This is a mighty nomadic army. This is a journey of more than 10,000 kilometers. This will also be an extraordinary African adventure.
TCP supplier Visit Bole Lemi Industrial Park
Chinese foundry companies began to emerge in Jiangsu, Zhejiang and Guangdong in the 1980s, and then surged from coastal cities to encircle inland areas, and then gradually Moved to Southeast Asia, and now ambitiously marching towards Africa.
Among the 54 countries in Africa, who is the best destination for Chinese OEM companies? With the help of industrial parks across the country and the even more powerful Addis Ababa-Djibouti Railway, the destination of OEM companies will undoubtedly be Ethiopia, the leader of the “Four African Tigers”.
But what is the reality? After OEM companies have encountered a “labor shortage” and a “wage increase wave” in China, what kind of famine and wave will they face in Africa?
The broken industrial chain
There is no doubt that Africa has lower manufacturing costs and labor costs, but the relatively backward industrial base limits its development scale. Specifically, the labor cost is more than half cheaper than in China, but the supply chain and transportation time are more expensive. On the other hand, work attitude and efficiency can easily lead to unstable delivery dates. In addition, in addition to simple products being produced in Africa, more complex products still rely on OEMs in China.
When we visited the OEM workshop in the industrial park, we saw that some clothing OEM companies are also self-sufficient in producing cartons, and shoe factories also make molds, but almost all other Production ingredients still need to be imported from abroad. Therefore, when companies move to Africa, the cost budget cannot ignore the increased expenses due to the interruption of the industrial chain. Of course, for some manufacturers that specialize in the production of ingredients, this has become a rare business opportunity.
The male sewing workers in the garment factory are not uncommon
A textile factory in the Kombolcha Industrial Park is one of the most popular in the country. Brand sports socks OEM, the factory’s first investment project in Ethiopia was spinning, and then the yarn was exported to China for socks. When asked about the reasons for the installment investment, the Chinese manager said that we do not fully understand all aspects of Ethiopia. Senior government officials are all ambitious, but the executive departments below are highly bureaucratic. We do not intend to do it in one step. We will see it slowly as we go. Come.
In the eight years since I came to Ethiopia, the author has received many manufacturers who came here to inspect clothing ingredients. In the early years, there were not many clothing processing factories in Ethiopia. Now as more industrial parks are put into production, The time has come to invest in the apparel industry chain, and investors are beginning to be eager to give it a try.
More than 60 billion?
Currently, China is leading the industrialization process in Africa.
On December 8, 2017, the United Nations Department of Public Information (DPI) organized the release of an economic report on Africa with the theme “Urbanization and Industry”. Conducted by the Office of the Special Adviser on Africa (OSAA) in partnership with the United Nations Economic Commission for Africa (UNECA).
The report provides governments with a policy framework within which urban growth can leverage Africa’s industrialization .
The African Economic Report is the annual flagship report of the United Nations Economic Commission for Africa, examining the continent’s key social and economic trends and priority policy issues for inclusive and sustainable growth.
Despite the recent global economic slowdown and weakening African economic performance, with implications for inclusiveness and sustainability, Africa’s long-term growth prospects remain promising. The region’s long-term fundamentals remain strong, as growth rates will benefit from the demographic dividend, industrialization and structural transformation agenda. But its prospects will be profoundly affected by the way cities are managed in rapid transformation. The region is the most rapidly urbanizing region after Asia and will become the dominant urban area in less than 20 years. Urbanization is therefore a defining trend in Africa.
Chinese equipment in African ports
Conclusion: African countries must use The power of urbanization to promote and promote industrial development and reestablish the link between urban growth and industrial growth. Therefore, the 2017 African Economic Report explores how to take advantage of the opportunities brought by rapid urbanization to accelerate industrialization and accelerate structural transformation.
A growing number of African leaders are beginning to accept the view that industrialization should become the main growth driver for African policymakers.
China-Africa trade legend
In industry, especially manufacturing China’s investment in processing industry output is even greater.
1 Textile
Technicians assembling computers at a factory in Lagos, Nigeria.
Smartphone production line in Nigeria.
5 Automobiles
South Africa has been in the process of deindustrialization in the past few years During the 1990s, Africa’s former largest industrial country fell. Now, in order to develop the economy, it has begun the process of re-industrialization, and the entry of Chinese-funded enterprises has played a very important role.
South Africa also had automobile production lines before, but now China FAW Group has also come here.
Workers working at the new assembly plant of China’s First Automobile Factory (FAW) Group Company in Nelson Mandela Bay, South Africa.
Thembisa Ngxale was recently appointed as Coega Industrial Development Zone (IDZ) District FAW Group Warehouse Inventory Controller.
South African President Zuma, FAW Group Vice President Qin Huanming and other guests completed the ribbon-cutting ceremony of China FAW South Africa Factory.
The President of South Africa said that South Africa will follow the Chinese model in its “re-industrialization” process.
Conclusion
Exporting bulk commodities for manufacturing has always been One of the main reasons why Africa has long been a colonial trading power seems to be the same with China, the continent’s largest trading partner. The current consensus is that it is time for Africa to change course and take the path of industrialization.
Many African leaders have bluntly believed that China is a great opportunity for Africa. One of them is Cote d’Ivoire President Ouattara, who said “China’s development is a huge opportunity, not a threat to Africa.”
There are 900 million people in sub-Saharan Africa. People are distributed in nearly 50 countries. China has a domestic market of 1.3 billion. As early as 1776, the Scottish economist Adam Smith observed: “The domestic market of China is, in some measure, probably not much worse than the markets of all the different countries of Europe.” The same can be said of Africa. Scale matters in economics, especially industrial policy.
As far as China is concerned, China’s recent strategy of accelerating industrialization in Africa is the result of China’s own economic restructuring and deepening of economic ties with its African partners. </p
