Ethiopia PM says China will restructure railway loan

China has agreed to restructure a loan that financed the Ethiopia-Djibouti railway which handles cargo from The Port of Doraleh. (Reuters)
Updated 06 September 2018
0

Ethiopia PM says China will restructure railway loan

  • Ethiopia has been a top destination for Chinese loans in Africa, with state policy banks extending it more than $12.1 billion since 2000
  • The Addis Ababa link with Djibouti handles roughly 95 percent of all inbound trade for Ethiopia

ADDIS ABABA: China has agreed to restructure some of Ethiopia’s debt, including a loan for a $4 billion railway linking its capital Addis Ababa with neighboring Djibouti, Ethiopia’s Prime Minister Abiy Ahmed said on Thursday.
Abiy described the rescheduling as limited, but added that repayment of the railway debt has been extended by 20 years.
Landlocked Ethiopia and the Red Sea state inaugurated the railway in January, with 70 percent of the total cost covered through a loan from the Export-Import Bank of China (EXIM).

Stations along the Ethiopia-Djibouti railway. (Wikimedia Commons)

Ethiopia has been a top destination for Chinese loans in Africa, with state policy banks extending it more than $12.1 billion since 2000, according to the China Africa Research Initiative at Johns Hopkins University of the United States.
Speaking upon his return from a China-Africa forum for cooperation in Beijing, Abiy told reporters he held successful talks with Chinese government officials over his country’s debt.
“During our stay, we had the opportunity to enact limited restructuring of some of our loans,” he said in Addis Ababa. “In particular, the loan for the Addis Ababa-Djibouti railway which was meant to be paid over 10 years has now been extended to 30 years.”
The deal was made amid rising concerns over debt distress, with the Ethiopian government’s debt reaching 59 percent of the country’s annual gross domestic product, according to official figures.
The country’s ruling EPRDF coalition, in power since ousting a military junta in 1991, aims for Ethiopia to reach middle income status by 2025. It is pursuing ambitious manufacturing-led industrialization that has involved building roads, railways and industrial parks — as well as mounting debt.
Though the Addis Ababa link with Djibouti, which handles roughly 95 percent of all inbound trade for Ethiopia, is complete, the line’s extension to its north has faced delays owing to a lack of funding.
In addition to Djibouti, Ethiopia is also in discussions with neighboring Eritrea, Sudan and Somalia to expand its options for sea access. It has negotiated deals with Djibouti and Sudan to hold equity in their ports.


Bomb in Afghan mosque kills senior cleric during Friday prayers

Updated 24 May 2019
0

Bomb in Afghan mosque kills senior cleric during Friday prayers

  • No group has claimed responsibility for the attack but the Taliban and Daesh fighters regularly stage attacks in the capital
  • The explosion hit at a time when dozens of men had gathered for prayers

KABUL: A bomb exploded in a mosque in the Afghan capital, Kabul, during Friday prayers, officials said, killing three people including a senior preacher and wounding at least 20 men who had gathered for worship.
The preacher, Samiullah Raihan, was a supporter of the Western-backed Afghan government which Taliban militants are trying to bring down. He was also a member of the National Ulema Council, Afghanistan’s top Muslim clerical body.
Firdaws Faramarz, a police spokesman, said explosives were apparently placed near the altar of the Al-Taqwa mosque, a place used by the mosque leader to initiate the prayers.
The neighborhood where the bombing took place is dominated by Sunni Muslims. No group has claimed responsibility for the attack but the Taliban and Daesh fighters regularly stage attacks in the capital.
The explosion hit at a time when dozens of men had gathered for prayers. The death toll could rise, said a second official.