What if Ethiopia fails to pay Chinese debt – Discussion on DW Amharic

Melat Mulugeta

Ethiopian Prime Minister Abiy Ahmed has signed a $1.8 billion investment deal in Beijing with the State Grid Corporation of China to provide electric power transmission and distribution lines. The Ethiopian government said in a statement on Wednesday that the project will supply power for up to 16 industrial parks, the Addis Ababa to Djibouti 2nd railway line and for different cities in Ethiopia, and create jobs. During the discussion to restructure Ethiopia’s debt to China which is estimated to be between 12 and 20 billion dollars, China agreed to cancel all interest accumulated from Ethiopia’s debt. Despite the good news, many speculate what would happen if Ethiopia failed to pay China’s debt.