ETHIOPIA - MANUFACTURING HUB
Can Ethiopia be Africa's leading
manufacturing hub?
§ 2
With Ethiopia having
the second biggest population in Africa, it is under growing pressure to tackle
unemployment. The BBC's Alastair Leithead visited the country to find out how
it is tackling the problem.
The factory workers
sing Ethiopia's national anthem in unison as one shift ends and another
prepares to begin.
Outside, a fleet of
passenger buses pulls into Hawassa Industrial Park, as thousands of textile
workers - most of them women - switch places.
The new arrivals take
up their stations behind sewing machines, ironing boards and cutting tables as
the shirts and suits start taking shape.
The park, claimed to
be the biggest in Africa, is 140 hectares (350 acres) of factories, with a
water treatment plant and its own textile mill.
Six months after
opening in southern Ethiopia, 10,000 people already work here, and at full
capacity it is expected to provide 60,000 jobs.
"The pay isn't
great," says one 20-year-old, who trained for six months to sew and cut.
"But it's not
just about money. Opportunities are being created for people like me across the
country."
There's an optimism among the workforce that this is a
good spring-board for running their own businesses in the future.
And it is just one of
more than a dozen industrial parks being built across Ethiopia.
"Expanding and
building world class industrial parks is a model we have chosen," said
Arkebe Oqubay, Prime Minister Hailemariam Desalegn's special adviser and the
architect of Ethiopia's industrial revolution.
'Learning from China'
With Africa's
population predicted to double by 2050, providing jobs is the key to taking
advantage of a vast, and expanding young workforce.
"The population is growing by
about 5% so we need to create close to one million jobs every year," said
Mr Arkebe.
"Population
growth…is not only a challenge, but also an opportunity…if it's linked with
quite rapid economic growth."
Ethiopia is building
for the future, and the scale and ambition is impressive.
Not just industrial
parks, but vast affordable apartment blocks are being built, along with a new
national road network and an electrified railway line to the port in
neighbouring Djibouti.
"We can learn
from China that making investment in the long-term, in infrastructure, is quite
important. We have seen China emerge from low level, into being a manufacturing
powerhouse," said Mr Arkebe.
Hawassa
Industrial Park: Key facts

§
Ethiopia's
biggest industrial park
§ Built in nine months
by a Chinese contractor
§
Hosts
18 companies from 11 countries
§
Solely
for textile and apparel
§
At
capacity, will employ 60,000 workers
§ Zero-emission water
treatment plant recycling 90% of effluent
China is just one of
many models that Ethiopia is learning from, but like the Asian powerhouse,
Ethiopia closely controls its economy.
It also closely
controls political opposition, and has been criticised for a lack of freedom of
speech and human rights.
A nearly nine-month
state of emergency was only recently lifted. Protests are crushed and opponents
jailed.
But at Hawassa
University, graduate student Woyneab Habte has recently returned from studying
in the US, and she balances economic growth with freedom of speech and
democracy.
"It's not like
one is more important than the other," she said.
"But definitely,
economic growth is a means towards democracy - it's a path for democracy, it's
a path for freedom of speech, because if there is no education in the country,
if people are still hungry, what are they going to speak about?"
Mr Arkebe admits that
it is a work in progress.
"Building
democracies, and sustaining them, requires effort for many generations, and we
recognise that, and we are going to put more effort despite the achievements we
have made," he said.
For international
investors a strong government is a real attraction.
'Aggressive and
ambitious'
At Hawassa's official
opening ceremony, senior representatives of the 18 companies from 11 foreign
countries investing in the park gathered under a big tent to hear the prime
minister speak.
"Look, we came
and looked at all of Africa - all of sub-Saharan Africa - and after a year we
really landed on Ethiopia," said Bill McRaith, chief supply chain officer
for PVH.
The huge American
apparel company that owns Calvin Klein and Tommy Hilfiger among others has
opened a factory in the park.
"There's a
relatively stable government, actively involved in making this work, and when
it came to all the normal dynamics of labour costs, power etc. it fitted the
bill perfectly."
With a cheap source of labour, good incentives and a
growing market, Ethiopia is being seen as an alternative to Asia.
"Why did we choose Ethiopia?
Firstly, it has a stable political situation and a peaceful society," said
Yang Nang, general manager of the Wuxi Group, which runs the textile mill.
"Secondly, it has 100 million people and is the
second biggest country in Africa. For our textile business, without a big
population there is no market.
"Thirdly, the production and labour cost is very
low. This attracts our investment."
Ethiopia has set itself an ambitious target known as
Vision 2025 - to be the leading manufacturing hub in Africa.
"The aim is that
GDP will grow by 11% annually for the coming 10 years and the manufacturing
sector will grow by about 25% every year," said Mr Arkebe.
"It provides an
opportunity for what we call the demographic dividend, but without having a
policy as very aggressive and ambitious as Ethiopia's target for economic
growth, it will be difficult and it will be a source of crisis," he added.
Industrialisation is
not the only answer to Africa's population explosion, but it is already
creating dividends for Ethiopia.
If it gets the balance
right, it could be a model to put a continent to work.
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