Ethiopia’s Central Bank Chief Heads to China for Critical Debt Talks











Addis Ababa — Ethiopia has dispatched a high-level economic delegation to Beijing this week, led by Eyob Tekalign (PhD), the newly appointed governor of the National Bank of Ethiopia (NBE), to advance crucial debt restructuring negotiations and deepen the country’s economic partnership with China, state media reported.

High-Stakes Mission to Beijing

According to officials, the delegation will meet senior figures at China’s Ministry of Finance, the People’s Bank of China, and the Export–Import Bank of China (Exim Bank). Discussions are also planned with representatives from leading Chinese financial and commercial institutions.

These talks build directly on the recently concluded debt restructuring agreement with the Official Creditors Committee, co-chaired by China and France, which Ethiopia hopes will unlock faster progress toward comprehensive debt relief.

Aligning With Reform and Investment Goals

The Ethiopian team is expected to brief Chinese counterparts on the latest progress of the Home-Grown Economic Reform Agenda, the government’s flagship plan to stabilize the economy, attract foreign investment, and modernize key sectors. Officials say Addis Ababa will also explore opportunities for expanded Chinese investment in infrastructure, manufacturing, and green energy, reaffirming Ethiopia’s commitment to a long-term strategic partnership with Beijing.

Mounting Debt Pressures

The mission comes amid intensifying concerns about Ethiopia’s fiscal health. A joint World Bank–IMF assessment released last week warned that the country’s external debt remains “unsustainable,” noting that Ethiopia has been in debt distress since it missed a Eurobond interest payment in December 2023.

The assessment highlighted persistent breaches of export-related external debt indicators and classified Ethiopia’s debt-carrying capacity as weak, raising the stakes for ongoing negotiations.

Strategic Significance

Officials describe the visit as a reaffirmation of the long-standing Ethiopia–China relationship, which has deepened over two decades of infrastructure cooperation and growing bilateral trade. China remains Ethiopia’s largest bilateral creditor and a key player in the Official Creditors Committee.

Analysts say the outcome of the Beijing talks could shape Ethiopia’s economic trajectory, influencing everything from currency stability to the government’s ability to finance critical social and development programs.

Quick Facts Table

With Ethiopia’s economic reform program hinging on successful debt relief and fresh investment, the Beijing mission represents a critical step in safeguarding financial stability and sustaining growth in Africa’s second-most populous nation.