Monday, November 19th, 2018
header

UAE to give Ethiopia $3 billion to ease foreign currency shortage

The United Arab Emirates pledged a total of $3 billion in aid and investments to Ethiopia on Friday, an Ethiopian official said, a major show of support for the new prime minister, Abiy Ahmed.




The UAE will deposit $1 billion in Ethiopia’s central bank to ease a severe foreign currency shortage, government spokesman Ahmed Shide told Reuters at a palace in Addis Ababa after Abiy met with Abu Dhabi’s crown prince, Sheikh Mohamed Bin Zayed.

No officials from the oil-rich Gulf state briefed journalists, but the UAE and its Gulf allies, in particular Saudi Arabia, regularly give large sums to cooperative governments in the broader region.




In 2013, the UAE was one of three Gulf monarchies that pledged a total $12 billion to the new government after the military ousted a president from the Muslim Brotherhood.

Ethiopia’s Abiy gamble

Abiy, a 41-year-old former intelligence officer, took up his position office in April after three years of unrest that had threatened the EPRDF coalition’s hold on power.

The coalition’s choice of Abiy, from an ethnic group that has long been marginalised, signalled its willingness to allow some political reforms, but he has already gone farther and faster than most had expected.

Two weeks ago the government said it would sell stakes in its lucrative telecoms monopoly and other assets including the national airline.

It also pledged to end a war with long-time enemy Eritrea, offering to implement a peace deal signed in 2000.

A timely Emirati intervention

Abiy had travelled to both Abu Dhabi and Riyadh shortly after taking office.

Shide said the UAE’s pledges would have a “significant impact” on Ethiopia’s foreign currency shortage.




Despite showing the fastest growth in Africa for the past decade, the landlocked country of 100 million people is heavily dependent on imports.

A hard currency crunch caused partly by spending on big infrastructure projects has reduced foreign currency reserves to less than one month’s worth of imports, according to analysts’ estimates. Foreign investors and local businesses say all sectors of the economy have been hit.




Abiy said in April that the government’s plans to continue expanding its infrastructure and the nascent manufacturing sector meant the currency crisis might last for 15 or 20 years.

A Ethiopian foreign ministry official said the other $2 billion from Abu Dhabi would be invested in tourism, renewable energy and agriculture.

A tour of Addis Ababa

On Friday afternoon, Abiy got behind the wheel of a white car and personally gave Sheikh Mohamed, the de facto leader of the United Arab Emirates, sitting in the passenger seat, a tour of Addis Ababa.

Shide said the crown prince’s delegation included investors interested in real estate and hospitals.

Readers Comments (0)

Comments are closed.

Wararka xiga

Aqoonyahan C/rashiid Cabdi Jaamac oo daboolka ka qaaday dareenka dhalinyarada reer Awdal

November, 18, 2018
Aqoonyahan C/rashiid Cabdi Jaamac ayaa daboolka ka qaaday ...

Wefti ka socda jaamacadaha Carabta oo Burco tagey iyo ujeedada

November, 18, 2018
Wefti ka socda jaamacadaha Carabta oo Burco tagey. ...

Raiisal wasaare Xasan Cali Kheyre oo ka hadley dakhliga dawlada oo kordhey: SAWIRO

November, 18, 2018
Raiisal wasaare Xasan Cali Kheyre ayaa ka hadley ...

Muuse Biixi oo socdaal ku tagey Berbera iyo safarkiisa oo lagu arkin jufadiisa

November, 18, 2018
Muuse Biixi ayaa  u safrey Togdheer iyo safarkiisa ...

Madal looga hadlaayay halyey sayid Maxamed Cabdulle Xasan oo Jigjiga ka dhacay

November, 17, 2018
Madal looga hadlaayay halyey sayid Maxamed Cabdulle Xasan ...

Dhacdooyinka

Dabley lagu daba jirey oo lagu qabtey Muqdisho

October, 24, 2018
Dabley lagu daba jirey oo dadka dhib badan ...

Waxaad arki doontaan Muuse Biixi oo guriga loogu daatey: Jeneraal Caare

October, 14, 2018
Jeneraal Caare ayaa soo dhaweeyay ku xigeenkiisa jeneraal ...

Shacabka Muqdisho iyo ummada Somaliyeed oo u istaagey xasuuuqii 14 Oktoober

October, 14, 2018
Shacabka Muqdisho iyo ummada Somaliyeed oo u istaagey ...

Wuu baxay af maaha ee Sucuudiga ha sheego halka suxufi Khasooqi maray: Erduqaan

October, 9, 2018
Erduqan ayaa dalbadey in Sucuudigu cadeeyo halka uu ...

Maxaa keenay fashilka ku yimi ictiraafkii Somaliland: siyaasi Cali Faarax Cabdullaahi oo taabtey

October, 8, 2018
Maxaa keenay fashilka ku yimi ictiraafkii Somaliland raadin ...

Dhacdo ugub ah: dhalinyaro diley horjooge ka tirsan kooxda gaalaynta Muslimiinta ee Shabaab

October, 6, 2018
Dhalinyaro diley horjooge ka tirsan kooxda gaalaynta Muslimiinta ...

Dawlada Qadar oo duurjoog ka dhoofinaysa Somaliya iyo nooca ay tahay

October, 6, 2018
Dawlada Qadar ayaa duurjoog ka dhoofinaysa Somaliya iyo ...