Leather Factory Will Become The Latest Chinese Investment in Ethiopia – Bloomberg

November 2, 2010

China’s Xinxiang Kuroda Mingliang Leather Co. will open a $67 million leather factory in Ethiopia on Nov. 24, adding to the billions of dollars already invested in the East African country by China.

Xinxiang financed 55 percent of the project, with the remainder coming from the China-Africa Development Fund, the Chinese embassy in Ethiopia said in an e-mailed statement today.

Chinese investments in resource-poor Ethiopia demonstrate that it is interested in more than extracting raw materials from Africa, Chinese Ambassador Gu Xiaojie said in an interview on Oct. 28. China’s ZTE Corp. lent $1.5 billion in 2008 for Ethiopian Telecommunication Corp. to upgrade its infrastructure, while other companies have helped build hydroelectric plants, the ring-road around Addis Ababa and the part-completed African Union Conference Center.

“Ethiopia is the best example to refute some of the criticism of China being in Africa only for resources,” Gu said. “It has got nothing, but we are coming to their needs.”

To contact the reporter on this story: William Davison in Addis Ababa via Johannesburg at pmrichardson@bloomberg.net.

To contact the editor responsible for this story: Antony Sguazzin at asguazzin@bloomberg.net.

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