Ethiopia: Ethnic Conflict Could Unravel Ethiopia's Valuable Garment Industry

analysis

Ethiopia has long been considered one of Africa's economic wunderkinds. Until recently, it had relative political stability in comparison to other countries on the continent. And, with an average GDP growth rate of 10% in the past decade and a government that instituted policies friendly to foreign investors, the country was able to attract South and East Asian clothing manufacturers. These sell to international brands, such as Decathlon and H&M.

But, for the past two months, violent conflict in Ethiopia's northern Tigray region fuelled by ethnic power politics has threatened the country's stability. According to the International Crisis Group, the violence has likely killed thousands of people, including many civilians, displaced more than a million people internally, and led some 50,000 to flee to Sudan.

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