Ethiopia earns about $500 million dollars from export of coffee over the first eight months of Ethiopia’s current budget year, which began July 8, 2019.
The major importers of Ethiopia’s coffee Arabica are Germany, Saudi Arabia and Japan, according to Ethiopian Coffee and Tea Authority, the state agency in charge of helping the growth of the sector. The money is secured from export of 160,000 tons of coffee, of which 140 tons are processed (roasted and/or grounded coffee), according to Sahlemariam Gebremedhin, Public relations head of the Authority, who spoke to the state daily English, The Ethiopian Herald newspaper.
It is stated that compared to the previous budget year same period, the export volume of Ethiopia’s coffee has increased by 37,000 tons and $25 million. As the world is currently struggling to slow down the spread of COVID-19 (coronavirus) pandemic by blocking the movement of people and goods from one place to another, international trade and supply chain has been severely hit.
As a result, many African countries including Ethiopia, have already begun feeling the economic burden of COVID-19 as sectors such as trade, tourism and investment has almost frozen. To help Africa deal with the severe impact of COVID-19 Prime Minister of Ethiopia, Abiy Ahmed has recently proposed the G20 countries, which represent 80 percent of the world’s economy, to release some $150 billion and to consider debt relief, among others.
The UN Secretary General Antonio Guterres on his part indicated that Africa immediately need $2 billion to combat the pandemic.
Many countries across the world are now allocating additional budget (stimulus money) to rescue the global economy from potential recession and depression as a result of the lockdown. The largest economy in the world, the United States has approved a two trillion money to fight the pandemic and distribute cash to the workers forced to stay at home and save the companies from bankruptcy. Japan, United Kingdom, Germany and many other countries have also been allocating billions of dollars to stimulate the economy and help their citizens locked in their houses.
As global trade supply chain is disrupted by the pandemic, many African countries including those oil exporting such as Nigeria are also suffering from oil price decline. As a result, the G20 countries who virally met yesterday have approved a five trillion budget to rescue the world economy from recession or even likely depression as a result of COVID-19.
Currently COVID-19 has killed over 21,000 people while infecting about 465,915 people in 200 countries across the world. The pandemic which originated from Hubei province of China a few months ago, is now severely hitting European countries, mainly Italy, Spain, France. Countries like Iran, South Korea and the United Sates have also been reporting the death of thousands of their people by COVID-19.