The Impact of the Federal Government–Amhara Fano Conflict on Microfinance and Economic Outcomes in the Amhara Region, Ethiopia

Betselot Adisu Ayal (), Derb Tefera Tassew (), Yeshambel Tadele Alem () and Aschale Tesfahun Kebede ()
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Betselot Adisu Ayal: Dire Dawa University
Derb Tefera Tassew: Debre Markos University
Yeshambel Tadele Alem: Debre Markos University
Aschale Tesfahun Kebede: Dire Dawa University

Public Organization Review, 2025, vol. 25, issue 3, No 26, 1367-1388

Abstract: Abstract This study examines the ongoing conflict between the Ethiopian federal government and the Amhara Fano and its impact on microfinance institutions and economic growth in the Amhara region. The study uses mixed data including self-completed questionnaires, structural interviews and secondary microeconomic data. The results show that the conflict has led to a decline in microfinance activities, rising default rates, financial instability and stagnating agricultural production. The study also found significant economic losses in Bahir Dar and Gondar due to business closures and declining household incomes, while a moderate recovery was recorded in Dessie, indicating an economic recovery despite persistent obstacles.

Keywords: Impacts of federal government- Fano conflict; Microfinance; Economic performance; Amhara Region; Ethiopia (search for similar items in EconPapers)
Date: 2025
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DOI: 10.1007/s11115-025-00863-8

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