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IN THE NEWS
Ethiopia,
An economic conference to take stock after the crisis
DMI supported the Embassy of the Federal Democratic Republic of Ethiopia in France and the Honorary Consulate of Ethiopia in Lyon to organise an economic conference to take stock of the situation at the end of a crisis that has deeply marked the country.
The landscape has changed radically in the last 24 months both internationally and domestically. The covid-19 pandemic has profoundly disrupted world trade flows, most notably in China, while the conflict in Ukraine has disrupted energy and agricultural trade. Globally the conflict disruptions are occurring in a context marked by a mounting concern for the environment.
The country itself went through a long period of tensions and confrontations that were not limited to Tigray. Despite this unfavourable geopolitical context, Ethiopia has recorded a chaotic but positive economic growth of 6.1% in 2019, 6.3% in 2020 and 8.7% in 2021. FDI inflows, declined moderately to USD 2.549 billion in 2019, and USD 2.381 billion in 2020. FDI rebounded to USD 4.259 billion in 2021 exceeding the previous peak.
Embassy of the Federal Democratic Republic of Ethiopia in Paris, 28th of June, 2022
These results characterise an economy whose fundamentals remain solid despite the recent political turmoil. The profound transformations that have been underway for a long time, whether in public and private infrastructure, in the business climate or even - and of course - in institutions and governance, should enable the country - one of the most promising on the continent - to return to the path of growth.
With these results, the Ethiopian government remains determined to pursue its policy of openness and investment attraction to achieve its goal of making the country a middle-income economy by the end of the decade.
The EU has maintained open markets for Ethiopian exports, but the US removed tariff benefits under AGOA due to the Tigray conflict. Hopefully restoration of trade benefits under AGOA for Ethiopia will be part of an early peace dividend.
The future is always prepared in times of crisis. This is how H.E. Henok Teferra Shawl, Ambassador to France of the Federal Republic of Ethiopia, introduced the conference.
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