Impact of Tigray Conflict Crippling Ethiopian Economy
Following the conflict in Tigray, the Ethiopian government’s resources are overstretched.
Last week, it halted the offensive on the Tigray People’s Liberation Front after the war’s costs started affecting the country’s economy. Addis Ababa admitted that the country had lost about $2.3 billion since the conflict in the Tigray region erupted in November 2020.
This cost did not factor in military spending, lost livelihoods, civilian deaths or injuries as well as hours of economic productivity lost as civilians fled danger.
Abiy said the withdrawal of the country’s defense forces from Tigray was the right decision. He explained that among reasons for the government’s decision were economic and Covid-19 pressures.
“We have national projects to complete,” he told MPs at Mondays session, at which the House approved a draft budget of 561.7 billion birr ($12.83 billion) for the next fiscal year.
Prime Minister Abiy Ahmed said the country will shut down several embassies, including one in Kenya, to manage costs, with most diplomats working as non-resident ambassadors