3.10. China's Belt and Road initiative

Question 1

Introduction Ethiopia

Answer 1

• Landlocked developing country in East Africa
• Ethiopia has received investments from China in infrastructure and industry

Question 2

Key projects in Ethiopia

Answer 2

1. Addis-Ababa Djibouti Railway
2. Industrial Parks
3. Power and Energy Projects

Question 3

Addis-Ababa Djibouti Railway

Answer 3

• 752km railway linked Addis-Ababa and Djibout
• Built by Chinese companies and funded with Chinese loans worth around $4 billion
• Reduces travel time for goods, helping Ethiopia’s trade

Question 4

Industrial Parks

Answer 4

• China has invested in industrial parks like Hawassa Industrial Park to support manufacturing and exports.
• These parks attract foreign businesses and create jobs

Question 5

Power and energy projects

Answer 5

• Chinese funding has helped Ethiopia expand its energy sector with projects like hydroelectric dams

Question 6

Opportunities for Ethiopia

Answer 6

• Better infrastructure
• Economic growth
• Job creation
• Stronger regional ties

Question 7

Better infrastructure

Answer 7

• The Addis-Ababa Djibouti railway and other projects make trade faster and easier
• Improved roads and railways connect Ethiopia to its neighbours, boosting regional trade

Question 8

Economic growth

Answer 8

• Industrial Parks encourage manufacturing, helping Ethiopia move from farming to industry
• Supports government’s long term development goals

Question 9

Job creation

Answer 9

BRI projects create jobs in construction and manufacturing, benefiting local communities

Question 10

Stronger regional ties

Answer 10

New transport links improve Ethiopia’s position as a trade hub in East Africa

Question 11

Challenges and concerns

Answer 11

• Debt problems
• Unequal trade
• Local impact
• Environmental and social issues
• Reliance on China

Question 12

Debt problems

Answer 12

• Ethiopia has taken on large loans to pay for BRI projects- raises concern on whether country can repay them

Question 13

Unequal trade

Answer 13

Ethiopia imports many goods from China but mostly exports low value raw materials, leading to trade imbalance

Question 14

Local impact

Answer 14

Chinese companies often carry out the work, limiting opportunities for Ethiopian businesses
There is little transfer of skills or technology to local workers

Question 15

Environmental and social issues

Answer 15

Large projects sometimes cause environmental damage and force people to move from their homes

Question 16

Reliance on China

Answer 16

Ethiopia’s heavy dependence on Chinese funding and expertise may reduce its ability to develop independently