China exploiting Ethiopia?

Posted by on May 19, 2017 2:28 pm
Categories: News

China does talk a lot about investing in Africa and more recently in Ethiopia, but Ethiopian official will be wise enough to take a look at the recent investments Chinese made across the Continent.
Keep in mind when China talks about investments abroad they do it intern of creating jobs for their citizens, every project China’s investment undertakes will employ majority Chinese workers, and furthermore those workers will stay to exploit the local business by engaging micro business that is usually reserve for locals. A prime example is what is happening in Uganda where the so called Chinese investors are under cutting the local business.

Years of growing animosity at Chinese traders turned into a protest by hundreds in Uganda’s capital on Wednesday against what local businesses called unfair competition,

Now here comes the rosy statement by the corrupt Ethiopian official and they Chinese counter part about the future investments.

Ethiopia prioritizes China as a source of high quality manufacturing industry in its pursuit of development, Prime Minister Hailemariam said.

“Ethiopia’s current focus is on industrialization and building competitive manufacturing industry and China is our top priority as source of high quality manufacturing in key labor intensive sectors”, he said.

The Premier made the remark during the Ethio-Fujian investment cooperation forum held today in Fujian Province, the second destination in the delegation’s provincial tour in China.

Fujian has the 10th largest economy in China with 429.3 billion USD GDP in 2016 and 8th in terms of flow of foreign direct investment, apart from being home to many anchor companies.

In addition, the province has set up center of the 21st Maritime Silk Road, a Chinese strategic initiative to increase investment and foster cooperation across the historic Silk Road.

It is also among the major FDI source provinces in which by the end of last March eight Fujian-based enterprises invested in Ethiopia in different sectors with a combined capital of 9 million USD.

It is in this spirit that PM Hailemariam and his delegation visited the province and major company leaders.

“Ethiopia will continue to be the favorite country for Chinese investors” because of low labor cost, cheap energy and land as well as availability of trainable working force, he said.

Ethiopia will become nothing more than Chinese dumping ground for their fake merchandise, and the local population will be worse off because of this action.