Despite Coronavirus, Export Revenue in the last 10 Months has shown Remarkable Results

There have been widespread concerns that a number of countries’ tight measures to curb the spread of coronaVIRUS could put significant strain on Ethiopia’s exports. This concern is not unfounded; It takes into account the realities of the world. World trade and commerce are in crisis, with many countries closing their borders.

The number of countries that have stopped trading with foreign countries is also significant. Even those who have not stopped trading have reduced their imports. With this in mind, economists have been voicing concerns that Ethiopia’s exports, which have been declining year-on-year, could be in serious trouble.

According to the Ministry of Trade and Industry, Compared to the same period last year, exports have increased by 84 percent for flowers, 10 percent for oilseeds, 7 percent for khat, 22 percent for textiles and garments, 144 percent for gold, 22 percent for livestock, 16 percent for coffee, 16 percent for fruits and vegetables. .

The Prime Minister, Dr. Abiy Ahmed, addressed parliament two weeks ago in response to questions from members. Coronavirus is having a wide range of side effects, but it is also having some positive effects. Ethiopia’s export sector has shown positive results over the past 10 months in the fight against cholera. The cost of coffee, flowers, minerals, and meat has increased dramatically. Unexpectedly, Ethiopia has been in a state of disarray for the past ten months. He said the country has achieved a great deal in terms of export.

He noted that the coffee market has declined due to the effects of the Coronavirus, adding that Ethiopia’s efforts to supply coffee to the world market have increased significantly. He said the export of coffee has reached 667 million USD in the last 10 months, an increase of 16 percent compared to the same period last year.

In an interview with Addis Zemen newspaper, Negash Haile, a lecturer in economics at Dilla University, said that various factors have contributed to the positive impact on export revenue over the past 10 months. .According to Master Negash: Among them, Prime Minister Dr. Abiy Ahmed said the impact of the Konona virus on other countries may have created a favorable environment for Ethiopia. The fact that countries with similar exports to Ethiopia are taking strong measures against the coronavirus virus and that Ethiopia is taking relentless measures so far may have contributed to the improvement in exports.

In particular, if the positive impact on export trade has been recorded since March, it could be said that the effects of coronavirus can be attributed to the increase in Ethiopia’s export revenue. To this end, it is important to identify the months in which the positive successes in the export business have been recorded.

Negash also mentioned the impact of the Corona virus on other countries’ exports in addition to its positive impact on Ethiopia’s export sector. They believe that the reduction in the purchasing power of the Ethiopian Birr has contributed to the revival of export trade. Negash, who spoke on condition of anonymity because he was not authorized to speak on condition of anonymity, said the declining purchasing power of the Ethiopian Birr and the rising value of the dollar would make Ethiopian products lower in the world market. This will increase the demand for Ethiopian products in the world market. Most buyers also sell it cheap

As explained by Mr Negash: Establishing good diplomatic relations and signing trade agreements will greatly contribute to the revitalization of export trade. When strong diplomatic relations are established and trade agreements are signed, restrictions and controls on each other’s products are reduced. Decreasing restrictions and controls will help boost exports. The Ethiopian government’s agreements with various countries may have contributed to the success of the past ten months in terms of trade performance.

Negash says improving product quality contributes to positive success in business He noted that potential companies from various countries have entered Ethiopia’s industrial parks. These companies are mainly producing products that take into account the global market. Textiles and clothing companies in particular are doing something that could serve as a model. He explained that the fact that these companies started producing and exporting quality products could contribute to the success of the sector. The positive results during this difficult period have not been achieved much in the past several years. According to Negash, this success after six years should not be underestimated and special attention should be paid to sustaining the current growth. It is important to look at the experience of other countries to ensure the continued growth of the sub-sector. He said countries such as China, Korea, Japan and others should set an example. These countries have stimulated their exports by encouraging export industries. In addition to mobilizing, they have been able to ensure the sustainable development of the sector.

As explained by Mr. Negash: It is important to create a conducive environment to encourage export investors. Companies in this field work hard for themselves if they are comfortable and secure. Therefore, it is important to create a conducive environment by improving the gaps in investment policy and by providing the necessary infrastructure for investment.

In the 21st century, all countries have open borders. Their borders are open and there is competition between countries. Countries compete with each other to attract foreign investors. Foreign investors also choose countries that are in a better position by comparing countries. You choose the country that has the best infrastructure and policy. Therefore, Ethiopia needs to do its utmost to solve the security, infrastructure and policy problems and become the best country for investors, he said.

Negash says domestic investment can only be sustained by encouraging local investors. They point out that local investors need to be supported and monitored in order to produce products for export. Stable security is one of the most important factors for investment, he said, adding that the government should provide the necessary protection for investors. He said companies, especially in areas with security problems, should be protected as much as possible. Unnecessary government intervention is one of the challenges to investment growth. Government intervention should be moderate. Therefore, government intervention at the policy level should be minimized. Reducing unnecessary government intervention is crucial to sustaining change in the export sector.