Tag Archives: Belt and Road

Botched Addis Ababa-Djibouti Railway Project a Warning to Belt and Road Investors

Planning behind many China-led projects abroad [in Africa] has been ‘downright inadequate’ and costly

Lessons should be drawn from the poorly executed US$4 billion Addis Ababa-Djibouti freight railway, warns head of China’s export credit insurer Sinosure.

BY ERIC NG | SOUTH CHINA MORNING POST

The planning behind many of China’s major infrastructure projects abroad has been “downright inadequate”, leading to huge financial losses, according to the head of the country’s state export credit insurer. Continue reading Botched Addis Ababa-Djibouti Railway Project a Warning to Belt and Road Investors

Djibouti Goes from Position of Strength to Potential Downfall

Serious questions about its reliability as an investment destination are surfacing following its illegal seizure of a DP World port and its noncompliance with international court arbitration decisions.

BY GAVIN DU VENAGE | THE NATIONAL

It has been a trying few weeks for Ismaïl Omar Guelleh, president of Djibouti, at a time when most other residents of the Horn of Africa are celebrating emerging peace and, with it, the glimmer of prosperity. Continue reading Djibouti Goes from Position of Strength to Potential Downfall

Will Djibouti Become Latest Country to Fall Into China’s Debt Trap?

Tiny Djibouti houses a key U.S. military base, making it a particular concern for Washington: facing mounting debt and increasing dependence on extracting rents, would be pressured to hand over control of Camp Lemonnier to China. (STR/AFP/Getty Images)

BY AMY CHENG | FOREIGN POLICY

Djibouti lies more than 2,500 miles from Sri Lanka but the East African country faces a predicament similar to what its peer across the sea confronted last year: It has borrowed more money from China than it can pay back. Continue reading Will Djibouti Become Latest Country to Fall Into China’s Debt Trap?

Djibouti: Attractive but Risky

Growing corruption, over-dependence on Ethiopia, mounting levels of public debt and competition from regional ports made Djibouti a risky place for longterm investment.

BY MAREX

As countries across the Horn of Africa embark on ambitious programs to attract foreign investment, Djibouti seems a stable option in a volatile region. But there are risks, according to a new report by political and security risk consultancy Allan & Associates. Continue reading Djibouti: Attractive but Risky

New Chinese Embassy in Eritrea Inaugurated

The inauguration of a new and biggest Embassy in Asmara is a symbol of the high level mutual political trust and deep traditional friendship between Eritrea and China. (Photo Credit: Amb. Iqbal Jhazbhay)

BY ERITREA PROFILE

The Embassy of the People’s Republic of China held a colorful event to officially inaugurate the newly built embassy in Asmara and to celebrate the 25th anniversary of the establishment of China-Eritrea diplomatic relations. Continue reading New Chinese Embassy in Eritrea Inaugurated

Why Borrowers on China’s Belt and Road Will Go from Euphoria to Depression

China is investing heavily in international infrastructure projects to advance its own interests, but when the bills come due, the deals may wreak havoc on poorer nations

Extreme but not unique. Djibouti’s debt to GDP ratio could rise to 90%, all 90% of which will be owed to a single creditor- China – threatening to push the tiny local economy to the brink of a debt crisis.

BY TOM HOLLAND | SCMP

Until very recently, the dusty African territory of Djibouti was best known to the wider world for its inhabitants’ habit of chewing khat. Each day, as the heat of the afternoon mounts, the men of Djibouti gather in sociable groups, wad a few leaves of the East African shrub Catha edulis into their cheeks, and chew until they descend – or ascend – into a mild euphoria. Either way, no more work is done for the day. As a result, very little work ever gets done at all, except for the import, trade, distribution, and retail of khat itself. Continue reading Why Borrowers on China’s Belt and Road Will Go from Euphoria to Depression