ADDIS ABABA – The outbreak of COVID-19 is having impact on Ethiopia’s investment activities and import-export trade, Ethiopian Investment Commission (EIC) said.
Mekonnen Hailu, Communication and Public Relations Director at EIC told The Ethiopian Herald that currently, the pandemic has significantly reduced the volume of exports, particularly horticulture products, nationally and
globally.
Meanwhile, the import of inputs and other products has also been disrupted due to the pandemic. This, on the other hand, has been affecting investment activities locally and the export of products such as horticulture.
According to him, the country used to earn up to 350 million USD from the export of horticulture products annually.
The slowdown of international trade will have negative effects on foreign
exchange, new investment activities and job creation.
Mekonnen stated that now, companies are being part of the solution to prevent the spread of COVID-19 pandemic by producing hand sanitizer, alcohol and other preventive products.
Speaking at a Press Conference in Addis Ababa, Economic Commission for Africa (ECA) Executive Secretary, VeraSongwe said that having already strongly hit Africa’s major trade partner, China, COVID-19 was inevitably
impacting Africa’s trade.
“Africa may lose half of its GDP with growth falling from 3.2 percent to about 2 percent due to a number of reasons which include the disruption of the global supply chain.”
According to her, remittances and tourism are also being affected as the virus continues to spread worldwide, resulting in a decline in FDI flow, capital flight, domestic financial market tightening and a slow-down in investment, hence job losses.
The Ethiopian Herald April 2/2020
BY TSEGAYE TAILHUN
