ADDIS ABABA (Reuters) - Ethiopia on Tuesday signed a $208 million loan agreement with China, to finance new power generation and expand a cement factory, the Horn of Africa country's finance minister said.

Economic powerhouse China has been wooing African countries with aid and loans in a bid to better access the continents raw materials and consumer markets, to feed its exploding economy.

"The loan with China's Import Bank and the state-owned, Commercial Bank of Ethiopia will be used to finance expansion of a cement factory and for power generation," said Sufian Ahmed, Ethiopia's finance minister.

Ethiopia has received $708 million in development loans from Beijing this year, he said.

He said $500 million received earlier was used to finance various projects.

Sufian said annual trade volume between the two countries in 2006/07 was $500 million.