Ethiopia with its huge livestock potential has not yet tapped its resources. Especially, leather and leather factories need to be competitive in the global market and should expand their export destinations.
Having understood this, the Ethiopian Leather Industry Development Institute has been endeavoring to create market opportunities in most African countries, Communication Director at the institute Birhanu Serjebo told The Ethiopian Herald.
He stated that enhancing the quality of leather products and adding value to the imported items would be crucial to compete in the global market.
Export trade has played a vital role in the economic growth the nation has achieved over the last two decades. However, there are challenges relating to the diversification and value addition which are vital for boosting competitiveness and effectiveness.
‘‘Producing quality and value-added items would significantly transform export trade. Besides, expanding export destinations should be prioritized. As part of the scheme, it has been planned to export leather and leather products to various African countries,’’ he said.
United States, Italy, United Kingdom, Canada, China and Japan are the major importers of Ethiopian live animals, hides and skins, as to him. Moreover, there is also a huge market in East Asia and Middle East countries.
Nowadays, there is an encouraging start in producing various leather products such as export-oriented shoes, gloves, belt, bag, jacket and other items. The products should be modernized so as to compete globally and to generate the deserved foreign currency earning.
“The leather industry sector is flourishing from time to time. But the sector has been facing challenges. For instance, the country is producing only 10 percent chemical which would be used for leather industries. This trend needs to be changed. To transform the sector, a committee has been launched under the Prime Minister’s office,’’ Birhanu explains.
For the meantime, Ethiopian Embassies and Consulate offices have been playing their part in creating market opportunities in the countries they are being assigned, the director underscores.
As a challenge lack of sufficient chemical was mentioned. Lack of quality on raw leather, lack of loans, and lack of infrastructure as well as global market fluctuation and electric city outage are also among the serious hindrances which are affecting the leather industry.
For his part, Mewael Desta, Economics Lecturer at Mekelle University says that leather and leather producing factories should be proliferated so as to create ample market opportunity for farmers and skin sellers.
“Leather factories have been playing a massive role in buying hides and skins from farmers. Thus, the life of ordinary farmers and skin traders have been improving, though local brokers are creating tricks. The government should tighten its controlling mechanism on hides and skins to get the deserved income out of it. Hides and skins providers and other stakeholders should deliver quality and healthy produce which could have high market value,’’ he emphasized.
The quality of hides and skins depends on breeding and feeding system of animals, as to him. Hence, livestock should be protected from plague and should be fed to improve the quality and safety of hides and skins.
Furthermore, the sector needs swift policy that help global competitiveness and farmers should be given trainings on the importance of hides and skins, Mewael highlights.
‘‘Plausible leather legislation is highly crucial. Viable leather industry policy boosts quality and since we ensure quality that that we could expand export destination,’’ he says. ‘‘Institutional structure should be redesigned to encourage the sector. In addition to this, those who involve in animal husbandry should be provided with trainings that build their awareness’’ he adds. There are 70 leather factories in Ethiopia which created job opportunity for 23,000 citizens.
The Ethiopian Herald July 19, 2020
BY TSEGAY HAGOS
