Ethiopia's leather and leather products industry generated approximately 23.4 million USD in export revenue during the last nine months of the fiscal year, according to the Leather and Leather Products Industry Research and Development Center.

The revenue stemmed from exports of shoes, bags, leather gloves, finished, and semi-finished leather to various international markets. Leather factories led the charge with USD 15 million in exports, followed by glove (USD 3.2 million, bag (USD 2 million), and shoe factories (USD 1 million).

However, the industry fell short of its initial target of USD 41.7 million. Acting Director of the Center Mohammed Hussein attributed this to a downturn in export destinations' markets, including Europe and Western countries. China, Indonesia, India, and Vietnam remain strong Ethiopian leather export partners. Limited production capacity, foreign currency shortages, market downturns, the loss of AGOA benefits, and a domestic market focus by shoe factories were identified as key factors hindering performance.

The Center is tackling these challenges through a ten-year strategic plan for the leather and leather products industry. The plan aims to overcome constraints by improving raw hide supply, expanding market access, and enhancing input, technology, and financial support. The Center is providing support to manufacturing industries and also facilitating connections between manufacturers, marketing agencies, and networking sectors. This includes involving investors, experts, and customers to stimulate overall growth in the Ethiopian leather industry.

Source: The Ethiopian Herald