China is strengthening its economic ties across Africa, with Ethiopia emerging as a key partner in its regional strategy.
According to nationalinterest, the decision to extend zero-tariff treatment to imports from 53 African countries beginning May 1 underscores the scale of this broader push.
The clearest example in Ethiopia is the $4 billion, 750-kilometer (466-mile) Addis Ababa-Djibouti Railway, a Chinese-financed infrastructure project serving as one of East Africa’s most critical transportation nodes.
The railway provides landlocked Ethiopia with its primary commercial link to the sea via the Djibouti Port of Doraleh. The World Bank estimates that more than 95 percent of Ethiopia’s import-export trade by volume navigates the Addis-Djibouti corridor. Thus, the railway is a vital economic lifeline for the 132 million Ethiopians seeking reliable access to global markets. When it functions well, Ethiopian producers can move goods efficiently. When it does not, the wider economy pays a substantial price.
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While the Chinese originally operated the railway, it has since been transferred to the Ethiopian and Djiboutian states. By then, thousands of workers had reportedly been trained in operations, maintenance, and safety management. While the railway corridor has become a massive boon for the Ethiopian economy, certain issues have limited the project’s full potential. Frequent railway theft and vandalism, combined with political instability and unreliable power grids, have markedly slowed operational speeds.
As of 2024, Ethiopia owes $3 billion for this project and $14 billion in total for other projects Beijing has invested in. Half of Ethiopia’s outstanding foreign debt is owed to China, though some restructuring efforts have occurred. While China’s role in Ethiopia is a strategic development worth monitoring, it is not limited to the Addis-Djibouti rail corridor.
The Bishoftu Airport, expected to be the continent’s largest when completed sometime after 2029, is being constructed, at least in part, by the state-owned China Civil Engineering Construction Corporation. The airport is projected to cost $12.5 billion and handle between 60 and 110 million passengers and 3.73 million tons of cargo. While not an outright Chinese project, it does suggest that Beijing remains a key player in Ethiopia’s next major infrastructure push.
