Tuesday, August 10, 2021

Risks of Chinese Investment and Loans for Ethiopia

 The Overseas Development Institute published in August 2021 a report titled "The Belt and Road and Chinese Enterprises in Ethiopia: Risks and Opportunities for Development" by Linda Calabrese, Zhangli Huang, and Rebecca Nadin. 

While investment and loans from China come with opportunities, they also pose risks for Ethiopia: overeliance on China as a soure of investment, crowding out of domestic investment, and debt insustainability.