Ethiopia's Somali region battles with inflation

JIG-JIGA - The Somali region of Ethiopia is currently battling inflation, following a steady decline of the currency, leading to struggling of hundreds of businesses within the Eastern region of the federal republic of Ethiopia, which is battling other domestic conflicts.

Mustafe Omer Agjar, the region's president, said his administration could do little to improve the situation, especially with the rising costs of food and dollar. The regional president blames the ongoing war between Russia and Ukraine as the basis for the conflict.

The regional leader said the current escalation of food prices could only be managed by the Central Bank of Ethiopia which is domiciled at the federal government level under the leadership of embattled Prime Minister Abiy Ahmed.

"Since we cannot address global inflation as well as the dollar inflation, the only thing the government can do is to address the impact of inflation, which is food insecurity. The poor are starving because of the economic downturn.”

Mustafe Umer suggested that banks in Wajale town along the border with the federal republic of Somalia [in Somaliland state], should be closed down to allow the country to control inflation. This means that cross-border trade will be controlled.

Further, he said programs such as expanding the poor's feeding program and convincing international donors that the number of people in need of food has increased in the Somali region would help regulate the crisis. He also noted that more money had entered the region to give to people as food prices have increased.

The Horn of Africa is currently battling inflation coupled with several conflicts which have rendered some operations impossible for various countries. Ethiopia is battling a humanitarian crisis in Tigray which has left dozens of people dead.

GAROWE ONLINE