Ethiopian Business Review

Wide Spread Contraband Trade Cripples Ethiopia

Contraband , part of the shadow economy, is still a threat to Ethiopia’s economy. But even more, it has recently started to affect the well-being of the nation. The recent violence in the states of Ethio-Somali and Benishangul Gumuz shows the severity of the problem. Items from textiles products to precious metals are traded by contrabandists. This has paved a way for a shadow economy to thrive, raising its contribution to the GDP to as high as 40Pct. EBR’s Ashenafi Endale investigates.

Sunday, 16 September 2018 15:00
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Before the 1880s, Eritrea was part of Ethiopia. It was the advent of colonial rule that created a historic divide between them. Global developments after the second World War and diplomatic efforts by Emperor Haileselassie helped the reunion of the two countries in 1952 through federation. However, the federation was abolished in 1962 and subsequent internal power struggles ignited the Eritrean liberation movement. In a war that spanned for 30 years, Eritrea finally became an independent state in 1991.

The two countries established formidable relations since then. That close relationship, however, was short lived, because of a bloody two-year war between the two countries brokeout in 1998. 

With the coming of a new leadership in Ethiopia, the two countries have now started a new chapter after two decades of a no-peace no-war situation. Eritrea, whose economic growth has been highly constrained because of the hostilities with Ethiopia over the past 20 years and UN sanctions, is now one of the least developed countries in the world. Even though it is difficult to access up to date data, estimates by the World Bank shows that over 60Pct of Eritreans live in poverty. The government’s isolationist policy, which has highly discouraged the private sector, has contributed for its deteriorating economy. EBR Staff Writers visited the state of Eritrea last month to compile this report. 

Thursday, 16 August 2018 07:43
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The Rise of A Shadow Government

State capture refers to systematic high level political corruption that establishes a hidden political regime at odds with the constitutional purpose of the state, by capturing politicians and parties, journalists and the media, the police as well as key state institutions such as the legislature, the executive, the judiciary and regulatory agencies in order to protect and to benefit its own private interests. Although state capture is a concept that has received extensive attention principally in the post-communist states of Eastern Europe and Latin America, it has also found its way into Africa’s political discourse in recent years. In fact, the influence of state captors is growing in developing countries. Ethiopia is no exception, as evidenced by the mismanagement of massive mega projects and numerous corruption scandals as well as political persecution, especially in recent years. EBR’s Samson Hailu investigates the extent of the phenomenon in Ethiopia.

Friday, 10 August 2018 15:00
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