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
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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.


Cambodia genocide verdict a signal to other perpetrators: US

The historic verdict comes nearly 40 years after the Khmer Rouge were expelled from Cambodia following a four-year reign of terror that left about a quarter of the population dead. (AP)
Updated 2 min 33 sec ago
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Cambodia genocide verdict a signal to other perpetrators: US

  • A war crimes tribunal in Cambodia found the Khmer Rouge’s former head of state Khieu Samphan, 87, and “Brother Number Two” Nuon Chea, 92, guilty of genocide on Friday
  • Let this be a message to other perpetrators of mass atrocities: US State Department

PHNOM PENH: The US has welcomed Cambodia’s landmark genocide verdict and said it served as a warning that perpetrators of mass atrocities, “even those at the highest levels,” will eventually face justice for their crimes.
A war crimes tribunal in Cambodia found the Khmer Rouge’s former head of state Khieu Samphan, 87, and “Brother Number Two” Nuon Chea, 92, guilty of genocide on Friday and sentenced them to life in prison.
The historic verdict comes nearly 40 years after the Khmer Rouge were expelled from Cambodia following a four-year reign of terror that left about a quarter of the population dead from starvation, mass executions, and overwork.
“Their crimes were numerous, calculated, and grave,” US State Department spokesperson Heather Nauert said, commending the courage of the victims and witnesses who testified during the trial.
“Let this be a message to other perpetrators of mass atrocities, even those at the highest levels, including former heads of state, that such actions will not be tolerated and they will ultimately be brought to justice,” she said in a statement.
Cambodia’s neighbor Myanmar has come under fire in recent months for its handling of the Rohingya crisis, which United Nations investigators believe amounts to “genocide” given the atrocities perpetrated on the stateless Muslim minority.
Myanmar has denied the allegations but UN investigators have urged that the case be referred to the International Criminal Court (ICC) for investigation and prosecution.
Despite the show of support for war crimes prosecution, the US is one of the few Western countries that is not signed up to the ICC, which has a mandate to investigate the gravest offenses including genocide and crimes against humanity.
The country’s refusal to be party to the body erupted again following an ICC request to open an investigation into alleged war crimes by the US military and intelligence officials in Afghanistan, especially over the abuse of detainees.
White House National Security Adviser John Bolton called the Hague-based rights body “unaccountable” and threatened to arrest and sanction judges and other officials of the court if it moved to charge any American.