Tigray Region’s Economy Lies in Ruins as Post-War Recovery Falters

Two years after the devastating civil war ended, Tigray Regional State is struggling to rebuild. Its economy is battered, and prospects are grim, warned Getachew Reda, chief administrator of Tigray's Interim Regional Administration (TIRA).

"The economy of Tigray hasn't recovered," said Getachew, during a blunt press conference held today, March 13, 2025. "The state of Tigray has been neglected and needs help."

His grip on the regional state’s administrative apparatus has been undermined after his decision to fire three top brass military leaders in the Tigray Defense Forces (TDF) was defied by his deputy in charge of security, Tadesse Werede (Lt. Gen.), a.k.a Wedi Werede. He blamed an element of senior military commanders within the TDF for undermining the authority of TIRA, on the behest of the TPLF leadership he characterised as “a criminal enterprise.”

Speaking candidly, Getachew described a region mired in severe economic distress. Infrastructure remains extensively damaged, essential services such as electricity and healthcare are sporadic or nonexistent, and factories and manufacturing plants once central to the region’s economy remain shuttered. Efforts to revive local businesses are at a standstill. A regional economic recovery plan, developed over two years ago, has yet to reach the cabinet, stalled by bureaucratic inertia and internal political feud among senior leaders of the Tigray People's Liberation Front (TPLF), where Getachew has been one.

"Businesses’ recovery has been slow, if not nonexistent," said Getachew.

The banking industry, according to Getachew, has compounded the regional state's economic troubles.

“Despite banks collecting large deposits from Tigray, loans are being disbursed elsewhere, leaving local businesses starved for capital.,” he told reporters at a rare presser he gave at the Sheraton.

Even temporary relief measures, such as a one-year loan repayment freeze for businesses, have proven insufficient, with accumulating interest deepening financial strain.

"Interest continues to accrue with no relief," he said, calling for a policy intervention from the National Bank of Ethiopia (NBE).

Getachew’s appeal for federal assistance has manifested a dependency on blocked-account grants due to TIRA’s inability to generate revenue independently.

Compounding the region’s economic troubles is the stalled reintegration of over 75,000 former combatants from the war, who are languishing without adequate food, healthcare, or reintegration programs. The disarmament, demobilisation, and reintegration (DDR) process has effectively halted, leaving them in acute distress.

"They’re suffering the most," Getachew said.

Yet, he acknowledged that internal political rifts within TPLF were partly to blame for the paralysis in reviving economic and social structures.

"It's the fault of the region," he conceded. "I’ve to stop blaming the federal government."