Why Djibouti needs peace in Ethiopia

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The recent and escalating conflict in Ethiopia is worsening prospects for regional peace, trade and undermines regional cooperation, as a result of this ravaging covid 19 pandemic and unprecedented Ethiopia Tigray conflict. 

Djibouti is a major trade conduit for Ethiopia, Africa’s second-most populous country. The conflict in the northern Tigray region has raised major economic uncertainty. 

In the last 12 months, the country had lost half of its national wealth amounting to $1.7 billion, due to a decline in revenue and jobs. 

Any disruption in Ethiopia’s economy will hurt Djibouti. At the same time, Djibouti’s stability is critical to Ethiopia’s economic well-being. Indicating the interdependence of the two Horn of Africa countries. Both economically and regarding security. Given their ties, two regional development could damage Djibouti’s economy if they slow down financial contact with Ethiopia. 

For months now, the movement of goods from the port of  Djibouti to Ethiopia has been hindered due to the endless conflict between the Tigray Defense Force (TDF) and the Ethiopian National Defense Force (ENDF). 

Ethiopia relies on Djibouti’s port and transport-related infrastructures for 95 pc of its maritime trade, according to the World Bank, 85 pc of Djibouti’s port activities are derived from Ethiopia’s import and export transactions. Contributing substantially to Djbouti’s overall economic growth.

The conflict has widened, necessitating calls from the international community for a ceasefire.