The Ethiopian Parliament has approved the measure proposed by the government of Prime Minister Abiy Ahmed (pictured) to adopt a supplementary budget worth 48.56 billion birr (about $1.4 billion) for the current fiscal year. The additional money will serve as a shield against the impact of the coronavirus pandemic.
In Ethiopia, like in other countries, the pandemic has posed a triple threat to the economy, health, and social development. The country has 1,172 confirmed positive cases of Covid-19 with 11 deaths and 209 recovered; a situation that exacerbated the social crisis and brought the number of people in need of food assistance to 30 million.
Also, the restriction measures put in place to control the propagation of the virus have slowed economic activity in the country. Growth for the fiscal year ending July was revised downwards from 9% to between 5% and 6%, according to Reuters.
As a reminder, the Ethiopian economy has been very dynamic in recent years, and the rating agency Moody’s forecasted rates to be around 8% in the coming years. “The economy is being highly impacted due to coronavirus and the government has to assist,” said Finance Minister Ahmed Shide.
The government plans to borrow money from both the local and international markets to deal with new spending. In early May, the government announced historic tax cancellation measures to ensure a rapid recovery of the economy. In March, the Prime Minister announced the postponement of the August general elections to a later date; the decision was criticized within the political class.
Moutiou Adjibi Nourou
• Investors seem to keep focusing on yields, which are high for the moment• New Leadership might see...
• Qatar Airways and Kenya Airways establish strategic agreement, introducing a third daily flight be...
• ECOWAS Bank funds 47.7-km stretch of strategic 700-km road project• Lagos-Calabar highway seen boo...
• EY is preparing to leave Francophone Sub-Saharan Africa by 2026• The exit could unlock $500 m...
• Inflation within the West African Economic and Monetary Union (UEMOA) fell to a two-year low of 0....
• Ghana signs a deal with eLearning Africa to expand digital learning access across the country.• The partnership focuses on deploying modern digital...
Ghana launches the Oncology Nurse Leadership Program (ONLEP) to train specialized oncology nurses from seven African countries. The five-year...
Ivanhoe Mines signs deal covering 100% of Kamoa-Kakula smelter’s copper output. The smelter will process up to 500,000 tonnes annually, starting at...
African gas projects drive significant contracts for Asian shipbuilders, especially for Floating Liquefied Natural Gas (FLNG) units. South Korean...
Kolmanskop offers a haunting blend of lost wealth, colonial history, and the unstoppable force of nature. Located just a few kilometers inland from...
Located about 40 kilometers from Cape Town’s city center, Boulders Beach in Simon’s Town is one of the Cape Peninsula’s most iconic destinations. This...