Alternative Connectivity Initiatives towards Africa and Possible Approaches by Ethiopia to Access into the Pledged Resources

Abstract

Investing in infrastructure has diverse benefits to Ethiopia by easing the transport of goods from place to place and facilitating the movement of people across the country. Its reach to the wider world can also be harnessed by the development of modern infrastructure that connects Ethiopia with its neighbors. Though no one denies the relevance of connectivity in boosting the economy and helping Ethiopia get out of poverty, it is also clear that Ethiopia has apparent infrastructure financial gap to satisfy its needs. Finding out potential financial sources for infrastructure is therefore an essential move for Ethiopia and it is also plausible to solicit fund from the available external sources. This research aims to assess the available funds for connectivity initiatives mainly from the outside source. Three connectivity initiatives from China, EU and Japan were selected for the assessment of financial related concerns. As a case study qualitative research, it identified the Belt and Road Initiative from China, Global Gateway from European Union and Quality Infrastructure from Japan for detail analysis. Data were collected from interview and other secondary sources. In the finding, the first two initiatives from China and EU seem very relevant for the development endeavors of Ethiopia. However, benefiting from China needs long term strategy as there are critical problems at the moment, these include the lack of new infrastructure project lists from the Belt and Road Initiative to Ethiopia and matters related to debt management. There is also a challenge to tap into the fund from EU as there are governance related challenges. The availability of funds on one side and the challenges beforehand on the other side means Ethiopia has to design a short term and long term strategy.