CHINA TO INVEST $1.8 BILLION IN ETHIOPIA'S POWER PROJECTS

Posted on : Friday, 26th April 2019

China is all set to pump out a gigantic USD 1.8 billion in the transmission and distribution lines of electricity in Ethiopia.

The investment of USD 1.8 billion will be made by the Chinese State Grid Corporation. Ethiopia's prime minister, Abiy Ahmed met with the officials of China Export and Credit Insurance Corporation, commonly known as Sinosure, during a recent visit to China's capital, Beijing. 

Sinosure's top officials promised their full cooperation, mainly in enabling China's State Grid Corporation to materialize the investment in energy.

Ethiopia is one East African country that receives the maximum amount of funds coming in from China. Ethiopian Prime Minister Abiy Ahmed also discussed the restructuring of Chinese debt with Chinese President Xi Jinping. Reports from Beijing reveal that China has agreed to cancel all accumulated interest from its debt – estimated $ 12 billion to $ 20 billion.

During his visit, Abiy Ahmed also met with the leaders of China Railway Construction Corporation. China's Railway Construction Corporation is keen to invest in Ethiopia in a variety of sectors, including oil and gas, agribusiness parks, the Sheger River project, to name a few. 

China Railway Construction Corporation is currently involved in the construction and development of a railway project connecting Ethiopia with Djibouti, its neighbour.