China and India and Ethiopia final report - FES Ethiopia

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IV (Omo River) and Halele Werabesa dams, in a deal worth US$2.67 billion.China will cover 85% of the project costs through preferential buyer's creditand concessionary loans. The environmentalist Richard Leakey has expressedconcerns about the possible impact of the Omo river dams on Lake Turkana.According to information from Indian embassy, credit amount of USD 65million was disbursed by India to support rural electrification program in 2006.In 2007 also USD 640 million is disbursed to support the Ethiopian sugarindustry, the largest Indian credit overseas. The agreement, which mainlytargeted Tendaho and Fincha at the moment, enables Ethiopia to boost its sugarindustry in the next two years. India will give the loan in the next five years tosupport Ethiopia’s sugar industry.MOFED signed an agreement with EXIM Bank on 4.10.2007 for release of US$122 million, representing the first tranche of US$ 640 million LOC. [Source:Engineering Export Info-Bulletin, Vol. 10, Issue No. 9, Indian embassy]IV.Trade and Investment Flows4.1.1 Exports to China and India4.1.1.1 Trends in Exports and RankEthiopia has been trading with many countries across the globe since timeimmemorial. Due to the structure of its economy Ethiopia has been exportingprimary agricultural commodities to the rest of the world, mainly Europe.28
Although Ethiopia’s major trading partners has remained more or less stablefor long, shifts in ranks are taking place since recently.Among countries rising from bottom to top rank, China is the major one. In2000/01, for instance, the rank of China among Ethiopia’s export destinationcountries was calculated at 12 th taking less than 0.5 percent of the country’sexport, in 2004/05, nonetheless, it has improved to 6 th place taking 5 percent ofEthiopia’s exports and in 2005/06 it has managed to achieve 1 st place in taking13.4 percent of the country’s export. The dramatic performance registered in2005/06 was mainly due to a huge jumping in the receipts from sesame exportwhich increased from Birr 17.3 million in 2004 to Birr 531.3 million receipts in2005 depicting unprecedented growth rate of about 2971 percent. After2005/06, however, China failed to maintain its 2005/06 status and forced toslide to 7 th place in 2007/08 taking only 4.3 percent of the country’s exports (seetable 4.1). This can serve as evidence to the fact that China has not dependabledestination of Ethiopia’s export. China usually increases the amount ofcommodity imports from Ethiopia whenever the production of the same fails inchina due to drought or other reasons.Table 4.1 Exports by Destination, Share in Exports and RankCountry2000/012001/022002/032003/042004/052005/062006/072007/08Djibouti 16.0 7.0 7.0 7.4 4.9 5.7 4.2 3.6Rank 1 4 3 4 7 5 9 10Sudan 0.2 0.0 1.9 1.6 2.0 2.5 4.4 3.7Rank 10 10 8 9 10 10 8 9U.A.R 0.5 0.5 1.6 1.5 3.1 2.9 2.6 3.8Rank 8 9 9 10 9 9 10 8Germany 10.3 11.3 8.5 11.1 14.6 10.1 11.8 10.3Rank 2 1 1 2 1 2 1 1Italy 8.3 10.1 4.4 5.4 5.2 5.5 6.3 4.929
Page 1 and 2: A Survey of the Economic and TradeR
Page 3 and 4: 1. Introduction1.1. BackgroundEthio
Page 5 and 6: • examine the impacts of the curr
Page 7 and 8: 2. Overview of the Ethiopian Econom
Page 9 and 10: The structure of the economy has no
Page 11 and 12: Table 2.3 Export by Destination (sh
Page 13 and 14: China, P. Rep. 7.1 8.4 9.3 10.3 11.
Page 15 and 16: usually appreciate the import of ch
Page 17 and 18: a recipient much as it has been wit
Page 19 and 20: has become a favored testing ground
Page 21 and 22: While the ESI correctly shows that
Page 23 and 24: On November 24th, 1970, the People
Page 25 and 26: In May 2007, China's Assistant Mini
Page 27: Ethiopia. Starting from 1988, every
Page 31 and 32: Attempt is made here to examine the
Page 33 and 34: 4.1.2.1 Trends in Imports and Ranks
Page 35 and 36: percent in 2008. This was due to re
Page 37 and 38: Imports from both China and India,
Page 39 and 40: FDI by looking at the number of lic
Page 41 and 42: It is possible to make comparison b
Page 43 and 44: Table: 4.6 Sectoral distributions o
Page 45 and 46: 4.3.1 RoadRoad sector is among majo
Page 47 and 48: Source: ERA2007 13 1 7.7 122008 12
Page 49 and 50: themselves finance. Indian companie
Page 51 and 52: 5. Impacts of the Global crisis on
Page 53 and 54: The financial crisis that affects C
Page 55 and 56: exports and higher prices, however
Page 57: IDS (2009), China and the global fi

China and India and Ethiopia final report - FES Ethiopia

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