China and India and Ethiopia final report - FES Ethiopia

Owing to the low domestic capacity of Ethiopian contractors to undertake hugeinfrastructure projects, in the face of huge infrastructure development demandwhich is aimed at alleviating poverty and enhancing the productivity of theeconomy, Chinese and Indian companies has started taking lion’s share. Well,such big infrastructure works was used to be constructed by European basedcontractors before years.The emerging Chinese and Indian economies and their growing ties with therest of the world, especially Africa, has become a research agenda since 2000.Many of the studies have focused on scrutinizing the cost benefit of thegrowing Chinese African relationship. In this vein, though a lot has beenwritten they still lack the depth and breadth required so as to enable a country,like Ethiopia, to design a trade policy and strategy which is viable to regulatethe trade and ensure mutual benefit from the relations.1.2. Objectives of the StudyThe general objective of the study is to survey the economic and traderelations between Ethiopia and China and India.The specific objectives of the study are to:• depict the trends in the loans and assistances provided by China andIndia to Ethiopia;• assess the growing trade and investment relations between Ethiopia,and China and India;• identify factors which are likely to condition the trade flows and theirpotential impacts on the Ethiopian economy;4