The Road to Recovery: Ethiopia's Journey After the Tigray War 🚀

What's the story? 📰

Ethiopia's capital, Mekelle, is slowly returning to normalcy after the devastating Tigray war that lasted for two years. The conflict, which resulted in an estimated 600,000 deaths, officially ended in November 2022 with a peace deal signed between the government and the Tigray People's Liberation Front (TPLF). The war had a severe impact on Ethiopia's economy, costing the country $28.7 billion in lost growth and economic losses. However, efforts are being made to rebuild and revive the economy.

What does this mean? 💡

Despite the signs of progress in Mekelle, Ethiopia still faces numerous challenges on its road to recovery. The country needs $20 billion over the next five years to rebuild conflict-affected regions, but securing such a substantial amount of funding is a major hurdle. The war also tarnished Western support for Prime Minister Abiy Ahmed and led to the freezing of budgetary support from donors, as well as the loss of Ethiopia's tariff-free access to the US market. However, there is hope that the ceasefire will pave the way for grants, loans, and financing from international players.

Why should I care? 🤔

The aftermath of the Tigray war has significant implications for both the markets and the people of Ethiopia. In terms of markets, the ceasefire could potentially lead to renewed foreign investment and economic growth in the country. Ethiopia's economy, which previously grew at an average of 10% annually for 15 years, was severely impacted by the war and subsequent shocks like the global pandemic and droughts. As for the people of Ethiopia, the road to recovery is fraught with challenges, including a dire humanitarian situation with over 4 million people in Tigray facing food shortages. Additionally, unresolved issues such as land disputes and the need for justice for war crimes and human rights violations pose further obstacles to lasting peace and stability in the country.