Global Companies from China, Italy, India, Sudan, Israel, Turkey, Germany and the UK have 27 new leather investments primarily in footwear and garments.
Italian, Indian, Chinese, German and British companies will begin operating nine leather product investments and three finished leather investments. The 2.5 billion birr projects will be able to produce around 27,000 pieces of finished leather, 16,000 pairs of shoes and 2,000 garments.
According to the Leather Industry Development Institute (LIDI) the new leather factories will be located in Addis Ababa, Modjo 73Km south east of Addis Ababa, Gonder 744Km north of Addis Ababa and Sendafa 39Km North West of Addis Ababa.
The new leather projects expected to commence production this year are in line with the government’s recent directive which discourages the export of crust.
LIDI was established to support production in the leather industry, investment in the sector and marketing activities. It also gives technical support for factories to construct treatment plants to minimize environmental pollution.
The Ethiopian government aims to earn USD 206 million in revenue from the leather sector in the current fiscal year.
By the end of the Growth and Transformation Plan (GTP) the government expects USD 500 million in revenue from leather exports and has adjusted tax for imported raw materials to accomplish this goal.
The Ethiopian Leather Industry Development Institute recently teamed up with the Ethiopian Leather Industry Association (ELIA) to organize the fifth African Leather Fair (AALF) which was held from March 1-3, 2012 focusing on high end local products in order to boost leather export revenues.
The leather fair brought 185 exhibitors from Ethiopia and 37 other countries. It featured a wide array of leather products including foot wares, chemicals and garments.
ELIA is a private association that currently has 47 companies as its members represent a cross section of producers and exporters of animal products including cows, goats, sheep and camels.