When Wang Yijun put Ethiopia's most expensive real estate project on the market, he experienced a strange phenomenon. People preferred the lowest floors over those with panoramic city views. "Power cuts mean elevators in this city often don't work," explains Wang, the site manager. "So the bottom-floor flats became the most valuable. You won't see this pricing in any Chinese city."
Replicating
China's urban model in Africa has its challenges, but with limited
developable space in Addis Ababa -- the capital is surrounded by protected farmland -- Wang believes high-rise living, such as Tsehay Real Estate's $60 million Poli Lotus development, is inevitable.
Theodros
Amdeberhan, an Ethiopian lawyer, last year bought a three-bedroom,
fifth-floor apartment here for about 3.5 million birr ($127,000). "Local
developers never deliver on time," says Amdeberhan. The complex opened
in 2016, and so far 70% of lots have sold. "When Mr Wang offered me a
good price, I didn't hesitate," he says.
With
red lanterns swaying over its entrance, the palm-tree peppered compound
of 13 towers could easily be in Shenzhen, Chongqing or the suburbs of
Shanghai. It's the sort of Chinese-ification that permeates much of
Addis.
Cars chug through the city on smooth Chinese roads, Chinese cranes lift the skyline, sewing machines hum in Chinese factories in Chinese-owned industrial parks, tourists arrive at the Chinese-upgraded airport and commuters ride modern Chinese trains to work.
Simply put, Addis Ababa is becoming the city that China built -- but at what diplomatic and economic cost?
A city without addresses
Located
2,355 meters above sea level, Addis Ababa is one of the highest
capitals in the world. Officials say 2.7 million people call it home,
but that's based on a census from 2007.
The real number is surely far bigger. Few buildings here have
addresses, so taxi drivers operate by landmarks. And because Ethiopia
was never colonized, barring a brief Italian occupation between 1936 and 1941,
Addis lacks the European infrastructure that underpins many African
metropolises. "It was never planned to be a city," says Alexandra
Thorer, an architect who lived in Addis as a child, and wrote her thesis
on the city's urbanization.
Old Addis - New Addis
By the turn of the 21st century, Addis' population had swelled
and its dirt roads badly needed upgrading. At the same time, China was
pursuing stronger ties with African nations -- in 2000, Beijing held the
inaugural Forum on China-Africa Cooperation, now a triennial deal-making pow wow.
The
Ethiopian government saw China as a model for development and courted
it for infrastructure, says Ian Taylor, a professor in African political
economics at the University of St. Andrews, in Scotland.
In two decades, the Chinese provided Addis with an $86 million ring road, the Gotera Intersection ($12.7 million), Ethiopia's first six-lane highway ($800 million), and the Ethio-Djibouti Railway line ($4 billion),
which connects the landlocked country to the sea, to cite a sprinkle of
projects. The speed at which Addis grew, says Thorer, mirrored the pace
of 21st-century urban explosion in China.
China
also built the first Metro system in Sub-Saharan Africa in Addis. Its
two lines cut through the heart of the city, and carry at least 30,000 passengers
an hour, who pay 6 birr ($0.30) a ride. "I thought it would fail quite
quickly," says Thorer, "but actually it's really well used."
"Addis has been radically transformed," says Taylor. "Huge skyscrapers are changing the whole profile of the city." A 46-story glass tower will be the tallest in Ethiopia when finished in 2020 by the China State Construction Engineering Corporation.
The
city's most symbolic skyscraper is, of course, the futuristic African
Union (AU) headquarters. Gifted to Addis by Beijing in 2012, the $200 million structure resembles nothing in Ethiopia.
"I
didn't realize how Chinese it was until I went to China," says Janet
Faith Adhiambo Ochieng, communications officer at the African Union.
"Then I was like: 'Wow.'"
Getting in the red
In
the early 2000s, Irish singer-songwriter Bono was part of a chorus of
celebrities asking Western countries to cancel African debt, which was
costing some governments three times more than healthcare. When the G8 agreed to waive $55 billion from mostly African accounts in 2005, Bono called it "a little piece of history."
Fast forward a decade, and Africa owes China about $130 billion, according to the Johns Hopkins SAIS China-Africa Research Initiative -- money which has mainly been used to fund transport, power and mining projects.
The continent lags behind other developing regions in virtually all infrastructure sectors,
be it electricity, road or railroad performance. "Western companies and
organizations such as the IMF and World Bank weren't offering money for
that type of stuff," Taylor says.
The light rail train arrives / Inside the packed train
China's
credit line to Africa has provoked criticism. Earlier this year, Rex
Tillerson, then US Secretary of State, said that China's "predatory loan
practices" in Africa "mire nations in debt and undercut their sovereignty, denying them their long-term, self-sustaining growth."
Ethiopia has taken at least $12.1 billion from Chinese creditors
since 2000. But overall the country is $29 billion in the red -- it
owes more collectively to the Middle East, the World Bank and others
than to China. The same is true for the majority of African countries.
A report published this month by the Johns Hopkins SAIS China-Africa Research Initiative found that Chinese loans are "not currently a major contributor to debt distress in Africa."
"We're
emerging into a new phase of a China-centric world order," says Solange
Chatelard, academic and research associate at the Université Libre de
Bruxelles in Belgium. "The former hegemonic powers are having a hard
time adjusting to their decline."
Lina
Benebdallah, assistant professor of politics and international affairs
at Wake Forest University, North Carolina, however, cautions that the
China-Africa relationship is "asymmetric." In 2016, for example, China
exported $88 billion in goods to Africa, but only imported $40 billion from the continent.
And there are countries with worrying amounts of Chinese debt. In Djibouti, China holds 77% of national debt, while Zambia's $6.4 billion
in Chinese loans represents the lion share of its commitments. A
spokesperson for China's Ministry of Foreign Affairs (MOFA) told CNN via
email that China has paid "high attention" to African debt situation,
and is dedicated to "sustainable development."
Twisting Ethiopia's arm?
One
of the big concerns around Chinese loans is debt-trap diplomacy -- the
idea that Beijing will pressure countries that can't pay into
exploitative deals.
At
the imposing prime minister's office building in Addis Ababa, Arkebe
Oqubay, a senior government minister, is adamant that Ethiopia hasn't
seen any arm-twisting from China. "One of the unique things that makes
Chinese funding quite attractive is they practice non-intervention in
local politics," he says.
And Beijing has been demanding that African nations cut diplomatic ties with Taiwan, under its "One China Policy," for decades he says -- debt or no debt.
Luke Patey, a senior researcher at the Danish Institute of International Studies, sees it differently. He cites the example of Sri Lanka as the "canary in the coal mine."
In 2010, Beijing invested $1.5 billion
to build the Hambantota port. When Sri Lanka couldn't repay the debt,
it signed a 99-year lease of the port with a Chinese state-owned company
to service some of the billions it owed.
"If
developing countries do not pay greater attention to how they manage
their debt with China, we're going to see a growing number selling off
large stakes in key sovereign assets," Patey says.
Urban sprawl / Urban planning
Another concern is national security. Earlier this year, French news outlet, Le Monde, alleged
that Beijing had spied on the African Union through the computer
systems it helped install. China's foreign ministry said the report was
based on "groundless accusations" and the AU disregarded the allegations
as "baseless." But the rumors raised eyebrows, as China builds symbolic political facilities across Africa.
"The Germans could have bugged that building," Ochieng says, pointing to the far more modest Peace and Security
facility Angela Merkel's government gifted the AU in 2016. "But will
the story that the Germans are watching Africa sell as well?"
When
Western powers see a city like Addis Ababa awash with Chinese
influence, there is the knee-jerk reaction that "China has an ulterior
motive," says Benebdallah. But it's often the case, says Taylor, that
Chinese companies don't face Western competition for construction
contracts. Once Chinese firms have shipped their equipment, they may as
well stay put and capitalize.
For
Patey it's not that simple. When China finances roads, railways, and
hydropower dams, he says, it stipulates that Chinese construction
companies build them with Chinese concrete and steel. "Africa has served
as a launching pad for Chinese ... companies to gain overseas
experience," he adds. "It's where China Inc cuts its international
teeth."
A
MOFA spokesperson told CNN via email that Chinese companies in Africa
operate "independently" and that the Chinese government is "committed to
equal negotiations," and had no interest in "lecturing countries."
The Poli Lotus complex / Inside an apartment
On
a Friday afternoon at Poli Lotus, Theodros Amdeberhan's teenage son
plays FIFA on the wide-screen TV, while the maid roasts coffee and a
picture of the Eiffel Tower hangs over the sofa in their Chinese-built
apartment.
When
asked how he feels about the Chinese molding Addis Ababa in their
country's own image, Amdeberhan says: "I once went to China and noticed
that they have this way of building city centers that can incorporate
all the needs of the people." With the higgledy piggledy chaos of
unplanned Addis just beyond his window, he says it's an appealing concept.
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