Ethiopian Business ReviewEthiopia’s exports of goods and services witnessed a moderate growth this financial year. The country shipped two billion dollars of goods until the end of the third quarter of the existing fiscal year, showing a 10Pct growth compared to the same period last year.
Haimanot AshenafiCan it Help Africans Recover Quickly?
Africa accounts for 20Pct of the world population but only makes up three percent of the world GDP, at USD2.6 trillion. The implementation of the African Continental Free Trade Area (AfCFTA) would, however, set in motion the largest regional free trade area in the world. Signed by all African countries, except for neighboring Eritrea, the agreement was supposed to be put into practice next month. However, the Coronavirus pandemic rushed in to steal its light as it did to a number of other plans around the world. Against all odds, some argue that now is the best time to launch the agreement across the continent as global supply chains are disrupted and being reconsidered by countries across the world. Even some go far as to claim AfCFTA would help African countries quickly recover from the impacts of the pandemic. Nonetheless, many say this may not hold true for Ethiopia as a few export commodities mark its comparative advantage. Haimanot Ashenafi, in her special report to EBR, explores.
Ashenafi EndaleMussie Mindaye, Ethiopia’s Top Expert and Negotiator in AfCFTA
Muse Mindaye has been Ethiopia’s top expert and negotiator in the African Continent Free Trade Agreement negotiation forum since the beginning of the effort to create a single African market. He is also director of Multilateral Trade Relation and Negotiation at the Ethiopian Ministry of Trade and Industry. An Economist in profession, Mussie predicts the hour of Africa’s economic redemption against globalization is at the door, only clouded by COVID-19. EBR spoke to him to further understand what Ethiopia would benefit from AfCFTA and how the future will look with the implementation of the agreement.
Tewedaj SintayehuState Minister of Finance on COVID-19, Economic Reforms
With a PhD in Political Economy, and Masters in International Policy earned from the University of Maryland and the George Washington University in Washington D.C, in the United States, respectively, Eyob Tekalign is currently serving Ethiopia as a state minister of Finance. Since graduation from Mekele University with a BA in Economics in 2000, he has been actively engaged in public service leadership in Ethiopia and overseas. He was a minister counselor at the Ethiopian Embassy in Washington D.C., advisor to the Ethiopian governors of the IMF and World Bank Group, and government and public affairs consultant to Dow Chemical, a Fortune 500 multinational. Eyob had previously worked for intergovernmental organizations such as the United Nations Economic Commission for Africa, the Common Market for Eastern and Southern Africa, and the United Nations Conference on Trade and Development. He had also worked for the International Finance Corporation (IFC), World Bank’s private sector financing arm.
Kiya AliStates across the world are experiencing a drastic fall in government revenue and unmatched growth of expenditure due to COVID-19. Ethiopia is no different. So far, the government has approved over ETB50 billion as a response to the COVID-19 crisis. USD1.6 billion is also required to further boost the country’s potential to overcome the crisis. Meanwhile, businesses are struggling to pay their taxes, a situation which is likely to result in a fall in government revenues from taxes. This is expected to widen the budget deficit, presenting yet another macroeconomic woe for the government that is already challenged by inflationary pressure and unemployment. EBR’s Kiya Ali explores.
Samson BerhanePower outages are a common problem faced by everyone in Ethiopia. From households to industries, it is a major challenge that affects productivity, thereby contributing to inflationary pressure as it results in supply shortage in many sectors. Amidst the COVID-19 crisis, interruption has become more frequent due to the rise in household consumption. Although many citizens and expats have been told to work from home to curb the spread of the virus, this has proved to be quite a challenge due to power interruptions. EBR’s Samson Berhane explores.
Yared Molla has been in the insurance industry for over 27 years. Before joining NyalaInsurance seven years ago, he worked for Ethiopian Insurance Corporation. After assuming the role of CEO at Nyala Insurance, he has stirred the company to the forefront of the insurance business as it became the most profitable insurer in the country for almost half a decade. Under his leadership, Nyala grossed a profit of ETB184 million in 2019/20, which is a record-high in the private insurance industry and ETB15.5Pct higher compared to the preceding financial year. Its gross written premium also reached almost half a billion birr, while having an asset of over ETB2.1 billion. Enthralled by his performances, African Insurance Organization (AIO) bestowed up on Yared the prestigious ‘CEO of the Year’ award for his unparalleled leadership capability and outstanding contributions to the insurance industry. EBR sat down with him to clear the recent confusion over the coverage of pandemics under life insurance policy and his career in the insurance industry.
Haile GebreselassieHaile Gebreselassie’s take on business after COVID-19
Covid-19 is the ultimate test to evaluate ourselves individually, our systems nationally and as a global society. Economically, I understand covid-19 from two perspectives; the damage and opportunities it might hold. The hotel and tourism industry in Ethiopia is the most affected since our entire tourist clients were from Italy, France, Holland, German, USA and Asia, countries seriously affected by the pandemic.
Shimelis ArayaCoronavirus disrupted the lives of billions across the world. From the superpowers with a huge economic hegemony to countries with less economic interaction with the rest of the world have been hit hard by the deadly virus. Both developed and least developed countries are likely to witness their worst economic recession in more than a decade. Big corporations and SMEs are reporting losses and cutting millions of jobs, exacerbating poverty and unemployment.
Abdulmenan Mohammed Hamza (PhD)Following the spread of COVID-19, the Ethiopian government has taken a large number of prevention and containment measures since mid-March 2020. The economic impacts of these measures are considerable. According to the International Monetary Fund (IMF), Ethiopia’s GDP growth will decline to 3.2Pct from a previously projected 6.2Pct.
