Ethiopia secures $1.8 billion from China

The State Grid Corporation of China (SGCC) is set to invest $1.8 billion in Ethiopia’s electric power transmission and distribution lines.

The $1.8 billion investment agreement covers provision of electric power transmission and distribution lines, according to the twits of the Office of the Prime. In Beijing Prime Minister Abiy Ahmed has also met with the China Export and Credit Insurance Corporation (Sinosure). Sinosure officials guaranteed their full cooperation, particularly in enabling the materialization of the investment in energy by the SGCC.

Ethiopia is one of the heavily indebted countries with most of the money coming from China. During his meeting with President Xi Jinping of China, Prime Minister Abiy has also discussed on the restructuring of Chinese debt. Reports coming from Beijing show that China has agreed to cancel all interest accumulated from its debt – estimated b/n $12 billion to $20 billion.

PM Abiy Ahmed has also met with the leadership of the China Railway Construction Corporation (CRCC) in Beijing, on the margins of the Belt and Road Forum and witnessed the signing of the deal. CRCC have expressed interest in investing in agro-industry parks development, oil and gas development and Sheger river project, which aims to green Ethiopia’s capital Addis Ababa.

CRCC’s current largest engagement includes connecting Ethiopia and Djibouti through the railway project.