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Is Ethiopia too dependent on Djibouti? Debt exposes the risk

A busy port. Photo by Dominik Luckmann @ Unsplash
A busy port. Photo by Dominik Luckmann @ Unsplash
  • Djibouti’s mounting SOE liabilities threaten financial resilience.
  • Ethiopia sends over 90% of its external trade through Djibouti’s ports.

 

DJIBOUTI CITY, DJIBOUTI – Djibouti’s debt-fuelled rise as a logistics hub is exposing a vulnerability for Ethiopia, whose economy overwhelmingly depends on its neighbour’s ports.

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