Ethiopia Urged To Take Decisive Actions to Reduce Economic Effects of Russia-Ukraine Conflict

March 21/2022 /ENA/  Ethiopia has to take decisive measures to reduce the looming economic effects of the conflict between Russia and Ukraine particularly on its import-export trade, Tshwane University of Technology (TUT) Department of Economics Senior Lecturer, Professor Mulatu Fekadu said.

The economist told ENA that the conflict between Russia and Ukraine is causing economic pressure in many countries, including Ethiopia, which has also been tested by cascading challenges.

He stated that the price of products being imported both from Russia and Ukraine to Ethiopia, including fuel and food items have been soaring demanding swift measures to contain the challenges.   

The lecturer noted that the economic pressure of the war is irreversible unless the war is over, but the government should take measures to reduce the economic effects.

He advised conserving available resources, enhancing import substitution and  diversification of trade destination to help ease the looming challenges.

The economist has also suggested for budget adjustments considering the global price increment, and seize the opportunities of the rainy season to grow fast-growing agricultural products.

Ethiopia needs to have a diverse supply chain to withstand the economic pressures caused by various global crises as the existing supply chain can wreak havoc on the economy in the event of conflict, he stressed, stating that the US and European sanctions on Russia could lead to a sharp rise in fuel and food prices.

Diversifying the supply chain would be expanded to create more business partners and would require a lot of effort, Mulatu pointed out.  

Various mechanisms should also be designed with a view to reduce the fuel consumption of the nation by limiting its supply, the economist advised, stressing the need to conserve food products.

Wise measures and use of available resources, prioritizing on important national projects, reducing expenses and undertaking swift supply of goods to the people can reduce the economic burden of the conflict between Russia and Ukraine, Mulatu underlined.  

Ethiopia should use technologies to increase its agricultural productivity and reduce its imports, he further added.