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China’s ‘Belt and Road Initiative’: Implication for Land Locked Ethiopia

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  • Mesafint Tarekegn Yalew
  • Guo Changgang

Abstract

This article analyses the Belt and Road Initiative (BRI) and its implications for landlocked Ethiopia. Primary and secondary data sources are used to solicit viable information. The BRI is aimed to enhance policy coordination, financial integration, promote trade and investment, cultural exchanges and people-to-people relations across a wide geographical area involving Asia, Europe and Africa. The BRI is the next step in China’s global strategy after the reform and opening-up period, and it is important for job creation, infrastructural development, trade and investment and other related developments for landlocked least developing countries such as Ethiopia. For instance, the construction of the early BRI project of Addis Ababa–Djibouti railway has reduced transport costs and shortened the transport time from 3 days to 10 hours. Besides, the establishment of the East African Free Trade Agreement (FTA) at Djibouti by the Chinese government to facilitate trade in the region. Cumulatively, the BRI contributes to the growth of trade and investment opportunities for landlocked Ethiopia in terms of financing, infrastructure development and regional integration.

Suggested Citation

  • Mesafint Tarekegn Yalew & Guo Changgang, 2020. "China’s ‘Belt and Road Initiative’: Implication for Land Locked Ethiopia," Insight on Africa, , vol. 12(2), pages 175-193, July.
    • Handle: RePEc:sae:inafri:v:12:y:2020:i:2:p:175-193
    DOI: 10.1177/0975087819891538
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