Ethiopia: How is the Tigray conflict hurting the country’s economy?

By Loza Seleshie
Posted on Wednesday, 24 February 2021 19:35

Workers sew clothes inside the Indochine Apparel PLC textile factory in Hawassa Industrial Park in Southern Nations, Nationalities and Peoples region, Ethiopia November 17, 2017. REUTERS/Tiksa Negeri

Home to seven million inhabitants, Ethiopia's Tigray region has been unstable since November of 2020 following the first military operation to root out Tigray People's Liberation Front (TPLF) rebels. Although armed operations are technically over, economic instability persists. How has this affected Ethiopia’s overall economy?

Ethiopia is going through its worst economic shock in decades due to the combined impact of Covid-19 and the conflict in Tigray. But nonetheless, the economy was still on pace to grow in 2020.

The Tigray conflict emerged when the TPLF leadership contested Prime Minister Abiy Ahmed’s authority. He responded by removing the TPLF from power in Tigray.