The mayor of a town just outside Ethiopia's capital says 1,000 people have been arrested this month after violence that led to the burning of factories and vehicles.

This East African country declared a state of emergency this month after sometimes deadly anti-government protests demanding wider freedoms. Businesses have been a target over suspected government links, hurting Ethiopia's reputation as one of Africa's best-performing economies.

Sebeta Mayor Ararsa Merdesa told The Associated Press on Tuesday that some people have been released but many remain detained and under investigation.

Ararsa says only 50 of those arrested were local and the rest came "to cause the violence."

The violence came shortly after more than 50 people were killed in a stampede when police tried to disperse protesters in the Oromia region.