2023-04-30
The “Second Ethiopia Advanced Investment Forum”
On April 27, 2023, the second "Ethiopia Advanced Investment Forum," organized by the Ethiopian Investment Commission and co-sponsored by Huajian Group, took place at the Grand Skylight Hotel in Addis Ababa, the capital of Ethiopia. The forum, themed "Investment and Development in Ethiopia: A Promising Investment Hub," aimed to jointly explore investment opportunities, discuss policy reforms, and identify B2B and B2G collaboration prospects in Ethiopia. Over 500 representatives from global investment promotion agencies, multinational corporations, and development partners attended the event.
Mr. Zhang Huarong, Chairman of Huajian International
The forum was inaugurated by the Prime Minister of Ethiopia, and Mr. Zhang Huarong, Chairman of Huajian Group and also a member of CPPCC, a member of the standing committee of the Federation of Industry and Commerce, Vice President of the China-Africa Friendship Association, Executive Chairman of the China-Africa Business Council, and Goodwill Ambassador of the United Nations Industrial Development Organization (UNIDO), was invited to attend. He shared insights into Huajian's development journey, philanthropic endeavors, and the vision for Ethiopia's development.
The following is the original speech by Mr. Zhang Huarong:
"I am delighted to participate in the Ethiopia Investment Development Forum. Today's meeting is crucial, as it provides an opportunity to discuss with entrepreneurs and Ethiopian officials who are interested in investing in Ethiopia. Huajian has been investing in Ethiopia for 12 years, and I would like to share three stories with you:
The first story is about our growth in China.
The second story is about our investment in Ethiopia for over 10 years.
The third story is about what stories we aim to create in Ethiopia in the next 20-30 years.
I started making shoes in 1983 in China and have witnessed China's growth over 40 years. In 2012, we came to Ethiopia and have witnessed Ethiopia's development in the past decade. What will Ethiopia's development look like in the next 20-30 years? This is a question that we, as a global community, Africans, Ethiopians, and entrepreneurs, need to discuss together.
In 1984, we bought 3 sewing machines and hired 8 people to start a shoe factory in Jiangxi. At that time, China was a poor country, and after the establishment of economic special zones through China's reform and opening up, many Chinese enterprises expanded southward. In 1996, we moved to Dongguan in pursuit of development, and at the peak, our factory had 16,000 employees, generating exports of USD800 million, fulfilling orders for well-known American brands.
When the success of China's economic special zones led to the relocation of many industries to the mainland, just like many successful enterprises in Addis Ababa, many industries also moved to other provinces. In 2020, we resolved employment for 17,000 people in Ganzhou, including 400 disabled individuals, making us the enterprise with the highest export value and the most employment in Ganzhou.
In October 2011, the former Ethiopian Prime Minister Meles visited China to seek investment. He invited Huajian to invest in Ethiopia, and in 2012, we signed an agreement. At that time, Ethiopia's investment promotion policies were similar to the present, highly emphasizing foreign investment.
In January 2012, the former Ethiopian Deputy Prime Minister Hailemariam and the Deputy Minister of Commerce held the opening ceremony at our factory, an interesting event. We brought China's industrial civilization to Ethiopia and exported to the United States, dealing with well-known American brands. During that time, over 300 entrepreneurs visited Huajian's factory, expressing disbelief that Ethiopia could produce high-end brands for the United States. Many Ethiopian and African leaders present were excited and pleased. I conveyed a message to all government leaders: "Africans, Ethiopians, Asians, and Europeans are equally talented. With stable policies, effective training, and a positive corporate culture, Africans and Ethiopians are exceptionally capable. They can create substantial value, a fact demonstrated by Huajian through practical actions." Huajian achieved a productivity level of 80% of China's in the production of Dukem. Ethiopia's greatest resource is not limited to mineral wealth; it lies in the outstanding young human resources. This resource is poised to transform Ethiopia into a manufacturing powerhouse within Africa and on the global stage.
In 2015, Huajian invested in the Ethiopian Light Industry Park, solving employment for 8,000 people, including 30 disabled individuals, and generating exports of USD180 million, accounting for 67% of Ethiopia's national shoe exports. At that time, we invested not only in shoes but also in chemicals, molds, packaging, and the entire shoe industry chain in Ethiopia, which I find very interesting.
When I decided to build a factory with 500 employees and put it into production within three months, many people couldn't believe it and called it “Huajian speed.” The key is that the Ethiopian government and the Prime Minister's office highly value investment promotion and provide support in logistics and transportation. Therefore, we have confidence in the future development of the Ethiopian government and local enterprises. As long as there is demand from enterprises, the government will provide services, and the expected goals can be achieved.
This is a photo of our Ethiopian employees during production. At that time, we not only made women's shoes but also vulcanized shoes and injection-molded shoes. At the peak, we had 12,000 employees, and we were a very successful enterprise in Ethiopia.
In 2015, in response to the government's request, Huajian Group invested in a second major project with an investment of USD2 billion. We planned to solve employment for 30,000 to 50,000 people. This project has started, and due to the pandemic and various factors over the past three years, , we have suffered significant losses. The project has been planned, and the Light Industry City will have a new energy park, a chemical park, a clothing and shoe park, etc.
Currently, we continue to invest in construction, including power stations, sewage treatment plants, industrial plants, employee housing, large hotels, Huajian Hospital, Huajian Light Industry School, expert villas, and the Great Wall of China, providing comprehensive services for the park. This is a well-equipped industrial park right in the city of Addis Ababa. We hope to make it the most efficient and civilized industrial park in Ethiopia and Africa. There are currently 20 companies inside, with nearly 3,000 workers. Huajian not only invests in Ethiopia but also invests emotionally, and I would like to share a bit about my personal life.
In 2017, I flew 470,000 kilometers and visited 13 countries. Among them, I flew between Ethiopia and China 34 times. During the flight time, I flew for 630 hours in a year. I find this very interesting. In 2017, I was already 59 years old, and now I take sleeping pills every day because the long flight requires adjustment with sleeping pills. People find it hard to believe because I think it's worthwhile to help more poor people work in Ethiopia. This is something I find more important than investing and making money. The process of allowing more poor people the right to work and the right to a happy life is something I and the Ethiopian government are jointly pursuing.
The United Nations strongly supports industrial development in Ethiopia, particularly endorsing Huajian's efforts, and I have been honored with the title of "Goodwill Ambassador for Industrial Development in Africa" by the UNIDO, which is not only a recognition but also a responsibility.
Huajian has actively engaged in various philanthropic endeavors, including supporting a nursing home by providing food for many years. Our contributions in Ethiopia extend to road construction, water supply, bridge repairs, establishment of nursing homes, and provision of epidemic prevention materials, totaling over USD10 million in donations. Despite limited publicity, we encourage more enterprises to focus on the development of public welfare in Ethiopia. It is not just about the amount of financial contribution but, more importantly, the compassion that fosters unity and civilization in our society.
The provided images capture moments such as attending employees' weddings and sharing meals and participating in training sessions with Ethiopian staff. Many Ethiopian enterprises now have Huajian employees, enjoying high salaries and Chinese language proficiency. Over 500 cadres were trained in China, emphasizing physical fitness, technical management during the day, and Chinese language learning at night. In recognition of these efforts, the Ethiopian Prime Minister's office bestowed upon me the title of "Industrial Godfather," a distinction that carries both honor and responsibility.
Prime Minister Abiy has shown significant interest and support for Huajian Industrial Park. During his visit to our factory, he grasped my hand and emphasized the imperative of successful business development in Ethiopia to address unemployment challenges.
In March 2000, during the height of the global pandemic, we made substantial contributions by donating a significant quantity of masks and epidemic prevention materials to 8 African countries including Ethiopia, totaling nearly USD11.8 million. A pivotal moment captured in a photograph depicts Prime Minister Abiy accepting the donated supplies. This period marked an unprecedented level of urgency and necessity, prompting us to efficiently deliver the essential materials through Ethiopian Airlines to Addis Ababa.
Huajian received a significant award in Ethiopia – the "Anti-Corruption Special Contribution Award," presented by the President himself.
Despite facing challenges related to language, culture, and laws and regulations in Ethiopian investments, addressing these issues requires enhanced understanding, interaction, and proactive resolution. Events like today's conference are instrumental, and we hope Ethiopian government officials receive training on policy, legal matters, and professional services. Additionally, we encourage foreign investment enterprises to gain a better understanding of local laws and regulations. We should foster greater understanding, minimize complaints, and focus on self-improvement. I believe the key to the internationalization of a business lies in internal management embracing international standards. In this regard, Huajian acknowledges the need for introspection and continuous improvement, aiming to enhance the living environment and ensure the stability of overseas employees. Concurrently, we express the hope that the Ethiopian government extends increased care and support to our overseas staff, recognizing the challenges they face living away from their home countries in Ethiopia.
Mr. Zhang Huarong offers suggestions for the future development of Ethiopia
Huajian has three primary objectives in Africa : firstly, to create 100,000 jobs globally in the poorest countries; secondly, to manufacture the world's most popular products; and thirdly, to strive to become the world's most respected enterprise.
Having invested in Ethiopia for over a decade, Huajian adheres to 6 core principles: firstly, respecting local laws and regulations; secondly, conducting business with integrity; thirdly, refraining from involvement in local politics; fourthly, vehemently opposing bribery; fifthly, refraining from money laundering and illicit currency exchange; and sixthly, assisting in the growth and well-being of employees.
Future development direction of Huajian: illuminating, empowering and pursuing technological and green advancement in Ethiopia. I believe that Ethiopia has the potential to not only offer significant employment opportunities in the manufacturing of apparel, footwear, and leather goods but also emerge as a manufacturing powerhouse by leveraging natural mineral resources and water reservoirs, coupled with an abundant and industrious workforce.
We eagerly look forward to the Ethiopian government giving high priority to addressing the comprehensive balance of employment, export earnings, and foreign exchange, so that more legal and compliant enterprises can benefit from these favorable services and seeking mutual growth with Ethiopia.
The past decade has been coined the "Huajian phenomenon," marking our fortuitous encounter with Huajian. Looking ahead to the next decade, we aim to establish a new model for Huajian in Ethiopia. Our enterprises must unequivocally respect and cherish the Ethiopian nation, prioritize the well-being of employees, and instill a sense of love for the company and family among them. Our biggest wish is to create a model that resolves employment for 10,000, 100,000, 1 million, and even 10 million people.
From 2023 to 2025, Huajian's model is set to be shared across the entire African continent and globally. We aspire to empower more impoverished individuals, much like myself in the 1970s when I was a child from humble beginnings, to transform into an international conglomerate today. We aim to share the experiences of our decades-long growth with Ethiopia and numerous other African nations.
Thank you.
Over twenty companies have signed strategic memorandums of understanding
This event spanned three days and included activities such as specialized discussions, investment promotions, product exhibitions, online forums, and on-site visits. Over 20 companies have signed strategic memorandums of understanding.
