From this perspective it might appear that Ethiopia has little to fear from the current global crisis. In addressing the Parliament on the matter, the PM argued “In general, we don’t expect drastic effects on our economy, our financial structure is not as liberalized as those of affected countries and the economy is not intertwined to Western economies to face a crisis,”.

However, Ethiopia relies on the outside world to finance many of its development programmes, which comes in a form of aid or investment. Therefore, the crisis is likely to reduce the flow of aid and investment. The Ethiopian Electric Power Corporation has indicated that its investment plans will severely affected due to the crisis (www.ethiopiareporter.com).

Secondly, the remittance is also likely to be affected as Ethiopians leaving abroad feel the pinch.

So, Ethiopia is not isolated after all!

Thank you.