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Chinese Factories in Ethiopia Close as Business Environment Worsens

When Ontex's Ethiopian factory was fully operational, it produced 400,000 diapers per hour. The factory closed after drawn out tax disputes with the government. Image via the Africa Research Group.

The IMF is forecasting the Ethiopian economy will grow 6.2% this year, an impressive figure for a country that is digging itself out of a massive debt hole and recovering from the trauma of a two-year civil war.

If the government is going to achieve the IMF growth target, then it will have to create the conditions for private sector expansion, particularly in the manufacturing sector.

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