The International Monetary Fund (IMF) has issued a warning that Eastern African economies remain at significant risk due to their ties to the Gulf, even as three vessels carrying 143,000 metric tons of jet fuel and gasoil have recently docked in Djibouti.
In its analysis released earlier this week, the IMF highlighted that nations in the Horn of Africa—Ethiopia included—are grappling with diminished demand for service exports, logistical challenges, and declining remittances, all stemming from their reliance on trade with Gulf countries.
The IMF also pointed out that ongoing conflicts could impact the global economy in multiple ways, leading to increased prices and slower growth.
Ethiopia is currently facing noticeable oil shortages, with reports indicating a significant decrease in truck movements due to the fuel crisis. Sources informed Capital that the lack of diesel fuel, essential for transporting perishable goods, poses a more severe threat to the economy than the shortage of gasoline. This situation is resulting in the spoilage of fruits and vegetables and financial losses for suppliers and farmers.
“The nationwide cargo transportation system is on the brink of collapse,” remarked one observer. Trucks are stranded across the country waiting for refueling, hindering the movement of agricultural products from rural areas and manufactured goods from urban centers. “This is inflicting financial damage on the economy,” said an exporter with three decades of experience in import and export services.
No Comment Found.