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Ethiopian economy on the brink of collapse, leaked document

Ethiopian News
November 14,2017

Ethiopian Economy in a state of crisis
Ethiopian capital, Addis Ababa
Photo : EBC

In what is said to be a leaked document, presented at Ethiopian National Security meeting, that reached to Addis Standard, government admits that the economy is in a state of crisis.

The seventeen pages document in Amharic, which was apparently discussed during a security meeting, lists a series of challenges that the government is facing which negatively impacted the economy.

Illegal circulation of currencies, manufactured paucity of commodity items in the market, capital and hard currency flight from Ethiopia, contraband trade, decline in foreign donation due to suspicion towards the government, weakening investment, meager tax collection and decline of the tourism sector due instability in the country are identified as causes for the economic trouble that the government is facing.

A 15 % currency devaluation was announced in the second week of October, on grounds of promoting export trade, to the disappointment of Ethiopians in the country and abroad.

Government partly lay the blame for the looming economic crisis on what it called “rent seekers” (that is a word often to denote corruption in the government) whom the govern believe are benefiting from facilitating illegal circulation of hard currency and illegal trade.

And partly blamed the challenges that are leading to economic crisis on Arbegnoch Ginbot 7, an opposition party operating outside Ethiopia with a rebel army in the Ethio-Eitrean border, and Oromo Liberation Front (OLF) – a radical ethnic Oromo movement operating abroad.

The document also added that the image of Ethiopia as “a stable country in the region” is marred by incessant protest across the country and government’s inability to control it.

Fire arms trade is enhancing in different regions of Ethiopia.

Last week, National Security Council ( some whhat acting like a new governing body) announced what many Ethiopians think is state of emergency like regulation ; all forms of peaceful demonstrations are banned.
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