Browsing: Ethiopia’s economy

Ethiopia on the map. On November 3, 2021, Ethiopia was put under a six-month state of emergency by Prime Minister Abiy Ahmed. www.theexchange.africa
  • The conflict in northern Ethiopia has worsened and expanded creating a devastating humanitarian crisis.
  • Close to 3 million people have fled their homes with more than 5 million in need of urgent humanitarian assistance.
  • On November 3, 2021, Ethiopia was put under a six-month state of emergency.

 

It is one year since the war broke out in Ethiopia between the government and the Tigray People’s Liberation Front (TPLF).

This milestone in the war also comes as the TPLF advances towards Addis Ababa, Ethiopia’s capital leading the government to declare a state of emergency. The war that is escalating on the ground is also spilling over into the internet and the media.

An interesting turn of events is the United States’ seemingly sudden hostility to Addis Ababa and what could be read as sympathy to the TPLF. This notwithstanding, the instability in Ethiopia portends the fragility of democracy in Africa.…

Ethiopia’s Gross Domestic Product (GDP) is expected to fall to two per cent in 2021 and recover to eight per cent in 2022 as industry and service sectors rebound according to a report by African Development Bank (AFDB).

The country’s fiscal deficit is projected to rise due to delay in tax policy reforms which have been affected by the pandemic while its increased use of open market operations is expected to gradually reduce inflation.

The report dubbed ‘Ethiopia Economic Outlook’ noted that in 2021 the country’s current account is likely to deteriorate before improving in 2022 as exports in service gradually pick up. The report also noted that the key risks to Ethiopia’s economic outlook include climate change, weaknesses in global growth and low investor confidence partly due to sporadic domestic conflict.

“Ethiopia’s financing requirements are significant given its large physical and social infrastructure needs and low tax-to-GDP ratio, …

The National Bank of Ethiopia today granted the first financial services license to a foreign-owned company, Ethio Lease, as the Ethiopian Government delivers on its promise to gradually liberalize the economy and create jobs.

Increasing foreign direct investment is a centerpiece of Prime Minister Abiy Ahmed’s reform agenda to increase private sector growth in a country where an estimated 75% of the 100+ million population are under 30 and the average age is 18.

Ethio Lease will address the equipment and foreign exchange shortages facing Ethiopia by providing local businesses with access to high-quality equipment, allowing businesses to grow their operations and thereby creating jobs and increasing productivity throughout the country. Ethio Lease is a wholly-owned subsidiary of New York-based equipment leasing firm, Africa Asset Finance Company Inc. (AAFC).

Ethio Lease’s offerings include leases for high-quality equipment, mostly in partnership with leading Original Equipment Manufacturers (OEMs).

AAFC will provide …