Chinese firm invests in Ethiopian leather sector

August 13, 2008 (ADDIS ABABA) — A Chinese company has signed a $34 million deal with Ethiopia to build four factories producing leather goods north of the capital Addis Ababa.

A statement issued by the Ethiopian government on Wednesday said the firm, Sino-Overseas Leather Products, had bought 50,000 square metres of land for the plants.

It said the first factory, a tannery, was due to be completed before the end of the year and would produce more than 1 million square metres of finished leather annually.

The other three will make gloves, shoes and jackets.

Last month, Ethiopia’s government said Chinese investors had built the country’s first glass factory, worth some $15 million. The Chinese have been investing heavily in Africa, especially in resource rich areas.

Also last month, ZTE Corp <0763.HK>, China’s second-largest telecoms gear maker, said it had agreed to build a national network covering 14 major cities in Ethiopia.

(Reuters)