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Chinese Shoe Companies Invest $2 Billion In Ethiopia

2012/3/15 13:50:00 7

According to capital magazine (Capital),

China Leather Industry

Two big companies announced that they will invest $2 billion in Ethiopia.

The ten year contract will be signed in January this year, which will greatly boost the leather industry in Ethiopia and create more than 100 thousand jobs.

According to the agreement, a light industrial manufacturing park will be established in Ethiopia, with annual sales volume of US $4 billion.

Last October, the Prime Minister of Ethiopia met with representatives of Huajian International Footwear Company, expressing his desire for cooperation projects.

Chinese companies have set up two production areas in Ethiopia and started shoe production in January 5, 2012.

Helen Hai, the representative of China Huajian International Footwear Co., Ltd., said that at the inauguration ceremony of the fifth African leather show (AALF), Huajian accepted the request of the Prime Minister of Ethiopia and started production in three months.

The two production areas in Ethiopia are stable and employ about 600 employees.

China Huajian international footwear industry

The company was founded 20 years ago. It signed a 10 year contract with the China Africa Development Fund, the largest private equity company in mainland China, and became the largest female shoe manufacturer in Ethiopia.

The leather industry in Ethiopia has been pformed steadily, and some unique local products have been displayed at the African leather exhibition.

These shoes are produced by Dire Industries's Peacock shoe factory, attracting visitors' attention at the exhibition.

Dire Industries manager Biniam Bedada said the product will be sold in Africa and will be exported to the United States, Italy, Japan, China and India.

However,

Bedada calls leather raw materials.

The shortage, power outage and the delay of leather import are the main obstacles to the development of leather industry.

Lack of raw skins, lack of skills to deal with sensitive skin, irregular family slaughtering, and other reasons have resulted in a shortage of raw materials, but this situation is gradually improving.

Ethiopia leather industry ambassador Bruck Debebe said the leather industry is booming in the country, thanks to the government's efforts to encourage leather industry and the contribution made by private enterprises.