Africa Has Welcomed The Rapid Development Of The Footwear Industry. China'S Labor Crisis Is An Opportunity.

China has always been seen as a stimulus.

An important force in development.

In a report on investment and employment in sub Saharan Africa, the world bank said that many Chinese shoe manufacturers began to find factories elsewhere because of the rise in wages in China.

And occupy 85 million potential jobs.

China began to rise in the 80s of last century, but the African continent missed the train for the export of manufactured goods. Africa occupies only 1% of this huge cake.

In the report, the world bank noted that sub Saharan Africa has experienced a longer and deeper market share decline in most other regions.

The World Bank warns that China's light manufacturing industry will shift its production to Africa, which is a good starting platform for the continent's "long lag" economic pformation.

The results of some survey companies in more than 2000 enterprises in China, Ethiopia, Tanzania, Vietnam and Zambia show that the gradual improvement of the Asian economic environment has returned the "opportunity" to Africa.

Compared to Asia, Africa has the advantage of abundant raw materials and cheap wages.

But the disadvantage is the weak infrastructure, lack of industrial parks and logistics means to make good use of their natural resources.

In addition, entrepreneurs and labor force lack proper training.

The world bank said that in Ethiopia, for example, the production capacity of some "well managed" Ethiopia enterprises is almost the same as that of Chinese and Vietnamese enterprises.

However, the wages they pay to the labor force are only half of the 1/4 of Chinese enterprises and of the Vietnamese enterprises, so the wage cost, including tax and social costs, is still "very low".

The manufacturing of Africa has entered its potential after the input of production forces.

The article quotes an example of "leather shoes" mentioned in the World Bank report.

Huajian group, a Chinese shoe making enterprise, was invited to Ethiopia to build factories in September last year.

In less than 3 months, a shoemaking plant was built in the east of Addisababa.

The shoemaking company has 25 thousand employees in China, and through its active response in Ethiopia, the company has 600 employees in January 2012, producing shoes for the US market and "Ethiopia made" labels.

It is not only leather shoes that penetrate the US and Europe market.

At present, a flower production enterprise in Ethiopia has also opened the EU market, which has solved the employment problem of 50 thousand people.

Although sub Saharan Africa has been opened to the outside world, it is possible to double employment opportunities in the region only when the employment rate of China's manufacturing industry is declining.

From 2001 to 2012, the region attracted a total of 33 billion US dollars in foreign direct investment, "almost 5 times from 1990 to 1999 7 billion US dollars".

However, the world bank's deputy governor of Africa affairs,

Eze Kwesi Leigh stressed that growth alone can not bring long-awaited changes to Africa.

Africa has remained unchanged for the past 40 years.

Over the past 10 years, the gross domestic product of the African region has grown at an annual rate of 5.2%, but this is dependent on exports of raw materials and has failed to bring about structural changes.

Another problem is that although the export growth of shoes and so on, the investment for industrial development is still limited: in the past 10 years, Africa's investment in industrial development accounts for only 15% of its gross domestic product, compared with 25% in Asia and 80% in Africa.

For this reason, the world bank urges sub Saharan Africa to make good use of the good opportunity brought by the increase in labor costs of Chinese enterprises.