Unit 5 ~ Major Economic and cultural Activities in Ethiopia
1. What is Economic Activity?
Economic activity refers to any action that involves the production, distribution, and
consumption of goods and services to satisfy human needs and wants. These activities are the
backbone of any country’s economy and are carried out by individuals, businesses, and
governments. Economic activities are essential for generating income, creating jobs, and
improving the standard of living1.
Examples:
A farmer growing crops
A factory making clothes
A teacher giving lessons
A bank providing loans
2. Major Differences Among Categories of Economic
Activities
Economic activities are commonly grouped into five main categories: primary, secondary,
tertiary, quaternary, and quinary. Each category involves different types of work and contributes
differently to the economy.
Category Main Activities Example Jobs Characteristics
Extraction of natural
Primary Farming, mining, fishing Direct use of natural resources
resources
Processing and Turns raw materials into finished
Secondary Factory worker, builder
manufacturing products
Tertiary Providing services Teacher, doctor, driver Offers services instead of goods
Information and knowledge Research, technology,
Quaternary Scientist, IT specialist
services information handling
High-level decision making, Government, CEO, Top-level management and
Quinary
leadership policymaker organization
Details and Examples
Primary Activities:
Involve extracting raw materials directly from nature, such as agriculture (growing crops,
raising animals), forestry, fishing, and mining.
Example: A farmer harvesting wheat.
Secondary Activities:
Involve processing or manufacturing raw materials into finished products.
Example: A factory turning wheat into bread.
Tertiary Activities:
Involve providing services to people or businesses rather than producing goods.
Example: A shopkeeper selling bread, a bus driver transporting passengers.
Quaternary Activities:
Involve handling and processing information and knowledge.
Example: A software developer creating a new app, a researcher working in a
laboratory.
Quinary Activities:
Involve high-level decision-making and leadership roles in society, such as top
executives, government officials, and leaders of large organizations.
Example: The Prime Minister, a hospital director.
3. Contribution of Primary Economic Activities to the
Ethiopian Economy
Primary economic activities are the foundation of Ethiopia’s economy. The main primary
activities in Ethiopia are agriculture, forestry, fishing, and mining.
Agriculture is the most important sector, employing over 70% of the population and
contributing a large share to the country’s GDP1.
Ethiopia produces crops such as teff, maize, wheat, barley, coffee, and oilseeds. Coffee,
in particular, is a major export product and a source of foreign currency.
Livestock farming is also significant, with Ethiopia having one of the largest livestock
populations in Africa.
Forestry and fishing are practiced in some regions, contributing to local economies.
Mining (gold, tantalum, and other minerals) is growing but still less significant compared
to agriculture.
Importance:
Provides food for the population
Generates employment
Supplies raw materials for industries
Earns foreign exchange through exports (especially coffee)
Supports rural development
Example:
A farmer in Oromia growing coffee beans that are exported to Europe, bringing money into
Ethiopia and supporting their family and community1.
4. What is Tourism and Its Benefits for Our Country?
Tourism is the activity of people traveling to and staying in places outside their usual
environment for leisure, business, or other purposes, usually for a short period.
Benefits of Tourism for Ethiopia:
Economic Growth:
Tourism brings in foreign currency, increasing national income and supporting local
businesses (hotels, restaurants, guides)1.
Job Creation:
Provides employment for many people, including tour guides, hotel staff, drivers, and
artisans.
Cultural Exchange:
Promotes understanding and appreciation of Ethiopia’s rich history, cultures, and
traditions.
Conservation:
Encourages the protection of natural and cultural heritage sites (like Lalibela, Simien
Mountains, Axum).
Infrastructure Development:
Leads to improvements in roads, airports, and other facilities that benefit both tourists
and local people.
Example:
Tourists visiting the rock-hewn churches of Lalibela help create jobs for guides and hotel
workers and bring money into the local economy.
5. Compare and Contrast Subsistence Farming and Cash
Crop Farming and Their Relation to the Ethiopian Economy
Crops Impact on
Type Main Purpose Example in Ethiopia
Grown Economy
Subsistence To feed the Maize, teff, Supports food A family growing maize
Farming farmer’s family barley security for their own use
Cash Crop To sell for profit Coffee, khat, Generates foreign Large coffee farms
Farming (income) sesame exchange exporting beans
Subsistence Farming
Farmers grow crops and raise animals mainly to feed themselves and their families.
Little or no surplus is produced for sale.
Common crops: maize, teff, barley, sorghum.
Supports food security but usually does not generate much income.
Cash Crop Farming
Farmers grow crops mainly to sell in local or international markets.
Main goal is to earn money.
Common cash crops: coffee, khat, sesame, cotton.
Generates foreign currency for the country and can improve farmers’ incomes.
Relation to Ethiopian Economy
Most Ethiopian farmers practice subsistence farming, which is important for feeding the
population.
Cash crop farming, especially coffee, is vital for earning foreign currency and supporting
economic development.
Both types are important: subsistence farming ensures food security, while cash crops
boost trade and income1.
Economic Activity Categories
Economic activity is any action that produces, distributes, or consumes goods and
services.
Economic activities are grouped as primary, secondary, tertiary, quaternary, and quinary,
each with unique roles.
In Ethiopia, primary activities (especially agriculture) are the backbone of the economy.
Tourism brings many benefits, including jobs, foreign currency, and cultural exchange.
Subsistence farming ensures food security, while cash crop farming generates income and
foreign exchange. Both are important for Ethiopia’s future.
Name and role number of students that participated in this project
2 Haleluya Bahre Embaye
5
2 Grace Tewelde Kiros
3
2 Heldana Haile Weres
7
Thank you !!!
