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Ethiopia

Government and institution measures in response to COVID-19.

Government and institution measures in response to COVID-19.

Return to homepage  |  Last updated: 24 June, 2020

General Information

The COVID-19 outbreak is having major effects on the economy in Ethiopia. To mitigate the effects of the COVID-19 outbreak to the economy, the Government of Ethiopia has launched various economic measures that are outlined below. 

Tax measures – Direct and Indirect

(e.g. payment deferrals, rate reductions…)

Click to see a comprehensive summary of jurisdictional tax measures and government reliefs in response to COVID-19.

Employment-related measures

(e.g. state compensation schemes, training…)

  • On April 30, the Council of Ministers approved another set of economic measures to support firms and employment. These include:
  • Forgiveness of all tax debt prior to 2014/2015,
  • A tax amnesty on interest and penalties for tax debt pertaining to 2015/2016-2018/2019,
  • Exemption from personal income tax withholding for 4 months for firms who keep paying employee salaries despite not being able to operate due to Covid-19.

Economic stimulus measures

(e.g. loans, moratorium on debt repayments…)

  • The central bank has provided 15 billion birr (0.45 percent of GDP) of additional liquidity to private banks to facilitate debt restructuring and prevent bankruptcies.
  • It has also provided 33 billion birr of additional liquidity to the Commercial Bank of Ethiopia.

Other measures and sources

Main sources of information