Ethiopia's Economy
The Tigray War's Economic Toll
How the 2020-2022 war in Tigray killed many people, disrupted the economy, cut foreign aid and trade preferences, and damaged Ethiopia's growth story.
From November 2020 to November 2022, war raged in Tigray.
Human cost
The war killed very large numbers of people and caused famine conditions and mass displacement.
Economic costs
- Destroyed infrastructure and factories.
- Disrupted farming and trade.
- Government spending shifted to war.
International response
- The US removed Ethiopia from AGOA.
- Some aid and lending was paused.
Peace
A peace agreement was signed in Pretoria in November 2022.
Lesson
Conflict can undo years of development quickly.
The closed factory
A textile factory in Mekelle closed during the war, leaving its workers without income.
Thinking growth protects against conflict
Conflict can reverse development.
Key takeaways
- War in Tigray lasted from 2020 to 2022.
- It caused huge human and economic costs.
- Ethiopia lost AGOA access.
- Peace was signed in Pretoria in 2022.
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