Ethiopia has requested that China resume suspended debt disbursements and provide more relief and investment, its finance minister said last week, as the country seeks to boost its economy after four years without new funding from the Asian giant.
Finance Minister Ahmed Shide met with China's Vice Minister of Commerce Sheng Qiuping on August 21st to discuss Ethiopia's strategic partnership with Beijing and acknowledge China's role in major infrastructure projects over two decades, according to a ministry statement.
However, disbursements for ongoing projects have been suspended since 2020 after Ethiopia requested debt restructuring from China and Paris Club creditors.
Ahmed asked Sheng to coordinate with creditors to restart funding for ongoing initiatives and finalize debt relief negotiations. He also sought enhanced development aid and additional foreign investment from China.
China is a major financial backer of Ethiopia and recently assured support through International Monetary Fund loans, the ministry said.
But Ethiopia faces debt issues and high inflation after the four-year funding halt. Increased Chinese investment and debt relief could help kickstart its economy, adding to the loan secured from the IMF and the World Bank in support of a new economic program, experts say.