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Why Ethiopia And Eritrea Should Resume Economic Relations

Why Ethiopia And Eritrea Should Resume Economic Relations

From allAfrica

Ethiopia and Eritrea ceased business relations upon the commencement of the border war in 1998. While a small amount of barter trade still exists, it is fair to say that trade relations between the two countries are non-existent – this is very much to the detriment of the private sectors in both countries (and across the region).

Since the closure of the border, the economic fortunes of Ethiopia and Eritrea could hardly have been more divergent. While both remain poor countries in terms of per capita wealth, Ethiopia has been among the fastest and growing countries in the world averaging a steady 10 percent per annum growth for the past nine years. Conversely, as per the chart below, Eritrea has suffered vast fluctuations in its economic growth from a low of – 9 percent in 2008 to the 2012 level of + 7.5 perent.

Written  by Tony Carroll/Read more at allAfrica