Balancing Acts: Ethiopia's Economic Outlook Amidst Prolonged Conflicts

Assessing Ethiopia's Economic Landscape Amidst Persistent Conflict: A Look at the 2024 Budget Proposal

On June 11th, Ethiopia's Finance Minister, Ahmed Shide, unveiled the budget proposal for the 2024/25 fiscal year to the national parliament, marking a crucial moment in the country's economic trajectory. However, amidst the presentation, concerns loomed large regarding the nation's macroeconomic stability, exacerbated by the enduring conflicts that have plagued various regions.

MP Dessalegn Chanie (PhD), representing the National Movement of Amhara ( took center stage during the session, shedding light on the ramifications of the prolonged six-year conflict in Oromia and the three-year wars in Amhara, Tigray, and Afar. His inquiry delved into the tangible impacts of these conflicts on Ethiopia's macroeconomic equilibrium.

In response to these concerns, Minister Ahmed candidly acknowledged the adverse effects of the conflicts on regions such as Oromia, Amhara, Afar, and Tigray. However, he emphasized the government's steadfast commitment to economic reforms, citing them as instrumental in fostering "strong growth" amidst the prevailing challenges posed by ongoing conflicts.

The juxtaposition of economic reforms and persistent conflict underscores the complexity of Ethiopia's economic landscape. While the government's reform initiatives have undoubtedly spurred growth in certain sectors, the specter of conflict continues to cast a shadow over broader economic stability.

The Ethiopian economy, once heralded as one of Africa's fastest-growing, now finds itself at a crossroads. The protracted conflicts have not only disrupted vital economic activities but have also strained social cohesion and government resources. The toll of these conflicts extends beyond mere economic indicators, encompassing profound humanitarian crises and political tensions that threaten the nation's long-term stability.

Against this backdrop, the 2024 budget proposal assumes heightened significance, serving as a roadmap for navigating the intersecting challenges of conflict mitigation and economic revitalization. It underscores the imperative for targeted investments in conflict-affected regions, aimed at fostering resilience and sustainable development.

Moreover, the budget proposal must prioritize measures to address the root causes of conflict, thereby laying the groundwork for lasting peace and prosperity. Comprehensive strategies encompassing inclusive governance, equitable resource distribution, and reconciliation efforts are indispensable in this regard.

In essence, Ethiopia stands at a critical juncture, where the trajectory of its economic future hinges upon adeptly managing the confluence of conflict and reform. The budget proposal symbolizes not only a fiscal plan but a testament to the nation's resilience and determination to overcome adversity, charting a course towards a more prosperous and peaceful future. As stakeholders deliberate on its contents, the imperative remains clear: to count the cost of conflict while investing in the dividends of peace.

Original article:

Counting the Cost: The state of #Ethiopia's economy amidst wars

On 11 June Finance Minister Ahmed Shide presented the budget proposal for the 2024/25 fiscal year to the national parliament. During the session, lawmakers expressed concerns about the country's macroeconomic stability and the impact of ongoing conflicts on the economy.

MP Dessalegn Chanie (PhD) of the National Movement of Amhara (#NaMA) inquired about the effects of the six-year conflict in #Oromia and the three-year war in #Amhara, #Tigray, and #Afar on macroeconomic stability.

In his response, Minister Ahmed acknowledged that the conflicts have adversely affected parts of Oromia, Amhara, Afar, and Tigray region. However, he claimed that the government's economic reforms have contributed to "strong growth" despite the challenges posed by the ongoing conflicts.