Quality leather draws Chinese shoemakers to Ethiopia
According to The China Post, one of China's biggest shoe manufacturers, Huajian, is planning to invest up to $2 billion in Ethiopia to produce exports for Europe and North America.
Construction of a Chinese industrial park just outside Addis Ababa, started in 2009, and the Chinese government says it plans to build five more industrial zones throughout the country to attract further foreign investment.
When completed in 2014, the $250 million zone will be home to more than 80 factories and will generate 20,000 local jobs.
To minimise risk and attract Chinese investors, the Ethiopian government has introduced four-year tax breaks, cheap land and free electricity.
One of the most attractive prospects for Chinese leathergoods and footwear manufacturers, however, is the availability of good-quality raw materials.
Paul Lu, Huajian's human resource manager, told The China Post: "We came to make shoes and we had to consider the resources — Ethiopia is very rich in leather."
