The Ethiopian leather industry would only export finished goods commencing from December 2011, the Ministry of Trade (MoT) has announced.

During a half day consultative forum organized to deliberate over the country’s leather industry, Ahmed Nuru, representative of State Minister of Trade, Tadesse Haile, stated that all preparations to substitute exportation of raw hides and skin with finished leather products from next month have been made.

He revealed that most of the leather units have enhanced their capacity to facilitate exports of value-added leather goods, and added that the country’s leather industry has stepped in a new era of value addition.

Mr. Nuru stated that the five-year Growth and Transformation plan attaches due importance on increasing leather export earnings by way of developing new leather units and expansion of the existing units. He further said the plan aims at raising the earnings from the sector from last year’s US$ 76 million to US$ 497 million over the next five years.

Due emphasis would also be laid on substituting the country’s leather items imports with domestic goods within next five years, Mr. Nuru added.

Speaking at the forum, Director General of the Ethiopian Leather Industry Development Institute, Wondu Legesse said presently Ethiopia exports all the hides and skins obtained from slaughtered animals in its raw form, which does not allow the domestic industry to make profits.

Mr. Legesse said the Institute is extending various kinds of support to the leather units to help them enhance the quality of their goods and attain competitiveness at international level.

Lack of skilled workforce, chemicals, quality hides and skins, spare parts and loan facility are some of the key issues confronting the Ethiopian leather industry, he said.

The forum was attended by owners of several leather and shoe factories and representatives of governmental and non-governmental institutions.


Fibre2fashion News Desk - India