Firms in Ethiopia’s Industrial Parks : COVID-19 Impacts, Challenges, and Government Response

The Coronavirus 2019 (COVID-19) pandemic poses a challenge for Ethiopia’s ambitious industrialization agenda focused on export-oriented light manufacturing. This note summarizes results from a survey of firms in Ethiopia’s industrial parks. The dat...

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Main Authors:	Mengistu, Andualem, Krishnan, Pramila, Maaskant, Koen, Meyer, Christian Johannes, Krkoska, Eduard
Format:	Policy Note
Language:	English
Published:	World Bank, Washington, DC 2020
Subjects:	INDUSTRIAL PARKS CORONAVIRUS COVID-19 PANDEMIC IMPACT PANDEMIC RESPONSE FIRM PERFORMANCE GOVERNMENT PROGRAM WAGE SUBSIDY GARMENT INDUSTRY FIRM SURVEY FOREIGN CURRENCY SUPPLY CHAIN TAX EXEMPTION ACCESS TO FINANCE LAYOFFS WORKING CAPITAL LOAN
Online Access:	http://documents.worldbank.org/curated/en/382071601445731866/Firms-in-Ethiopia-s-Industrial-Parks-COVID-19-Impacts-Challenges-and-Government-Response http://hdl.handle.net/10986/34573

id	okr-10986-34573
recordtype	oai_dc
spelling	okr-10986-345732021-05-25T09:58:36Z Firms in Ethiopia’s Industrial Parks : COVID-19 Impacts, Challenges, and Government Response Mengistu, Andualem Krishnan, Pramila Maaskant, Koen Meyer, Christian Johannes Krkoska, Eduard INDUSTRIAL PARKS CORONAVIRUS COVID-19 PANDEMIC IMPACT PANDEMIC RESPONSE FIRM PERFORMANCE GOVERNMENT PROGRAM WAGE SUBSIDY GARMENT INDUSTRY FIRM SURVEY FOREIGN CURRENCY SUPPLY CHAIN TAX EXEMPTION ACCESS TO FINANCE LAYOFFS WORKING CAPITAL LOAN The Coronavirus 2019 (COVID-19) pandemic poses a challenge for Ethiopia’s ambitious industrialization agenda focused on export-oriented light manufacturing. This note summarizes results from a survey of firms in Ethiopia’s industrial parks. The data suggests that over the past months, the pandemic has severely impacted firms’ ability to produce and sell their output. The availability and affordability of foreign inputs and the availability of labor are widely reported as constraints to production. Government support measures have not reached the majority of firms. After these initial demand- and supply-side shocks, firms in industrial parks are now entering a new uncertain phase: over the next six months, firms expect that orders will decrease by an average of 20 percent and employment by 17 percent compared to the same period last year. These findings illustrate the need for sustained support to protect firms and workers from the impacts of the pandemic and to preserve the significant investments made in this sector. Wage subsidy schemes and working capital loan programs will be appropriate to mitigate large-scale job losses. 2020-10-06T13:46:10Z 2020-10-06T13:46:10Z 2020-09-24 Policy Note http://documents.worldbank.org/curated/en/382071601445731866/Firms-in-Ethiopia-s-Industrial-Parks-COVID-19-Impacts-Challenges-and-Government-Response http://hdl.handle.net/10986/34573 English CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo World Bank World Bank, Washington, DC Economic & Sector Work Economic & Sector Work :: Policy Note Africa Ethiopia
repository_type	Digital Repository
institution_category	Foreign Institution
institution	Digital Repositories
building	World Bank Open Knowledge Repository
collection	World Bank
language	English
topic	INDUSTRIAL PARKS CORONAVIRUS COVID-19 PANDEMIC IMPACT PANDEMIC RESPONSE FIRM PERFORMANCE GOVERNMENT PROGRAM WAGE SUBSIDY GARMENT INDUSTRY FIRM SURVEY FOREIGN CURRENCY SUPPLY CHAIN TAX EXEMPTION ACCESS TO FINANCE LAYOFFS WORKING CAPITAL LOAN
spellingShingle	INDUSTRIAL PARKS CORONAVIRUS COVID-19 PANDEMIC IMPACT PANDEMIC RESPONSE FIRM PERFORMANCE GOVERNMENT PROGRAM WAGE SUBSIDY GARMENT INDUSTRY FIRM SURVEY FOREIGN CURRENCY SUPPLY CHAIN TAX EXEMPTION ACCESS TO FINANCE LAYOFFS WORKING CAPITAL LOAN Mengistu, Andualem Krishnan, Pramila Maaskant, Koen Meyer, Christian Johannes Krkoska, Eduard Firms in Ethiopia’s Industrial Parks : COVID-19 Impacts, Challenges, and Government Response
geographic_facet	Africa Ethiopia
description	The Coronavirus 2019 (COVID-19) pandemic poses a challenge for Ethiopia’s ambitious industrialization agenda focused on export-oriented light manufacturing. This note summarizes results from a survey of firms in Ethiopia’s industrial parks. The data suggests that over the past months, the pandemic has severely impacted firms’ ability to produce and sell their output. The availability and affordability of foreign inputs and the availability of labor are widely reported as constraints to production. Government support measures have not reached the majority of firms. After these initial demand- and supply-side shocks, firms in industrial parks are now entering a new uncertain phase: over the next six months, firms expect that orders will decrease by an average of 20 percent and employment by 17 percent compared to the same period last year. These findings illustrate the need for sustained support to protect firms and workers from the impacts of the pandemic and to preserve the significant investments made in this sector. Wage subsidy schemes and working capital loan programs will be appropriate to mitigate large-scale job losses.
format	Policy Note
author	Mengistu, Andualem Krishnan, Pramila Maaskant, Koen Meyer, Christian Johannes Krkoska, Eduard
author_facet	Mengistu, Andualem Krishnan, Pramila Maaskant, Koen Meyer, Christian Johannes Krkoska, Eduard
author_sort	Mengistu, Andualem
title	Firms in Ethiopia’s Industrial Parks : COVID-19 Impacts, Challenges, and Government Response
title_short	Firms in Ethiopia’s Industrial Parks : COVID-19 Impacts, Challenges, and Government Response
title_full	Firms in Ethiopia’s Industrial Parks : COVID-19 Impacts, Challenges, and Government Response
title_fullStr	Firms in Ethiopia’s Industrial Parks : COVID-19 Impacts, Challenges, and Government Response
title_full_unstemmed	Firms in Ethiopia’s Industrial Parks : COVID-19 Impacts, Challenges, and Government Response
title_sort	firms in ethiopia’s industrial parks : covid-19 impacts, challenges, and government response
publisher	World Bank, Washington, DC
publishDate	2020
url	http://documents.worldbank.org/curated/en/382071601445731866/Firms-in-Ethiopia-s-Industrial-Parks-COVID-19-Impacts-Challenges-and-Government-Response http://hdl.handle.net/10986/34573
_version_	1764481195557519360

Firms in Ethiopia’s Industrial Parks : COVID-19 Impacts, Challenges, and Government Response

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