Moody’s said that last month’s alleged failed coup attempt in Amhara state was an example of how the country’s economy is susceptible to domestic political risks.
“Risks are unlikely to dissipate in the run-up to elections scheduled for 2020, as the government’s reform agenda risks exacerbating ethnic tensions in some parts of the country,” said Moody’s Kelvin Dalrymple.
He warned that the tensions could have a direct impact on investor confidence.
Ethiopia is one of Africa’s fastest growing economies. This week the government predicted that the economy would grow by 9.2%, a 1.5 percentage points higher than last year.