Ethiopia loses USD 20 million (800 million birr) per month in exports due to the closure of factories and mining plants in Tigray, following the fighting between the Federal government and the forces of Tigray People’s Liberation Front, according to the Ministry of Trade & Industry.
Tag: the Reporter Ethiopia
Sesame shortage hits commodity market
The conflict in Tigray region, one of the largest producers of sesame in Ethiopia, also resulted in the supply gap. “Producers of sesame in the region have not been able to sell their items to exporters because of a supply disruption as a result of the fighting in the region,” said head of corporate communications of the Exchange during the session.
End of the peak season that never was
“Even though there has been a considerable increase in the number of visitors after we reopened tourist sites with the necessary precaution, the trend did not linger as the fighting in Tigray broke out shortly after. With international media outlets reporting the war in Ethiopia and embassies issuing travel alert, bookings by tourists plummeted since the beginning of the fighting,” said Sileshi Girma, Director-General of Tourism Ethiopia – a federal government body tasked to market Ethiopia’s tourist attraction sites and heritages.
Ethiopia’s Economy in 2021
“Investment, be it local or foreign, is unthinkable in 2021 as investor confidence has been eroded due to political uncertainty, a situation which may lead to an increase in unemployment rate and disruption of local supply chains that may result in a high inflationary pressure. So if the country becomes stable, it will be a year of a slight recovery from the crisis that we faced so far, but the chance of that happening is also very low as there is no end in sight for the political crisis,”
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.