Is Ethiopia becoming an export economy?

It is Ethiopia becoming a choice for low cost manufacturing? is it becoming an export economy? Is Kenya missing this opportunity because of the inept leadership?

Soma this excerpt of an article from DN, May 2019

Ethiopia’s clothes factory workers, producing items for top fashion brands including Guess, H&M and Calvin Klein, are the worst paid in the world, earning only $26 (23 euros) a month, a report said Tuesday.
The report, entitled “Made in Ethiopia: Challenges in the Garment Industry’s New Frontier,” said that in comparison, notoriously poorly-paid workers in Bangladesh earned $95.
Their Kenyan counterparts earn $207 a month, and those in China $326.

Simple, Ethiopia reduced its minimum wage to the lowest in the world. $25 a month, that’s 2500 monthly and banned unions. They hoped it create million of jobs as every other industry will open at their SEZ zones.

Yes they created 100,000’s of jobs and hundreds of industry opened. However the wage is so low that workers struggle for adequate food. Rent in slums, no medical provisions and productivity is 30%. The Chinese firms that moved there realised that and started providing free lunch to boost morale.

Even if its jobs don’t finya the mwananchi that much. Yes they have jobs but basically just slaves at it as well.

I get it now

Ethiopia is not joking man!!this guys maybe first world in our liftime.

Some flower firms relocated from here to Ethiopia a while back. Sasa if they pay Kenyan flower farm workers shit, just imagine how shittier it is in Ethiopia.

great … I get it know. They should think about raising the wages

The Soviets used basically the same strategy to industrialize… basically slave labor. And the soviets still remain the fastest country in world history to industrialize.

For something like this to happen in kenya, we may need to give up democracy and take on dictatorship because only a dictatorial regime can do stuff like this. Kama ni hivyo basi wacha ikae.

Yet a beer costs KSH 40, 1kg of meat is 60ksh…cost of living in Ethiopia is very low. Hakuna haja udanganywe na mshahara ya 15k na saa hiyo nyama kilo moja ni 500bob.
Na beer ni 200bob.

40bob beer = 2500 salary
Thats the equivalence of someone earning
12,500 in kenya. THINK!!

Same strategy has been used by south east Asian countries like Vietnam, Indonesia, Phillipines with poor results. Countries are still poor and they’ve been doing it far longer than Ethiopia has.In comparison Malaysia and Thailand chose to attract investment without bending over backwards and they’re doing fine

It’s called the race to the bottom, nothing good comes out of it. China has used its massive market as bait. Most developed countries were required to share technology before being allowed in. The US and some European countries fell into this trap. The Chinese stole their technology and in some instances improved on it, making it better and cheaper to the point of crushing the original owners of that tech. A few German companies tried this, but realized early on what would happen.

For example, a German generator manufacturer would set up a company with a chinese national. The Chinese guy would then set up a separate company to manufacture knockoffs of the same generator, thereby undercutting his German partner while gradually improving the quality of his cheaper product. When the Germans realized this, they stopped transferring their manufacturing to China like the Americans had done. They decided to keep focusing on quality products. People who want quality products still buy German goods, even if they’re 5 times more expensive than Chinese alternatives.

300ml beer=15 biir3.6=54 ksh
Half kilo 60biir=60
3.6=432 ksh per kilo
Fuel/litre=approx 65ksh/litre

Did America/Germany realy remove their manufacturing from China? Iphones are still made in China, Volkswagens are also made in China?

I said Germans really didn’t go all in like the Americans did. For things like cars, if you want a share of the Chinese market you simply have to set up a plant there. Unlike Americans, Germans don’t manufacture products in China for export to other parts of the world.

Simple Google search inanionyesha the price of basic commodities ni almost the same like Kenya ,when you convert birr into ksh eg milk , potatoes, tomatoes, apple’s etc the only insanely overpriced products in Kenya is alcohol and petroleum

An average Kenyan is incapable of thinking. I always ask my friends working at the treasury why they impose excise duty and VAT on raw material, vehicles and machinery in an economy that is trying to take off. Hawajawahi nijibu.

Democracy is an overated western concept whereby anyone and anything can be bought total meffi

Its not democracy as practiced by the west that is good for kenya. Its certain ideas that are espoused by democracy that we need to retain I.e freedom of speech, free flow of ideas and freedom of association.

I personally believe that democracy practiced by the west is not good for Africa. We need to evolve our own form of democracy which we are currently doing. A democracy that is as liberal as the west wont work in Africa.

In Africa, we need a more powerful president than what we have in most western countries

For Germany I think the issue is that outside of cars all their other manufactured products have lost their footing outside Europe, thanks to the rise of China and South Korea.German manufacturing lost a long time ago.When was the last you owned anything german made that’s not a car.

Same can be said of the British and French too.

chips in your phone or fridge or tv is probably german/british.