Huajian, one of the largest shoe exporters in China is planning a multimillion dollar factory expansion in Ethiopia in a sign that Chinese manufacturers are considering moving to Africa to benefit from preferential trade tariffs and lower labour costs.
The company, which makes shoes for Tommy Hilfiger, Guess, Naturaliser, Clarkes and other western brands and employs 25,000 workers in mainland China, opened its first factory at a purpose-built industrial zone on the outskirts of Addis Ababa a year ago.
Helen Hai, a 36-year old British-trained actuary who runs the factory, is sufficiently impressed with the outcome that she is starting a new line of injection-moulded shoes.