Posted 2/29/2024, 2:01:50 PM
Ethiopia's Economy Falters as Civil War and Unrest Undermine Reform Ambitions
- Ethiopia's economy grew rapidly for over a decade but has been severely damaged by 2 years of civil war in Tigray region
- Prime Minister Abiy Ahmed wants to reform the economy and boost sectors like manufacturing, but war and insecurity are hampering investment
- Loss of preferential US trade access and lack of foreign currency are hurting Ethiopian factories and preventing buildings from being completed
- IMF loan being negotiated, but reforms face opposition from vested interests and renewed conflicts in Oromia/Amhara regions
- Abiy is a dealmaker undertaking bold initiatives internationally, but delivering economic reform and stability at home remains a major challenge