The Impact of COVID-19 on the Manufacturing and Service Sectors in Ethiopia

Abstract

The virus that broke out in the Chinese locality is now delivering a significant international crisis. The pervasive impact that it would impose on the African economy has been addressed in my preceding work submitted to African political economy. This part of the study assesses the literature and the fresh data set in regard to the impact of COVID-19 on manufacturing and service sectors in Ethiopia. For such end, the principal question in place focuses on addressing how COVID is affecting the manufacturing and service sectors in Ethiopia and the measures taken by the Ethiopian government to mitigate the impact. Hence, on the bases of secondary data collected from documents and open data sets that specifies the key effects of COVID pandemic on manufacturing and service sectors in Ethiopia. The pandemic cases continue to raise rapidly across different regions in Ethiopia and the manufacturing and the service sectors particularly the tourism industries highly affected by the pandemic crisis. As a result, the reduction in manufacturing goods, high joblessness and income losses are taking in Ethiopia. The government has taken some administrative measures such as the declaration of a state of emergency as well as fiscal and monetary measures to mitigate the spread of the pandemic and stimulate the production of the industries. However, without international collaboration on health system, trade, finance and macroeconomic policies, these measures would not be effective.

Keywords: COVID-19; Ethiopia; Manufacturing; Service; Policy Response