Chinese shoemaker plans massive Ethiopia expansion

One of China’s biggest shoe makers is planning a multimillion-dollar addition to its factory in the impoverished east African country of Ethiopia, the company’s CEO told Financial Times. Huajian, which makes shoes for Western brands such as Tommy Hilfiger and Guess will add hundreds of jobs to the factory in the country’s capital, Addis Ababa. The company also has an agreement with China Development Bank’s private equity fund, China Africa Development Fund, to co-develop US$2 billion in shoe factories in the country during the next 10 years, with the potential to create 100,000 jobs. Huajian’s move is a sign that more Chinese manufacturers may relocate factories to Africa.