China’s top diplomat kicks off Africa tour in Ethiopia

China’s Foreign Minister Wang Yi has begun his traditional annual New Year tour of Africa, running until January 12, with a focus on strengthening trade routes and securing access to critical resources across eastern and southern Africa. His itinerary includes Ethiopia, Somalia, Tanzania, and Lesotho — countries selected for their strategic economic and geopolitical importance.

Wang Yi first arrived in Ethiopia, where he met Prime Minister Abiy Ahmed. In a statement posted on X, Abiy said “Ethiopia and China have enjoyed a strong relationship for decades, noting that ties were recently elevated to an “all-weather strategic cooperation partnership.” He added that the two sides “discussed a wide range of development cooperation issues” and “reaffirmed their shared commitment to advancing development.”

The Chinese foreign minister also held talks with Ethiopia’s Foreign Minister, Gedion Timothewos Hessebon. In a statement shared on the official account of Ethiopia’s Ministry of Foreign Affairs, both sides “reiterated their commitment to advancing cooperation and agreed to deepen strategic coordination at bilateral, regional, and multilateral levels.”

Ethiopia and China continue to strengthen their partnership, with trade and infrastructure emerging as central pillars of cooperation. Recent developments highlight Ethiopia’s efforts to expand coffee exports to the Chinese market. China has rapidly moved from being a minor importer to one of Ethiopia’s top coffee destinations, reflecting growing economic interdependence between the two countries. Both governments also emphasize the symbolic value of coffee trade, presenting it not only as a commercial exchange but as a cultural bridge reinforcing long-term cooperation.

Beyond trade, the relationship is deepening through large-scale infrastructure and investment projects.

China also holds a significant stake in Ethiopia’s external debt, estimated at around $5.38 billion, making it the country’s largest bilateral creditor. Much of this debt is owed to the Export-Import Bank of China and other Chinese institutions and accounts for nearly one-fifth of Ethiopia’s total external debt. The scale of this financial relationship underscores China’s influence over Ethiopia’s economic trajectory, particularly as the borrowing has largely funded major infrastructure projects, including railways, roads, and energy facilities.

Ethiopia’s reliance on Chinese loans carries strategic implications beyond debt servicing. The government is currently in advanced talks with Beijing to convert part of its debt into yuan-denominated loans, a move aimed at easing pressure on foreign exchange reserves and lowering debt service costs. This reflects both Ethiopia’s efforts to manage its debt crisis and China’s broader ambition to internationalize the yuan. Such negotiations highlight how China’s financial position gives it leverage not only in economic matters but also in shaping Ethiopia’s monetary and trade policies.

At the same time, Ethiopia has sought broader debt relief under the G20 Common Framework, securing a $3.5 billion restructuring deal in 2025. While the framework involves multilateral lenders and other bilateral creditors, China’s large share of the debt means its cooperation remains essential to Ethiopia’s economic recovery. This dual role, as a key development financier and a central player in debt restructuring, illustrates how deeply Ethiopia’s fiscal stability is intertwined with Chinese policy decisions.

Wang Yi’s Africa tour signals China’s growing interest in the Horn of Africa and the wider region. The foreign minister is expected to visit Somalia next, in what would be a historic trip, coming at a time when Mogadishu is actively deepening diplomatic and economic ties with Beijing.