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> There's a shortage of foreign currency due to the mega projects underway Could you elaborate? How is there a shortage if there's a ton of foreign investment
by gandreani 8y ago
> There's a shortage of foreign currency due to the mega projects underway
Could you elaborate? How is there a shortage if there's a ton of foreign investment coming in?
- nwah1 8y agoThis sounds more like a case of rental values of locations increasing, as the price of prime urban land is bid up, requiring laborers be paid more to achieve the same standard of living, and inflating costs across the board. Same issue that all booming cities face, whether it is New York, San Francisco, London, Hong Kong, Tokyo, or anywhere else. Some manage it better than others.
- Habesha 8y agoNot all mega infrastructure projects are foreign aid/loan financed. For example the 6000 MW Nile Grand Renaissance Dam is self financed by Ethiopia. Beside there is a deficit between export and import leading to currency shortage. https://www.reuters.com/article/ethiopia-energy-idUSL6N0N91QM20140423 https://www.reuters.com/article/ethiopia-energy-idUSL6N0N91Q...