ECONOMIC ANALYSIS: #COVIDー19’S TEST TO THE ETHIOPIAN ECONOMY
Program Officer for CIPE’s Regional Office in Ethiopia, Getachew Teklemariam Alemu, recently wrote an article for the Adis Standard about the effects that the COVID-19 global pandemic will have on the Ethopia’s economy, as well as what businesses can do to help, and survive, during these difficult times.
Read the full article here: https://addisstandard.com/economic-analysis-covid%e3%83%bc19s-test-to-the-ethiopian-economy/
Generally speaking, the pandemic will put considerable challenge to the private sector. It should be recalled that the Ethiopian private sector is infant, less capitalized and hardly institutionalized. As such, it is vulnerable to seasonal changes. It is obvious that a factor as global as COVID-19 will have sizeable impact on the private sector. This is furthered by the fact that the market is also undeveloped and provides little alternative for risk diversification to the private sector.
As a specialized sub-sector of the private sector, the healthcare service industry will surely be affected hugely. Included in this are hospitals, pharmacies, emergency care service providers, importers, medical equipment suppliers, specialized laboratories, technical service providers and consultants. All will be overstretched and under-supplied, while at the same time the expectations from them will be tremendously high.
As the saying goes, extraordinary times require extraordinary measures. Regardless of the fact that the government is overstretched with multiple demands, from ensuring macro stability to national elections, it should take the fight against COVID-19 as a strategic priority. Recognizing the impact the pandemic will have on the economy and the resulting pressure on jobs, income and livelihood, the government has to institute tailored stimulus package. It ought to avail resources to support the private sector, with particular focus on relieving the pressure that health care service providers feel.