Ethiopia’s once-thriving leather industry is grappling with significant challenges stemming from restrictive and outdated regulations, prompting industry stakeholders to demand urgent policy reforms to unlock the sector’s full economic potential.
At the recently held 2nd COMESA Institutions Awareness Forum in Addis Ababa, leather producers, processors, and industry representatives voiced strong criticism of the existing regulatory framework, particularly the ban on exporting ‘wet blue’ hides and skins-a crucial semi-processed stage in leather production. They argued that this ban inadvertently channels valuable raw materials to Western countries, undermining local manufacturing capacity and stifling growth.
“We have a deeply rooted cultural tradition of utilizing leather from our abundant cattle resources,” an industry expert said. “However, the ban on wet blue exports prevents us from adequately supplying our growing footwear manufacturing sector and generating significant revenue for the national economy.”
The forum emphasized the untapped potential of sourcing high-quality raw materials and intermediate products from neighboring East African countries, urging efforts to raise awareness among local industries to reduce reliance on costly foreign suppliers.
Discussions also highlighted the vital link between a robust livestock sector and a competitive leather industry. Participants expressed concern over the impact of climate change and recurrent droughts on Ethiopia’s cattle farming, questioning the effectiveness of current support mechanisms aimed at improving cattle quality and production.
The leather sector reportedly suffers losses estimated at 138 billion birr due to these intertwined challenges, underscoring the urgent need to address fundamental issues in cattle management nationwide.
Nicholas Mudungwe, Executive Director of the African Leather and Leather Products Institute (ALLPI), acknowledged these concerns and outlined ongoing collaborative initiatives with the African Union’s Inter-African Phytosanitary Council to enhance livestock quality through improved practices and branding.
Mudungwe also stressed the importance of environmental sustainability, advocating for the establishment of centralized industrial parks with common sewage treatment facilities to promote resource efficiency and reduce pollution in leather processing. He highlighted the necessity for Ethiopian tanneries to obtain Leather Working Group (LWG) certification to access international markets and partner with global designers.
While Ethiopia’s export ban on semi-processed leather is a key point of contention, similar restrictions have been implemented in countries like Turkey and Egypt, reflecting a broader regional trend.
As Ethiopia’s leather industry stands at a crossroads, stakeholders are united in calling for comprehensive reforms to regulatory policies, enhanced regional cooperation, and sustainable livestock management to revitalize this critical economic sector.
