“Those aspirations are now at risk. Instability that began even before the Tigray conflict – due to ethnic clashes and other problems – may scare off investors already skittish about the impact of COVID-19 and rapidly-rising Ethiopian government debt. Foreign textiles firms worry about existing investments.”
Category: Economic Impact
Ethiopia – TPLF conflict in Tigray will dampen investor appetite
“The timing of such events bodes badly for the Ethiopian government which has been eager to lure foreign direct investment flows (FDI) in the tens of billions of dollars through economic liberalisation, particularly privatisation.”
Tigray conflict will be short-lived but long-term impacts significant
“This is all likely to deter investors and thereby diminish the attractiveness of Abiy’s planned reforms designed to attract foreign capital, including the liberalisation of sectors such as telecommunications and finance.”
Egypt investors in Ethiopia request compensations for losses due to Tigray conflict
Egyptian investors in Ethiopia’s Tigray region are awaiting the federal government’s response to the former’s requests of compensations for production halt and losses incurred due to the ongoing civil war.
WFP VAM | Food Security Analysis Ethiopia Monthly Market Watch, December 2020
Page 3-4 about Tigray market, Mekelle in particular in Table 1 on pg.4 showing pricing increase of different goods and services. ‘Food prices have continued to spike compared to the pre-crisis level. This change within a month into the crisis is predictable as essential food commodities are necessities and therefore not responsive to price. As shown in Table 1, the price of cereals has increased between 56 to 100 percent since the onset of the crisis. Fuel prices increased in multi-fold during the same period.’
Ethiopian Diaspora Provides Over 100m Birr Assistance To Needy, Defense Force
The Ethiopian Diaspora has provided over 100 million birr humanitarian assistance to the needy and members of the National Defense Force.
Businesses in Tigray appeal for government support
According to Sheba Leather Industry Marketing and business development manager, Zerabruk, over 100 million birr worth of property has been lost due to burglary and fire at the factory, stressing the need for government support in finance and easing official procedures at customs and financial institutions. Abera Tasew, shareholder of Sabana irrigation and AJJ diary, lamented the burning of properties and the stealing of 500 dairy cattle in Raya.
Task Force Emerges to Reinvigorate Investments in Tigray
Egzi Tsehaye, the founder of Zenit Barley, says that his company has suffered losses estimated to be 90 million Br. Despite this, he asserted that the company aims to rebuild entirely within four months.
Ethiopia unrest impacts Tigray clothing production
<p"It was all new [for us] and without the background support [from the buyers], we would not have gone there," he says. "Going into war and people being frightened was a very bad reality check for us because in India you would never have dreamt of these things." Arul Saravanan, chief marketing officer of SCM Garments Pvt Ltd
Ethiopia’s war risks leaving manufacturing dreams in tatters
Bangladeshi textile firm DBL compound was rocked by an explosion which makes clothes mainly for Swedish fashion giant H&M and is one of at least three foreign garment makers to have suspended operations in Tigray. H&M said it was “very concerned” and was closely monitoring the situation. “We have three suppliers in Tigray, and the production there has come to a halt,” the company told Reuters, also other suppliers in tigray or Ethiopia comment on the economic impact of the war, as well as prior to the war with covid and other unrest within Ethiopia that had them close thier office.