Why are most of the Chinese companies building factories in Ethiopia shoe-making companies?

In order to enjoy preferential tariffs and lower labor costs.

Although management and logistics costs are high due to having to bring in Chinese technicians and imported parts, these disadvantages are offset by lower labor costs and Africa’s exports to the United States and the European Union (EU). Exports can enjoy preferential tariffs.

Huajian, one of China’s largest footwear exporters, plans to invest millions of dollars in expanding its factory in Ethiopia, a sign that Chinese manufacturers are considering moving factories to Africa to enjoy Preferential tariffs and lower labor costs.