Ethiopia, officially the Federal Democratic Republic of Ethiopia, is a country in the northeastern part of Africa, popularly known as the Horn of Africa. It shares borders with Eritrea to the north, Djibouti to the northeast, and Somalia to the east, Sudan and South Sudan to the west, and Kenya to the south. With over 102 million inhabitants, Ethiopia is the most populous landlocked country in the world and the second-most populous nation on the African continent that covers a total area of 1,100,000 square kilometres (420,000 sq mi).
Agriculture is the foundation of the country’s economy. Agriculture is the country's most promising resource. A potential exists for self-sufficiency in grains and for export development in livestock, grains, vegetables, and fruits. Agricultural production is mainly subsistence, and a large portion of the country’s commodity exports is provided by the small agricultural cash-crop sector.
The climate varies with altitude, and it goes from the hot and arid climate of the lowlands to the cool climate of the plateau. Lying just north of the Equator, the country experiences little variation in temperature throughout the year. The rains are caused by the southwest monsoon, which affects the country from June to September, but it only affects some areas, namely the plateau and the mountain slopes exposed to the south-west, while in the south-east of the country there are two rainy periods, though less intense, usually from March to May and from October to November; in the latter area, during some years the rains don't occur at all, causing droughts.
Production is overwhelmingly of a subsistence nature, and a large part of commodity exports are provided by the small agricultural cash-crop sector. Principal crops include coffee, pulses (e.g., beans), oilseeds, cereals, potatoes, sugarcane, and vegetables. Exports are almost entirely agricultural commodities, and coffee is the largest foreign exchange earner. Ethiopia is also Africa's biggest maize producer. Wheat and barley. The country produces only black tea.
Ethiopia is also the continent's leading producer and exporter of beeswax and honey. The production of khat is perhaps the most important. Khat is a plant consumed for its stimulating effects.