Ethiopia’s leather industry has made significant progress, generating US$10.5 million in foreign exchange revenue in the past five months. The Leather and Leather Products Industry Research and Development Center shared this achievement, emphasizing the sector’s potential as a critical pillar of the country’s economy.

The Director-General of the Center, Zulfiker Abajihad, noted that Ethiopia’s efforts to maximize the use of its vast livestock resources have started to yield tangible results.

Through initiatives focused on quality improvement, branding, and effective market linkages, the country is positioning itself as a competitive player in the global leather market.

“The leather sector is a key driver of Ethiopia’s export economy, but challenges such as underperforming factories, inadequate promotion, and limited market access have slowed progress. This milestone is a step forward, but there’s still much to achieve.”

Zulfiker Abajihad, Director-General, The Leather and Leather Products Industry Research and Development Center

Despite having Africa’s largest cattle population, with over 165 million cattle and an annual production of 41 million hides and skins, Ethiopia’s leather sector has struggled with productivity and marketability issues.

Factors such as outdated technology, supply chain inefficiencies, and lack of standardization have hindered its ability to fully capitalize on this natural wealth.

“For Ethiopia to meet its full potential in the leather sector, government institutions, private enterprises, and international partners must work together to overcome existing limitations and build a stronger foundation.”

Dagnachew Abebe, Secretary of the Ethiopian Leather Industries Association

In October, Ethiopia unveiled a 10-year Leather Sector Development Strategy, headed by the Ministry of Industry. The plan outlines a roadmap to address longstanding issues and position the sector as a major contributor to economic growth.

Key focus areas include enhancing productivity, modernizing technology, building global partnerships, and fostering sustainable practices.

The strategy aims to not only boost foreign exchange earnings but also create employment opportunities for millions of Ethiopians.

By addressing barriers such as low demand, insufficient branding, and capacity limitations, the government hopes to make Ethiopia a hub for high-quality leather goods on the international stage.