Africa has over the last few years been hailed as a fast-growing economy; with Ethiopia being the fastest growing economy on the continent. Ethiopia is also a top producer of garments; produced in an industrial setup.
Now to some shocking news! Despite Ethiopia being the fastest growing economy in Africa, and by extension making Africa a fast-growing economic region. The country is also the cheapest labor force on the planet.
That is according to a report by New York University’s Stern Center for Business and Human Rights. The body says the minimum wage per month for the average Ethiopian working at a garment factory is $26. Making workers at Ethiopian garment factory the lowest paid workers for a major garment company across the globe.
Attract foreign investment by lowering the cost of labor
The authors of the report – Paul M. Barret and Dorothee Baumann-Pauly – say these lowest wages being witnessed in Ethiopia is as a result of the government’s desire to attract foreign investments.
“The government’s eagerness to attract foreign investment led it to promote the lowest base wage in any garment-producing country-now set at the equivalent of …read more