Tewodros Sisay

#Ethiopia: A crumbling metro reveals failed promise of #China’s billions in #Africa Once hailed as a game-changer for #Addis_Abeba's transportation, the city's light-rail system now stands as a symbol of broken promises. Originally designed to carry up to 60,000 passengers per hour, the system's reality falls short, with only one-third of its trains operational. Frequent breakdowns, inadequate maintenance, and operational constraints have left commuters frustrated. Yared Mekuanint, a regular user, describes waiting times of up to 25 minutes between services, only to find overcrowded trains upon arrival. Despite being one of 70 mega-projects funded by a $14.8 billion loan from China, the light rail struggles to repay its debt. The project, managed by Chinese firms, faces challenges like power outages and limited access to spare parts. Critics argue that short-term political goals overshadowed long-term sustainability in planning the project. Frangton Chiyemura, an expert in China-Africa relations, highlights the need for better planning and local skills development. Addis Abeba officials are now taking steps to address these issues, transferring management of the system to the city transport agency. Meanwhile, commuters seek alternative transportation, signaling a shift away from the once-promising light-rail system. bloomberg.com/news/articles/…

African countries with the most expensive housing markets, @BusinessInsider: 1 #Cameroon 2 #Ethiopia 3 Algeria 4 Morocco 5 Egypt 6 Tunisia 7 #Kenya 8 #SouthAfrica Ethiopia: One reason housing is 2nd most expensive in Africa & 3rd in the world is lack of affordable mortgages. Currently there’s only one relatively small new mortgage bank in Ethiopia. One more is “under formation”. However, several more mortgage banks are needed considering the huge size of the housing demand, overall economic growth and the need to provide affordable financing to make millions of Ethiopians homeowners. Also, mortgage off-takers and secondary mortgage market players are needed similar to what we have in the U.S. - the two GSEs, Freddie Mac and Fannie Mae. Ethiopia, SSA’s 3rd largest GDP and the second most populous African country with 127 million people, is adding 2.5 million to its population annually. Also, urbanization is expanding at a rate of approximately 4% per year. Private local developers - most are relatively new, established within the last 10 to 15 years - can’t meet the significant housing demand which is driven by demographics and rapid urbanization. The new housing PPP (pubic private partnership) initiatives recently introduced by the federal and regional governments to partner with private developers, should help alleviate the housing shortages and moderate prices especially since land will be provided by the government and significant tax breaks given to import materials tax free. Final thought: Most finishing materials are currently imported. Locally manufacturing these items will significantly reduce the long supply chain, save FX and shorten the delivery time of finished houses.