Friday, December 30, 2011

Ethiopia's partnership with China

(Friday 30 December , guardian)--China sees Ethiopia as a land of business opportunities, but the African country remains in charge of any deals. In late November, Habros Seguar, an Ethiopian industry ministry official, told me how the ministry had just landed a major Chinese investment.

Ethiopian prime minister Meles Zenawi (left) toasts Chinese premier Wen Jiabao during a meeting in Beijing in August. Photograph: Adrian Bradshaw/AFP/Getty Images

During his August trip to China, Prime Minister Meles Zenawi had visited the Pearl River Delta, where higher costs are driving manufacturers offshore.

He invited the Chinese to visit Ethiopia. Among other things, he wanted them to look at a leather-based industrial cluster Ethiopia is developing to better utilise its livestock population, Africa's largest.

Within weeks, a delegation of Chinese had arrived in Addis Ababa. Among them was the privately owned Huajian Group, which produces 16 million pairs of leather shoes per year. By October, Huajian had decided to invest in Ethiopia.

Huajian's general manager arrived in November, hired 50 Ethiopian technical school graduates and sent them off to China for training. "The machinery is already on its way to Djibouti," Habros told me, adding that Huajian was leasing a factory site in Ethiopia's Eastern (Oriental) Industrial Zone. Read more from guardian.co.uk »

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