Ethiopia wants to become the new 'Made in China'

sQuashie

June 8, 2016 9:40 AM

Do you think Africa is ready to transform itself from largely commodity and agricultural-based economies to manufacturing industrial goods? What about the lack of infrastructure, corruption and poor governance?

___5125982___https:______static.pulse.com.gh___webservice___escenic___binary___5125982___2016___6___8___11___Made-in-Ethiopia

There's a pretty good chance that some of the clothes you're wearing, the shoes on your feet and even the device you're using to read this were made in China.

Even as its economy slows, China remains the world's factory, churning out billions of dollars every year of goods. The government, though, wants to change this which could be a huge opportunity for countries like Ethiopia and Africa as a whole.

As China transitions its economy from manufacturing to services, 85 million jobs will be up for grabs as a lot of that industrial production looks for a new home. Ethiopia, for its part, is aggressively positioning itself as a destination for some of that Chinese manufacturing.

Ethiopia, and Africa in general, may be a tough sale for manufacturers who are always looking to keep costs as low as possible. Compared to regions like Southeast Asia, where most of the outbound Chinese manufacturing is going, Ethiopia's infrastructure is less developed, its work force is less educated and its supply chain networks are not as a robust.

But none of Ethiopia's challenges seems to discourage Helen Hai. Helen is the exuberant CEO of the Made in Africa Initiative and former vice president of the Chinese shoe-making giant Huajian. Back in 2011 she set up the company's first factory in Addis Ababa where today 4,000 workers produce 7,500 pairs of shoes for famous brands like Guess, 9West and many others.

Helen believes the success of Huajian in Ethiopia is just the beginning. She points to the country's ability to attract Chinese auto manufacturers and other heavy industry as evidence that not just Ethiopia but Africa in general is well-positioned to pick up some of that industrial production that is now leaving China.

Helen joined Eric & Cobus to discuss the future of industrial production in Africa and why she thinks "Made in China" could one day become "Made in Africa."

Join the discussion. Do you think Africa is ready to transform itself from largely commodity and agricultural-based economies to manufacturing industrial goods? What about the lack of infrastructure, corruption and poor governance? Let us know what you think:

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Twitter: @eolander | @stadenesque

sQuashie