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Obstacles to progress

Realities

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the paper concludes that Chinese lending is the primary driver for a group of low-income
countries reaching debt levels and servicing costs close to the pre-HIPC period “

"Figure of the Week: China's 'Hidden' Lending in Africa." 228
Brookings (July 2019)

(Analysis based on : "China's overseas lending". NBER Working Paper No. 26050 229
Horn, Sebastian, Carmen M. Reinhart, and Christopher Trebesch. 2019.)
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“Ethiopia's railway projects have been an instructive case of both the benefits and pitfalls of
Chinese finance. Costing nearly $4.5 billion, the SGR was partly financed through $2.5 billion in

commercial loans from China Eximbank, according to figures from SAIS-CARI with further loan
packages dedicated to transmission lines and the procurement of rolling stock and
locomotives.

Part of China's wider 'export-supply chain' strategy, the railway uses a package of Chinese
trains, Chinese construction companies, Chinese standards and specifications--and is currently

operated under a six-year contract by a joint venture of the two Chinese contractors, CREC and
CCECC, who built it.
As part of a wider nine-line railway network plan under the Ethiopian Railway Corporation

(ERC), the line cuts travel time from the capital Addis Ababa to Djibouti from two days by road
to 12 hours. Passing several industrial zone clusters in Addis Ababa and Dire Dawa, it also

serves the government's wider export-led industrialization strategy, through the strategy of
"transit-oriented development", writ on a national scale. “

"Ethiopia and Kenya Are Struggling to Manage Debt for Their Chinese-Built Railways." 230
Yunnan Chen
Quartz Africa.
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‘Castration’ by the World Bank & IMF

The roles and functions of The World Bank and IMF

World Bank Group
“The World Bank Group (WBG) is a family of five international organizations that make

leveraged loans to developing countries. “
"World Bank Group." 231
Wikipedia
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World Bank
“The World Bank is an international financial institution that provides loans and grants to the

governments of poorer countries for the purpose of pursuing capital projects. It comprises two