Chinese textile manufacturer's investment thrives in Ethiopia
As part of the Belt and Road Initiative (BRI) supported by the government, Chinese private textile manufacturers are exploring better development methods in Ethiopia.
Jiangsu Sunshine Group, a Chinese textile and garment giant based in Jiangsu Province, announced an investment in Africa's textile industry in 2016, opening its manufacturing plant, Sunshine Ethiopia Wool Textile, with a total investment of 980 million U.S. dollars.
"The reason we chose Ethiopia as our first overseas factory is that it is relatively stable throughout Africa," Zhao Jiang, director of operations of Sunshine Ethiopia Wool Textile, told CGTN, noting that the country is rich in human resources with a labor force of over 50 million.
It also has abundant water and power resources, without any tariffs when exporting to Europe and America, he added.
According to Zhao, they began considering establishing their first overseas factory in Ethiopia in 2015, thinking about the increasing labor cost in the domestic and preferential policies under the BRI.
"We got green lights all the way on our project approval, whether from the National Development and Reform Commission (NDRC) or the Ministry of Commerce (MOFCOM). And MOFCOM has offered certain subsidies for our upfront investment," he commented.
According to MOFCOM, the total of FDI outflows worldwide in 2018 decreased by 29 percent year on year, falling for three consecutive years, while China was up to the second largest foreign investor, with the outward FDI flows reaching 143 billion U.S. dollars.
What's more, the outward FDI stock of China at the end of 2018 was 66.3 times that of 2002, ranking third among all countries and regions, up from 25th place in 2002.
Despite Africa also facing with a sharp fall in global investment, Jiangsu Sunshine Group decided to expand production in Ethiopia by about a third by the end of 2018.
Zhao told CGTN that the recruitment in Ethiopia received an overwhelming response as locals believe that it is good to go to China to train or work in the factory.
"Three batches of 145 Ethiopian undergraduates were recruited for one-year training in China and the first batch has gone back to Ethiopia in March," he cited.
"They started off with the basics, the production line, and made significant progress," he said, explaining that most of them have basically accepted the company's management model as well as the diligent spirit of the Chinese people after a year of living in China.
He held that the current development of Ethiopia is the same as during the early stage of China's reform and opening-up.
"We brought technology and management to them after going there… we'll withdraw 70-80 percent of the Chinese personnel within three years. And the salary of college students entering our factory is 40-50 percent higher than that of local civil servants," he commented.
Sep 24, 2019
Ethiopia Taking Part in Paris International Trade Show, Fair for Fashion
Ethiopian companies are participating in an International Trade Show and Fair for Fashion which is taking place in France, Paris, for the coming three days, according to Ethiopia’s Embassy in France.
Ethiopian garment manufacturing companies such as Desta PLC, Bahir Dar Textile Share Company, Samira-Made in Ethiopia, Sadulla Business PLC, Almeda, Meron, Yefikir, etc are taking part in the exhibition and show.
Ethiopia is among the few selected countries to participate in a fashion show to be conducted in the course of the exhibition.
In addition to the exhibition, there will be catwalks to promote selected countries, it was stated.
The international trade show and fair exhibition comprises two major events, namely ‘The Apparel Sourcing Paris’ – the International Trade Show for Fashion, and ‘Texworld Paris’ – the International Fair for Fashion. Both were organized by Messe Frankfurt France (MFF), ENA reported.
17 September 2019
Canada Pledges to Increase Investment, Trade Presence in Ethiopia
The Government of Canada wants to increase investment and trade presence in Ethiopia alongside engagement in agriculture, Ambassador Antoine Chevrier said.
In an exclusive interview with ENA, Canada’s Ambassador to Ethiopia Antoine Chevrier said the objective of Canada in Ethiopia is to grow and diversify its presence alongside maintaining the strong development program that corresponds to the priorities of the country.
“We want to increase our trade and investment presence and our economic presence,” the ambassador added.
Ambassador Chevrier pointed out that with the Ethiopian New Year in site and the last month of Canada’s new year approaching, “ the objective for us is to keep on doing the good work on the development side, but also more and more diversify our presence.”
Hearing from all stakeholders, that is NGOs, the government and other partners in Ethiopia, “the government’s programs are okay and are needed in many ways; but the need for different relationship with multiple components on trade, for example, is critical,” he elaborated.
Ambassador Chevrier further stated that “hopefully, with the coming Ethiopian New Year, we will see the relationship between our two countries in much more diversified way, very robust based on vibrant and strong presence.”
According to him, a big part of Canada’s cooperation in Ethiopia is the agricultural sector. Besides, one of the bigger programs of the country is supporting the productive safety net program as the need is high.
Ethiopia is reportedly one of the largest recipients of Canada’s international assistance, 198.15 million USD in 2017-2018.
Some of the new initiatives, including entrepreneurship, among others started recently, the ambassador added.
Commenting on the strong relationship between the two countries, he said “it is a big portfolio and we have been here for a long time. I think we can see it moving as also the priorities of Ethiopia are moving.”
11 September 2019
PM Upbeat that Homegrown Economic Reform Will Propel Ethiopia to African Icon of Prosperity
The homegrown economic reform will propel Ethiopia to become the African icon of prosperity by 2030, Prime Minister Abiy Ahmed said.
Opening a forum held to brief international development partners and the diplomatic community on the Homegrown Economic Reform agenda of the country, the premier stated that “the homegrown economic reform agenda is close to my heart and I believe it’s our bridge to prosperity, enabling us to become a middle-income nation that ensures sustainable development.”
Acknowledging that the next capture of Ethiopia’s growth and development requires more active private sector, Abiy said “we have opened up key economic activities to private investment.”
According to him, his government prioritized the success of key sectors such as agriculture, manufacturing, mining and ICT anchor in the vision for building a prosperous nation. “Our priority is to create economic environment that closes income inequality gap by creating opportunity and access of sources for all our youth.”
The premier called on development partners to continue strengthening their support.
International development partners who participated in the discussion praised the country’s efforts to reduce poverty and to continue economic growth.
They stated that they would provide financial and technical support for the implementation of the economic reform, according to ENA.
11 September 2019
School Kits Support for Students by IPDC
Since last year Industrial Parks Development Corporation (IPDC) takes the initiative to support families who are relocated from their place for the development of Industrial Parks by purchasing and collecting different school materials in kind from investors and other stake holders.
The Corporation assigned top management members of the corporation to organize and facilitate with the respective Managers of IP’s in Hawassa, Bole Lemi, Mekelle, kombolcha, Adama, Debre Birhan, Dire- Dawa, Jimma and Bahir Dar industrial parks.
The corporation donated school kits (school bag, Note books, Pen, Pencil, etc...) for 2012 academic year in total for more than 5,841 students. The support for students in New Years filling social infrastructure gaps and creating job opportunities for the community as whole will be continued in a well organized and planed way.
Hong-Kong textile chain to take over eight sheds in Bahir Dar industrial Park
Expected to employ 4,000 fresh graduates
The Bahir Dar Industrial Park is set to integrate new and upcoming textile graduates from the Bahir Dar University in its manufacturing chains as textile and garment companies’ edges closer to commence operations inside the park’s eight factory sheds.
The newly revealed plan mainly envisaged creating linkage among Bahir Dar University Fashion and Design school graduates with Hop Lun, a Hong Kong-based textile and garment company which is expected start production in less than one month period inside the park, according to the park’s management team.
Deputy CEO of Industrial Parks Development Corporation (IPDC), Amare Asgedom, told The Reporter that the Ethiopian Investment Commission (EIC) and Industrial Parks Development Corporation (IPDC) recently signed an agreement with the Hong Kong-based company to handover eight factory sheds to the transnational textile and garment manufacturing firm.
According to Amare, Hop Lun, which is set to produce and export its textile products to the international market will take over the existing eight shades soon and start training programs for it’s soon to be employees in the coming weeks and many of whom are said to be graduates of the school.
Contracted by the Chinese firm, China Construction Engineering Company (CCEC), the new park is currently said to be on its final stage with only the installation of telecom cables and other software appliances remain work to be done.
The first phase of the park project has been constructed on 75 hectares of land with a construction cost of close to 60 million USD.
The Bahir Dar city administration had also recently expressed its plan to provide additional 75 hectares of land for the expansion of the park.
The Hong Kong-based company, which is set to start its imminent manufacturing operations on day-shift work hours inside the park as early as next month, is expected to create in excess of 4,000 job opportunities.
According to Amare, additional 4,000 job opportunities will also be added when the planned dormitory and full warehouse services start.
Amare, noting that the remaining installation of electric power and telephone-cables will be conducted in less than one month, stressed that “there will not be that much challenge in-terms of infrastructure like the other industrial parks.”
The Ethiopian government is currently discussing with the Hong Kong-based company to directly integrate Bahir Dar University Fashion Department, which would enable new and upcoming graduates from the university to get employment opportunities alongside few foreign experts, it was indicated.
According to the park’s deputy director, Ethiopian professionals will mainly obtain technical, managerial and related supervisory roles as part of the integration initiative between the Bahir Dar University and the Bahir Dar Industrial Park.
Meanwhile, the Bahir Dar industrial park in partnership with IPDC and the CCECC also last week donated school kits to more than 250 students in area, whose families were relocated due to the industrial park’s construction project, worth 300,000 birr inside the park’s compound in time for the start of the school year.
14 September 2019
Source: - Reporter