Skip to content

China’s massive investment in Ethiopia at what cost?

By Mary Fitzgerald | Irish Times

ADDIS ABABA, ETHIOPIA — China’s minister for commerce says trade with Ethiopia will reach $3 billion by 2015

ASK AN Addis Ababa taxi driver to take you to Ethio-China Friendship Road and he might just scratch his head.

The renaming of Wollo Sefer, one of the Ethiopian capital’s main thoroughfares, in tribute to the country’s burgeoning ties with Beijing might be obvious from the new street signs but it has yet to filter down to everyday use.

The road is not the only marker of China’s growing engagement with Ethiopia.

Addis Ababa’s ultramodern airport was built by the Chinese, as was the city’s ring road and flyover.

An extensive renovation of the African Union headquarters in downtown Addis is being financed by the Chinese to the tune of more than $100 million (€71 million).

Across the city, a Chinese government-built school, designed to cater for up to 3,000 students, offers Mandarin classes as part of its curriculum.

Scores of Ethiopians have been given scholarships to study subjects including engineering and architecture in China.

The Chinese restaurants and clinics advertising acupuncture and traditional herbal remedies that have become part of the landscape in almost every African city in recent years are here too. According to local media, some 1,000 Chinese companies operate in Ethiopia.

Besuited Chinese businessmen can be seen discussing deals in Addis hotel lobbies, while engineers and others fresh from working on road and telecommunications projects or building power stations and water supply systems haggle for souvenirs in the city’s sprawling Merkato before flying home to Beijing.

In some Ethiopian towns and villages, it is not uncommon for foreigners to find themselves being greeted by children yelling “China, China”.

Earlier this month Chen Deming, China’s minister for commerce, was in town predicting that trade volume between the two countries will reach $3 billion by 2015. Chinese investment in Ethiopia amounted to just under $1 billion last year, and there is much talk of future investment in agricultural projects.

“China and Ethiopia have been mutually supportive on the political front and closely co-operating on the economic front,” Chen said, going on to use the stock expression Chinese officials trot out when discussing relations with African states: “It is fair to regard the Sino-Ethiopian friendship as an all-weather one.”

China’s new engagement with Africa has played out very differently across the continent, helping revitalise moribund economies in some countries, while breeding resentment elsewhere due to support for unsavoury regimes, poor work practices and threatened local industries.

There have been a few cautionary tales for the Chinese along the way. In 2007, for example, nine Chinese oil workers were killed and seven briefly kidnapped in the restive Ogaden area of eastern Ethiopia.

Ethiopian prime minister genocidal dictator Meles Zenawi says African states must be prudent in setting the parameters of the relationship.

“The Chinese interest in Ethiopia has been nothing short of a godsend,” he tells The Irish Times.

“We have benefited massively from it, but like everything else it is capable of becoming a nightmare . . . It is up to the host countries as to how they use the available resources from the Chinese in the best possible manner. Those who do will benefit, those who don’t may not benefit as perhaps they ought to.”

China’s assistance in building infrastructure and its investment in manufacturing has been invaluable for Ethiopia, Meles says.

“We need investment from any quarter we can get it. The Chinese have been more aggressive in investing in Ethiopia than many others and our hope is that Chinese investment will entice not only additional Chinese investment but also investment from other countries.”

But, as in every African country wooing Beijing, there is debate over who stands to gain. A 2008 study by an economist at Addis Ababa University noted that while Ethiopian consumers will benefit from cheap Chinese imports, small local firms, particularly in the clothing and footwear sectors, will lose out.

Opposition figures, like many of their counterparts elsewhere in Africa, mutter darkly about deals agreed behind closed doors, and speculate on the motives of both the government and Beijing.

One told me he suspects that the Meles regime sees China’s overtures as an opportunity to shore up support where it matters on the world stage.

Whatever way the debate shifts, however, the one thing everyone seems to agree on is that the Chinese are here to stay.

3 thoughts on “China’s massive investment in Ethiopia at what cost?

  1. Why China is God sent to Ethiopia and the whole of 3rd world! BBC & Western mida is tryingto friten Chines from envesting in 3rd world.

    I’m just guessing that from the title of your paper “Irish Times”; It is most probably is an Irish paper.

    Ethiopia is not in fortunate geographic location like Ireland. What ever happens there no body bails us out. Ethiopia is surrounded by barbaric Muslim countries and the country is situated, near violent Middle East. Which means, despite so many rivers flowing out of this country, Ethiopia is associated with famine and prolonged war, funded by Arab countries like Egypt and nomads from Somalia. Why Egypt, you might ask? Egypt, fro millennia have been trying to destabilize and control the rivers flowing from Ethiopia, to keep this country in absolute poverty. By doing so Ethiopia will be dependent in International hand out and couldn’t even build dams across so many rivers flowing out this country. Above all, due to Egyptian or Arab influences on the so called World Bank and IMF not to lend money to build tangible infrastructure in Ethiopia. That is why China is the only way out from advent poverty imposed by the Western blind and new form of Imperialism.

    Long live the new Chinese Power over shameless European or Western stupidity.

  2. This article is actually quite well written. Although the article does contain a few snippets of negative information concerning China’s relations in Africa, it also contains a counter-side. For example, the article raises the phenomenon of Chinese investment as crowding-out some of the local African developers because of the immigration of Chinese businesses and workers into Africa; on the other hand, the article also mentions positive aspects of Chinese aid, such as access to much needed infrastructure. Overall, I’m a strong supporter of utilizing medicine as a means of raising the capability of a nations healthcare system while also creating important relations between nations (i.e. medical diplomacy), but at the same time, I also view this method as having flaws, such as the creation of reliance upon an outside nation or other outside entity; and therefore, we must be willing to observe medical relations on a case-by-case basis. This “case-by-case basis” should also be upheld when viewing China’s relations in Africa.

Leave a Reply