ADDIS ABABA – The Addis Ababa – Djibouti railway is playing a big role in facilitating trade between Ethiopia and China and as a testament to the connectivity principle of the Belt and Road Initiative, said Prime Minister Dr. Abiy Ahmed. According to information from the Prime Minister’s Office, the Premier disclosed this when he and his delegation were in attendance at the opening session of the Second Belt and Road Forum for International Cooperation.
In his remarks during the High Level Meeting at Dr. Abiy shared the investment-led economic policy and reforms underway at home and encouraged more investors to participate in the newly opened up sectors. Meanwhile on the margins of the Belt and Road Forum, Ethiopian Investment Commission has signed four MoUs with Chinese companies that have decided to invest in Ethiopia.
The companies that signed the MoU’s for investment are: Taison Group and Green Diamond which will establish a large-scale bamboo pulp-paper manufacturing in Assosa, Benshangul Gumuz with a capacity to manufacture 1 million tonns pulp paper per annum; Amity Printing which will set up a printing factory, CGCOC Group which opts to establish a fully integrated livestock and meat processing plant with an annual slaughtering capacity of 300,000 cattle and 3 million sheep in Awash, Fentale as well as Zhende Medical Products Manufacturing which aims to invest in a pharmaceutical plant in Kilinto Industrial Park to manufacture wound care, surgical sensory, pressure therapy and fixed products.
China is currently Ethiopia’s largest trading partner and a key source of Foreign Direct Investment. Meanwhile, Prime Minister Abiy Ahmed and his delegation met with Prime Minister Li Keqiang to discuss the further strengthening of Ethio-China relations. Premier Li Keqiang confirmed that China will continue to support Ethiopia’s efforts in promoting the wellbeing of its citizens and its economy. Both Prime Ministers presided over the signing of five agreements that reflect the deepening of these relations.
The agreements signed include Financing agreement for development of a plaza and 12km of the ‘Beautifying Sheger’ river bank project, Provision of grants for technical cooperation, Provision of grants to go towards food aid, Belt and Road Initiative five year cooperation plan, and an MOU operationalizing cooperation under FOCAC, it was learnt.
Communist Party Secretary of Zhèjiāng province Che Jun welcomed Prime Minister Abiy Ahmed and his delegation on the Prime Minister’s first visit to the coastal province of Eastern China. Private enterprises from the province are currently operating in Ethiopia, and Prime Minister Abiy encouraged for more investments in the newly opened up sectors, including engagement in agricultural exports to the province. Zhèjiāng province, a winner of the United Nation’s ecological honor for its river and streams clean up and revival program, is a model for the ‘Beautifying Sheger’ river cleaning project. Prime Minister Abiy Ahmed and his delegation have also visited the headquarters of the e-commerce giant Alibaba, in Hangzhou, China.
Following up on their meeting earlier this year in Davos, Switzerland, Prime Minister Abiy Ahmed and Alibaba Group Chairman Jack Ma shared that this visit is a reflection of a friendship geared towards supporting Ethiopia’s development. Jack Ma expressed he has been inspired by the reforms that Ethiopia has been undergoing, confirming that Ethiopia is now a key strategic partner which he will visit this year. Prime Minister Abiy Ahmed also met with the China Export and Credit Insurance Corporation (Sinosure). They guaranteed their full cooperation, particularly in enabling the materialization of the investment in energy by the State Grid Corporation of China.
Following a meeting with State Grid Corporation of China, Prime Minister Abiy Ahmed oversaw the signing of a USD 1.8 billion investment agreement which covers provision of energy transmission and distribution lines. This project will supply power for up to 16 industrial parks; the Addis Ababa to Djibouti 2nd railway line and for different cities in the country. This agreement will facilitate not only uninterrupted power supply but also enable the creation of jobs.
The Ethiopian Herald April 27/2019
BY STAFF REPORTER
