Chinese manufacturers are now outsourcing to Africa

America is still pretty sore over the millions of jobs — including an estimated 2.4 million in the last decade — that have been outsourced overseas, especially to China, where labor was cheap and plentiful, and economic growth rapid.

But in recent years Chinese manufacturers have begun doing the same thing — shifting manufacturing from China, where wages are rising rapidly — to cheaper countries, including ones in Asia, and especially sub-Saharan Africa.

Why? This week, Huajian Shoes' President Zhang Huarong — whose 3,500 workers in Ethiopia produced two million pairs of shoes last year — told Bloomberg: "Ethiopia is exactly like China 30 years ago. The poor transportation infrastructure, lots of jobless people."

And while that may create all sorts of logistical and electricity supply problems, it also creates a massive opportunity for cheap labor and fast economic growth. China's average manufacturing wage is 3,469 yuan — or around $560 — per month. That may not be much by American standards, but pay at Huajian's Ethiopian factory ranges from $30 a month to about twice that for supervisors.

The bigger picture is that China is now Africa's largest trading partner, passing the United States in 2009. In 2012, China's trade with Africa reached $198.5 billion. And according to Mthuli Ncube and Michael Fairbanks of the Financial Times: "More than 2,000 Chinese private businesses are in Africa."
- - John Aziz

[img]http://images.bwbx.io/cms/2014-07-24/econ_africa31__02__630.jpg[/img]

China's present industrial revolution is premeditated and well oiled by focused leadership and adhered to by determined followers. My point is that it is not too late for Nigeria because the zeal is there and the man power flows in abundance.



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If we only majority of Young Nigerians will stop seeing politics as the only means of fast, ill route to affluence!

If there is steady and affordable power supply, Nigeria has the potential of overtaking all of these countries.

Trust me, the more you look, the less you see. The Chinese are very cunning..... Dem sabi wetin dem the do. Nice development none-the-less. Na to shine our eyes well well.

red101: Chinese manufacturers are now outsourcing to Africa

but pay at Huajian's Ethiopian factory ranges from $30 a month to about twice that for supervisors.

Haba!

$30 a month?

Mama Africa!!!

Dreal1247: If there is steady and affordable power supply, Nigeria has the potential of overtaking all of these countries.

Will electricity teach you how to make electronics?. Electricity isnt our only problem, if it is osogbo will be one of the most developed city in Nigeria.

reedonne:
Will electricity teach you how to make electronics?. Electricity isnt our only problem, if it is osogbo will be one of the most developed city in Nigeria.

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Most companies that were operating in Nigeria got liquidated because of power supply. Ask my eastern brothers who are highly industrious and productive.