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Entering Africa: The Labor Market Is Stable And Abundant.

2016/7/3 21:26:00 36

AfricaLabor MarketInvestment

For Chinese investors, the most concerned about "entering Africa" is generally concentrated on the political environment, social security, basic supporting, quality of life, the quality of labor, the standard of law and so on, as well as a series of restrictions on the protection of local resources and the natural environment.

At present, many reasons have prompted Africa to label war, disease and hunger. Africa still has more than 20 countries in the ranks of the world's least developed countries. However, the gap between the rich and the poor in African countries is quite different. Relatively speaking, Ethiopia, Kenya, Mozambique and Zambia are relatively politically stable countries in Africa. According to the global happiness index released by a United Nations and a university in the United States, Zambia ranks among the highest in Africa's happiness index.

Zhang Huarong told reporters: " Spinning enterprises Investing in Africa does not need to worry about the loss of people and property caused by social unrest. We have strong Chinese government behind us to support and protect it. At first, Huajian invested in Ethiopia, and the Guangdong provincial government was the main driver. In 2011, former Prime Minister of Ethiopia Meles visited Guangdong and met with the provincial leaders. He especially mentioned that Ethiopia had the advantage of textile and clothing raw materials, and hoped that Chinese textile enterprises would go ahead and invest. After receiving the notification from the provincial government for the first time, I arrived in Shenzhen and had the opportunity to talk with Prime Minister Meles for more than 40 minutes to reach a cooperation.

In cooperation, we actively communicate with local governments about production objectives and implementation of production projects, and take care of each other. " Tang Xiaoyang, deputy director of the Carnegie global policy center at Tsinghua University, said strong political leadership and effective administrative system are essential for sustainable economic development and full potential development in Africa. He mentioned in particular that the government of Ethiopia has strong decision-making power in economic development, giving powerful help to the landing enterprises.

In addition, according to Zhang Huarong, "the price advantage of local labor is obvious. The average monthly salary of our employees in Jiangxi headquarters is 4000 yuan, while the local employees in Ethiopia are 500 yuan. In addition, there are 600 million young and middle-aged labor force in Africa, compared with the difficulty of recruiting domestic workers. Ethiopia A considerable number of highly educated graduates can be recruited. The attraction of demographic dividend is very attractive.

Zhang Huarong further said: "in January 2012, when Huajian landed in Ethiopia, there were only 500 workers and two middle and top grade brand lines in the United States. Today, the factory has developed to more than 4000 workers, and the export target of US $18 million in 2015 is expected to reach US $25 million this year. Our practice has proved that African workers can produce products of high quality and high added value. In April 2015, Huajian's total investment of 2 billion US dollars light industrial park was put into operation in Ethiopia.

Textile and clothing belong to the processing and manufacturing industry. Efficient productivity requires a large number of skilled workers, and the quality of the workforce is very important. Most African countries are in the primary stage of agriculture and animal husbandry for a long time. Labor training It costs a lot. "In the first 3 months of the construction, we shipped more than 300 local workers from Ethiopia to Jiangxi and Ganzhou to work with headquarters staff to learn labor skills. Although the initial investment is large, we have tasted the sweetness. Through hard work, the productivity of African workers has increased significantly, from the initial equivalent of 65% of Chinese skilled workers to 90%. "

"To invest in Africa, it is better to give fish than to fish." David Kennedy, director of the Department of economic development of the Ministry of international development, said that since reform and opening up, China's achievements have been obvious to all. Chinese enterprises can help African enterprises to establish health and safety production standards system, improve their survival skills and improve their living conditions through their own development experience. As a result, it is not empty talk for Chinese enterprises to achieve sustainable development in Africa.

Alanchard Gonzalez, executive director of the United Nations International Trade Center, said that the proportion of small and medium-sized enterprises in Africa accounted for 95%, which required a large amount of capital, technology and talent support, which is very promising for Chinese enterprises.

The construction of industrial parks is a convenient means for Chinese enterprises to go out and help African countries improve their industrial chains and infrastructure facilities. Although the initial investment is large, this is indeed the best way to reduce investment risks and adapt to local resource development requirements. Huajian light industrial park is a comprehensive commercial real estate with a sound sewage treatment and energy saving power grid system. The goal of the park is to solve 30 thousand to 50 thousand of the population's employment and earn 200 thousand dollars in foreign exchange earnings. Through the development of textile and garment manufacturing industry, the high concentration of different formats of industrial parks brings about local economic development. This behavior is not speculative. Zhang Huarong told reporters.

David Kennedy said: "according to the assessment, more than 30 countries in Africa can accept international spanfer of production capacity. The spanfer of capacity can not only help Africa get rid of the low productivity industry, but also drive it towards industrialization and commercialization. In addition, Tang Xiaoyang also pointed out to reporters: "in the past, even in Africa, even infrastructure construction was not supported by industry and commerce, such as the Tanzania Zambia railway, because there was no way to maintain it without logistics and spanportation, and now through industrial investment cooperation, it can strengthen its industrial matching system."


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