USD annually in royalties from large-scale gold production; regional government also receives royalties from small-scale and artisanal mining.
- Export of gold, tantalite, platinum, gemstones, and decorative stones generates about 135 million USD yearly, contributing to 7-10% of total foreign currency earnings.
- Mining sector provides limited employment due to low labor intensity, but artisanal mining employs hundreds of thousands.
Social Benefits
- Infrastructure development in local communities includes roads, electricity, telecommunication, health facilities, schools, water supply, and airstrips.
- Local community training programs promote diversification into coffee farming, irrigation agriculture, and small enterprises such as hotels and mini-markets.
Forestry
- Forestry contributes 2.5% to the national GDP through timber, fuel wood, and construction materials.
- Commercial exploitation of forest resources is hampered by rapid deforestation, low demand for timber, outdated technology, and inaccessibility of forests.
Fishery
- Ethiopia's fishing potential is significant due to numerous lakes and rivers, with over 100 local fish species identified; major species include Tilapia, Bargus, Clarias, and Labeo.
- Fishing grounds consist of diverse lakes and rivers, notably Nile Perch thriving in Rift Valley lakes.
- Major pollutants affecting fisheries include mineral extraction, industrial effluents, and inadequate legal frameworks leading to overfishing.
- Challenges in the fishing sector stem from deforestation affecting water bodies, limited trained personnel, low public/private investment, and reliance on traditional fishing methods.
Agriculture
- Agriculture is crucial to Ethiopia's economy, contributing 30-42% to GDP and providing over 90% of foreign exchange earnings.
- More than 80% of the population relies directly on agriculture, which is characterized by small-scale, rain-fed mixed farming.
- Ethiopia has vast agricultural resources due to varied agro-ecological zones; it has the largest livestock population in Africa, with significant land area classified for different agricultural uses.
- Two main cropping seasons are Belg (March to August) and Meher (September to February), with Meher producing 90-95% of cereals.
Characteristics of Ethiopian Agriculture
- Farmers primarily cultivate for household consumption, resulting in limited market produce.
- Land fragmentation due to population pressure leads to declining farm sizes and traditional farming methods with low input use.
- Agricultural vulnerability includes exposure to drought and soil degradation exacerbated by low investment in modern farming techniques.
Manufacturing
- Identified industries: Traditional/cottage industries (static) and modern manufacturing industries.
- Most manufacturing comprises light industries focused on consumer goods; heavy industries remain underdeveloped.
- Industrial parks established since 2014 prioritize agro-processing and linkages with agriculture, creating employment and facilitating exports.
- Contributions from industrial parks include investment stimulation, employment creation, and knowledge transfer, fostering sustainable growth.
Industrial Development: Challenges & Opportunities
- Challenges include high logistics costs, limited market research, low labor productivity, and inadequate compliance with international standards.
- Opportunities lie in cheap electricity, macroeconomic stability, trained workforce availability, access to expanded markets, and competitive incentive packages.
Service Sector
- The tertiary sector encompasses various economic activities, including wholesale/retail, banking, education, healthcare, and transportation services.
- Transportation in Ethiopia varies across traditional methods, road transport (dominant), railways, airways (domestic/international), and waterways via the Red Sea for external trade.
- Communication is essential for message dissemination among various sectors.
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Description
This quiz explores the economic advantages derived from gold production, including revenue generated from sales, taxes, and royalties. It highlights the significant foreign currency earnings from exports of precious minerals. Test your knowledge on the financial impacts of this industry.
