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INSPIRED by the Belt and Road Initiative， China’s four-year-old blueprint for multinational trade and economic development， the China Trade Week（CTW）， is making its mark in Africa. Besides dispelling the misconception that Chinese manufacturers produce only cheap and low-quality items， the event is also a platform to introduce companies from different provinces in China.
Ethiopia had its first CTW - CTW-Ethiopia 2017 - in Addis Ababa from July 4-6， inspired by the CTW’s success in Kenya at the end of June and encouraged by the African Union， according to Michelle Meyrick， International Event Director at MIE Events， organizer of the trade show.
Supported by the Chinese Chamber of Commerce and China Council for the Promotion of International Trade， the debut focused on business-to-business pair- ings， offering a channel to the local business community to meet Chinese manufacturers to discuss future trade relations， Meyrick said. Visitors were encouraged to take advantage of the event’s quality as well as competitively priced products by meeting， talking and developing trade and business relationships.
“It’s an opportunity for the local business community to develop direct trading links with high-end Chinese product manufacturers，” Meyrick said. “We have nearly 40 exhibitors from China to get a taste of the local market and see what the local business community needs.”
The exhibitors came from a wide range of industries. Besides construction materials and machinery， smart electronics， clothing and textile， they also covered lighting and energy， health and agricultural machinery. The goal is for a bigger CTW next year with 200 exhibitors.
“Even though it was the first time the CTW set feet in Ethiopia， we have confidence that it will become an important forum for economic exchange and cooperation between China and Ethiopia， just like it has been in other African countries in the last three years，” Sean Xiao， Vice President of MIE Events， said.
Chinese company Golden Deal Import and Export， which has been exporting sanitary ware to Ethiopia for six years， was one of the exhibitors. Sarah Jessica， the company representative， told ChinAfrica Golden Deal sells products worth about $1.5 million every year on average in Ethiopia. “Our products are suitable for the Ethiopian market and there is still a big demand，” she said. “We [took] part in the event to expand our market and get more orders.” Also present at the CTW was an African trade and investment consultancy， CAMAL Trade and Investment， which has offices both in China and African countries. Walter Ruigu， Managing Director of CAMAL， said Chinese companies are coming to Africa because opportunities exist in Africa. And it’s vice versa for African companies， who are going to China.
Ruigu said it’s important to understand the “new China” because its economy is changing： “Under its new strategy， the Chinese Government wants to move from an economy focused only on investment to one more focused on domestic consumption.”
“It’s a matter of closing the gap between China and Africa，” Ruigu said. “The CTW confirmed that Ethiopia is a big market.”
Why Ethiopia？
The International Monetary Fund （IMF） has estimated that Ethiopia would be the fifth fastest growing economy among the 189 IMF member countries and regions in 2017. Ethiopia， aiming to achieve middleincome country status over the coming decade， was among the first countries in Africa to show interest in the China-initiated Belt and Road Initiative. The two countries have developed a close relationship over the years and cooperated in politics， trade and economy， culture， education， health and international affairs.
Samuel Halala， Director General of Ethiopia’s Chemical and Construction Inputs Industry Development Institute， said the Belt and Road Initiative has taken the two countries’ relationship to a strategic partnership to develop trade， manufacturing， capacity building， and technology and knowledge transfer.
Ethiopia， he pointed out， has been following Chinese development strategies and policies that have helped its manufacturing industry grow. The trade week is， therefore， not only an issue of trade but also an opportunity for Chinese manufacturers to show their level of quality products to Ethiopia and to Africa as a whole.
Ethiopia is working to enhance the share of the manufacturing sector in the economy and generate a global market. The Ministry of Industry wants the country to be a leader in light manufacturing， which requires packaging materials， chemical inputs and other items and this is where Chinese manufacturers can join in.
Halala said to increase the share of manufacturing in its GDP， Ethiopia is developing industrial parks in different parts of the country. That is a sector where Chinese companies， with their experience of developing industrial parks both at home and abroad， can contribute for mutual benefits. According to the Ethiopian Investment Commission， the country has attracted investors with projects worth 14.5 billion Ethiopian birr （$623 million） where Chinese companies are leading in terms of capital and in the manufacturing industry， followed by India and Turkey.
Between August 2016 and February 2017， over 120 investment projects became operational， out of which 45 had Chinese investment， which was collectively worth more than 3 billion Ethiopian birr （$128.9 million）.
Woldu Gebremariam， an exporter with Tekhaf Trading， an Ethiopian import and export company， said the company has a fruitful trade partnership with China. It exports sesame to China and imports trucks. “Now we are looking to expand our agricultural commodity exports. At the CTW， we found potential partners from China，” he said.
However， doing business with Ethiopia is no bed of roses， despite the potential. According to Frank Wang， Sales Director of Chinese company Hebei Five-Star Metal Products， the shortage of dollars is a big challenge to do business with their Ethiopian partners. “We have been exporting our products to Ethiopia for the past 12 years，” he said. “But in recent years， it has been taking months for our Ethiopian partners to get dollars and pay for the imports.”
“You get what you pay for”
Quality being a major issue at the event， the CTW highlighted before the local companies that it’s a matter of getting what they pay for. If they have the investment for quality products， they can get high-quality items from China.
Meseret Seyoum， a private consultant， said quality depends on what the Ethiopian buyers choose. “China has all kinds of quality products and the companies give you the opportunity to choose the quality you want. However， most African importers look only at the affordability of the products and order low-quality ones，” Seyoum told ChinAfrica.
She added， “At this point， some Chinese exporters also tend to assume that Ethiopians cannot afford to buy quality products and prefer low price stuff. Therefore， poor-quality products resembling high-quality products are sold， unlike what they export to European and American markets， or even sell in their own domestic markets.”
Ruigu’s advice is to find a good Chinese company when doing business with China， communicate with them properly and understand each other.
Ethiopia had its first CTW - CTW-Ethiopia 2017 - in Addis Ababa from July 4-6， inspired by the CTW’s success in Kenya at the end of June and encouraged by the African Union， according to Michelle Meyrick， International Event Director at MIE Events， organizer of the trade show.
Supported by the Chinese Chamber of Commerce and China Council for the Promotion of International Trade， the debut focused on business-to-business pair- ings， offering a channel to the local business community to meet Chinese manufacturers to discuss future trade relations， Meyrick said. Visitors were encouraged to take advantage of the event’s quality as well as competitively priced products by meeting， talking and developing trade and business relationships.
“It’s an opportunity for the local business community to develop direct trading links with high-end Chinese product manufacturers，” Meyrick said. “We have nearly 40 exhibitors from China to get a taste of the local market and see what the local business community needs.”
The exhibitors came from a wide range of industries. Besides construction materials and machinery， smart electronics， clothing and textile， they also covered lighting and energy， health and agricultural machinery. The goal is for a bigger CTW next year with 200 exhibitors.
“Even though it was the first time the CTW set feet in Ethiopia， we have confidence that it will become an important forum for economic exchange and cooperation between China and Ethiopia， just like it has been in other African countries in the last three years，” Sean Xiao， Vice President of MIE Events， said.
Chinese company Golden Deal Import and Export， which has been exporting sanitary ware to Ethiopia for six years， was one of the exhibitors. Sarah Jessica， the company representative， told ChinAfrica Golden Deal sells products worth about $1.5 million every year on average in Ethiopia. “Our products are suitable for the Ethiopian market and there is still a big demand，” she said. “We [took] part in the event to expand our market and get more orders.” Also present at the CTW was an African trade and investment consultancy， CAMAL Trade and Investment， which has offices both in China and African countries. Walter Ruigu， Managing Director of CAMAL， said Chinese companies are coming to Africa because opportunities exist in Africa. And it’s vice versa for African companies， who are going to China.
Ruigu said it’s important to understand the “new China” because its economy is changing： “Under its new strategy， the Chinese Government wants to move from an economy focused only on investment to one more focused on domestic consumption.”
“It’s a matter of closing the gap between China and Africa，” Ruigu said. “The CTW confirmed that Ethiopia is a big market.”
Why Ethiopia？
The International Monetary Fund （IMF） has estimated that Ethiopia would be the fifth fastest growing economy among the 189 IMF member countries and regions in 2017. Ethiopia， aiming to achieve middleincome country status over the coming decade， was among the first countries in Africa to show interest in the China-initiated Belt and Road Initiative. The two countries have developed a close relationship over the years and cooperated in politics， trade and economy， culture， education， health and international affairs.
Samuel Halala， Director General of Ethiopia’s Chemical and Construction Inputs Industry Development Institute， said the Belt and Road Initiative has taken the two countries’ relationship to a strategic partnership to develop trade， manufacturing， capacity building， and technology and knowledge transfer.
Ethiopia， he pointed out， has been following Chinese development strategies and policies that have helped its manufacturing industry grow. The trade week is， therefore， not only an issue of trade but also an opportunity for Chinese manufacturers to show their level of quality products to Ethiopia and to Africa as a whole.
Ethiopia is working to enhance the share of the manufacturing sector in the economy and generate a global market. The Ministry of Industry wants the country to be a leader in light manufacturing， which requires packaging materials， chemical inputs and other items and this is where Chinese manufacturers can join in.
Halala said to increase the share of manufacturing in its GDP， Ethiopia is developing industrial parks in different parts of the country. That is a sector where Chinese companies， with their experience of developing industrial parks both at home and abroad， can contribute for mutual benefits. According to the Ethiopian Investment Commission， the country has attracted investors with projects worth 14.5 billion Ethiopian birr （$623 million） where Chinese companies are leading in terms of capital and in the manufacturing industry， followed by India and Turkey.
Between August 2016 and February 2017， over 120 investment projects became operational， out of which 45 had Chinese investment， which was collectively worth more than 3 billion Ethiopian birr （$128.9 million）.
Woldu Gebremariam， an exporter with Tekhaf Trading， an Ethiopian import and export company， said the company has a fruitful trade partnership with China. It exports sesame to China and imports trucks. “Now we are looking to expand our agricultural commodity exports. At the CTW， we found potential partners from China，” he said.
However， doing business with Ethiopia is no bed of roses， despite the potential. According to Frank Wang， Sales Director of Chinese company Hebei Five-Star Metal Products， the shortage of dollars is a big challenge to do business with their Ethiopian partners. “We have been exporting our products to Ethiopia for the past 12 years，” he said. “But in recent years， it has been taking months for our Ethiopian partners to get dollars and pay for the imports.”
“You get what you pay for”
Quality being a major issue at the event， the CTW highlighted before the local companies that it’s a matter of getting what they pay for. If they have the investment for quality products， they can get high-quality items from China.
Meseret Seyoum， a private consultant， said quality depends on what the Ethiopian buyers choose. “China has all kinds of quality products and the companies give you the opportunity to choose the quality you want. However， most African importers look only at the affordability of the products and order low-quality ones，” Seyoum told ChinAfrica.
She added， “At this point， some Chinese exporters also tend to assume that Ethiopians cannot afford to buy quality products and prefer low price stuff. Therefore， poor-quality products resembling high-quality products are sold， unlike what they export to European and American markets， or even sell in their own domestic markets.”
Ruigu’s advice is to find a good Chinese company when doing business with China， communicate with them properly and understand each other.