Ethiopia Secures $1.8 billion from China

Ethiopian Prime Minister Abiy Ahmed has signed a $1.8 billion investment deal in Beijing with the State Grid Corporation of China to provide electric power transmission and distribution lines.

The Ethiopian government said in a statement on Wednesday that the project will supply power for up to 16 industrial parks; the Addis Ababa to Djibouti 2nd railway line and for different cities in the country. “This agreement will facilitate not only uninterrupted power supply but also enable the creation of jobs,” the statement added.

Abiy Ahmed is in Beijing to, among others, discuss the restructuring of Ethiopia’s debt to China which is estimated to be between 12 and 20 billion dollars. Local media report that during Ahmed’s meeting with President Xi Jinping on Tuesday, China agreed to cancel all interest accumulated from Ethiopia’s debt.

The Prime Minister also met the leadership of the China Railway Construction Corporation (CRCC) during the Belt and Road Forum where they expressed interest in investing in agro-industry parks development, oil and gas development and Beautifying Sheger river project. The CRCC is behind the Ethiopia-Djibouti railway project connecting the two countries.

Abiy Ahmed also met with the China Export and Credit Insurance Corporation (Sinosure) which guaranteed their full cooperation, particularly in enabling the materialization of the investment in energy by the State Grid Corporation of China.