Economics
Once-Thriving Economy in Trouble as Ethiopia’s Abiy Cracks Down
- Internal strife weighs on nation’s currency, Eurobonds
- Abiy remains clear favorite to win June 21 elections
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Three years after heralding an end to authoritarian rule and plans to open up Ethiopia’s economy to foreign businesses, Prime Minister Abiy Ahmed is alienating allies and frightening off investors.
Reforms the once-feted Nobel Peace Prize laureate began implementing in 2018 have sparked ethnic clashes and a civil war in its northern Tigray region that has spawned a famine. His failure to end the violence has drained state finances and drawn sanctions from the U.S. and elsewhere that may undermine plans to restructure the nation’s debt.