The Africa Addis Ababa-Djibouti Railway: A New Model of International Cooperation (AI Translation)
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文｜财新周刊 孙良滋 发自埃塞俄比亚 摄影｜财新周刊 丁刚
By Sun Liangzi, from Ethiopia for Caixin Weekly Photography by Ding Gang for Caixin Weekly
凌晨3点多，月华朗照，埃塞俄比亚首都亚的斯亚贝巴的教堂已经被祷告声萦绕。直到星月退去，天色大白，信徒们早上九十点钟才会从教堂走出。绵绵不绝的诵读声中，这座拥有超过500万人口的非洲大城市从肃穆中醒来，居民们开始新一天的生活和劳作。
In the early hours of the morning, around 3 a.m., with the moon shining brightly, churches in Ethiopia's capital, Addis Ababa, are already enveloped in prayers. Not until the stars and moon fade away and daylight breaks will the faithful exit the churches, around 9 a.m. Amidst the continuous chanting, this African metropolis, home to over 5 million people, awakens from its solemnity as its residents begin a new day of life and work.
在距亚的斯亚贝巴东南25公里的Gelan小镇，早上8点多，火车铁轨外已聚集了几十人。首都海拔2400多米，常年四季如春，遇上阴雨天会有些湿冷。埃塞妇女用艳丽的围巾裹住上身和头部，幼小的孩子被她们绑在身上，大一点的穿着薄外套在一旁跟随。靠近铁轨的石堆上，编织袋、书包、篮子和巨大的南瓜整齐摆放着。持枪的联邦警察穿着反光背心在维持秩序。
In Gelan, a small town located 25 kilometers southeast of Addis Ababa, by 8 a.m., dozens of people had already gathered outside the train tracks. The capital, situated at an altitude of over 2,400 meters, enjoys spring-like weather all year round, though it can get damp and chilly on rainy days. Ethiopian women wrap themselves and their heads in vibrant scarves, with young children tied to their bodies and older ones wearing light jackets following nearby. Neatly arranged near the tracks are piles of stones, woven bags, backpacks, baskets, and large pumpkins. Armed federal police officers in reflective vests are maintaining order.
临近8点20分，鸣笛声传来，火车缓慢地从左侧驶入视野，人群变得嘈杂。距离火车头一两百米开外的地方，一对夫妻正不疾不徐地走过铁轨。警察冲着他们厉声高喊，催促他们快点离开铁轨，甚至上前推了一下走在后面的女人。她回过头看了一眼，却没有加快脚步。在埃塞俄比亚，不少人对于火车安全的理解就像这对夫妻——火车最终会停在他们行经的位置。
Approaching 8:20 a.m., the sound of a whistle pierces the air as a train slowly enters view from the left, stirring the crowd into a buzz. A couple, not too hurriedly, walks across the railway tracks some one to two hundred meters away from the locomotive. A police officer shouts at them vehemently, urging them to move away from the tracks faster and even goes as far as to push the woman trailing behind. She glances back but does not quicken her pace. In Ethiopia, many people's understanding of train safety resembles that of this couple—the belief that trains will ultimately stop where they cross.
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- In Ethiopia's capital, Addis Ababa, and surrounding areas, Chinese investments have significantly impacted various sectors, including manufacturing, telecommunications, and infrastructure. The construction of the Ethiopia-Djibouti Railway (Addis Ababa-Djibouti Railway) has facilitated trade and transportation, enhancing Ethiopia's connectivity with neighboring countries and ports.
- Chinese companies have established numerous manufacturing plants within industrial parks like the Eastern Industrial Zone, creating thousands of jobs for locals and contributing to Ethiopia's economic development. These investments span across different industries such as textiles, footwear, building materials, and electronics. The presence of Chinese firms has also led to technology transfer and skill development among Ethiopian workers.
- Despite the positive economic contributions, challenges such as currency shortages, inflationary pressures, and political instability pose risks to foreign investors. Nonetheless, initiatives like the GADA Economic Zone aim to further attract investment by offering favorable conditions for businesses. The partnership between China and Ethiopia exemplifies a strategic collaboration aimed at mutual benefit and industrial growth within the African continent.
In the early hours in Addis Ababa, Ethiopia, churches are filled with prayers as the city of over 5 million people begins its day. This scene shifts to Gelan, where residents gather for the convenience train on the Addis Ababa-Djibouti Railway, a service initiated by Chinese operators to make transportation accessible for locals [para. 1][para. 2]. The railway is a key part of Ethiopia's efforts to enhance connectivity and economic development, stretching 752 kilometers and designed for speeds up to 120 kilometers per hour. It significantly reduces travel time between Ethiopia and Djibouti, offering a vital link for landlocked Ethiopia to access sea routes [para. 3][para. 4].
Ethiopia's inclusion in BRICS in January 2024 underscores its growing international stature despite being landlocked and facing developmental challenges. The Addis Ababa-Djibouti Railway stands as Africa's first transnational electrified railway and exemplifies China's comprehensive approach to foreign infrastructure projects, encompassing everything from financing to operation [para. 5][para. 6]. Over six years of operation by a Chinese enterprise, it transported over 677,000 passengers and 9.47 million tons of goods, demonstrating significant commercial success and operational efficiency [para. 7].
The project has also been pivotal in transferring skills and expertise to local Ethiopian personnel, achieving significant localization in its workforce. This transition aligns with broader strategies to bolster Ethiopia's industrial capabilities through infrastructure development [para. 8][para. 9]. The construction of the railway was part of China’s Belt and Road Initiative (BRI), aiming not only at infrastructure development but also at fostering economic growth along its route. By connecting populous markets and promoting industrial policies conducive to manufacturing growth, it serves as a model for China-Africa cooperation under BRI principles [para. 10].
Financed largely through loans from the Export-Import Bank of China, the project reflects China's "going global" strategy for its rail industry standards. Despite initial hesitations from Ethiopian officials regarding adopting these standards, successful demonstrations led to their acceptance. This project illustrates how Chinese standards can compete internationally when aligned with host countries' economic benefits [para. 11][para. 12].
The railway has facilitated significant commercial transportation revenue growth for Ethiopia while enhancing logistical efficiencies between Djibouti Port and inland destinations like Modjo Dry Port. Its success has attracted additional investments into secondary businesses such as refrigerated warehouses and local production of railway parts [para. 13][para. 14]. Moreover, it underscores Ethiopia’s commitment to attracting foreign investment across various sectors beyond manufacturing [para. 15].
Ethiopia’s strategic focus on developing its manufacturing sector has drawn numerous Chinese investors who see potential in leveraging local advantages such as labor costs against market challenges like logistics inefficiencies or foreign exchange shortages. These investments span diverse industries from textiles and garments to building materials and coffee exportation [para. 16][para. 17]. Huawei’s engagement in Ethiopia further exemplifies Chinese companies’ contributions towards digital infrastructure development alongside social initiatives aimed at talent cultivation within ICT sectors [para. 18].
As Ethiopia continues its journey towards industrialization with support from international partners like China, projects such as the Addis Ababa-Djibouti Railway serve as critical milestones reflecting both opportunities and challenges inherent in such ambitious endeavors. Through collaborative efforts that emphasize mutual benefit and respect for local conditions, these initiatives offer pathways towards sustainable economic growth and development not just for Ethiopia but potentially across Africa [para. 19][para. 20].
- Huawei Ethiopia Company
华为埃塞公司 - Summary： Huawei Ethiopia Company focuses on providing support to telecommunications operators through the supply of communication equipment, software, and services for both wireless and wired networks. As of 2023, the company employs close to 600 people, with over 80% being local hires. Additionally, Huawei Ethiopia indirectly creates job opportunities for at least 20,000 individuals in the country. The company also emphasizes social responsibility by implementing the "Seeds for the Future" program since 2008 to aid in the cultivation of ICT talent in Ethiopia. This initiative sponsors 10-15 promising students from high school to university each year for training at Huawei's headquarters. Furthermore, Huawei has established cooperative ICT academies with 48 local universities to provide students with specialized knowledge in areas such as 5G, IoT (Internet of Things), and cloud technologies. Huawei's annual global ICT competition attracts over 2,000 Ethiopian university students to participate.
- Hongshun Coffee Group
弘顺咖啡集团 - Summary： Hongshun Coffee Group, led by Li Lin, focuses on importing Ethiopian coffee beans to China. Li Lin ventured into the coffee business in 2015 after initially engaging in agriculture in Ethiopia. He selected a specific type of coffee and branded it "Hua Kui," which quickly gained popularity in China following a successful cup tasting event where 10 tons of coffee were sold out. In 2016, the "Hua Kui" coffee beans won first place in a competition hosted by the African Fine Coffees Association (AFCA), significantly boosting its reputation.By 2018, "Hua Kui" had become well-known within China's boutique coffee circles, contributing to a surge in demand for Ethiopian coffee. The Chinese mainland market has since grown to import over 20,000 tons of coffee from Ethiopia, making China the sixth-largest buyer of Ethiopian coffee exports. This growth reflects both the increasing popularity of boutique or specialty coffees in China and Hongshun Coffee Group's significant role in promoting Ethiopian coffee within the country.Li Lin's efforts have not only facilitated cultural exchange through coffee but also supported Ethiopia's economy by creating a new and lucrative export market. Despite challenges such as AGOA eligibility changes and global logistics disruptions due to COVID-19, Hongshun Coffee Group continues to explore ways to expand its market reach and maintain its commitment to bringing Ethiopian coffee to Chinese consumers.
- Lida (Ethiopia) Textile and Garment Co., Ltd.
利达（埃塞）纺织服装有限公司 - Summary： Lida (Ethiopia) Textile and Garment Co., Ltd. (referred to as "Lida Company") is focused on the production of jeans and primarily targets the domestic market in Ethiopia. The company was established by Gu Xiaowei, who ventured into Ethiopia after experiencing a downturn in his business in Guangzhou, China, where he had been involved in the export of jeans for over a decade. Upon arriving in Ethiopia, Gu Xiaowei identified a market opportunity due to the high demand for denim jeans and the relatively low competition compared to China.Lida Company benefits from Ethiopia's competitive advantages such as lower labor costs compared to China, as well as incentives provided by the Ethiopian government for manufacturing industries. The company has successfully localized its entire production chain within Ethiopia, including sourcing cotton, yarn spinning, denim fabric production, and manufacturing jeans. This not only reduces costs but also supports local industry development.As of 2018, when Lida Company was more actively discussed, it employed nearly a thousand Ethiopian workers and produced around one million pairs of jeans annually. Some of its products are exported to regions like the United Arab Emirates. Gu Xiaowei's venture into Ethiopia represents a strategic move to leverage local resources and market potential while contributing to the country's industrialization efforts.
- Huajian International Shoe City (Ethiopia) Co., Ltd.
华坚国际鞋城（埃塞）有限公司 - Summary： Huajian International Shoe City (Ethiopia) Co., Ltd. (referred to as "Huajian Company") is a significant investment by the Chinese shoe manufacturing giant Huajian Group in Ethiopia, located in the Eastern Industrial Park. The company started producing shoes for export in March 2012 and quickly became Ethiopia's largest exporter of footwear. By the end of that year, it had significantly contributed to doubling the country's manufacturing exports. Huajian's operation in Ethiopia focuses on producing high-end women's shoes for well-known American brands such as GUESS, COACH, and UGG, among others. At its peak, Huajian Company employed around 8,000 workers and generated up to $30 million in annual export revenue for Ethiopia, contributing significantly to local employment and skills development. However, the company faced challenges due to the suspension of Ethiopia from the African Growth and Opportunity Act (AGOA) by the United States in January 2021 following internal conflicts within Ethiopia. This decision heavily impacted Huajian's operations and other companies reliant on AGOA benefits for tariff-free access to the US market.
- Eastern Industrial Park
东方工业园 - Summary： Eastern Industrial Park in Ethiopia is the first operational industrial park in the country and is a key example of Chinese investment in Ethiopia. It was developed by Jiangsu Yongyuan Investment Co., Ltd, led by the Chinese entrepreneur Lu Qiyuan and his brother Lu Qizhong. Located about 35 kilometers from Addis Ababa in Dukem, Oromia region, Eastern Industrial Park has attracted numerous Chinese manufacturing companies, particularly those involved in textiles, garments, and leather goods.The park provides "one-stop" services to facilitate business operations for investors, including customs clearance, logistics support, and other administrative services. It benefits from Ethiopia's policies aimed at promoting industrialization and attracting foreign investment, such as tax incentives and duty exemptions on imported machinery and raw materials.Eastern Industrial Park has played a significant role in creating jobs for Ethiopians and transferring technology and skills to the local workforce. It also serves as a model for other industrial parks developed later in Ethiopia. The success of Eastern Industrial Park reflects the broader strategy of both China and Ethiopia to foster economic cooperation under initiatives like the Belt and Road Initiative (BRI) and contribute to Ethiopia's goal of becoming a manufacturing hub in Africa.
- Huajian International Light Industry City (Ethiopia) Co., Ltd.
华坚国际轻工业城（埃塞）有限公司 - Summary： Huajian International Light Industry City (Ethiopia) Co., Ltd. was established by Zhang Huarong, who ventured into Ethiopia to set up a shoe manufacturing plant within the Eastern Industrial Park. The company began exporting shoes in March 2012 and quickly became Ethiopia's largest exporter by the end of that year, significantly boosting the country's manufacturing export volume. At its peak, Huajian in Ethiopia employed around 8,000 workers and contributed significantly to Ethiopia's foreign exchange earnings through shoe exports to major brands in the United States, including GUESS, COACH, UGG, and Ivanka Trump's brand. The company benefited from the African Growth and Opportunity Act (AGOA), which allowed duty-free access to the U.S. market for certain products, including shoes manufactured in Ethiopia. Huajian's presence in Ethiopia exemplifies Chinese investment in the country's manufacturing sector and its role in promoting industrialization and job creation.
- Ethiopia Huajia Aluminum Co., Ltd.
埃塞华嘉铝业有限公司 - Summary： Ethiopia Huajia Aluminum Co., Ltd. is a company established by Zhou Chunlong in the Eastern Industrial Park in Ethiopia. The company focuses on producing aluminum products, catering to the growing demand for construction materials such as cement and aluminum steel materials in Ethiopia, which has been experiencing significant urban development and infrastructure growth. Zhou Chunlong decided to invest in Ethiopia due to the country's advantageous labor market, lower costs of electricity and food compared to China, and a favorable business environment supported by Ethiopian government policies aimed at attracting foreign investment. The company employs around 170 people, with a localization rate exceeding 80%, indicating that aside from financial roles, recruitment, training, and production staff are all locally hired. This reflects the broader trend of Chinese investment in Ethiopia's manufacturing sector, contributing to job creation and technology transfer while benefiting from Ethiopia's competitive advantages such as low labor costs and supportive government policies for industrial development.
- 'beU delivery'
'beU delivery' - Summary： beU delivery is a food delivery company in Ethiopia that provides delivery services for almost all major restaurants across more than a dozen districts in the capital city. It is partly invested by Chinese enterprises and caters to the growing demand for convenient food delivery services in Ethiopia's capital.
- 2018：
- Addis Ababa-Djibouti Railway begins commercial operation
- 2020：
- Addis Ababa-Djibouti Railway achieves break-even point
- 2023：
- China transfers operational rights of the railway to Ethiopia and Djibouti
- 2023：
- Addis Ababa-Djibouti Railway achieves annual revenue of 3.641 billion birr
- 2023：
- Ethiopia becomes one of the five new members of BRICS countries
- 2023：
- Huawei Ethiopia launches Seeds for the Future program
- 2023：
- Transsion Holdings achieves over 40% market share in Africa's smartphone market
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