Economic impact of COVID-19 in Somali Region, Ethiopia

Outside Addis Ababa, Somali Region of Ethiopia has suffered the highest number of COVID-19 cases, and infections are rising. Given the existing vulnerabilities in the area, the impact of the crisis on livelihoods is expected to be particularly severe, and will be further exacerbated by the desert locust situation. In the report “Economic impact of COVID-19 in the Somali Region of Ethiopia: assessment and recommendations” (June 2020, 38pp), Mercy Corps analyses how the economy and population of Somali Region is being affected by the pandemic.

For the pastoralists, agropastoralists, entrepreneurs, workers and households in Somali Region, the most pronounced and longest-lasting impact of COVID-19 is likely to be on their food and economic security. In April and May 2020, Mercy Corps made rapid surveys covering various aspects of the Region’s economy to provide a snapshot of the situation. It found that the economy is not yet on the verge of collapse but is in sharp decline. Many crucial market actors struggle to survive. Supply chain actors for essential foods worry about their ability to keep their doors open, and enterprises doubt if they can pay salaries for more than a few months. Household expenditure and consumption appear to have fallen significantly, in part driven by the stagnation in livestock marketing, the major source of livelihood in the region.

Mercy Corps recommends responses designed to improve the purchasing power of vulnerable households, financial services, supply chains for essential foods, livestock market systems, and businesses and employment.

Posted on 2 December 2020 in Pastoralism & Marketing, Pastoralist Livelihoods & Nutrition