Red Sea Crisis Cripples Ethiopian Trade Exposes Economic Vulnerabilities
As a landlocked country, Ethiopia relies heavily on the ports of Djibouti and Eritrea for its international trade, with the Red Sea serving as a crucial maritime corridor. However, the ongoing crisis in the region, which began on October 7 with Hamas attacking Israel, is having significant ramifications for Ethiopia.
EBR’s Eden Teshome delves into the challenges faced by Ethiopian businesses amidst the escalating conflict between the Houthi rebels in Yemen and Israel’s retaliatory strikes in the Red Sea. Ethiopian importers and exporters are feeling the strain, from rerouting shipments and enduring longer transit times to dealing with skyrocketing freight rates and potential infrastructure bottlenecks. This piece explores how this regional security issue disrupts global maritime trade and forces Ethiopian firms to explore alternative markets and distribution channels.