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Ethiopia (Vol 18, 2021)

in Africa Yearbook Online
Author:
Jon Abbink
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(7,134 words)

Ethiopia went through a dramatic year of serious armed conflicts, both in the north, with an intensification of hostilities through the expansion of campaigns by the insurgent Tigray People’s Liberation Front (tplf) into northern Amara and Afar Regions, and in the west, where the Oromo Liberation Army (ola) and Gumuz insurgents were active, mostly in ethnic-based killing campaigns and expulsions of civilians. Humanitarian misery and economic hardship followed in the wake of these insurgencies. Negotiated solutions were not in sight, despite international (un, au, and Western donor country) pressure on the warring parties. The June parliamentary elections were a victory for the ruling party, the Prosperity Party (pp) of Prime Minister Abiy Ahmed. Significantly, opposition party members were also elected and some were included in the new national cabinet as (vice-) ministers as well as in regional administrations. The political reform agenda slowed down due to a deteriorating security situation across large parts of the country. The national economy received major hits but continued to grow modestly, and export earnings in various sectors increased (e.g., mineral exports revenue doubled). The agrarian economy outside the conflict areas maintained production and showed growth in output. Industrial development continued, with one new industrial parked opened, and showed resilience, but towards the end of the year it was threatened by a decline in fdi and the announced suspension from the USA’s African Growth and Opportunity Act scheme (which gives preferential market access to the US market). Ethiopian diaspora remittances through official channels grew significantly. Environmental challenges remained, and towards the end of the year there were signs of an impending drought in eastern and southern parts of the country.

Author:
Africa Yearbook Online

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