Ethiopia is preparing to stop the export of raw hides and skins as the government tries to rescue a collapsing tanning and footwear industry. According to Fortune news Industry Minister Melaku Alebel says exporting raw hides is starving local factories that are already struggling to survive.
The country has one of the largest livestock populations in Africa. On paper there should be plenty of hides and skins for factories.
In reality only about half of what is produced reaches tanneries. The rest is lost due to contraband spoilage or poor handling. Experts say this costs Ethiopia close to one billion Birr every year.
Export earnings show the damage. The leather sector made 40 million dollars in 2020/21. Five years earlier it was 133 million dollars which means a 70% collapse. In the last decade export volume dropped 62% as factories shut down.
“Due to a shortage of raw leather many tanneries have shut down. The Association doesn’t support the export of raw skin”
– Dagnachew Abebe, Secretary General Ethiopian Leather Industry Association
Only seven producers remain from 35 a few years ago. Quality of hides has also fallen especially after livestock oversight moved away from the Agriculture Ministry.
About 80% of the damage happens before animals are even slaughtered.
Factories that make shoes say the same problem continues. Even the Addis Abeba Abattoirs Enterprise auctions skins often but very few companies show up.
Collectors are giving up because prices are too low and basic collection sheds were demolished during new road projects.
Veteran leather experts argue the real failure is not enforcing quality standards and not supporting collectors who bring hides to factories in the first place.
Minister Melaku told lawmakers that the leather sector is facing global competition plus a serious shortage of raw material. Parliament members are demanding results since the industry received hundreds of millions of dollars in support but delivered very little export income.
