Ethiopia’s Economy already hurting due to the Coronavirus Pandemic

Textile, flouricutlure, and tourism among Ethiopia’s economy that are hurting due to Coronavirus pandemic

Ethiopian Economy _ Coronavirus
Ethiopian Prime Minister Abiy Ahmed speaking on Friday about new measures to curb Coronavirus transmission. Photo credit : ENA

borkena
March 20, 2020

Ethiopian Prime Minister Abiy Ahmed said on Friday that the Coronavirus pandemic is profoundly affecting the Ethiopian Economy.

He had a press statement after a meeting with the COVID 19 National Ministerial Committee on Friday in the afternoon. 

One of the decisions he announced is that Ethiopian Airlines suspends flights to thirty countries.

Ethiopian is one of the few state-owned corporations in the country that is not subsidized by the government so far.

It generates a considerable amount of revenue for the National Economy. With the spread of Coronavirus to over 170 countries around the world, Ethiopian Airlines is hurting like many other major airlines. It is reported that the airline has already lost $US 190 million due to a coronavirus outbreak.

Today, Ethiopian Prime Minister Abiy Ahmed announced that Ethiopian Airlines would be suspending flights to 30 countries around the world. Despite all these economic challenges, the airline is not laying off employees. It has over 14,000 employees for its domestic and international operations.

All travelers entering the country will have to go through two weeks of quarantine. They will stay in hotels and have to cover their expenses.

The hotel and tourism industry is affected.  Foreign trade is impacted. The floriculture industry, another income stream for the country, is slowing down as demand for it dwindled on the side of importers outside of Ethiopia.

It is the same story in the textile industry. Ethiopia has spent billions of dollars in the construction of industrial parks. Several of them have got manufacturers in the textile industry, but the demand for textile products is slowing down too.

The government has ordered bars and nightclubs to be closed indefinitely across the country.

Ethiopian Economy was projected to show significant growth this year, said Prime Minister Abiy Ahmed. Now the situation is drastically changing, and it does not seem to be the case anymore. He spoke with a tone that Ethiopia is bracing for an economic crisis, especially if the rate of transmission of  COVID 19 is increasing and prevention measures are taking more time.  

As things stand right now, most government services are suspended for two weeks. Sporting events and large gatherings are banned indefinitely. And the government is also encouraging religious leaders to adapt to new realities of health emergencies while practicing worshiping services.

The number of infected people has reached nine, based on information from the Ministry of Health.  Four of the cases are in good condition, while the other four are recovering. One senior woman in her eighties is in a severe condition.  



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One Response to "Ethiopia’s Economy already hurting due to the Coronavirus Pandemic"

  1. Tamratish   March 22, 2020 at 12:47 am

    In the next eight weeks by May 2020 , fifty six percent of the California , USA population amounting to 25+ millions of people California residents are expected to get infected with CoronaVirus Covid-19 according to the California State Governor Gavin Newsom in USA.

    California projects 56 percent of population will be infected with coronavirus over 8-week period | TheHill March 2020

    mediaite.com/news/california-gov-gavin-newsom-tells-trump-he-expects-more-than-25-million-coronavirus-infections-in-8-weeks/

    thehill.com/policy/defense/488547-california-projects-56-percent-of-the-population-will-be-infected-over-8-week

    Reply

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