Ethiopia Joins BRICS Alliance Amid Economic Crisis and Famine Threats
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Ethiopia recently joined the BRICS alliance of major emerging economies to boost its struggling economy and diversify its international partnerships.
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Ethiopia is on the brink of insolvency due to heavy foreign debt, lack of foreign currency, high inflation, the economic impacts of COVID-19 and climate change, and costs from its internal Tigray conflict.
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Famine threatens the Tigray region and Ethiopia's neighbor Amhara due to destruction from the Tigray conflict.
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Ethiopia's deal with Somaliland for access to the port of Berbera aims to expand trade but risks conflict with Somalia.
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Joining BRICS could provide Ethiopia with alternative financing options like the New Development Bank and reduce dependence on Western lenders like the IMF.