China Export Import Bank (China Exim) has lent US$208mn to support a variety of projects in Ethiopia, including the expansion of Mugher Cement Enterprise, and hydroelectric power generation.
The agreement was signed by the president of China Exim Li Ruogu, who has been on an official visit to Addis Ababa.
Trade between China and Ethiopia has been rapidly increasing, reaching US$500mn. This trend is unlikely to slow despite some backlash against Chinese presence in the African nation. In April, a rebel attack on a Chinese oil venture in the Ogaden region killed 77 people including nine Chinese.
It has also been reported that China Exim is set to provide a US$292mn buyers’ credit to Ghana to finance a hydro-electric power project. The facility will form one tranche of a hybrid deal totalling approximately US$622mn.