Ethiopia’s Economic Crisis, Inflation, Currency Devaluation & South–South Trade | J&J’s Fireside

Originally featured on Counterpoint, a weekly newspaper and online platform offering in-depth analysis of Bangladesh and global issues, this episode of J&J Fireside explores Ethiopia’s evolving economic landscape and its wider implications for the Global South.

Ethiopia is experiencing rapid infrastructure expansion and rising foreign investment. However, beneath this growth lies significant macroeconomic pressure, including inflation, currency devaluation, fiscal constraints, and geopolitical tensions.

In J&J Fireside | Episode 1, macroeconomist Jyoti Rahman and Md. Rubaiyath Sarwar, Managing Director of Innovision Consulting, reflect on their recent field experiences and unpack the structural and political dynamics shaping one of Africa’s most strategically important economies.

Dialing in from Addis Ababa, Ethiopia, Md. Rubaiyath Sarwar shares firsthand observations of a dual reality: rapid infrastructure expansion alongside rising inflation, exchange rate volatility, and fiscal strain.

Ethiopia Economy: Inflation, Currency Crisis & Structural Challenges

The episode explores key macroeconomic challenges shaping Ethiopia’s current trajectory, including:

• Rising inflation and increasing cost-of-living pressures
• Ethiopian currency devaluation and exchange rate instability
• Fiscal constraints and rising debt vulnerabilities
• Geopolitical tensions affecting economic stability and investment flows

Despite these pressures, Ethiopia continues to position itself as a regional economic hub, attracting foreign capital and expanding transport and infrastructure networks.

South–South Cooperation and Asia–Africa Trade Expansion

A central theme of this episode is the growing importance of South–South economic diplomacy and shifting global trade patterns.

The discussion highlights:

• Expanding trade and aviation connectivity between Asia and Africa
• The growing role of development finance in social protection and financial inclusion systems
• The influence of geopolitical dynamics on investment and economic decision-making
• The continued significance of informal and parallel economies in shaping real economic outcomes

These trends reflect a broader transformation in global economic relationships, particularly across emerging markets.

Lessons for Bangladesh: Trade Diplomacy and Africa Market Opportunities

The conversation also draws important lessons for Bangladesh in the context of emerging Global South partnerships:

• Strengthening Bangladesh–Africa trade relations
• Enhancing trade promotion and economic diplomacy strategies
• Unlocking export potential in pharmaceuticals, textiles, ceramics, and manufacturing
• Increasing private sector engagement in emerging international markets

The episode underscores significant untapped opportunities in South–South trade and the need for more coordinated economic engagement.

Rethinking Global South Economic Cooperation

J&J Fireside brings together macroeconomic analysis and development field experience to explore how global economies are evolving under pressure.

This episode offers a grounded, comparative perspective on Ethiopia’s economic challenges and the future of South–South economic cooperation.

It highlights how emerging economies are navigating growth, crisis, and global integration, and what it will take to translate connectivity into sustained economic transformation.

Watch J&J’s Fireside: Global Economy, Field Insights & Development Perspectives

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