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Footwear - Shoe Manufacturing - six times cheaper in Ethiopia than China
FNA | 03 February 2015

Huajian production plant in Ethiopia
According to a report presented by Peter Mangione, one of the leading experts on the global footwear industry, Ethiopia was the country with the lowest labour costs for manufacturing footwear in 2014. This topic was discussed on one of the panels at the World Footwear Congress that took place in Mexico, in the city of León in November last year.

According to the data provided by Mangione at the León Forum the hourly wage of a footwear worker in Ethiopia is US[[ArticleContent]].36 per hour. The next countries on the list were Bangladesh at US[[ArticleContent]].71 per hour; Cambodia and India with US[[ArticleContent]].85 per hour; Vietnam with US$1.14 per hour; Nicaragua with YS$1.27 per hour; Thailand with US&1.34 per hour; Indonesia with US$1.60 per hour; Dominican Republic with US$1.88 per hour; China with US$2.09 per hour and El Salvador with US$3.09 per hour.

By way of comparison he mentioned that ub rge same period the cost per hour in Italy was US$18.68 and US$25.66 in Japan.

As can be seen from the figures it is six times more expensive to e,ploy a worket in China in the footwear industry that his counterpart in Ethiopia. Companies from China are starting to move their production facilities to Ethiopia.

Location of Ethiopia on African continent

Peter Mangione affirmed that he is convinced that large productive groups in China will ue Ethiopia as a low cost production base. This fact also explains why Chinese capital is financing a railway project from Ethiopia’s capital city of Addis Ababa to the port of Gjbouti located some 750 kilometers distant.

Here is a video that gives an idea of the scale of production at the China Huajian Group manufacturing facility in Ethiopia.

Information courtesy of CueroAmérica Translated from Spanish by Richard Smith