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Djibouti's economy hit hard by war in Ethiopia


Tuesday November 23, 2021


The government of Djibouti says the year-long war in neighbouring Ethiopia has had a drastic impact on its economy.

Over 90% of Ethiopia's goods pass through the port of Djibouti and both nations have invested billions of dollars to build a trade corridor including a rail link.

Djibouti’s Finance Minister, Ilyas Moussa Dawaleh, told the BBC that due to the conflict trade had reduced to about 20% of what it was. He said the country had lost $1.7bn (£1.3bn).

Tigrayan rebels have recently been trying to seize towns in the Afar region - a move that appears to be an effort to cut off Ethiopia's vital trade link with Djibouti.



 





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