Ethiopia is poised to become a key player in Africa’s green economy, with a new report forecasting the creation of up to 3.3 million direct green jobs across the continent by 2030. The report, "Forecasting Green Jobs in Africa (2024)," highlights Ethiopia’s potential in hydroelectric, solar energy, and climate-smart agriculture sectors, positioning it as one of the promising countries.

Produced by FSD Africa and experts, the report underscores Africa’s overall potential to generate between 1.5 to 3.3 million direct green jobs across key sectors such as energy, agriculture, and manufacturing. This potential is attributed to the continent’s abundant natural resources, renewable energy prospects, and the world’s fastest-growing workforce, which can allow Africa to leapfrog directly to renewable energy technologies, bypassing traditional carbon-intensive infrastructure.

Ethiopia, along with four other countries— the Democratic Republic of Congo, Kenya, Nigeria, and South Africa— is projected to contribute up to 720,000 jobs by 2030. Large-scale projects, such as the Grand Ethiopian Renaissance Dam (GERD) have made hydro projects the leading sector with up to 33,000 jobs projected. Ethiopia’s substantial hydroelectric potential, coupled with emerging opportunities in solar energy and climate-smart agriculture, solidifies its role in Africa's green economy.

The report lists sectors such as solar energy, power transmission, climate-smart agriculture, aquaculture, and waste management as priorities. Energy and power are expected to generate up to two million jobs, primarily driven by solar energy projects, which alone could create up to 1.7 million jobs. Agriculture and nature are forecasted to create up to 700,000 jobs, with contributions from climate-smart agricultural technologies and aquaculture.

Achieving this green job potential requires a concerted effort in policy support, infrastructure development, and substantial financial investments estimated at over 100 billion dollars annually.

Generating around 5,200MW of energy from hydroelectric sources, Ethiopia finds itself contemplating a complex yet crucial aspect: financing the green economy. A new bill aimed at establishing a special fund for green legacy initiatives and land restoration was presented to the Parliament last month. The bill, co-authored by the Ministry of Finance and the Ethiopian Forestry Development, proposes creating a fund, envisioned to constitute up to one percent of the federal budget, to provide sustainable domestic financing for these critical projects.