Due to the sharp Forex Crunch that Ethiopia is currently experiencing, all sectors of the economy and especially heavy industries and mega developmental projects have been affected.
Over the weekend, the Addis Abeba based business weekly has reported that heavy industries and major investments have asked the government “to consider facilitating interest relief and settling debt extensions for loans they previously took.”
The currency crunch has affected the import, production and export business in Ethiopia since last year.
Steel, pharma and construction companies are among some of these major companies suffering from the scarcity.
The severity of the crunch is observed in the difficulty of finding at least USD 30 million to kick start the pharmaceutical sector which is currently in a collapse mode.
However, the Newspaper added “For the heavy industries that experts estimated for over 150 companies the hard currency demand would be in hundreds millions of dollars.”
The private sector also argued that even though they borrowed a huge amount of money to expand their business and manage the day to day operation the current political instability particularly in Oromia region, which is the major destination, particular the surrounding of Addis Ababa, for heavy industries in the country has been affected in addition to the problems they are having obtaining inputs, Capital reported.
“The shortage of hard currency and the unrest has affected our revenue,” the private sector actors claimed.
Read the full report from the Capital Newspaper