Finance gaps derailed Ethiopia’s second railway project plans


In April 2019, The Reporter Ethiopia reported that lack of finance was derailing plans for a second major railway project, after the Addis–Djibouti line had already shown both the promise and the debt hangover of Chinese-built rail.

Finance gaps derailed Ethiopia’s second railway project plans

Rail is logistics destiny for a landlocked state. It is also forex drain, contractor politics, and a test of whether Abiy Ahmed’s government could fund corridors without repeating opaque loan traps.

When financing collapses, communities along surveyed routes are left with stakes in the ground and no trains. Announcement economics is not infrastructure.

Kept for logistics readers, the derailed second-railway file pairs with port and dry-port fights. Ethiopia’s map wants steel. Its budget often cannot pay for it cleanly.

Sources: The Reporter Ethiopia