The economy of Ethiopia is a mixed and transition economy with a large public sector. The government of Ethiopia is in the process of privatizing many of the state-owned businesses and moving toward a market economy. The banking, telecommunication and transportation sectors of the economy are dominated by government-owned companies.

Coffee production in Ethiopia is a longstanding tradition which dates back dozens of centuries. Ethiopia is where Coffea arabica, the coffee plant, originates. The plant is now grown in various parts of the world; Ethiopia itself accounts for around 17% of the global coffee market. Coffee is important to the economy of Ethiopia; around 30-35% of foreign income comes from coffee, with an estimated 15 million of the population relying on some aspect of coffee production for their livelihood. In 2013, coffee exports brought in $300 million, equivalent to 24% of that year's total exports.