Ethiopia is a landlocked country situated in East Africa between 3-15° N latitude and 33-48° E longitude covering an area of about 1.2 million square kilometres. With an estimated population of 80.7 million, Ethiopia is the second most populous country in Africa. The economy is predominantly rural with the agricultural sector providing employment for about 85% of the population and 90% of the country’s export value. The economy had registered encouraging but mixed results, with a negative Gross Domestic Product (GDP) growth rate of -3.3 % 2002/03, followed by a strong positive performance of 11.9% and 10.6% growth during the subsequent two years, 2003/04 and 2004/05 (PASDEP, 2007). During 2002/03-2004/05, annual real GDP growth averaged 6.4%. The country is a federal state divided into nine regions, largely on the basis of ethnic differences.