China's second-largest maker of phone equipment ZTE is building a $45 million information technology park in Ethiopia, as the East African nation intensifies plans to establish a technology manufacturing sector.
Ethiopia, which has a population of almost 85 million according to the World Bank, is seeking to reduce its dependence on agriculture to boost job creation. Ethiopia's economy is based on agriculture, which accounts for 41% of GDP and 85% of total employment, according to the CIA Handbook.
ZTE, therefore, is building the telecommunication infrastructure on a 200 hectare facility, on the outskirts of Ethiopia's capital Addis Ababa.
Ethiopia is seeking to use the technology park to cash in on its low wage advantage as foreign technology firms continue to invest in East Africa.
“The objective is to develop an information communication technology industry by providing a conducive environment,” said Berhanu Keleta project manager in a newspaper report.
Ethiopia is seeking to use the ICT park to attract businesses interested in setting up call centres and hardware device assembly plants.
Some of the benefits the ICT park will offer investors is its location in a major city with good infrastructure, access to hotels and highly qualified personnel.
Officials say the ICT park will also have Internet speeds of as much as 40Gbp.
ZTE entered Africa in 1997 and has spread its presence across 51 countries as the continent becomes one of the fastest-growing telecom markets.
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