Unlike other countries in the world whose economic muscle is strong enough to withstand the global economic tides caused by COVID-19; most African countries are not in a condition to respond to the ongoing challenge. Their lives have been threatened in this regard.
Likewise, climate change together with locusts swarm and COVID-19 has exacerbated the previously fragmented economy of most Horn countries. Ethiopia is one of these countries whose economy is caught between these deadly enemies.
The COVID-19 pandemic may not kill hundreds and thousands of Ethiopians but it has the potential to make happen economic and social devastation. Above and beyond, the pandemic has multiple impacts on poor countries like Ethiopia without a shred of a doubt.
In a similar vein, the agriculture sector is still heading in the right direction despite challenges. According to Prime Minister Abiy efforts are underway to smooth the progress of agricultural productivity. He also elucidated that irrigation-based farming is playing a key role.
Indeed, in a country like Ethiopia where agriculture is the mainstay of the economy promoting irrigation-based agriculture has a key role. However, this should be supported by the active involvement of Micro and Small Scale Financial institutions. This support should not only be to the agricultural sector. It should also be extended to other economic sectors that have the potential to create job opportunities for the mass.
To this point, Micro and Small Scale Financial institutions have played a significant role in supporting the national economy. And now, it is the right time to repeat that achievement with better performance. They are expected to provide interest-free loans and support the economy with all means.
While Micro and small scale financial institutions are doing this, the government should also play its role by encouraging other economic sectors. This intervention could be in the form of debt cancelation or other means.
The Ethiopian Herald May 15/2020
