China Communications Construction Company Limited
China Communications Construction Company Limited (CCCC) is one of the largest construction companies in the world, as the first large Chinese company to enter Ethiopia (1998). The company is principally engaged in the design and construction of transportation infrastructure, dredging and
heavy machinery manufacturing business. CCCC has made significant contribution to Ethiopia’s infrastructure by participating in mega engineering construction projects. It has implemented more than 50 road projects, including Addis Ababa Ring Road, China-Ethiopia friendship road, Addis-Adama expressway, Bole road, etc. CCCC is responsible for fully implementing the Belt and Road initiative and actively expanding investment relying on its vast experience of working in Ethiopia. The positive attitude and policy support of the Ethiopian government towards investments motivated the company to invest in the country. The Government of Ethiopia has made substantial investments in social and economic infrastructure, such as roads, schools, medical facilities and, more recently, industrial parks, railway and energy investments. The low labor cost reinforces the attractiveness of the country. Locally, CCCC employs more than 10,000 Ethiopians and about 700 Chinese. Although challenges are inevitable, CCCC wants to emphasize that there exists considerable opportunities in Ethiopia. Investors have to remain patient and confident in investing in Ethiopia. The company will continue to develop friendship, strengthen people-to-people exchanges, promote regional economic growth and accelerate the industrialization of the country.
Maticline Industries Limited
Since 2015, Maticline Industries Limited (MIL) has been manufacturing plastic packaging materials for the Ethiopian food and beverage industries, as well as for locally produced detergent and cosmetic brands. The firm’s managing director, Peter Peng, saw Ethiopia’s potential for such a business during his first visit to the country in 2008. The rapid economic growth experienced by Ethiopia in the recent years created many opportunities for his company. Maticline Industries Limited first sold machinery to Ethiopian companies and then became a packaging supplier. The factory has currently a production capacity of 500,000 tons per year and employs more than 100 Ethiopians. MIL has been playing a major role in the transfer of technological know-how to the local population, making the company a well- known player in its field. In the near future, production will be expanded into more sectors. I have the feeling that Ethiopia is going to be another China, Peter Peng, Managing Director, MIL. Mr. Peng asserted that, on top of the rapid economic growth, the attractiveness of Ethiopia is reinforced by the low cost of industrial inputs (such as electricity) as well as low wages. The existence of public land banks covering rural and urban areas greatly facilitates greenfield investments making Ethiopia the perfect destination for the manufacturing of goods. Finally, as an advice for future investors, Mr. Peng gave reasons of his success: “If you have a good management and if you hired good people; you do not need to worry about operations in Ethiopia”
Di Yuan Ceramics
Di Yuan invested in Ethiopia in order to be part of the current Ethiopia’s infrastructure boom. Di Yuan Ceramics Plc. (Di Yuan) is specialized in the production of wall and floor tiles, sanitary wares, pottery and other ceramic products. The company has one factory in the Eastern Industrial Zone located a few kilometres fromthe capital city of Addis Ababa. The factory has 3 production lines and produces 60, 0000 square meters of ceramics per day. Given favourable local supportive national policies and the low-cost of inputs (electricity, labour force), Ethiopia is the best investment target for a business such as Di Yuan Ceramics. Di Yuan’s products are much cheaper than similar imported goods. Consequently, Di Yuan “has starting a plan to open 100 hundred “W’’ shops in [Ethiopia] within one year”, said Leo Liu, Marketing Manager of Di Yuan Ceramics. It will serve the increasing local (private and public) demand. Di Yuan Ceramics is fully integrated and involved in the country’s culture and development. The company notably helps local communities through its “youth start-up” plan targeting youngsters entering the job market.