Sudan: Sanctions Lifted, Now Development Is Imperative

Lawrence Freeman

October 24, 2017

            On October 12, the U.S. announced the long overdue, official removal of some sanctions on Sudan. Now, new and exciting potentials lie ahead for the future of Sudan and its people. This is not the time to delay; the government of Sudan should seize the moment to implement policies that will lead to the economic development of this vast nation, and the raising of the standard of living of its more than forty million citizens. 

According to U.S. government representatives, President Trump’s executive decision does not terminate President’s Clinton’s E.O. 13067, issued on November 3, 1997, but it removes those sanctions that had enforced an embargo on commercial transactions with Sudan.  Thus, now companies and individuals wishing to export, invest, and trade with Sudan can conduct business using the international banking system without fear of being penalized. However, targeted sanctions remain, and there are licensing requirements for agricultural and medical exports.

This milestone in U.S.-Sudan relations is, in large part, due to the relentless efforts by Foreign Minister Ibrahim Ghandour, especially his leadership over the last sixteen months. Professor Ghandour, who was appointed to head Sudan’s foreign office in June 2015, has successfully changed the dynamics of a detrimental and hostile U.S. attitude against his nation.  Nearly twenty years of sanctions have accomplished nothing except to cause greater suffering and hardship for the Sudanese people.  Finally, this suffocating policy has ended, allowing Sudan the opportunity to move forward. 

However, the U.S. now maintains a peculiar and contradictory policy towards Sudan: Lifting trade sanctions allows companies to conduct commercial activity in Sudan without penalty, but the U.S. cannot offer financial support to investors from any of its lending institutions, because Sudan remains on the U.S. State Department’s list of “states sponsoring terrorism” (SST).

Under the administration’s new executive order, Sudan is removed from a short list of nations under “comprehensive sanctions”: North Korea, Syria, Iran, and Cuba, and is placed on a broader list of nations subject to “targeted sanctions.” The government of Sudan intends to seek redress of its wrongful inclusion on the SST list. Removal from this list would allow Sudan to seek relief from its onerous forty-plus billions of dollars of debt, and make it eligible to receive favorable treatment from U.S. lending facilities. Unfortunately, removing Sudan from the SST list would require the approval of the U.S. Congress, which is still antagonistic towards Sudan.

Shaping a Better Future with China’s Belt and Road

Since Sudan’s liberation from colonialism, during which, the British Imperialists codified into law the artificial division between the so-called North and South, Sudan has never realized it full economic potential. This lack of development has been at the core of Sudan’s difficulties. This can now change.   

The spirit of China’s 21st Century Silk Road has created a new dynamic on the African continent that Sudan is well positioned to harness. Sudan’s neighbors in East Africa are already participating in a density of construction of new rail lines going East to West that have the potential to transform Africa, becoming the eastern leg of the long-awaited East-West railroad that would link the Atlantic to the Indian Oceans. Ethiopia has completed the first electrically driven railroad connecting the capital Addis Ababa to the Port of Djibouti, and has devised a strategy to connect to all its neighboring countries by rail. Kenya has completed the first phase of the standard-gauge railroad, from the Port of Mombasa to Kenya’s capital, Nairobi. This the first phase of a plan to connect the nations of the Horn of Arica to those of the Great Lakes Region. Tanzania has begun the first two stages of Dar es Salaam-Iska-Kagali/Keza-Musongati (DIKKM) rail project, a 1672-kilometer railroad connecting Kigali in Rwanda and Musongati in Burundi to Kenya’s Port of Dar Es Salaam. Most of these transportation infrastructure projects are being supported by China, both in funding and construction.

The Port of Sudan is officially on China’s Maritime Silk Road, and the Ports of Mombasa, Djibouti, and Dar es Salaam are there implicitly.

 Sudan is geographically positioned to become the nexus point for the East-West and North South trans-Africa rail-lines, possibly crossing in the city of Sennar on the Blue Nile. The Sudanese government has already prepared an ambitious multi-phase plan to connect all parts of its territory with its neighbors by rail. China has been a consistent economic partner of Sudan and is a likely candidate to collaborate on these rail projects.

Sudan is also in urgent need of more electricity to power its economy. The erection of the Merowe Dam, with a capacity of 1.2 gigawatts, was a significant accomplishment in 2009-2010, and there have been smaller hydropower projects in the eastern portion of the country. However, Sudan, like the rest of sub-Sharan Africa, is suffering from a huge deficit in electrical power that is now holding back, and will continue to retard economic growth until it is rectified. Sub-Saharan Africa needs over 1,000 gigawatts of power to begin to obtain the level of modern Afro-industrial societies  

Sudan Is Open for Business

Speaking in Washington, D.C. on October 16, at a forum sponsored by the Corporate Council of Africa, Sudanese Minister of Finance and Economic Planning, Dr. Mohamed Othman Al-Rikabii outlined the areas of potential investments in Sudan’s resources, including; water, gold, oil, mining, livestock, gas, and tourism.  He emphasized the enormous potential for investment in agriculture in Sudan, with presently only 20% of its sixty million hectares of fertile land under cultivation.

For the first time in decades, Sudan has the opportunity to design polices that focus on the development of the nation. Productive employment must be created to provide hope for a better future for the Sudanese people, especially its youth, who are living in poverty. This will require immediate construction–shovels in the ground–of vitally needed infrastructure. China, in the “Spirit of the New Silk Road,” will undoubtedly be a willing partner to Sudan’s future economic growth. Whether the U.S., under President Trump, will be wise enough to contribute to Sudan’s development after twenty years of failed sanctions, remains to be seen.  As for the government of Sudan, there is no time to waste, and no acceptable delays.  Economic development is the agenda.


Sino-Sudanese Strategic Partnership Could Make the Sudan Great Again

 The historic and successful visit of the Chinese Vice- Premier of the State Council Zhang Gaoli to Khartoum, marked and emphasized the deep ties of friendship and cooperation between the two friendly countries, and shall give further impetus to their embedded mutual coordination in regional and international forums.

Submitting a message to President Al-Bashir form his Chinese counterpart, the senior Chinese official put it clearly that China’s selection of Sudan as strategic partner, was notva random or arbitrary decision, but rather an option carefully calculated and studied.

That is why the said visit was highly celebrated in Khartoum, both in form and substance, as the most important visit of a senior Chinese official, perhaps since the visit of the Chinese presidentHu Jintao to Sudan in 2007, which brought the long standing cooperation between the two countries to yet a new level.

From historical perspective, it goes down in history, that Sudan was the fourth country in the continent, to have established full diplomatic ties with the People’s Republic of China on 4th February 1959. Since then, China has continued to maintain good and exemplary relations with Khartoum to meritoriously culminate in the year 2015, into strategic partnership, when the Sudanese President Al- Bashir was accorded a red carpet treatment during the latter’s historic and landmark visit to Beijing.

The win-win formula was the impetus and the driving force behind Sino-Sudanese rapidly evolving relationship. As a matter of fact, If China’s contribution in the development of Sudan’s oil sector continues to be envisaged as highly significant to Khartoum, nevertheless, such engagement could not have easily streamlined without China’s own receptiveness to the prospect.

Likewise, Khartoum with its timely adoption of its Look East strategy at that time was at the right time of history; Sudan in particular was equally important to China’s efforts to develop its oil sector. No surprisingly, Sudan acted as China’s gateway to Africa.

In other words, China’s involvement in Sudan spans an important phase in the restructuring and expansion of china’s own national oil companies overseas; China’s aim at that time was to build internationally competitive firms and to enhance China’s security in regard to an energy supply.

Arguably, the most important characteristic of the historical relations between Sudan and China is that alongside the economic interactions, it was solidly based on mutual trust and respect. Hence, geographical dimension and the language barriers did not preclude the extension of the relationship on all cultural and social levels. In other words, Sino-Sudanese is a showcase for relationship based on the exchange of mutual interests and benefits and devoid of ulterior or hidden agendas.

What further features and signifies the visit of the senior Chinese official to Khartoum is the fact that it comes in the framework of China’s 900 billion dollar’s Silk Road Vision, which was recently kicked off by Chinese President Xi Jinping. It has been globally perceived as absolutely the most ambitious development and infrastructure project, with the aim of building a modern version of the ancient Silk Road.

In light of the pressing problems and challenges currently facing humankind almost all over the world, the Chinese “Belt and Road initiative, represents a glimmer of hope that will surly benefit the people all over the world, particularly the third world. The initiative firmly predicated that civilisations by and large, thrive with openness and nations prosper from trade exchange.

Not surprisingly, Sudan was among the first African countries which hailed and blessed such historic, extraordinary and momentous project. In fact,

Sudan has every reason to wholeheartedly support the Chinese initiative; taking into cognizance that Sudan historically, and due to its geographical location, was a link between the Arab world and Africa. Besides, perhaps since time immemorial, the ports in Eastern part of Sudan have been the meeting-point for convoys coming from China to Africa.

Sudan has always maintained its desire to encourage more African countries to strengthen mutually beneficial cooperation with China under the framework of the Forum on China-Africa Cooperation. In fact the package of projects planed in the womb of this initiative, represent the main starting point for the advancement of developing economies like the Sudan. Luckily enough, Sudan and China are currently putting the final touches and understandings to embark on a number of vital projects in the fields of transportation, energy and agriculture. To that effect, Mr. Zhang stressed the need to create synergy between the Belt and Road Initiative and Sudan’s development strategy and boost bilateral cooperation in some new areas such as agriculture, mining and port construction.

Perhaps the most ambitious developmental project in the initiative is the modernization of the railway network at the regional level; taking advantage of Chinese expertise and funding, China plans to finance and build a railway connecting Ethiopia to Sudan in the footsteps the Ethiopia-Djibouti recently constructed railway line, which besides providing Ethiopia with yet a new sea outlet for the Red Sea, shall further cement consolidate the already evolving Sudanese-Ethiopian bilateral ties in all fields of mutual benefits ..

By the same token, a similar giant project in the pipeline, is the railway line linking Sudan with Chad and Cameroon to the west, which will form the basis for the completion of the African ambitious dream of linking and connecting Africa by trains from South Africa to Egypt in the north, and from the Red Sea in the east to Senegal and the Atlantic Ocean in the west.

These promising projects shall heavily boost the Sudanese economy and multiply its innumerable investment opportunities. As a matter of fact and with regard to the energy projects, Sudan has already begun to benefit from the Belt and Road initiative, unleashing serious negotiation for the establishment of the first Sudanese nuclear plant for peaceful purposes in cooperation with Chinese companies. In the same context, Sudan is currently seeking to discuss opportunities for financing solar power stations as well as constructing more dams for irrigation and electricity projects.

As referred to in the beginning of this article, Sudan enjoys a long two – decades of cooperation with China in the exploration, production and export of Sudanese oil. During his recent visit, the Chinese senior official, Mr. Zhang reiterated that the two countries need to strengthen cooperation in oil and gas exploration and development, and work actively to explore new cooperation areas under the framework of the Belt and Road Initiative.

In agriculture, taking stock of Sudan’s huge natural resources, Sudan will be one of the largest beneficiaries from the Chinese initiative. Perhaps the giant strategic projects shall include inter-alia, the implementation of a big and exemplary slaughterhouse for the export of Sudanese meat, such promising and long awaited project, shall warrant the influx of additional hundreds of millions of dollars to the Sudanese treasury, in the form of added value of livestock and carcass waste.

Moreover making use of Chinese extended expertise and technology, the two old friends are currently engaged and planning to join hand in hand, to boost Sudan’s huge potential in cotton production, with the ultimate goal of making the Sudan great again in the field of textile industry, both regionally and internationally.

On the political level, the belt and road initiative is projected to play effective role in the establishment of further pillars of stability and peace in the Sudan; via its huge development projects, the initiative shall directly address the remnant root causes of poverty and conflicts in a country like the h the Sudan.

The initiative is anticipated to play a major role in promoting and consolidating the chances of peace and stability, taking into consideration that, the initiative-per se- can and can only succeed and flourish in a framework of love, coexistence and peace. Mr. Zhang reaffirmed in Khartoum that China will, as always, support Sudan’s efforts in safeguarding its sovereignty and territorial integrity as well as achieving domestic peace and stability.

China Daily: Refill Shrinking Lake Chad with TRANSAQUA Project

Chinese, Italian firms reach deal to refill fast-shrinking Lake Chad

By Kimeng Hilton Ndukong (People’s Daily Online)    17:51, August 21, 2017

Fishing is a major source of livelihood for millions of people in the Lake Chad Basin. Photo: LCBC

Hopes have been revived for the 40 million people who depend on Lake Chad for their livelihoods following the signing last June in Hangzhou, China, of a deal between Chinese construction giant, PowerChina and the Italian firm, Bonifica Spa. However, the news was only made public at the beginning of this month. 

Huge water transfer project

The agreement concerns the carrying out of feasibility studies on transferring 100 billion cubic metres of water per annum from River Congo in the Democratic Republic of Congo, DRC, to replenish the fast shrinking Lake Chad, a distance of 2,500 km. The project is also known as Transaqua. According to the website of Executive Intelligence Review, EIR magazine, the letter of intent was signed at a meeting between the executive of the two companies in the presence of the Italian Ambassador to China, Gabriele Menegatti

The recent deal between PowerChina and Bonifica Spa is sequel to the Memorandum of Understanding, MOU, signed between PowerChina and the Lake Chad Basin Commission, LCBC in the Nigerian capital, Abuja, on December 13, 2016. LCBC is made up of Cameroon, Chad, Niger, Nigeria and the Central African Republic, CAR. The MOU is for a period of four years, but can be extended after renegotiation by both parties.

The Transaqua project seeks to transfer water from River Congo to Lake Chad. Map by Schiller Institute

The agreement is “with a view to setting forth the principles of a technical and financial assistance arrangement towards the actualization of water transfer from the Congo Basin to Lake Chad,” LCBC website reported. PowerChina will fund the studies at the cost of 1.8 million US dollars, while LCBC will provide all necessary information and assistance.

Linking Central and West Africa

The MOU is to establish the basis on which the parties shall carry out further research on the Lake Chad Basin Water Transfer Project and other future projects in accordance with the Lake Chad Basin Water Charter, national legislations, regulations and practices of member countries. Additional research will be needed to strengthen climate change resilience in the Sahel and to raise the project into a continental infrastructure by opening up a new development corridor to link Central and West Africa.

The terms of the agreement between PowerChina and LCBC include the potential transfer of 50 billion cubic metres of water per annum to Lake Chad through a series of dams in DRC, Republic of Congo Brazzaville and the Central African Republic. There is also the possible generation of 15,000-25,000 kilowatts of hydroelectricity through the mass movement of water by gravity.

Other benefits are developing irrigated land for crop and livestock farming covering 50,000-70,000 square km in the Sahel zones of Chad, north-eastern Nigeria, northern Cameroon, and Niger; and providing new infrastructure platform for industries and water transport.

The core idea is to increase the water quantity in Lake Chad, improve water flow conditions, alleviate poverty within the basin through socio-economic activities, meet the energy needs of towns and surrounding areas in DRC and Congo Brazzaville, and conduct in-depth environmental impact assessment studies.

Satellite maps show how fast Lake Chad waters have receded over the past decades. Maps by NASA

New Silk Road to Lake Chad

The Lake Chad Basin Commission resolved the issue of funding studies on water transfer by creating a new Silk Road to Lake Chad. PowerChina, one of the country’s largest multinationals that built the Three Gorges dam, signed a Memorandum of Understanding with LCBC last December.

PowerChina committed to finance the feasibility studies for the initial stages of Transaqua and eventually to build the infrastructure. The water transfer canal will be a navigable facility 100 metres wide and 10 metres deep, stretching from southern DRC to CAR’s northern border. The waterway will be flanked by a service road and eventually a rail line.

Fast-receding lake

Lake Chad, once one of the greatest in the world, has receded fast in recent years as a result of less rainfall and harmful irrigation practices. Other unforeseen phenomena like the exodus of refugees and displaced populations fleeing the atrocities of the Boko Haram terrorist group have since arisen.

The recent deals between PowerChina,  LCBC and Bonifica Spa have raised hopes for the 40 million people in the Lake Chad Basin. Photo: LCBC

According to experts, only a robust measure like replenishing the lake’s water could spare the wetland – a food basket located between Central and West Africa – from total disappearance. Meanwhile, the impoverishment of the Lake Chad Basin has made it fertile ground for recruiting terrorists for Boko Haram. Although Transaqua offered a viable solution to the lake’s problems since the 1970s, Western nations and institutions showed little interest in funding the project.

Push by President Buhari

A shift occurred in May 2015 with the election of Nigeria’s President, Muhammadu Buhari. He came to power with a programme to develop national infrastructure, including implementing the water-transfer project for Lake Chad. At several international gatherings, President Buhari made the case for resolving the problems of Lake Chad and requesting Western nations to deliver on promises for financial assistance. He has also strongly oriented his government towards cooperation with BRICS (Brazil, Russia, India, China, South Africa) nations.

Discussing the groundbreaking water agreement in The Nigerian Tribune newspaper last July 25, Nigeria’s Minister of Water Resources, Suleiman Adamu, noted that a similar project to move water from southern to northern China where some areas are semi-arid has been undertaken by the authorities. The Minister added that Nigeria is working with UNESCO to organize an international conference on Lake Chad in Abuja before the end of 2017 to rally support for Transaqua.

Role of LaRouche

Thanks to the fight taken up by LaRouche organization over the years and the initiators of Transaqua, the project is today becoming reality within the framework of the Belt and Road Initiative. Executive Intelligence Review magazine and Schiller Institute in 2015 arranged the first meeting between LCBC and the brains behind Transaqua. This was followed in December 2016 by the signing of the Memorandum of Understanding between LCBC and PowerChina, and subsequent contacts between Bonifica Spa and the Chinese company.

The Boko Haram insurgency has led to the displacement of thousands of people, thereby aggravating the problems in the Lake Chad Basin. Photo: Nigerian Tribune newspaper

Origin of Transaqua project

Transaqua was first developed by the Italian engineering firm, Bonifica, in the late 1970s.

River Congo is the second largest river in the world with an average 41,000 cubic meters of unused water emptied at short intervals into the Atlantic Ocean. Bonifica then estimated that 3-4 per cent of this quantity of unused water will be enough to replenish Lake Chad.

The project involved building of a 2,400 km canal from the southern part of the Democratic Republic of Congo, DRC, (then Zaire) to intercept the right bank tributaries of River Congo through dams and reservoirs, and move 100 billion cubic metres of water per annum by gravity to Lake Chad. The project was given consideration by various stakeholders without much progress because of lack of interest or insufficient funding.

Several meetings were held between PowerChina and LCBC officials. Photo: LCBC

Kimeng Hilton Ndukong, a contributor to People’s Daily Online, is Sub-Editor for World News with Cameroon Tribune bilingual daily newspaper in Cameroon. He is currently a China-Africa Press Centre, CAPC fellow. 

Historic Italian-Chinese Agreement on Lake Chad

 Lawrence Freeman

August 8, 2017

      Backed by their respective governments, the Italian engineering firm Bonifica Spa and the ChinaPower, one of China’s biggest multinationals, signed a letter of intent for cooperation in exploring the feasibility, and eventually implement the construction of the largest infrastructure ever envisioned for Africa, the integrated water-transfer, energy and transportation infrastructure called Transaqua.

     The letter was signed during a meeting between the executive leaders of the two companies in Hangzhou on June 6-8, in the presence of the Italian ambassador to China, but it was made known only at the beginning of August.


Fisherman on Lake Chad


The author travelling on Lake Chad with Mohammed Billa of the LCBC

          Transaqua is an idea developed by Bonifica in the 1970s, to build a 2,400 km-long canal from the southern region of the Democratic Republic of Congo (D.R.C.) which would intercept the right bank tributaries of the Congo River through dams and reservoirs, and carry up to 100 billion cubic meters of water per year, by gravity, to Lake Chad, in order to refill the shrinking Lake Chad, and in addition produce electricity and abundant water for irrigation. The canal would be a key transportation infrastructure for central Africa.

          In past decades, the situation around Lake Chad has become more and more explosive and urgent. While the drying out of the lake has forced a mass emigration to Europe, the impoverishment of the region has become a fertile ground for recruiting terrorists to Boko Haram. Although Transaqua offered a solution to all those problems, Western nations and institutions had so far refused to accept it, on financial and ideological pretexts.

          This project can now become reality in the framework of the Belt and Road Initiative. This author along with other advocates made it possible for Lake Chad Basin Commission (LCBC), under Nigerian leadership, and the Transaqua authors from Bonifica to come together, and agreed that Transaqua is the most comprehensive and realistic solution to preventing Lake Chad from completely disappearing, and reversing the abject poverty in the Lake Chad Basin. In December 2016, the LCBC signed a Memorandum of Understanding with PowerChina, and eventually organized contact between the Italian and the Chinese companies.

          Speaking about the 2016 MOU to the {Nigeria Tribune} July 25, Nigerian Water Minister, Suleiman Adamu, noted that PowerChina is responsible for the inter-basin transfer. “China is doing exactly the same thing, they are transferring water from southern China to northern China. Just like Nigeria, southern China has more water than the north. In the northern part, some areas are semi-arid, so they are transferring water. The total canal that they built is about 2,500 kilometers, and that is Phase 1.”

          The Executive Secretary of the LCBC, Eng. Abdullahi Sanusi, expressed his confidence that the new cooperation will succeed “to be part of good history, to bring hope to the voiceless.”

          Lake Chad, a mega lake in prehistoric times, stabilized at 25,000 square kilometers in 1963. Since then it has contracted to as little as 2,000 square kilometers, and recently may have expanded up to as much as 4,000 square miles. Over 40 million Africans, the plurality Nigerians live in the Lake Chad Basin-(LCB) that has a drainage area of 2,439,000 square kilometers. Poor rainfall is a factor, but the precise cause for its diminished size of Lake Chad is unclear, given that the lake is reported to have almost disappeared in earlier times. With the area of lake having been reduced approximately to 10% of its size from a half century ago, the economy, which depends primarily of fishing and farming has been devastated. While travelling on the lake by motorized canoe in 2014, I witnessed fisherman standing in water barely above their ankles. Military professionals and analysts are now beginning to understand that the extreme poverty of Africans living in the LCB is a crucial factor in the increased recruitment to Boko Haram. These impoverished youths who see no future for themselves and are desperate to make money by joining this extremist movement.

          Minister Adamu displayed his understanding of the relationship between security and economy concerning the LCB when he told the Nigerian Tribune: “It is not a climate issue, it is a security issue-the security issue we are having in the Northeast. I can guarantee you that substantially it has to do with the drying of up of the lake, because youth there have lost all opportunities of hope there.”

          Nigeria is by far the largest economy of the six countries of the LCBC. President Muhammadu Buhari of Nigeria has stated publicly and privately that expanding Lake Chad is a priority of his administration. Eng. Abdullahi is also a strong advocate of restoring the lake to its previous size.  In the recent period, we have witnessed growing support for this project from some elements of the United States military, who realize this project is an essential component of countering violent extremism in the LCB.

          If these efforts successfully lead to the transfer of water to save Lake Chad, it will be celebrated throughout the Africa continent

BRICS, China, and Ethiopia Promote Industrialization

BRICS ministers adopt new industrial action plan

The industry ministers from Brazil, Russia, India, China and South Africa (BRICS) adopted a new action plan to deepen industrial cooperation among the five nations, Trade and Industry Minister Rob Davies said in a statement on Sunday. Davies and his counterparts from the BRICS grouping attended a meeting in Hangzhou, China where industrial and manufacturing matters were discussed and which culminated in the adoption of a seven-point action plan. “The action plan states that the world economy is still in a period of profound adjustment after the international financial crisis,” Davies said.

 “Industrial sectors, the manufacturing sector and the service sectors related to it in particular, have become key factors in sustaining mid- and long-term economic development.” At the meeting, the ministers acknowledged that the new industrial revolution of digitisation among other things will change traditional production flows and business models that will give rise to new industrial forms.

The following seven points have been identified as key in the action plan:

       strengthen industrial capacity cooperation 

       strengthen the coordination and match-making in the field of industrial policies

       promote the cooperation in the development of new industrial infrastructure

       expand cooperation in technological development and innovation

       deepen cooperation in the field of small and medium enterprises (SMMEs)

       strengthen cooperation in standard area

       facilitate all-round cooperation with the United Nations Industrial Development Organization (UNIDO)

He emphasized that industrial development strategies and investment cooperation have to grapple with the potential threats in particular in the context of high unemployment.  Davies said the industrial development cooperation between the Brics countries can be used as a springboard to foster growth and development and create work opportunities. BRICS countries will focus on using their respective rich natural and human resources and broad domestic markets to broaden industrial capacity and policies, while working together in developing new industrial infrastructure and technology.

Chinese investment leads way as Ethiopia opens to outside

As Ethiopia, the most populous nation in East Africa, is spreading its economic relations across the globe, investment from the world’s most populous nation China is playing a prominent role. Ethiopia, with a population of some 100 million, is a country on the move with rail, air and road infrastructure projects and an ambitious industrialization plan.

Ethiopia keenly needs investment from industrial giants like China to give its burgeoning population, which is estimated to grow by 2 million annually, ample employment opportunities. According to the Ethiopian Investment Commission (EIC), there have been 279 Chinese companies with more than 571-million-U.S.-dollars worth of investment, creating more than 28,300 jobs in Ethiopia between January 2012 and January 2017.

Huajian Industrial Holding Company Limited, a Chinese company that has a long-term investment plan in Ethiopia, is operating two plants in the country. Yin Xinjun, Vice General Manager at Ethiopia Division of Huajian Industrial Holding Company Limited, says Huajian’s decision to have its first plant in Ethiopia stems from the country’s firm desire for industrialization. In fact, a personal call for more investment by late Ethiopian Prime Minister Meles Zenawi during an August 2011 visit to China is what motivated initially Huajian to invest in Ethiopia, says Yin. According to Yin, Huajian’s investment in its first African plant had overcome several challenges, including logistical ones. Huajian initially had to transport its goods through an overcrowded highway from the plant in landlocked Ethiopia to Djibouti port. The problem has been partially solved with the construction of the 85-km Addis Ababa-Adama Expressway funded partly by the Export-Import Bank of China (China EXIM bank) and built by China Communications Construction Company (CCCC). The 500-million-dollar expressway was inaugurated in May, 2014.

Huajian also had to face intermittent power and water outages. The Ethiopian government later solved this problem through a special water and power line for the Eastern Industry Zone where Huajian’s first plant is located. Overcoming these challenges, Huajian currently employs more than 4,000 Ethiopians with a plan to increase employment to 50,000 people by 2022. Having established a plant in the Dukem industrial zone, 37 km south of Addis Ababa, Huajian is currently building a massive 138-hectare international light industry city in Addis Ababa. With the completion of the light industry city, Huajian foresees increasing its export revenue from 30 million dollars in 2016 to 4 billion dollars by 2022

However Western critics warn Ethiopia of being trapped in a neo-colonial relationship and some Ethiopians wonder if the Ethiopia-China relationship comes at the expense of other countries. Gedion Jalata, Program Manager of Africa China Dialogue Platform at Oxfam International, says both views miss the mutual beneficial and sovereignty respecting aspect of the bilateral relations. Jalata points out that Ethiopia is one of the beneficiaries of the China-proposed Belt and Road Initiative.

While Ethiopia is attracting massive Chinese investment in infrastructure projects, the Ethiopian government has set its sight in particular on Chinese involvement in industry parks. Ahmed Shide, Ethiopia’s Minister of Transport, says the country plans to utilize Chinese built infrastructure to boost its industrial exports. Shide is especially keen on the 4.2-billion-dollar Chinese built and financed 756 km Ethiopia-Djibouti electrified rail line to boost its industrial exports.