ADDIS ABABA – The Homegrown Macroeconomic Reform, implemented in late July, has positively impacted forex-dependent industrial manufacturers, according to Chinese firms operating at the Eastern Industrial Zone (EIZ) in Dukem.
Companies in the park reported that the reform has addressed foreign exchange shortages, allowing them to resume halted production. Shia Xu, a member of the park’s management committee, told the Ethiopian Press Agency (EPA) that the reform has empowered businesses to import essential factory inputs, leading to increased output and job creation.
Hua Jian Aluminum PLC, one of the park’s companies, has ramped up production, boosting job creation and government revenue through taxes. “As our manufacturing capacity grows, we are contributing to Ethiopia’s economic development,” Xu said.
She also highlighted that investments in the park align with China’s Belt and Road Initiative. Ethiopia’s membership in BRICS and strengthened diplomatic ties with China have further increased investor confidence. The strategic partnership between both countries has facilitated smoother cooperation, benefiting industrial growth.
The expansion of factories in the park is ongoing, creating opportunities for local employment. Hua Jian Aluminum alone has generated 170 jobs for local residents while collaborating with stakeholders at both state and federal levels.
Xi Bo, General Manager of Di Yuan Ceramics, another major player in the park, emphasized the positive outcomes of the reform and Ethiopia-China relations. “The reform has enhanced business operations, and we encourage Ethiopian investors to explore opportunities in China,” he said.
Di Yuan Ceramics, which has been operating in Ethiopia since 2016, produces and distributes ceramics locally, employing 800 Ethiopians and 50 Chinese workers. The company continues to contribute to Ethiopia’s industrial development, thanks to the improved economic environment.
Chinese investment in Ethiopia has grown significantly over the past two decades, making China Ethiopia’s largest foreign investor. This investment spans various sectors, including infrastructure, manufacturing, telecommunications, and energy.
BY YESUF ENDRIS
THE ETHIOPIAN HERALD SUNDAY EDITION 20 OCTOBER 2024
