page_title: Horn of Africa
section_title: Economy
hierarchical_section_title: Horn of Africa / Economy
caption_attribution_description: English: Coffee beans ethiopia culture africa fabric
context_page_description: The Horn of Africa: is a peninsula in Africa. It lies along the southern side of the Red Sea and extends hundreds of kilometers into the Gulf of Aden, Somali Sea and Guardafui Channel. The area is the easternmost projection of the African continent. Referred to in ancient and medieval times as the land of the Barbara and Habesha, the Horn of Africa denotes the region containing the countries of Djibouti, Eritrea, Ethiopia, and Somalia.
  It covers approximately 2 million km² and is inhabited by roughly 115 million people. Regional studies on the Horn of Africa are carried out, among others, in the fields of Ethiopian Studies as well as Somali Studies.
context_section_description: According to the IMF, in 2010 the Horn of Africa region had a total GDP (PPP) of $106.224 billion and nominal of $35.819 billion. Per capita, the GDP in 2010 was $1061 (PPP) and $358 (nominal).
  States of the region depend largely on a few key exports:
  Economy of Ethiopia: Coffee 80% of total exports.
  Economy of Somalia: Bananas and livestock over 50% of total exports.
  Over 95% of cross-border trade within the region is unofficial and undocumented, carried out by pastoralists trading livestock. The unofficial trade of live cattle, camels, sheep and goats from Ethiopia sold to other countries in the Horn and the wider Eastern Africa region, including Somalia and Djibouti, generates an estimated total value of between US$250 and US$300 million annually (100 times more than the official figure). This trade helps lower food prices, increase food security, relieve border tensions and promote regional integration. However, there are also risks as the unregulated and undocumented nature of this trade runs risks, such as allow disease to spread more easily across national borders. Furthermore, governments are unhappy with lost tax revenue and foreign exchange revenues.
  Much of the Horn nations' trade links are with Middle Eastern countries. In 2011, an event hosted by the Arab Center for Research and Policy Studies in Doha, Qatar devoted several days of discussion to ways in which countries in the Horn region and the adjacent Arabian peninsula could further strengthen these historically close economic, social, cultural and religious ties.
caption: Coffee beans from Ethiopia
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