Business / Industries

If the shoe fits then wear it

By Andrew Moody and Wang Chao (China Daily USA) Updated: 2014-01-31 15:25

If the shoe fits then wear it

Ethiopia trying to become center for manufacturing in Africa on the back of Chinese investment, report Andrew Moody and Wang Chao

Modern and brightly lit with all the staff in neat uniforms, it could be a state-of-the-art manufacturing facility in Shenzhen or Guangzhou.

The Huajian shoemaking factory is not in China, however, but about 30 kilometers from the center of Addis Ababa.

Even its location is something of a disguise. There is nothing much African about the Eastern Industry Zone in that in appearance it could be any one of thousands of industrial parks around China.

Huajian, which employs 3,000 local workers, however, could have a significance way beyond just being a single factory.

It could ultimately be the start of a chain of investments that revolutionizes the economy of Africa's most significant economy on the Horn of Africa.

Chinese investment is at the vanguard of the Ethiopian government's attempts to move away from being an agriculture-dependent economy to one in which manufacturing plays a more dominant role.

Agriculture now accounts for around 43 percent of GDP with manufacturing making up just 4 percent.

If this transformation is successful it could prove to be something of a role model for the rest of Africa, which is largely seen by major multinationals as a less desirable location for manufacturing investment than Bangladesh, India, Vietnam, Cambodia or even China itself.

This engagement with Ethiopia is also different to the stereotype of one centered around China buying up African resources.

Although the country does have potentially large reserves, including iron ore and gas, they have gone largely untapped so far.

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