Search This Blog

Thursday, November 13, 2014

Re-examining Somaliland’s relations with Ethiopia, Djibouti and Somalia



Mohamed Abdilahi Duale and Saeed Mohamed Ahmed

Somaliland has been a self-governing nation for 23 years, but lacks international recognition as a state. Somaliland’s neighbours should recognize the nation to ensure security and stability in the region

For many years, the Horn of Africa has been characterized by wars, anarchy, terrorism, piracy and instability. Amid the chaos and uncertainty in the region, Somaliland managed to maintain cordial relations with its neighbouring countries. Somaliland has always accomplished its affairs in accordance with the interest of the region.

Additionally, Somaliland has carefully avoided any action or utterances that may negatively affect the stability of the region as well as its relations with the countries in the region. Yet, Somaliland’s neighbouring states have dithered to grant Somaliland it’s well deserved recognition.

Since Somaliland’s immediate neighbours are not willing to facilitate the long-awaited recognition of Somaliland and are not expanding their diplomatic relationships with Somaliland, they have made it easy for policymakers in the West to defer the issue of recognition and maintain the status quo of the diplomatic limbo-status of the country.

Notwithstanding these double standards of the regional states, this paper argues that the current situation offers a window of opportunity to re-assess Somaliland’s diplomatic relations with these countries. This essay seeks to identify the ways in which Somaliland can improve its relations with neighboring states and also suggests that Somaliland needs to balance its relationship with these states.

SOMALILAND’S RELATIONSHIP WITH ETHIOPIA

Ethiopia has the second largest population in Africa with around 90 million citizens. The ninth largest country in the continent, covering over 1 million square kilometers, is the only state in the region without a coastline and port. Ethiopia has maintained close relation with Somaliland since its re-emergence in 1991.


During the liberation struggle against the Siyad Barre dictatorship, Ethiopia was the base of guerilla movement Somali National Movement (SNM), from which the military campaign against the regime was launched. In addition, Ethiopia was the principal haven to which Somaliland's civilian refugees fled during the period 1988 - 1991.

In 2000, a Somaliland delegation led by the second president of the Republic Mohamed Haji Ibrahim Egal visited Addis Ababa and signed agreements aimed at enhancing trade and communications.

Ethiopia was the first country that established diplomatic relations with Somaliland’s capital Hargeisa by opening a consulate which issues visas to Somaliland passport holders, while Somaliland also maintains a diplomatic office in Addis Ababa, Ethiopia. In addition, Ethiopia Airlines flies to Somaliland several times per week.

Nevertheless, even though Ethiopia is considered as being directly supportive of Somaliland’s independence claims, there are no signs that Ethiopia is ready to recognize Somaliland as Ethiopia has stated several times that it would be the second country to recognize Somaliland. Ethiopia’s disinclination to be the first country to recognize Somaliland is due to a number of factors:

         •      Given the historical animosity between Ethiopia and the Somali                         republic, the subsequent disintegration of the former Somali                  republic and its support to SNM, the Ethiopian government is not                  willing to be accused of dismembering Somalia further by                  recognizing Somaliland.
         •      The absence of vibrant diplomatic pressure and drastic political                      bargaining from Somaliland has resulted in the seemingly lack of                           Ethiopia’s political willingness and enthusiasm in recognizing                  Somaliland as a de jure state.

Many observers argue that both Somaliland and Ethiopia have been half-hearted in developing an effective relationship with regard to trade and
 INVESTMENThttp://cdncache1-a.akamaihd.net/items/it/img/arrow-10x10.png.

Specifically, Hargeisa was not able to table a convincing trade development program that would influence Ethiopia to invest in Somaliland. Many political insiders contend that the successive Somaliland governments have not INVESTEDhttp://cdncache1-a.akamaihd.net/items/it/img/arrow-10x10.png much time and effort in promoting and developing the Berbera Corridor as a major route for Ethiopia’s imports and exports and it remains grossly under-utilized compared to its potential.

In addition, Ethiopia had succeeded in bringing hydro-electric power to towns near the Ethiopian-Somaliland border, but the current government in Hargeisa has not taken advantage of this opportunity to extend this into Somaliland.

Nevertheless, it is our firm belief that Ethiopians also need to rethink their political and diplomatic strategy towards Somaliland. Firstly, Ethiopia’s interest lies in ensuring a peaceful and independent Somaliland with a fully-functioning and responsible state. Secondly, security remains one of the most challenging issues in the contemporary setting and particularly in this highly volatile region. Moreover, Ethiopia shares with Somaliland a long border extending over hundreds of kilometres—that remains secure thanks to the Somaliland government and its people. In this regard, Ethiopia should reconsider Somaliland’s quest for recognition as a critical and strategic agenda for its security.
 

With new leadership in both countries, there is a window of opportunity to develop a closer and more fruitful relationship, particularly with respect to trade and
 INVESTMENThttp://cdncache1-a.akamaihd.net/items/it/img/arrow-10x10.png. Interestingly, the foreign policy of Somaliland seems to be improving as it is currently led by a minister with pragmatic capacity, while Ethiopia has a new prime minister as well as a new and energetic foreign minister.

SOMALILAND’S RELATIONS WITH DJIBOUTI

The relationship between Somaliland and Djibouti has never been successful due to Djibouti’s proverbial antagonistic policy towards Somaliland. Djiboutians had received widespread and sustained support from the people of Somaliland during their struggle for Independence in the 1970s. However, when the Siyad Barre’s regime initiated its policy of internal war against the people of Somaliland during the late 1980s, which lead to the massacre of civilians in Hargeisa and other cities in 1988, the Djibouti government was not receptive to the flood of refugees that poured out of the country seeking shelter and safe haven. Therefore most of the refugees sought asylum in Ethiopia rather than Djibouti.


Djibouti is an important neighbour to Somaliland for several reasons. Firstly, Djiboutians and Somalilanders have common ancestral lineage and geographical tenancy since the people of Somaliland live both in Djibouti and Somaliland. Secondly, most recently, Djiboutian businessmen, especially from the circles of the ruling family, have hugely invested in Somaliland with large scale business projects. 

Since the re-emergence of Somaliland in early 1991, relations with Djibouti have been unstable. There have been a number of military confrontations between SNM fighters based at the border and the Djibouti military. The late President Egal tried to establish better relations with Djibouti and he initiated several measures in this regard, e.g. during a visit by Egal to Djibouti in January 1994 President Abtidon requested President Egal that he remove Somaliland forces based at the border between the two countries. President Egal complied and ordered the removal of the Somaliland forces at the border.
 

Formal diplomatic relations between Somaliland and Djibouti started early in 1999, when President Egal nominated Ambassador Omer Dheere to officially open Somaliland’s diplomatic office in Djibouti, however, Djibouti has not opened any diplomatic office in Hargeisa.

This low-key diplomatic relationship deteriorated in early 2000, when Djibouti was hosting the Somali Peace Conference in Arta, which the Somaliland government boycotted. The proposal of the Arta Conference was initiated by President Egal, who visited his counterpart President Ismeal Omar Gelleh in Djibouti and proposed in detail a peace plan for Somalia that envisaged a reconciliation conference for the warring factions hosted by Djibouti – the only Somali-populated country that enjoyed international recognition.

Egal believed that Djibouti could play a significant role in reconciling the warring factions in Somalia by using its positions at the UN, AU and Arab League to secure the diplomatic, economic and political support of the international community. Unfortunately, Gueleh betrayed Egal and invited Somaliland to the Conference as one of the warring factions of Somalia in direct contravention of their private agreement that Somaliland would not participate at the conferences.

The Djibouti government has been deeply engaged in the politics of Somalia and has hosted a number of peace conferences, notably Arta at which a puppet government was established. More recently, Guelleh was the architect of Sheikh Sharif’s transitional government, which was established in Djibouti. However, Djibouti’s peace efforts have all proven ill-advised and counterproductive. During this period, i.e. 2000 until the present, Djibouti’s political position on Somaliland’s recognition has been ambivalent at best and hostile at worst.

Djibouti has not supported Somaliland’s quest for recognition at any international forum, e.g. IGAD, AU, Arab League, while by contrast, Somaliland has cooperated with Djibouti in securing the Djibouti-Somaliland border for some 23 years. 

Presently, Somaliland maintains a diplomatic office in Djibouti confined to minor activities such as welcoming Somaliland delegates to Djibouti. Many political observers argue that Djibouti is very much engaged in thwarting Somaliland’s political maneuvers. For that reason, it is necessary that Somaliland re-assess its diplomatic relations with Djibouti.

SOMALILAND’S RELATIONS WITH SOMALIA

The people of Somaliland and Somalia share many things which are very unique; they share language, culture, religion and ethnicity. The Somali people who live in these two states also reside in other countries from the Horn of Africa such as Djibouti, Ethiopia and Kenya. Somaliland was the first Somali state that got independence on 26 June 1960. Somaliland and former Italian trust territory united on 1 July 1960 and became the Somali Republic. It is important to remember that Somaliland willingly and voluntarily surrendered its sovereignty in 1960 without preconditions in the cause of Greater Somalia. The main dream of that union was to bring all Somali speaking people into one state. Unfortunately, that dream never materialized. On the contrary, the union of two Somali territories was unable to establish peace and justice between them. The former Italian trust territory (South Somalia) had dominated the politics of the new republic and marginalized the people of the former British Protectorate.
 


The inequity started from the beginning; the president, the prime minister, key ministers, Head of Military, Police and other key posts went to Southern politicians. The only civilian government, which had a premier from the former British Protectorate Somaliland, had been overthrown on 1 October 1969 by the military junta. The Somali National Movement (SNM) - an organization representing northern clans, although comprising mainly the Isaaq membership - emerged in response to General Barre’s policy of atrocities, summary executions, targeted assassinations, arbitrary arrests, expulsions, freezing of commercial activities and mass starvation of millions of nomads whose livestock and water wells were destroyed by the army of dictatorship.

After defeating Barre’s army in 1990, the SNM convened a conference in the town of Burao in 1991 at which all the northern clans/tribes were represented. At this meeting, the representatives of the clans/tribes from the Somaliland British protectorate decided to nullify the unratified Act of Union of 1960 and re-established Somaliland’s sovereignty. Since then relations between Somaliland and Somalia have been uncertain due to the fact that the Somali state collapsed and never recovered from its destruction, while Somaliland had experienced a speedy recovery.

Successive governments of Somaliland have considered relations with Somalia as a critical and sensitive matter. Unlike the incumbent government of President Silanyo, all preceding governments were very sensitive and reluctant to commence official or formal relations with Somalia. The main arguments of the preceding governments of Egal and Rayale were twofold:
 

         •       That there was no credible, capable and functioning government                          with which Somaliland can deal and negotiate on the critical issues                interested by the two parties,
         •       That there was no reason for Somaliland to meddle itself with the                     divergent warring political functions of Somalia.
 

However, the incumbent government of Somaliland shifted the longstanding policy of abstaining from any “deal with Somalia” and agreed to start talks with Somalia for the first time in 21 years. The first time that Somaliland and Somalia had “official talks” was July, 2012. These talks came about after the “London Somali Conference”— in which President Ahmed Silanyo participated. This conference had a great impact which drove Somaliland and Somalia to participate in subsequent bilateral meetings that were held in Dubai, UK and Turkey respectively.

President Silanyo as the elected Head of State of Somaliland and President Sh. Sharif as the head of the Transitional Federal Government of Somalia signed an agreement that was facilitated by the UAE government in Dubai providing for further talks and negotiations between the two entities. Interestingly, President Silanyo argued that these talks with Somalia will pave the way for the long overdue recognition of Somaliland.

Those opposing talks with Somalia argue that it is a waste of time as there is no democratically elected and strong government that has the legitimate authority to negotiate and decide upon the critical and key issue of Somaliland’s independence. One of the key factors such opponents cite to challenge the ongoing dialogue between Somaliland and Somalia is that not a single point of these agreements, understandings and principles that have so far been reached has been implemented.

In light of this fact, it is the firm belief of the authors that Somaliland needs to critically re-examine its relations with Somalia and re-think the ongoing dialogue between the two entities.
 

CONCLUSION AND RECOMMENDATIONS

The government of Somaliland has to balance its diplomatic relationship with the neighbouring states. Somaliland has to increase its diplomatic efforts in the region—it is of paramount importance that Somaliland brings a pragmatic approach to its diplomatic maneuvering in the region. Somaliland’s quid pro quo for offering bilateral security relations in the region has to be international recognition.

Based upon the foregoing review, we would like to mention the following recommendations as a basis for improving existing Somaliland’s relations with its neighbouring countries in the region:

• Strengthen Somaliland’s diplomatic missions in Ethiopia and Djibouti

• Establish a special desk in Somaliland’s Foreign Ministry for pursuing effective relationships with these neighbouring countries in the region

• Come up with special and critical policy coupled with delivery mechanism on the recently-formed relations with the so-called Somalia government

• In improving its relations with its neighbouring countries, Somaliland should not forget the significance of prioritizing “trade, INVESTMENThttp://cdncache1-a.akamaihd.net/items/it/img/arrow-10x10.png and economic partnership”—which can contribute to Somaliland’s economic growth.

• Capitalizing on the potential of the academia, the so-far formed think-tanks and intellectual groups to ensure a participatory approach of building vibrant relations and obtaining capital which can safeguard Somaliland’s interests. 

* Mohamed Abdilahi Duale is a political analyst and an independent researcher currently based in Somaliland.
 

* Saeed Mohamed Ahmed is a senior social worker and a youth activist based in Somaliland. The article was first published in Somaliland Sun, May 2014.

The article was first published in Somaliland Sun, May 2014.

Wednesday, November 12, 2014

ABWAAN XASAN CABDILAAHI "XASAN GANEY" OO SOO GAADHAY DALKA JARMALKA




ABWAAN XASAN CABDILAAHI "XASAN GANEY"
Bonn Germany - Wararka laga helayo dalka Germany ayaa xaqiijiyay in uu dalkaasi Soo Gaaray Magaalada Bonn ee dalka Germany Abwaanka wayn ee caanka ka ah dhamaan dhulka ay Somalida Degto Abwaan Xasan Cabdilaahi 'Xasan Ganey'.

Abwaanka Xasan Ganay ayaa waxa uu si toos ah uga yimid caasimada Somaliland ee Hargeysa oo isaga iyo qoyskiisu ku nool yihiin.

Waxana si diiran ugu soo dhaweeyay gegida diyaaradahu soo cagodhigtaan ee magaalada Bonn Jaaliyada Somaliland ee ku nool dalka Germany iyo guud ahaan Qaarada Yurub.

Abwaan Xasan Ganay ayaa isagoo ku sugan garoonka caalamiga ah ee diyaaradaha ee magaalada Bonn waxa uu warbaahinta u xaqiijiyay in ujeedada uu u yimid dalka Germany ay tahay arimo la xidhiidha adeegyada caafimaad ee dalka Germany maadaama oo uu xanuunsanayo, waxana uu ILAAHAY ka baryay in uu caafimaaad buuxa ka siiyo adeegyada isku daawaynta ee dalkan ayuu yiri abwaan Xasan Ganay.

Badaha suugaanta Abwaan Xasan Cabdilaahi 'Xasan Ganey' qalin laguma soo koobi karo qaybo ka mid ah waxad ka daalacan kartaa http://hawraar.net/maxaad-ka-taqaan-abwaan-xasan-xaaji-cabdilaahi-xasan-ganay/# iyo http://so.wikipedia.org/wiki/Xasan_ganay

EEBE WAXANU KA BARYAYNAA IN UU ABWAAN XASAN GANAY SIIYO CAAFIMAAD BUUXA. Sidoo kale waxa laga codsanayaa guud ahaan umadda Soomaaliyeed in ay u soo duceeyaan 'Ducada Maqanaha' in uu EEBE caafimaad buuxa siiyo Abwaankeena Xasan Cabdilaahi 'Xasan Ganay'.

ABWAAN XASAN CABDILAAHI "XASAN GANEY" mudada uu joogo dalka Germany cidii doonaysa in ay soo booqato waxa ay kala soo xiriiri karaa:

Guriga Xaali Cabdi Yaasin
Taleefoonka Guriga Waa 0049228 88684042 Bonn

Thursday, October 30, 2014

Ethiopia’s First Urban Complex Project Starts in Addis Ababa




According to people’sdaily report the first urban complex project called Poli Lotus International Center starts in Ethiopia developed by Chinese investment, was opened on Monday in Ethiopia’s capital Addis Ababa.
The project executed by Tsehay Real Estate, which is co- invested by the China’s CGC Overseas Construction Group (CGCOC) and Chinese investor Qian Xiao, includes public and residential buildings in function layout. The 1.5-million-U.S.-dollar project covers an area of 200,000 square kilometers, and is expected to finish in 2017.
The public building comprises high standard hotel, international A grade standard office, supermarket, banks shopping center and pedestrian commercial street.
Cutting the ribbon during opening ceremony, President Mulatu Teshome noted that the project enables to provide modern and efficient services to all its urban dwellers and the international community at large.

“This project, which is being undertaken and labelled as Poli Lotus International Center, is one of the most successful urban developments to bring efficient building construction technology and knowhow, thereby facilitating the smooth transfer of construction technology to Ethiopia,” said the president.

“The size and quality of this investment, made by Chinese company, reflects the long-standing excellent bilateral relations between Ethiopia and China,” he added.
Chinese Ambassador to Ethiopia, Xie Xiaoyan, said at the ceremony that the project is a new concept that would bring new life to the city.
“The project will bring new concept, new experience to people’s lives in the city because you can do everything here; you can go shopping, you can eat in restaurant, you can live in apartment comfortably,” said the ambassador.
Speaking on the occasion, Sun Guoqiang, deputy manager of CGCOC, said “through the introduction of advanced technology, products service and capital as well from China we are dedicated to improving the living standard of the local people and promoting the economic development of Ethiopia”.
He said his company would continue to contribute share to the comprehensive development of Ethiopia.

Ethiopia Leads the East African Cement Market



Amongst the countries in East Africa, Ethiopia leads in terms of regional cement output (12.6 million MT per year).
It has overtaken Kenya, which historically dominated regional output, producing the equivalent of 7.4 million MT per year in 2012-13.
At the same time, both Kenya and Uganda are regional export hubs, having exported a total of 1.4 million MT in 2012.
The output among East African countries is significant relative to other African regions, particularly when considering that Central Africa historically been a marginal producer, with a capacity of a mere 1.6 million MT per year.
However, this has been changing with the emergence of Angola as a major producer. Angola has rapidly built up its capacity to around 8 million MT per year, all of which it consumes.
Nigeria and South Africa remain the leading sub-Saharan cement producers, with 25% and 16% of the total market share, while Ethiopia and Kenya account for 11% and 6% of the total market share respectively.
Cement consumption per capita in East Africa is significantly below the global average of 500 kg, with the region’s largest markets in Kenya (80 kg) and Ethiopia (61 kg) – both indicating significant potential for growth. This reflects high domestic prices, which have constrained demand.
By way of comparison, in sub-Saharan Africa, Nigeria remains the largest consumer, with an estimated 18.3 million MT consumed in 2013, followed by South Africa, with 12.2 million MT. Together these two countries represent half of sub-Saharan Africa’s cement consumption.
Angola, Ethiopia and Ghana all together consume between 5-6.5 million MT, while Kenya (3.7 million MT) and Tanzania (3 million MT) are East Africa’s leading cement consumers.
The rapid expansion of production capacity across Sub-Saharan Africa has led to a sharp drop in cement imports, reversing the deficit that has built up over the past decade.
Nigeria, which as recently as 2010 was importing $500 million worth of cement each year, has seen imports slump to $139 million in 2012, while Ethiopia’s imports have fallen by 75%, to just $43 million over the same period.
This reflects the steady tightening of both countries’ import regimes, where the governments are phasing out licences to import cement and encouraging investment in local production.
As a result of these policies, both Nigeria and Ethiopia are on track to become net exporters of cement in the near future.
Source: Companies and Markets

Intercontinental Expands in Africa with First Hotel in Ethiopiaf



According to a press release from Intercontinental Hotels Group (IHG), It is expanding into Africa with the signing of its first hotel in Ethiopia. InterContinental Hotels Group (IHG), one of the world’s leading hotel companies, has signed a management agreement with Tsemex Hotels and Business Plc to develop Crowne Plaza Addis Ababa. The 210-key hotel represents the entry of IHG into Ethiopia and adds to the company’s growing presence in Africa.
Crowne Plaza Addis Ababa is situated near significant landmarks including the African Union headquarters, African Union Convention Centre, the headquarters of the United Nations Economic Commission for Africa and the United Nations Convention Centre. It is also located close to one of the largest international communities in the city. The new hotel will feature an all-day dining restaurant, a speciality restaurant and a bar. Guests can enjoy facilities such as the health club and spa, or kick back with a drink at the bar by the swimming pool.
Catering to the business traveller, Crowne Plaza Addis Ababa will also offer a range of meeting facilities including a boardroom, seven large meeting rooms as well as ballroom for larger events. A business center is also available for guests who require access to business facilities on the go.
Pascal Gauvin, Chief Operating Officer, India, Middle East and Africa, IHG, said: “Addis Ababa is evolving at pace, with infrastructure such as the Bole International Airport now serving almost 20 million passengers a year. We’re always on the lookout for the right partner to grow our brands in the right location. Now we’re bringing Crowne Plaza to a new country with Tsemex Hotels and Business Plc. Crowne Plaza Addis Ababa is a strong addition to the brand and with this being our first hotel in Ethiopia we will now have a presence in 13 countries across Africa.”

Mr. Rezene Ayalew, Managing Director, Tsemex Hotels and Business Plc, said: “We own a number of real estate developments and with this being our first venture into hospitality, we couldn’t have asked for a better partner to embark on this project with. Addis Ababa has great potential for tourism but is currently under-supplied in catering to business travellers and meetings and events. The Crowne Plaza brand comes highly recommended with a unique positioning for the business market and we believe this is the right brand to bring into our vibrant city.”


IHG currently has 29 hotels open on the continent of Africa across five brands: InterContinental, Crowne Plaza, Holiday Inn, Holiday Inn Express and Staybridge Suites. The new development marks the sixth Crowne Plaza hotel in Africa. Across Asia, Middle East and Africa there are 68 Crowne Plaza hotels and resorts totalling more than 19,000 rooms, with an additional 16 due to open in the next three to five years.

Ethiopia to Djibouti Railway to Be Complete on October 2015, PM Says



(Bloomberg) – An electrified rail link from Ethiopia’s capital along its main trade route to neighboring Djibouti will be completed by October 2015, Prime Minister Hailemariam Desalegn said.
The Railways Corp. project, funded with a $1.6 billion advance from the Export-Import Bank of China and by Ethiopia’s government, is half-complete, he said yesterday in the capital, Addis Ababa.
“Priority has been given to it,” Hailemariam said in response to questions from members of parliament. “Next October the line will be finished.”
The 656-kilometer (408-mile) railway is part of a five-year growth plan for Ethiopia begun in mid-2010 that seeks to spend 569.2 billion birr ($28.4 billion) of public and private funding on infrastructure and industry. The new route to Djibouti may reduce travel times by half, according to the government.
Seven out of 10 cane factories being built by the state-owned Sugar Corp. will also be completed in a year’s time, with the rest finished in the subsequent six months, the premier said. “We will be able to export the sugar they produce this year,” he said, referring to the Ethiopian calendar year that ends Sept. 11.
Sugar Corp. signed government guaranteed loans worth $580 million last October with the China Development Bank to finance six processors in the South Omo region, while China’s Ex-Im Bank provided a credit-line of $500 million in May for a sugar plant in the northern Tigray region, according to data on the Finance Ministry’s website.
Increase Output
In Sept. 2011, the government said it aimed to increase sugar production almost eightfold to 2.3 million metric tons by mid-2015, leaving a surplus for export of 1.25 million tons.

Plans to build 10 sugar factories, a 2,395-km rail network and boost the power supply fourfold to 8,000 megawatts haven’t been fully achieved, said Girma Seifu, the only opposition legislator of 547 members of parliament.
“At this point in time we’re just importing sugar,” he said by phone from the capital yesterday. “The plan is just for propaganda purposes rather than implementation.”
Turkish contractors Yapi Merkezi Insaat VE Sanayi AS have begun work on a northern railway line from Awash to Woldiya, while a Brazilian-funded project to the southwest hasn’t begun, Hailemariam said. Russia plans to fund a link to Kenya, according to the Railways Corp. “Because there is an economic slowdown those countries have not been able to release the
loans,” Hailemariam said.
Loan Maturities
An advance of $300 million from the Export Credit Bank of Turkey funds the Turkish project at rates of Libor 6 month plus 3.75 percent, according to the Finance Ministry. Credit Suisse Group AG (CSGN) is loaning $450 million at the same rate and $415 million at Libor 6 month plus 4.59 percent for the line, the data says. All deals were signed July 7. The maturity of the recent loans for rail and sugar is around 12 years. That compares with a four-decade repayment period for World Bank advances, which come with interest rates of about 0.75%.
Ethiopia is on the “cusp” of going from a low to moderate risk of debt distress, the International Monetary Fund said this month. “Commercial loans to finance large public investment projects by state-owned enterprises could increase the risk to Ethiopia’s public debt sustainability,” it said. To contact the reporter on this story:William Davison in Addis Ababa at
wdavison3@bloomberg.net
To contact the editors responsible for this story: Paul Richardson at pmrichardson@bloomberg.net

Michael Gunn, John Bowker

Source: addisnews.net