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Politico | Ethiopia plays Europe off China in bid to boost investment

  • Effort to attract European money is part of prime minister’s push to modernise economy and reduce debt, analysts say
  • ‘Without China, not much would happen around here,’ says an Ethiopian food seller

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Chinese Premier Li Keqiang, third from right, and Ethiopia's then-Prime Minister Hailemariam Desalegn, second from left, attend a signing ceremony at the Great Hall of the People in Beijing in 2017. Photo: AP

This story is published in a content partnership with POLITICO. It was originally reported by Simon Marks on politico.com on February 3, 2020.

For the past four years, Welibuw Buzenehe watched as China built a new national sports stadium in the heart of the Ethiopian capital.

Located deep in Addis Ababa’s commercial centre, the soon-to-be-finished structure towers some 40 metres (131 feet) above the ground and will have a capacity of 62,000 people.

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“China is building this city from the ground up,” said Welibuw, a local food seller in the area around the stadium. “Without China, not much would happen around here.”

The roughly US$160 million construction project is one of many highly visible, Beijing-backed mega-projects – from hydropower dams to skyscrapers – that have helped make China Ethiopia’s largest trading partner.

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But recently, efforts by Ethiopia’s firebrand prime minister, Abiy Ahmed, to modernise the economy, privatise state-owned companies and reduce the country’s debt burden are shifting the power dynamics in the country.

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