Ethiopia's Banks Resume Services In Tigray

Facts

• The Commercial Bank of Ethiopia (CBE) announced on Monday it has resumed services in some towns in the war-torn Tigray region, which had been suspended for more than a year, following the peace deal struck between the federal government and Tigrayan rebels.^[1]
• State-run CBE stated its branches in Shire, Alamata, and Korem have started accepting money sent from abroad and locally, adding that residents can now deposit their money. It has been said, however, that depositors are not allowed to withdraw money previously saved in the bank.^[2]
• Private-owned banks Lion International and Wegagen said on Tuesday they have also resumed services in Tigray but fell short of mentioning if they had re-opened in areas still controlled by the Tigray People's Liberation Front (TPLF), which is due to withdraw its troops from the frontlines.^[3]
• This comes as, earlier this month, the National Bank of Ethiopia ordered all commercial banks to undertake audits and resume services in areas controlled by the Ethiopian National Defense Force, including Tigray, parts of Amhara, and the Afar region.^[4]
• Meanwhile, international credit rating agency FitchRatings has downgraded the country's Long-Term Foreign-Currency Issuer Default Rating (IDR) to 'CCC-' from 'CCC' and removed it from Under Criteria Observation (UCO), reflecting a risk of a debt default as external liquidity continues to worsen.^[5]
• The Tigray region had been deprived of basic services — including banks, electricity, fuel, and telecommunications — for more than a year and has been virtually cut off from the world since the war began in November 2020.^[6]

Sources: ^[1]Al Jazeera, ^[2]Addis Zeybe, ^[3]Reuters, ^[4]The Reporter Ethiopia, ^[5]Addis Standard and ^[6]CGTN Africa.

Narratives

• Narrative A, as provided by ENA. The resumption of banking services in Tigray is part of the federal government's efforts to rehabilitate the region and provide relief to the Ethiopians affected by the regional conflict. Addis Ababa has also delivered humanitarian aid, including food, fuel, and medical supplies, while engaging in reconstruction activities focused on electric transmission lines and telecommunications.
• Narrative B, as provided by Ethiopia Insight. It's true that the federal government has allowed more food and medical supplies into Tigray since warring sides agreed to a permanent ceasefire, but the region still faces a shortage of humanitarian aid deliveries as the siege is not yet completely lifted. Addis Ababa is clearly weaponizing aid to undermine the Tigrayan authorities, a move that could reignite the conflict.

Predictions