Public Management

Covid-19: Ethiopian Parliament approves $1bln additional budget for the current year

Covid-19: Ethiopian Parliament approves $1bln additional budget for the current year
Tuesday, 02 June 2020 14:13

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

Additional Info

  • communiques: Non
  • couleur: N/A
On the same topic
Côte d’Ivoire will receive $234 million for a sustainable urban mobility project in Abidjan. Gambia will receive $32.2 million to build...
Stanbic IBTC and Zenith Bank cut monthly card spending abroad to $500 and $200 Foreign reserves fall by $3.5 billion in six...
Cauri Money launches Gajo Money, an e-wallet for the Cameroonian diaspora, targeting €120 million in transactions by end-2025. The fintech...
• Kenya and ASR sign deal to reduce risk on projects worth up to $2 billion.• Risk cover will target infrastructure, energy, logistics, and trade...
Most Read
01

• Investors seem to keep focusing on yields, which are high for the moment• New Leadership might see...

Afreximbank Bonds Retain Market Confidence Despite Moody’s Downgrade
02

• Qatar Airways and Kenya Airways establish strategic agreement, introducing a third daily flight be...

Qatar Airways Expands its Network in Africa, Building Presence in Kigali, Johannesburg, and Nairobi
03

• ECOWAS Bank funds 47.7-km stretch of strategic 700-km road project• Lagos-Calabar highway seen boo...

Nigeria Secures $100 mln ECOWAS Bank Loan for Lagos-Calabar Coastal Highway
04

• EY is preparing to leave Francophone Sub-Saharan Africa by 2026• The exit could unlock $500 m...

EY’s Exit Creates $1bn Opportunity in Francophone Africa Consulting Market
05

• Inflation within the West African Economic and Monetary Union (UEMOA) fell to a two-year low of 0....

UEMOA: Inflation Drops to 0.6% in May, Driven by Lower Food Prices
Enter your email to receive our newsletter

Ecofin Agency provides daily coverage of nine key African economic sectors: public management, finance, telecoms, agribusiness, mining, energy, transport, communication, and education.
It also designs and manages specialized media, both online and print, for African institutions and publishers.

SALES & ADVERTISING

regie@agenceecofin.com 
Tél: +41 22 301 96 11 
Mob: +41 78 699 13 72
Média kit : Download

EDITORIAL
redaction@agenceecofin.com

More information
Team
Publisher

ECOFIN AGENCY

Mediamania Sarl
Rue du Léman, 6
1201 Geneva
Switzerland

 

Ecofin Agency is a sector-focused economic news agency, founded in December 2010. Its web platform was launched in June 2011. ©Mediamania.

 
 

Please publish modules in offcanvas position.