Ethiopian PM

The Ethiopian PM has sent a special message to the Emir of Qatar. The Ethiopian state media today reported about this special message.

Ahmed Shide, the Ethiopian Finance Minister, delivered this special message from the Ethiopian Prime Minister Abiy Ahmed to Tamim Ibn Hamad Al Thani, the Emir of Qatar on Monday. The Ethiopian and Qatari state sources did not disclose details of the message.

According to the sources close to this development, the Ethiopian PM requested financial assistance from Qatar through this message. Selection of the Finance Minister for the purpose of the delivery of the message is indicative of the fact that PM Abiy Ahmed wants economic assistance from Qatar.

Ethiopian economy is under stress as official currency birr is losing value. While birr official exchange rate is 57 per dollar, in black market its rate is 120 per dollar.

Ethiopia has been in talks with the International Monetary Fund (IMF) and World Bank for more than a year, hoping to get a bailout package of a few billion dollars. Both the financing institutions want the Ethiopian government to devalue birr. Ethiopian government is willing to devalue birr not more than 10% while IMF and & WB want birr to be devalued around 60%.

Despite several rounds of talks between the government and lending institutions, no agreement could be reached. Ethiopia is turning towards friendly countries hoping to receive hard cash. Ahmed Shide’s visit to Qatar seems to be an attempt by Ethiopia to seek monetary support from Qatar.

In addition to economic support, Ethiopia wants Qatari support in case of pressure from Turkey to stop Ethiopia from implementing MoU with Somaliland. In January this year, Ethiopia signed a controversial MoU with Somaliland. If implemented, the MoU would give landlocked Ethiopia access to sea through Somaliland in return for Ethiopia recognizing Somaliland as a country.

Somaliland is internationally recognized part of Somalia. Somalia has been vowing to stop the implementation of the MoU. It signed a defense treaty with Turkey in February to stop the MoU.

Ethiopia and Somaliland are gearing up to implement the MoU. Turkey could be drawn in to support Somalia. Keeping in view friendly between Turkey and Qatar, Ethiopia hopes Qatar could stop Turkey from actively intervening in support of Somalia.

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