As part of a wider attempt to increase export revenues amidst weak economic performance, Ethiopian authorities doubled the price of khat for exports to Somaliland and Djibouti in April 2022. Following much controversy, the decision was reversed a few months later. What was behind this trade price ‘fix’ and why does it matter?

This report is a product of the FCDO’s Cross-Border Conflict Evidence, Policy and Trends (XCEPT) programme, funded by UK aid from the UK government. XCEPT brings together leading experts to examine conflict-affected borderlands, how conflicts connect across borders, and the factors that shape violent and peaceful behaviour. The programme carries out research to better understand the causes and impacts of conflict in border areas and their international dimensions. It supports more effective policymaking and development programming and builds the skills of local partners.