ADDIS ABABA: In another move by China to enter the East African market, the country's state-owned China Development Bank has inked a $500 million loan deal with Ethiopia Sugar Corp. to develop two refineries in the country by 2025. The goal is to see output increased nearly 10 times by then. Ethiopia's Finance Ministry and the state-run sugar company have signed deals with the Chinese lender for loans to build the plants in Ethiopia's South Omo Zone, Sugar Corp. spokesman Yilma Tibebu said in an e-mailed response to questions on September 24 to Bloomberg news agency. “China Development Bank has advanced $123 million for a factory in the northeastern Afar region,” he said. “The factories will be built by the Ethiopian state-owned Metals and Engineering Corporation, an amalgam of former military companies. China Complant Group Inc. is also working on the Afar project,” Yilma said. It comes as China continues to boost its profile in Ethiopia after an August deal with the country to boost its clean energy sector. China announced a new partnership with the Ethiopian government to develop its renewable energy sector, Ethiopia's State Minister of Water and Energy Wondimu Tekle told reporters in August. He said that Ethiopia has an estimated potential of generating 60,000 MW of electricity, of which 45,000 MW could come from hydropower and 15,000 MW from other renewable energy sources including solar, wind, and geothermal. Tekle hoped that China could assist in making the East African country's efforts to develop the renewable sources a reality. Currently, Ethiopia generates about 2000 MW of hydroelectric power and the country has set a five-year plan has set to increase power generation four fold. Its strategies are to promote a mix of energy sources by developing renewable resources, to prevent power loss and promote proper utilization of energy, reduce unit cost of power generation investments and operations, and provide electricity at affordable prices. To develop these different renewable energy mixes we have to have cooperation with partners like the Chinese government, said the minister. He also recalled that Chinese companies have been participating in the development of renewable energy resources here in Ethiopia. “We have different Chinese companies who are working in our country, especially in hydropower development and also wind farm development," said Wondimu. He said his country would further collaborate with China through its companies operating in Ethiopia in renewable energy development including the geothermal energy.
