China's Influence in Ethiopia's Industrial Development: The "Addis Advantage"
Explore the unique benefits of Ethiopia's industrialization, highlighting the significant role China plays in this transformative process. The article delves into the economic dynamics between the two nations, examining how China's investments and expertise contribute to Ethiopia's growth and development.
TroibNews 
Ethiopian Prime Minister Abiy Ahmed asserted his country’s position as a model for other African nations pursuing self-reliant development during a meeting with Chinese President Xi Jinping at the Great Hall of the People in Beijing on September 4.
While in Beijing for the Forum on China-Africa Cooperation Summit and an official visit, Abiy highlighted the effective blending of historical preservation and modernization by China, which he deemed as valuable for Ethiopia's urbanization and development efforts. He commended the significant impact of Chinese investments on Ethiopia's economic and social growth.
One notable example of this collaboration is the Addis Tomorrow Special Economic Zone, which commenced construction in August 2024. This initiative, developed by China Communications Construction Company, covers 35 hectares in the Gotera district of Addis Ababa and is designed to transform the city into a center for international trade, residential space, and high-quality housing. At the launch ceremony, Abiy emphasized the zone's critical role in improving the city's global image, generating employment, and enhancing living standards.
The development will take place in phases, with the initial phase expected to be completed within three years, while the overall project is anticipated to conclude in eight years. This aligns with Ethiopia's ambitions to become a leader in urbanization and economic modernization.
Ethiopia's emergence as a manufacturing hub has also been bolstered by Chinese economist Lin Yifu's New Structural Economics. His guidance led to the establishment of the Huajian Group's shoe manufacturing facility in Ethiopia’s Eastern Industrial Park, an investment that has created over 8,000 jobs.
This factory, producing 15,000 pairs of shoes daily, has generated more than $200 million in revenue while exporting its products to European and American markets. Lin has stressed the need to leverage local advantages such as Ethiopia’s labor and leather resources to foster industrial growth. His broader initiatives on industrial parks have also influenced development in other African countries, including Nigeria and Guinea.
China's engagement in Africa goes beyond Ethiopia. The Eighth China-Africa Entrepreneurs Conference, occurring on September 6 as part of the FOCAC Summit, highlighted significant economic cooperation between China and the continent. Zhang Shaogang, vice chairman of the China Council for the Promotion of International Trade, noted that the event attracted 382 Chinese business representatives and 408 from Africa, showcasing the growing interest in business collaborations. Represented sectors included energy, mining, and infrastructure, as well as burgeoning fields like digital technology and biopharmaceuticals.
"Africa and China share great potential for cooperation in emerging sectors such as the digital economy, green development and artificial intelligence," Zhang remarked. He underscored the complementarity between China’s comprehensive industrial system and Africa’s development requirements, particularly in integrating industrial and supply chains. Zhang urged Chinese and African entrepreneurs to utilize platforms like the China International Supply Chain Expo to resist protectionism and maintain stable supply chains.
Digital infrastructure represents another crucial area of collaboration. Chinese firms have assisted African nations in offering network services to nearly 700 million users. Sun Xiao, secretary-general of the China Chamber of International Commerce, mentioned that these companies have played a key role in developing e-commerce ecosystems in countries such as Ethiopia and South Africa, sharing expertise in digital payments and logistics.
Trade between China and Africa has been on an upward trend. In 2023, total trade reached $282.1 billion, representing an 11 percent increase from 2021 and marking a record high for two consecutive years. Moreover, Chinese companies have created over 1.1 million jobs across the continent in the past three years. Lin Honghong, director-general of CCPIT's International Relations Department, indicated that China has been Africa's largest trading partner for the past 15 years, with trade amounting to 1.19 trillion yuan from January to July 2024.
The FOCAC Summit and the Eighth China-Africa Entrepreneurs Conference underscore China's growing influence in Africa's economic development. For Ethiopia and other African nations, these events serve as vital platforms to deepen cooperation, promote industrialization, and foster sustainable economic growth.
Ian Smith contributed to this report for TROIB News
While in Beijing for the Forum on China-Africa Cooperation Summit and an official visit, Abiy highlighted the effective blending of historical preservation and modernization by China, which he deemed as valuable for Ethiopia's urbanization and development efforts. He commended the significant impact of Chinese investments on Ethiopia's economic and social growth.
One notable example of this collaboration is the Addis Tomorrow Special Economic Zone, which commenced construction in August 2024. This initiative, developed by China Communications Construction Company, covers 35 hectares in the Gotera district of Addis Ababa and is designed to transform the city into a center for international trade, residential space, and high-quality housing. At the launch ceremony, Abiy emphasized the zone's critical role in improving the city's global image, generating employment, and enhancing living standards.
The development will take place in phases, with the initial phase expected to be completed within three years, while the overall project is anticipated to conclude in eight years. This aligns with Ethiopia's ambitions to become a leader in urbanization and economic modernization.
Ethiopia's emergence as a manufacturing hub has also been bolstered by Chinese economist Lin Yifu's New Structural Economics. His guidance led to the establishment of the Huajian Group's shoe manufacturing facility in Ethiopia’s Eastern Industrial Park, an investment that has created over 8,000 jobs.
This factory, producing 15,000 pairs of shoes daily, has generated more than $200 million in revenue while exporting its products to European and American markets. Lin has stressed the need to leverage local advantages such as Ethiopia’s labor and leather resources to foster industrial growth. His broader initiatives on industrial parks have also influenced development in other African countries, including Nigeria and Guinea.
China's engagement in Africa goes beyond Ethiopia. The Eighth China-Africa Entrepreneurs Conference, occurring on September 6 as part of the FOCAC Summit, highlighted significant economic cooperation between China and the continent. Zhang Shaogang, vice chairman of the China Council for the Promotion of International Trade, noted that the event attracted 382 Chinese business representatives and 408 from Africa, showcasing the growing interest in business collaborations. Represented sectors included energy, mining, and infrastructure, as well as burgeoning fields like digital technology and biopharmaceuticals.
"Africa and China share great potential for cooperation in emerging sectors such as the digital economy, green development and artificial intelligence," Zhang remarked. He underscored the complementarity between China’s comprehensive industrial system and Africa’s development requirements, particularly in integrating industrial and supply chains. Zhang urged Chinese and African entrepreneurs to utilize platforms like the China International Supply Chain Expo to resist protectionism and maintain stable supply chains.
Digital infrastructure represents another crucial area of collaboration. Chinese firms have assisted African nations in offering network services to nearly 700 million users. Sun Xiao, secretary-general of the China Chamber of International Commerce, mentioned that these companies have played a key role in developing e-commerce ecosystems in countries such as Ethiopia and South Africa, sharing expertise in digital payments and logistics.
Trade between China and Africa has been on an upward trend. In 2023, total trade reached $282.1 billion, representing an 11 percent increase from 2021 and marking a record high for two consecutive years. Moreover, Chinese companies have created over 1.1 million jobs across the continent in the past three years. Lin Honghong, director-general of CCPIT's International Relations Department, indicated that China has been Africa's largest trading partner for the past 15 years, with trade amounting to 1.19 trillion yuan from January to July 2024.
The FOCAC Summit and the Eighth China-Africa Entrepreneurs Conference underscore China's growing influence in Africa's economic development. For Ethiopia and other African nations, these events serve as vital platforms to deepen cooperation, promote industrialization, and foster sustainable economic growth.
Ian Smith contributed to this report for TROIB News
