Leather and footwear investments contribute to Ethiopia FDI surge
01/05/2015
In recent comments to the Financial Times, Fitsum Arega, the head of the African country’s investment agency, said low-cost labour and a high level of support from government was helping to attract manufacturing companies, including producers of leather and footwear, to special new industrial zones that are growing up in different parts of Ethiopia.
Mr Fitsum said China was the source of the largest number of investments, although in terms of value investments from India and Turkey are larger. He said investment was also coming in now from the European Union and the US.
Curiously, he told the FT that investment worth around $2 billion from Chinese footwear manufacturing group Huajian was not included in the figure he has calculated for the nationa total because, rather than take part in government-run industrial-zone investments, Huajian has decided to build its own industrial park and to own its production facilities in Ethiopia rather than rent them. This development will see Huajian increase its Ethiopian workforce to 30,000 people over the next few years, Mr Fitsum said.
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