East African businesses need to invest more in leather processing and manufacturing instead of exporting raw hides and skins if the region wants to capture a larger share of the growing global leather market, according to a report by The New Times.
Adrian Raphael Njau, Trade and Policy Advisor at the East African Business Council (EABC), said greater value addition in leather, textiles and edible oil could help businesses increase exports and take advantage of opportunities under the African Continental Free Trade Area (AfCFTA).
EAC Partner States exported raw hides and skins worth $33 million in 2023, while imports stood at $6 million.
The EABC is working with businesses in Rwanda’s leather, textile and edible oil sectors to help them access AfCFTA markets. With support from the African Development Bank through the Fund for African Private Sector Assistance, the organisation is providing training on market opportunities, Rules of Origin, tariffs, customs procedures and export requirements.
The EABC is also helping companies join the Afreximbank Africa Trade Gateway, which provides business matchmaking, market intelligence and trade finance solutions.
According to the International Trade Centre’s Export Potential Map, East African businesses have an untapped export opportunity worth $17 million for leather products in Uganda.
The region’s leather sector accounts for less than 1% of global leather trade, despite the EAC having 4% of the world’s cattle and 6% of its small ruminants.
The main challenge is turning this livestock base into higher-value products through better tanning, processing and manufacturing.
The EAC Industrialisation Strategy 2012-2032 aims to increase the local value added content of resource based exports from 8.6% to 40% by 2032, creating further opportunities for the leather industry.
Finally the reports say, for East Africa, the opportunity is clear, process more locally, manufacture more finished products and use AfCFTA to reach a much larger African market.
For more details check out the detailed report by The New Times.
