Angry workers spurn Ethiopia’s ‘industrial revolution’

Workers operate sewing machines at a garment factory at the Hawassa Industrial Park in southern Ethiopia. (AFP)
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Updated 04 February 2020
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Angry workers spurn Ethiopia’s ‘industrial revolution’

  • The country faces challenges in creating a robust manufacturing sector

HAWASSA: Zemen Zerihun thought he’d left farming behind and found the ticket to a better life when he began a job cutting fabric for a clothing company at a massive industrial park in southern Ethiopia.

But the 22-year-old ended up quitting within months, weary of working eight hours a day, six days a week and still not making ends meet earning $35 a month.

Managers were so strict they would go into bathrooms and yank out workers deemed to be taking too long, he said.

His supervisor would loudly berate him as “slow” and “lazy” when he failed to keep pace on the production line, he told AFP.

“After I joined the company, I suffered,” he said. “The supervisors treat you like animals.”

Experiences like his highlight a major challenge facing Ethiopia’s push to embrace industrialization and become less dependant on agriculture.

By attracting foreign investors through cheap labor, it wants to follow the model of China and other Asian nations in creating a robust manufacturing sector that can offer badly needed jobs for its young workforce.

But despite high unemployment, young Ethiopians are not going along with it, preferring to quit rather than stay in jobs where they feel underpaid and disrespected.

Thousands of employees have already walked out of the country’s new and burgeoning network of industrial parks.

At the Hawassa Industrial Park, where Zemen worked, staff turnover in 2017-18 “hovered around 100 percent,” according to a May 2019 report from the Stern Center for Business and Human Rights at New York University.

The added recruitment and training costs are a main reason why, in the eyes of manufacturers, Ethiopian labor has “turned out to be considerably more costly than the government had initially advertised,” the report said.

Government officials say they are taking steps to address workers’ concerns while balancing them with industry representatives’ interests.

But labor organizers argue the measures are too little, too late, leaving them no choice but to begin unionizing the parks — a development Zemen says is long overdue. “The government needs to pay attention to what is happening in the industrial parks,” he said.

“They think they are giving everyone good jobs, but some of the workers, they are really struggling.”

Prime Minister Abiy Ahmed sees industrial parks as an important engine of growth that can help stave off unrest ahead of elections tentatively planned for August.

Yet the strategy was adopted several years before Abiy came to power, after the government realized in 2014 that agriculture couldn’t provide enough jobs for a booming population, said Arkebe Oqubay, an architect of the strategy and now special adviser to the premier.

Ethiopia is one of Africa’s fastest-growing economies but youth unemployment remains a major problem.

The World Bank estimates that 2 million people enter the workforce every year.

Despite long-running efforts to restructure the economy, officials estimate that manufacturing still only makes up 10 percent of economic activity.


Saudi ports brace for cargo surge as shipping lines reroute

Updated 09 March 2026
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Saudi ports brace for cargo surge as shipping lines reroute

RIYADH: Preliminary estimates suggest that several global shipping lines could reroute part of their operations to Saudi Arabia’s Red Sea ports, potentially adding 250,000 containers and 70,000 vehicles per month, according to Rayan Qutub, head of the Logistics Council at the Jeddah Chamber of Commerce, in an interview with Al-Eqtisadiah.

“Any disruption in the Strait of Hormuz not only affects maritime traffic in the Arabian Gulf but could also reshape global trade routes,” Qutub said, highlighting the strait’s status as one of the world’s most critical maritime chokepoints for energy and goods transport.

With rising regional tensions, international shipping companies are reassessing their routes, adjusting shipping lines, or exploring alternative sea lanes. This signals that the current challenges extend beyond the Arabian Gulf, impacting the global supply chain as a whole.

Limited impact on US, European shipments

The effects of these developments will not be uniform across trade routes. Qutub noted that goods from China and India, which rely heavily on routes through the Arabian Gulf, are most vulnerable to disruption. In contrast, shipments from Europe and the US typically traverse western maritime routes via the Suez Canal and the Red Sea, making them less susceptible to regional disturbances.

Saudi Arabia’s strategic location, he emphasized, strengthens the resilience of regional trade. The Kingdom operates an integrated network of Red Sea ports — including Jeddah, Rabigh, Yanbu, and Neom — that have benefited from substantial infrastructure upgrades and technological enhancements in recent years, boosting their capacity to absorb increased cargo volumes.

Red Sea bookings

Several major carriers, including MSC, CMA CGM, and Maersk, have already opened bookings to Saudi Red Sea ports, signaling a shift in operational focus to these strategically positioned hubs.

However, Qutub warned that rerouted shipments could increase sailing times. Cargo from Asia, which normally takes 30-45 days, might now require longer voyages via the Cape of Good Hope and the Mediterranean, potentially extending transit to 60-75 days in some cases.

These changes are also reflected in rising shipping costs, driven by longer routes, higher fuel consumption, and increased insurance premiums — a typical response when global trade patterns shift due to geopolitical pressures.

Qutub emphasized that Saudi Arabia’s transport and logistics sector is managing these developments through coordinated government oversight. The Ministry of Transport and Logistics, the Logistics National Committee, and the Logistics Partnership Council recently convened to evaluate the impact on trade and supply chains. Regular weekly meetings have been established to monitor developments and implement solutions to safeguard the stability of supplies and continuity of trade.

He noted that the Kingdom’s logistical readiness is the result of long-term strategic investments, encompassing ports, airports, road networks, rail systems, and logistics zones. Today, Saudi logistics integrates maritime, land, rail, and air transport, enabling a resilient response to global disruptions.

Qutub also highlighted the need for the private sector to continuously review logistics and crisis management strategies, develop alternative plans, and manage strategic stockpiles. Such measures are essential to mitigate temporary fluctuations in global trade and ensure smooth supply chain operations.