“Countries Should Attract Foreign Direct Investments For Post COVID Reforms”: Genet Teshome Jirru

On 17 May 2020, a panel discussion was organized by Global Research Forum on Diaspora and Transnationalism [ GRFDT ] on the topic “ Pandemic In Africa : Local Responses And Global Strategies ”.

During the virtual panel discussion series hosted by GRFDT, Mr. Genet TheshomeJirru, Deputy Head, Ethiopian Embassy of People’s Republic of China, said that the government must promote Foreign Direct Investments [FDI] for reviving their economies for post COVID times. For this, adequate investments must be made in infrastructure facilities and Industrial parks. 

Ethiopia and COVID-19

From its first case reported on March 13,2020, community transmission of COVID-19 impacted Ethiopia adversely. The country took many measures such as effective surveillance and health monitoring of all the arrivals and formation of a taskforce at Ministry level. But the cases are getting higher day by day.

The health infrastructure was not really equipped to manage the large outbreak. Preventive measures were also taken at individual and community levels.

Pandemic and Economy

The Ethiopian Economy is expected to face a 3% decline in its growth rate post pandemic. Other issues like debt burden, decline in foreign currency earnings, fall in remittances had further intensified the condition. 

With a very fragile economy, Ethiopia had consented to open up the economy and to restart their economic activities. These production and economic activities are encouraged while maintaining social distancing. The country has also eased the pressure on the vulnerable social groups and the informal sector.  

Support of Diaspora

The Ethiopian Diaspora residing outside the country had contributed over 100 million Birr and equipments to support the efforts against COVID-19. With a gain from the African Free Trade Agreements, authorities have welcomed investments from the diaspora to start enterprises at Ethiopia. This would further create employment opportunities at regional levels. 

Support round the Globe

The contributions and assistances from the International Organizations such as The World Bank, International Monetary Fund [ IMF ], European Union, United Nations [ UN ], World Health Organization [ WHO ] and from countries like China, Morocco, UAE, Kuwait etc had been a great aid for the country. It helped Ethiopia to stimulate the economy and to fight against the pandemic. 

Government Intervention 

Borders, nightclubs and other entertainment outlets as well as schools, were closed as a precautionary measure to curb the spread of COVID-19. Mandatory 14 days quarantine at traveler’s expense and actions to postpone elections were taken. 

Policy interventions with Birr 300 million package to bolster health care, Birr 5 million aid package, US$1.64 billion in funding for emergency food distribution, health care support in the worst case were also made.   

Stranded Migrant Workers in Lebanon 

Despitebeing second populous country in Africa, Ethiopia had failed to create employment opportunities to the young people. So they migrate to Middle East and Gulf countries in search of jobs. 180,000 Ethiopians of which 94% women are working in Lebanon. These domestic workers are not covered under domestic labour laws. They are exposed to gender based, physical and sexual violence. 

Although facing an economic downturn, Ethiopia welcomed 650 migrant workers from Beirut and received over 15,300 returnees. 

Trafficking through Yemen

Devastated by a civil war, Yemen had been a safe hub for traffickers. Lack of jobs and the need for better employment opportunities are the main causes for Ethiopians to fall under the trap of traffickers. With preferred destinations being Saudi Arabia, these migrants are unaware of the war situation in their countries and are tortured, abused by traffickers. 

Government has been working hard to create awareness among people through NGO’s and to create employment opportunities at home to make people stay and flourish in their home countries, Genet TeshomeJirru concluded.   

Unnikrishnan V is pursuing Masters in Economics. He has a deep rooted interest in Migration, Development and Health issues. Twitter ID – @unnikrishnan_21

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