Tigray conflict is dragging Ethiopia’s economy backwards

The conflict in Tigray region has cost $2.5 billion, the dollar has sunk and international investors are staying away.

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Tigray conflict is dragging Ethiopia's economy backwards

Before the election of Prime Minister Abiy Ahmed in 2018, Ethiopia’s economy was growing fast. But the conflict in the Tigray region, sanctions and the pandemic have strained the country’s finances.

Louw Nel, a senior political analyst at NKC African Economics, explains the economic and political challenges Abiy faces as the United States blocks access to finance.

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