China’s companies should use African labour, says Ethiopian president

31/01/2014
Ethiopian president Mulatu Teshome believes China's investment in Africa will enable the superpower to counter rising wages in its homeland and help it to remain competitive, adding that Africa could can capture a significant proportion of the 80 million manufacturing jobs that China is expected to shed.

He told Chinese media agency Xinhua that Ethiopia-based Chinese companies can sell to the US and European Union and avoid the import duties they would face if they were based in their own country.

"We are going to phase in while China is phasing out. The Chinese textile industry cannot be globally competitive if it continues with a high cost of production," he said.

Chinese shoemaker Huajian Group is looking to create 100,000 jobs in five years. "What we are witnessing in Ethiopia nowadays in terms of the country's manufacturing capacity would have been unimaginable 10 years ago. Government officials would have never conceived we could have a single factory where 10,000 workers are employed under one roof," he said.