Ethiopia: Double digit growth or collapsing economy?
The light railway system under construction in Addis Ababa, Ethiopia. The government’s increasing reliance on foreign loans is posing a serious risk of economic collapse, a renowned economist, Dr Alemayehu Geda says. FILE PHOTO | AFP
Ethiopian government’s increasing reliance on foreign loans is posing a serious risk of economic collapse, a renowned economist has revealed.
“Take for instance China, which has loaned over $17 billion to the Ethiopian government for infrastructure projects. Our total investment is 40 per cent of the GDP. Our saving is between 10-20 per cent of the GDP.
