Lesson 1: Major Economic Activities In Ethiopia
Video Lesson
Competencies
At the end of this section, you will be able to:
- List the five types of economic activities;
- Explain the major characteristics of economic activities; and
- Examine how economic activities modify and transform resources
Brainstorming question
What is economic activity? What influences economic activity?
Economic activity is the production, distribution. and exchange of goods and services. Some examples of these activities are hunting, fishing, farming, grazing, mining, manufacturing, transportation, trade and others.
Key terms and concepts
- Economic Activity
- Arable Farming
- Primary Economic Activities
- Secondary Economic Activities
- Tertiary Economic Activities
The production, distribution, and exchange of goods and services.
The cultivation of plants to yield food, feed, fiber, medicinal ingredients, or ornamental products.
Activities that focus directly on the extraction of resources from the environment, such as agriculture, fishing, forestry, and mining.
Activities that involve manufacturing and construction, transforming raw materials into finished products.
Activities focused on providing services to businesses and consumers, such as transportation, medical care, and legal services.
Classification of Economic Activities
Economic activities globally are classified into five main sectors: Primary, Secondary, Tertiary, Quaternary, and Quinary. These activities are vital to society and help indicate a country’s level of development. Geographers use this classification to understand the economic structure of nations.

Figure 5.1: Categories of Economic Activity
1. Primary Economic Activities
These activities are directly linked to natural resource extraction and involve the production of foodstuffs and raw materials. People engaged in these activities are typically in close contact with natural resources. Examples include agriculture, fishing, forestry, and mining.
Primary economic activities are characterized by the following. They are:
Characteristics of Primary Economic Activities
- Reliant on natural environments
- Produce food and raw materials from the Earth’s resources
- Affected by environmental conditions



Figure 5.2: Types of Primary Activities (Agriculture, Fishing, Forestry and Mining
Agriculture
- has been practiced since 4000 BC.
- Ethiopia is one of the original centers of the world’s most important cultivated crops.
- In Ethiopia, most agricultural production takes place in the Dega and WeynaDega zones
It is a cultivation of soil and livestock rearing for local or commercial use.
- Crop Production/Arable Farming
- Seed (Grain) Production: Grown in regions like WeinaDega and Dega zones north western and south eastern highlands. Major crops include:
- Cereals: Teff, barley, wheat, maize, sorghum, millet, oats
- Pulses: Horse beans, chickpeas, haricot beans, field peas, lentils, vetch
- Oilseeds: Oilniger, linseed, rapeseed, sunflower, groundnuts, sesame
- Perennial Crop Cultivation: Includes crops like enset, coffee, cotton. Enset is a staple in southern regions.
- Shifting Cultivation: Cut-and-burn method in low-density areas like Benishangul-Gumuz and Gambella.
- Plantation Agriculture: Cash crops like sugarcane, coffee, tea, and cotton; practiced in areas with ample rainfall or irrigation.
- Seed (Grain) Production: Grown in regions like WeinaDega and Dega zones north western and south eastern highlands. Major crops include:
- Livestock Raising: Encompasses animals like cattle, goats, sheep, and camels. Ethiopia has Africa’s largest cattle population.

Figure 5.3 Crop production in Ethiopia
Forestry
It is Harvesting forest products like timber and fuel wood. It has its contribution of GDP is limited (6.1%), it is significant locally.

Figure 5.4 Forestry
Fishery
Focuses on catching fish from freshwater sources like lakes and rivers. Fishing has deep historical roots in Ethiopia.

Figure 5.5 Fishery
Mining
Extracts minerals from the Earth’s crust. Despite contributing only 1.5% to GDP, mining remains essential.

Figure 5.6 Mining
Forestry
What is forestry?
A forest is a mass of plants or a wooded area in which trees are the most common features. The extraction of forest products for different purposes by people is called forestry.

Figure 5.7 Forestry
2. Secondary Economic activities
These involve transforming raw materials into finished products through manufacturing and construction. Industries produce goods using labor, machinery, and energy.
Types of Manufacturing in Ethiopia
- Cottage (Traditional) Industries: Craft-based activities like weaving, pottery, and wood carving. These have faced development challenges due to cultural views.
- Modern Manufacturing Industries: Includes light industries producing consumer goods. Still developing in Ethiopia.
Examples: Metalworking, textile production, and energy generation.

Figure 5.8 Types of Secondary activities (Manufacturing & power Production)
3. Tertiary Economic Activities
This sector provides essential services to businesses and consumers. Examples include:
- Transport and Trade Services
- Healthcare and Legal Services
- Tourism and Education
The tertiary sector is essential for connecting producers and consumers through services.

Figure 5.9 Types of Tertiary Activities (Transport and Tourism)
4. Quaternary Economic Activities
These are advanced services requiring specialized knowledge and skills, such as:
- Research and Development
- Financial Services
- Government Administration
Quaternary jobs are usually located in urban centers and require higher education.
5. Quinary Economic Activities
A sub-sector of the tertiary and quaternary sectors, involving:
- High-Level Decision Making: Executives, government officials, research scientists
- Consulting Services: Legal and financial expertise
These activities are found in major metropolitan hubs and research centers.