Ethiopia, China explore opportunities for future collaboration

Addis Ababa, October 10, 2024 (FBC) – Ethiopia’s Minister of Finance, Mr. Ahmed Shide, convened with and engaged in a discussion today with a high-level Chinese delegation led by Mr. Zhao Fengtao, Vice Chairman of the China International Development Cooperation Agency (CIDCA).

Mr. Ahmed provided the Chinese delegation with an overview of the ongoing macroeconomic reform program initiated by the Ethiopian government, highlighting the key achievements made over the past two months. Ultimately, the Minister requested the support of the Chinese government in Ethiopia’s efforts to implement the macroeconomic reform measures.

He also highlighted the outcomes of economic cooperation projects, with a particular emphasis on the mega-infrastructure projects financed by the Chinese government, as well as the major challenges, including the suspension of outstanding payments on the ongoing projects.

The minister raised the issue of debt restructuring measures under the G-20 common framework and urged the release of finance for the ongoing projects urgently. In addition to financing new projects, he also discussed technical support for the Addis Ababa Light Railway and the feasibility of establishing electric vehicle manufacturing industries in Ethiopia.

In response, Mr. Zhao Fengtao addressed the challenges associated with the second phase of the riverside development project and the status of the Ethiopia-Djibouti supplementary works. Additionally, regarding the newly initiated Forum on China-Africa Cooperation (FOCAC) projects, he emphasized the need for close collaboration to approve selected projects in the near future.

The Vice Chairman introduced the Global Development Initiative (GDI) under CIDCA for implementation. He identified four priority areas for future cooperation: supporting the African Leadership Excellence Academy, funding new projects with a grant of 400 million RMB (around 56.5 million USD), supporting private and public sector projects with the GDI special fund, and giving due attention to human development.