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Ethiopia to Earn $233 Million from Leather Exports

Ethiopia expects to earn more than 233 million US dollars through the export of leather and leather products this financial year.

The estimated revenue is almost double the amount earned last year according to the projected figures by the Leather and Leather Products Development Institute.

It is to be remembered that Ethiopia earned about 112.1 million US dollars from the sector in the last financial year. The revenue was lower than the 206 million US dollar projected by the institute for the fiscal period.

The lower than expected revenue was due to the decrease of leather prices on the international market and the increase in the price of raw materials according to the institute.

The institute expects better performance this year by fostering improved efficiency and also because additional large companies are to launch production in the coming months which will play a significant role in helping meet the projections for this year.

Increased Foreign Direct Investment in the leather sector will help meet sector targets according to sources.

Notable international companies which have entered the sector in Ethiopia include the Chinese Hujieang, one of the largest footwear manufacturers in world. The production of this company alone could go a long way towards equaling the exports for the previous year said the source.

Source: Capital