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Mobilizing resources for rapid economic recovery

 BY LAKACHEW ATINAFU

Following the breakneck reform and then the attitude of a whole bravado venture politics among TPLF leaders, Ethiopia has suffered severe human and material damage during the preceding few years.

The country’s economy, in particular, is seriously ill. Inflation can be cited as an example. It has slowed economic activity and caused many to lose their jobs and become dependent on others. During the course of the war, many of the treasures accumulated over the years were turned into ash; human and material losses have reached the point where it is difficult to put in words.

It is known that economic activity in the northern part of the country, especially in the war-torn areas, has been severely hampered and has lost much of its infrastructure. Cities that have been built over the centuries, health facilities, higher education institutions, technical and vocational institutions; centuries-old infrastructure, including private homes and hospitals have been destroyed.

Experts say the government’s actions are encouraging despite the pressure from the TPLF. For example, in order to alleviate the foreign exchange deficit, it extended the repayment period by negotiating with lenders and facilitating the Diaspora to have a foothold in the development of the country. The pursuit and a smart move have also been taken in producing yields taking advantage of irrigation agriculture schemes in lowlands.

An expert points out that the long-term goals of narrowing trade deficits, reviving banknotes and developing ten-year perspective development plans are just a few of the positive ones.

Despite all these efforts, Ethiopia is in turmoil as a result of the war. It has been embroiled in a series of diplomatic disputes with several countries, including the severance of previous trade ties with some. It is also a recent reminder that many European countries are vying for action.

Amanyihun Reda is consultant in Trade, Economics, and Investment Affairs and contributes professional assistance for media on the economic sector. Amanyihun has had a short stay with The Ethiopian Press Agency to convey across his recommendations as to what to be done in fixing economic disorders.

Upon his stay, he insisted that the first step is to stop the fighting. War costs hundreds of millions of money in just one day. There is nothing more destructive than war. In particular, countries such as Ethiopia, which have been lagging behind in development, have borne the brunt of centuries. They lack significant capital and knowledge. They build their infrastructure with loans and grants. This will be a challenge to rebuild. Therefore, the devastation must be stopped by a war of attrition.

Immediate cessation of hostilities will prevent further destruction. If it continues, they will have to spend hundreds of millions every day. Massive infrastructure will be destroyed. Avoiding war helps to build a lot of infrastructure that could be destroyed in a single day.

“Therefore,” the consultant said, “It is important to know the exact details of the damage caused by the war that enables plan how to rebuild. There are technologies created by time and time again. It is important to take into account the country’s economic prospects. Things need to be expanded and improved. But for all intents and purposes, it must be well known.”

To effectuate this the government is urged to alter funds by approving additional budgets, coordinating aid agencies, seeking loans, utilizing domestic resources, mobilizing the private sector, setting up banks, insurance companies, hotels, public telephones, importers, exporters and investors.

Wealth can be mobilized by engaging governmental and non-governmental partners abroad. Resources can also be obtained from countries and donors through bilateral and mass communication. The diaspora may also play a role. They are able to give hands in the affected areas of Amhara, Tigray and Afar, he said.

The process must not only to build infrastructure but also to rehabilitate raped mothers and children and stabilize them with community support. Psychological and Social support must be provided together. There are many citizens and farmers whose property has been destroyed. These should be considered in the rehabilitation scheme.

Amanyihun suggested that interest-free loans should be made available through the facilitation and settlement funds. Ethiopia’s wealth is its citizens. The evil of the TPLF has destroyed everything that is a source of economic wealth for the poor.

For this reason, it was killing animals and destroying and burning mature crops. The group has followed a wicked course. The government must understand this and rehabilitate its citizens.

Citizens should be the center of attention in redevelopment and reconstruction. Dessie and Kombolcha corridors, especially those in the economic and trade deficit, have been devastated. They have been looted. Therefore, the government should provide low-interest bank loans in this area. Taxes must be extended without penalties or interest. Temporary tax relief is also required. Since infrastructure alone is not enough for the investor, the government will have to work hard to get these to work.

According to the expert, it will take a lot of time for foreign investors to get back to work. They need support while they are at work. The effect is not easy. Loans need to be facilitated. It may seem simple. For example, there is a cork factory in Kombolcha. If left unmanaged, they can be left astray and lose the right path.

Trade and Revenue Bureaus should work with the Chamber of Commerce to determine the extent of the risk. The problem with the merchant is also known. What happens in one part of the country is the pain to another. It requires a lot of inputs, especially in factories. Organizations may be out of business if something goes wrong. Therefore, the current catastrophe as a country is so serious that it needs to be identified in detail.

In easing the rejuvenation practice financial institution has to share the burden under going to affording a very low interest rate. Therefore, everyone needs to be aware of the situation and share the complications.

But there are also international lenders for such purposes. There are interest-free providers. For example, the African Development Bank; there is a World Bank in South East Africa.

In addition, there are many lenders. There are countries we call friends. The Ministry of Finance is currently coordinating this. But if this is the case then maybe there is a problem. The Ministry of Finance has a lot of work to do. But there is a need for a body that coordinates all sector offices, regions and other organizations.

“On the other hand, there is a need to warring embargo as there is an escalating global pressure. Hence, the family needs to stop fighting. It is thought that this will alleviate some of the tensions and conflicts with the West. This is one indication of the recent Prime Minister Abiy Ahmed’s (PhD) telephone conversation with US President Joe Biden. Many people are pointing to a commission that is being set up to some extent to build national consensus. This government is going a long way. I think the situation in the country will be stabled and calm when the politics of the country is relaxed,” the expert remarked.

President Sahlework Zewde recently held talks with the African Development Bank and pledged its support. The big question is whether the terrorist group will stop fighting when the Ethiopian government stops fighting and enters into development.

“The ball is now in the hands of the TPLF. The government has gone too far and is reaching out for peace. If this does not happen, the TPLF will not succeed. I do not think the government expects any opposition to the release of prisoners, including Sebhat Nega. I doubt the TPLF will respond as much as the government. Now the government is playing ball in the TPLF field. I do not think Westerners will continue to turn their backs on this. So, I do not think that they will say that we will not reach out for reconstruction. In addition, new innovative ways of mobilizing resources should be pursued during the reconstruction,” he added.

Efforts must be strengthen the forces not only in war but in all fields. It is time that the nation must break free from the shackles of poverty. Ethiopians are impoverished, not because of who they are, but because they are not wise in exploiting their resources. In addition, they need to work smarter and smarter. In general, the government should coordinate with all those inside and outside the country.

The expert finally recommended that everything is important. A quick end to the war will help speed up tourism. If the farmer gets the inputs quickly, he will go into production quickly. If agriculture grows, the nation’s exports will increase. Factory inputs are also widely available. It is a must to make full use of all available economic opportunities. There should be no time, opportunity, or resources wasted. It is important to follow all options to get the most out of it.

The January 23/2022

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