Mounting violence in Ethiopia has seen many killed, as protests against the government’s economic and human rights policies continues. The tensions at the heart of the crisis are systemic ones, yet what makes the violence particularly worrisome is that foreign investors have become prominent targets. Foreign businesses are being systematically attacked in protest of the government’s development-centric approach, with protesters citing land grabs and unfair competition as key issues.
Foreign investor confidence in Ethiopia has been shaken following nearly a year of unrest, with the country’s government now admitting that many people have died as a result of police crackdowns and a deadly stampede in the country’s Oromia region.
Government estimates claim that around 40,000 workers at foreign companies have been affected by the disruptions; as cement, textile, flower, and agribusiness firms have been attacked. Popular sentiments that the benefits of growth are not being felt by all, combined with worries about foreign goods undercutting local producers has made Ethiopia a very dangerous investment locale.
Prime Minister Hailemariam Desalegn declared a six-month state of emergency in an attempt to quell the protests by ethnic Oromo and Amhara communities over a land dispute and political marginalisation. The unrest has caused millions of dollars worth of damage to foreign-owned businesses, including flower farms and other agribusinesses. The anti-government protests have dented the view that Ethiopia is a stable partner for investment, according to Emma Gordon, a senior analyst with research firm Verisk Maplecroft. “[Foreign] investors are very concerned with the situation in the country, with some already pulling out,” she said. “They were willing to look past the human rights [abuses] perpetrated by the security services, but it’s difficult to ignore them now.”