Ethiopia Has Many Advantages To Attract Manufacturers.

< p > from outside, China and Africa ocean < a target= "_blank" href= "http://www.91se91.com/" > leather < /a > cable company is deserted.

The long white factory with blue windows is surrounded by almost empty parking lots; the sound of the machines can not be heard, and the national flags of the two countries are playing against the wind.

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< p > but when we enter the factory gate and across the office building, we can hear the roar of the machine.

About 450 Ethiopia workers are shuttling.

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< p > factory is located in Suluta town.

Most of the workers in the factory are also from the locality, including WuberstDesalegn, a 22 year old girl.

She has worked here since the factory was completed in 2010.

Now she has been promoted to the head of polishing department.

She said that if she did not work in the Sino African leather cable company, she would not know where she would be and she might still stay at home.

"I think I will always work here."

She added.

Now, she can earn 1400 Ethiopia Bill ($74) a month, making it easy to pay 250 Bill's rent ($13).

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< p > the Ethiopia government hopes that millions of Ethiopia people can follow Wuberst's footsteps.

The government plans to pform its economy from the main agricultural country (43% of agriculture, which is about 85% of GDP), to a manufacturing oriented industrial country.

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"P >" Ethiopia hopes to mimic the success of Southeast Asian countries, such as Vietnam, China and South Korea, which are growing with their manufacturing maturity.

The rise in manufacturing costs in Asian countries will push international manufacturers to Africa, where labor costs are low and land is relatively cheap.

Ethiopia has said for many years that it will prepare for the influx of such manufacturers.

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< p > but in recent years, the contribution rate of manufacturing industry to the GDP in the country still hovers around 4%. Although government officials are constantly making statements, they still fail to push this figure up.

The government of Ethiopia needs to solve some obvious problems before it realizes the dream of "imitating the brilliance of Asia's pharmaceutical industry", including lack of funds, backward logistics system and lack of experience.

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< p > for developing countries, the temptation of the pharmaceutical industry is obvious: factory workers have a higher per capita output of labor and can get more income than other industries.

"It provides broad prospects for labor intensive industries," said LarsChristianMoller, chief economist of the world bank. "This is in sharp contrast to some industries, such as natural resource extraction. Although these industries have high added value, they can not provide many job opportunities.

Achieving economic development is not the only goal. You also want to increase employment and reduce poverty.

The more workers participate in the production process, the better. "

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< p > Ethiopia has many advantages to attract manufacturers.

It has abundant natural resources, such as livestock, dense forests, and cultivated cotton land, which provide raw materials for the production of leather, wood or a target= "_blank" href= "http://www.91se91.com/" > textile > /a > products.

"There are some of the best leather in the world in Ethiopia," said Ji Bingbo, marketing director of the Sino African leather cable company.

Low wages are also the reason for attracting companies.

Most workers in the factory earn a monthly salary of between 700 and 1000 Bill ($37-53), which is much lower than that in Asian countries, according to quarterly reports.

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Less than P, Ethiopia has not only increased the employment rate, but also promoted the demand for domestic goods.

Almost all raw materials of Suluta tannery come from Ethiopia, which brings additional benefits to animal husbandry and chemical industry.

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< p > the Ethiopia government is attracting foreign and domestic investment, said GirmaDamte from the Ministry of industry.

"After a few years, we hope that industry will become our main industry.

We have provided many preferential policies for the manufacturing industry, such as customs duty exemption and tax exemption.

We see that foreign companies are very willing to invest in Ethiopia because of these favorable conditions.

He said.

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< p > before realizing the vision of manufacturing industry, Ethiopia needs to overcome some thorny problems.

"The first problem is that the government lacks the ability to organize orderly and can not provide one-stop services for investors," said Girma, a ministry official. "This is a tough job."

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< p > he said that Ethiopia has set up some auxiliary investment institutions, and has set up two industrial departments to improve efficiency.

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< p > but improving efficiency is only the first step.

For manufacturers, there is only one problem, backward logistics.

The performance of the Ethiopia government in recent years has declined in the world trade bank's index of trade logistics, which fell from 104 in five years to 141 in 2012.

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< p > take the Sino African leather cable company as an example. The soaking chemicals imported from China take more than 40 days to reach the workshop of Suluta, and the freight rate is high.

Ji Bingbo also pointed out that factories often cut off electricity and factory spare generators ensure continuous production activities, which is another cost.

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Ethiopia has to solve these problems, but at the same time there are some favorable trends: foreign investors have brought technical experts and contacts with the international market, which have benefited local enterprises. P

"Foreign investors are already in a dominant position, and they have enough experience," Girma said.

"Many domestic investors haven't come into contact with modern manufacturing technology, international a href=" http://www.91se91.com/news/index_s.asp "> market /a or modern management system.

But these will change, and the government will give them special support. "

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< p > this is a learning process, which has begun to be embodied in Wuberst.

"This is a very good company.

I didn't know how to process leather before.

But the Sino African leather cable company has come to share their experience.

She said.

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