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Addis Ababa is the capital city of the Federal Democratic Republic of Ethiopia and is the center of political, social and cultural activities of the country. The city of Addis Ababa plays a pivotal role as a seat of African Union (AU), the United Nations Economic Commission for Africa (UN-ECA) and the country representative offices of such multilateral funding organizations such as the World Bank the European Commission, UNDP and others. Apart from this, the city also hosts over 103 embassies and heads of diplomatic missions, 24 international, regional and sub-regional organizations and several international NGO's.
The city of Addis Ababa is the main commercial, financial, industrial and service provision center in the country having employment structure quite distinct from the rest of the country. Service followed by trade and manufacturing industry are the dominant sectors in terms of employment opportunities.

Comparatively Addis Ababa has better infrastructure and mode of services such as air, roads and rail transportation, postal and telecommunication service and adequate supply of fresh water and electric power/energy than the other cities in the country: Addis Ababa has become the center of investment, employment opportunities, commerce and banking, higher learning institutions and cultural activities. It also serves as a national market center for locally produced and imported goods for all regions of the country. It is comparatively a large and dependable market for both locally produced and imported goods