In a notable stride for Ethiopia’s economy, the country’s leather and leather products industry boasted an export revenue of approximately USD 23.4 million during the last nine months of the fiscal year. This commendable achievement was reported by the Leather and Leather Products Industry Research and Development Center.
The substantial revenue was primarily derived from exports of various leather goods, including shoes, bags, gloves, and both finished and semi-finished leather, which found their way to diverse international markets. Impressively,
- It was Leather that spearheaded and contributing USD 15 million to the export revenue,
- Followed by Leather Glove with USD 3.2 million,
- Leather Goods with USD 2 million, and
- Footwear with USD 1 million.
Despite this promising growth, the industry fell short of its ambitious initial target of USD 41.7 million. Mohammed Hussein, the Acting Director of the Center, shed light on the factors contributing to this shortfall, citing market downturns in export destinations such as Europe and Western countries. However, Ethiopia’s strategic alliances with countries like China, Indonesia, India, and Vietnam continued to serve as pillars of support for its leather exports.
The challenges faced by the Ethiopian leather industry are not insurmountable. Factors such as limited production capacity, foreign currency shortages, market downturns, the loss of African Growth and Opportunity Act (AGOA) benefits, and a predominant focus on the domestic market by shoe factories have been identified as key obstacles. In response, the Leather and Leather Products Industry Research and Development Center has embarked on a comprehensive ten-year strategic plan aimed at revitalizing the sector.
This ambitious plan encompasses initiatives to bolster the supply of raw hides, broaden market access, and provide enhanced support in terms of technology, inputs, and finances. Moreover, the Center is actively engaged in facilitating collaborations between manufacturers, marketing agencies, and networking sectors. By fostering synergy among investors, experts, and customers, the aim is to catalyze holistic growth within the Ethiopian leather industry.
In conclusion, while the Ethiopian leather industry has made significant strides in export revenue generation, there remains ample room for growth and improvement. By addressing the challenges head-on and implementing strategic initiatives outlined in the ten-year plan, the industry is set to overcome hurdles and emerge as a formidable player in the global leather market. With concerted efforts and proactive measures, Ethiopia’s leather sector is primed for a promising future of sustainable growth and prosperity.
