China gives Ethiopia us$500 million loan

China has lent Ethiopia US$ 500 million that will be used to fund
various development projects in the Horn of Africa country.

The loan agreement signed with the Chinese Export and Import Bank was
part of the deals struck during Ethiopian Prime Minister Meles
Zenawi’s ongoing visit to China, which started last Thursday.

Ethiopian Finance and Economic Development Minister, Sofian Ahmed who
signed the agreement with his Chinese counterpart said the loan will
be used to implement 15 development projects.

“The projects to be implemented have already been finalised and will
be discussed with the Chinese government,” Ahmed said.

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Meles is visiting China to encourage Chinese investors to consider
setting up businesses in his country and also to scout for loans to
finance development projects.

Chinese Premier Wen Jiabao, right, toasts with Ethiopian Prime Minister Meles Zenawi, during a signing ceremony at the Great Hall of the People in Beijing, China Monday, Aug. 15, 2011. (AP

Ethiopia recently launched a multi billion five year Growth and
Transformation Plan (GTP) that will see the implementation of various
development projects aimed at fighting poverty and reducing
unemployment.

Under the five year GTP, the government, among other plans, seeks to
invest billions of dollars on hydro electric plants, fertiliser
factories, the development of universities and the construction of
around 2,000 kilometer railway lines, as well as thousands of
kilometres asphalt roads.

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The government recently launched US$ 5 billion hydro electric
projects, expected to generate around 5,250 MW of power by 2015, over
the Nile River.

Ethiopia has already started power supply to Djibouti and is also
planning to start exporting power to Sudan (North) before the end of
the year.

The Horn of Africa nation plans to become Africa’s biggest power supplier.

China has given Ethiopia about US$4 billion in loans that have gone
towards telecommunication infrastructure and road projects among
others.

More than 20,000 Chinese area already working in various development
projects around the country.

Source TheAfricareport.com

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