Leather industry in ethiopia pdf

The role of foreign investment in ethiopias leather value chain. Unido is finalizing a feasibility study on the founding of the modjo leather city and will support the government in mobilizing resources for its establishment. Case study overview research question ethiopia is a subsaharan country with a population of 99. Pdf on sep 26, 2016, wegayehu fitawek and others published the role of trade policy on ethiopias leather industry. Ethiopia s leather industry development institute lidi partnered with two indian government institutions, to improve its technological knowledge of the leather industry in 2011.

Presentation about the leather sectors in ethiopia for marche. Buoyed by favorable external conditions, exports also helped create jobs and earn muchneeded foreign exchange. The emergence of modern tanning in ethiopia dates back to 1918 and 1927 with the establishment of the then asco currently addis tannery and darmar awash currently elico tanneries, respectively. Introduction the embassy of japan has been conducting a series of studies on industries in ethiopia in. However, our study of the vertical disintegration of the leather industry in ethiopia shed light on various factors that prevent ethiopia from being a competitive actor in the international leather business. Ethiopia has a cattle population of more than 53 million, and sheep and goat population of 25. The main direction of the leather industry plan was to change the industrial policy and development in ethiopia.

The study determines that industrial parks in ethiopia have contributed significantly to the. The way ethiopia created and nurtured a highvalue horticulture industry. Name of industrial zone location main industry owner areaha progress 1 eastern industry zone oromia, dukem mixed sectors private 400 operational 2 bole lemi industrial park i addis ababa textile and leather government 187 operational 3 hawassa industrial park snnpr textile and garment government 300 operational. Study on the floriculture industry in ethiopia this is an english version translated by the embassy of japan in ethiopia based on an original report written in japanese august, 2007 embassy of japan in ethiopia 1. Rising exports contributed to ethiopias remarkable growth performance over the past decade. Ethiopia has sustained to be the leader in its livestock resources in africa which proves the availability of a huge potential for the countrys leather industry. The pcp is supporting the government of ethiopia in the establishment of a leather industry cluster on the basis of an existing concentration of tanneries in the town of modjo.

Ethio leather industry plc is a company located in addis ababa, ethiopia. A further subprocess, surface coating may be added into the sequence. Study on the leather footwear industry in ethiopia 4. Pdf ethiopian industrial development strategic plan 20. This study hopes to address the problems involved in the lack of competitiveness in the ethiopian leather sector with particular focus on the level of factor productivity based on experiences of sample firms. Jan 29, 2018 ethiopias leather industry huge potential but somehow neglected. In turn, high growth rate of exports is required, in the first instance, to remove the threat of balanceofpayment constraint on gdp growth. Nevertheless, ethiopias manufacturing sector is still far from being an engine of growth and structural change.

In doing so, it has been calculated the balassa index of revealed comparative advantage using industry data at the hs 2digit level. Pdf the role of trade policy on ethiopias leather industry. Future trends in the world leather and leather products. Ethiopian leather shoe industries are producing shoes for export market. Elia ethiopia leather industry association erca ethiopian revenues and customs authority fao food and agriculture association fdre federal democratic republic of ethiopia flp finished leather products gdp gross domestic product gtpii growth and transformation plan imf international monetary fund itc international trade centre. The company is mainly working in hides and skins semiprocessed business sectors ethio leather industry plc can be reached using the following contact addresses. The manufacturing sector plays a marginal role in employment generation, exports, output, and intersectoral linkages. Since the 2000s, ethiopia has emerged as one of the fastestgrowing economies in africa. The existing limitations have put a limit to the growth of leather products industries. Ethiopias leather industry is showing considerable promise or at least india, one of the worlds fastest growing economies, seems to think so. The leather industry is one of ethiopias biggest foreign exchange earners, and pittards, a u. The first two chapters of the report feature the country profile by giving general information on ethiopia and by thoroughly studying its economic state, including key macroeconomic indicators and their development trends.

The present study aims to identify, propose and prioritize key performance indicators that have a high impact on production performance of the ethiopian leather industry eli. All remaining errors and omissions are the sole responsibility of the authors. Role of leather sector to the manufacturing export and national economy. The list of operations that leathers undergo vary with the type of leather. Background and context industry background although ethiopias garments industry has been identified as a key growth industry since 1995,9 its performance was lackluster until the implementation of the gtp in 2015. With a commitment to sourcing only the best and highest quality leathers products. Jan 25, 2018 ethiopias leather industry a neglected sector with huge potential january 25, 2018 semonegna business 0 addis ababa aaccsa ethiopian leather industry has enormous potential investment and business opportunities and yet the country has made so little of it so far. The industry has tremendous potential for foreign exchange earnings, creating employment and has the capacity to attract tremendous and profitable foreign investment. The structure and performance of the ethiopian manufacturing. Buying leather directly contributes to factory farms and slaughterhouses because skin is the most economically important coproduct of the meat industry. Ethiopia is home to the largest population of cattle in africa and the 10th largest in the world, meaning its leather industry has immense potential. A series of studies on industries in ethiopia the embassy of japan in ethiopia march 2008.

Production and export of finished sports and dress gloving leather from sheepskin, finished shoe upper from goat. Investment opportunity in leather and leather products. The industry took back the domestic market from chinese shoes which had flooded the. Ethiopia is endowed with a good production environment for growing coffee with a combination of appropriate altitude, temperature, rainfall, soil type and ph.

The leather manufacturing process is divided into three subprocesses. In its vision of transforming the country to a middle income nation by 2025, the government of ethiopia plans to increase the share of its manufacturing sector to 27% the government sees the leather industry subsector as one of its strategic investment priority areas. Does ethiopia have a comparative advantage in the leather. Fdreleather industry development institute home facebook. Oct 15, 2014 the leather industry is one of ethiopia s biggest foreign exchange earners, and pittards, a u. Ethiopian leather industries association africa business.

Most importantly, the lack of institutional entity able and. Investment opportunity in leather footwear, garment and products as mentioned above, ethiopias leather is of high quality and texture and of heavy substance. Sheba leather companys full grain safety leather shoes, women shoes, men shoes, boot, men boot, women boot, safety shoes, finished leathers, womens bag. Between 1954 and 1976, dire, modjo, and kombolcha tanneries were established darge, 1995. An overview the impulse for an industrial policy in ethiopia comes from the need to attain a high growth rate of exports. Ethiopias leather industry a neglected sector with huge potential january 25, 2018 semonegna business 0 addis ababa aaccsa ethiopian leather industry has enormous potential investment and business opportunities and yet the country has made so little of it so far. On the government side, ethiopias leather industry development institute lidi partnered in 2011 with the central leather research institute clri and the footwear design and development institute fddi, two indian government institutions, to improve its technological knowledge of the leather industry. The ethiopian leather industries association elia is a trade association of leather industries interested companies. Development of ethiopias footwear exports by endmarket. Technical support was provided by unctad staff members including mr robert hamwey, economic affairs officer, and mr malick kane, program support specialist, of the trade, environment, climate change and. Ethiopia is the center of origin for coffee arabica. Elico was established in august 1997 as the leather wing of midroc ethiopia to manage and operate two tanneries and a leather garment and leather goods manufacturing factory that were acquired from the ethiopian privatization agency. Value chain study on meat processing industry in ethiopia. Pressure from the population surrounding existing tannery buyers, the community and ngos.

Pdf evaluation and characterization of tannery wastewater. For this purpose, a survey of the leather and footwear. The overall objectives of the contract are to undertake value chain study on meat processing industries in ethiopia. Currently, the manufacturing industry contributes about 19% of ethiopias gdp. It is planned to reach 35 million pairs of production by the end of this year and out of which 21.

Consequently, the unido study provides an analysis of the contemporary demand for leather products footwear, leather goods, gloves. Performance analysis and improvement of ethiopian leather. Ethiopian leather industry development institute blogs, comments and archive news on. The company is mainly working in hides and skins semiprocessed business sectors ethioleather industry plc can be reached using the following contact addresses. To support industrialization in sectors where ethiopia has a comparative advantage, such as textiles and garments, leather goods, and processed agricultural products, ethiopia plans to increase installed power generation capacity by 8,320 mw, up from a capacity of 2,000 mw, by building three more major dams and expanding to other sources of. Downstream industries such as footwear, leather garment and leather goods, depend on the tanning industry for supply of quality leather. A study that explores the livelihoods of the traditional tanners was conducted from november 20 to april 2014 with the objective of assessing the prevailing traditional leather production and processing knowledge, business environment in amhara regional state of ethiopia. Background a pre1974 ethiopia commenced exporting raw hides and skins along with the openingup of the economy in the 1920s.

In the 1960s there were a handful of tanneries and mechanized footwear factories, all under the proprietorship of foreign investors. To be the premier association spearheading the emergence of the ethiopian leather industry as a key global player representative of its members who are producing and exporting first choice leather and leather products. A group of tanzanian delegates visited the ethiopian leather industry development institute. The role of foreign investment in ethiopias leather value. Pdf identifying and prioritizing operational performance. Currently, the manufacturing industry contributes about 19% of ethiopia s gdp. Ethioleather industry plc is a company located in addis ababa, ethiopia. Lidi governmental research institute that support ethiopian leather sector industries in investment,production and marketing stage. Ethiopias leather industry development institute lidi partnered with two indian government institutions, to improve its technological knowledge of the leather industry in 2011. Ethiopian industrial development strategic plan 202025 fdre ministry of industry. Pdf ethiopian industrial development strategic plan. Declining productivity and competitiveness in the ethiopian leather sector berhanu nega ph. Lugano wilson from various ministries visited the ethiopian leather industry development institute. This makes ethiopia the 1st from africa and the 9th from the world in its cattle population which enable the country to have a strong raw material base for the leather industry.

Ethiopian leather industry pdf ethiopias footwear industry and its leather sector in general. Ethiopian leather industry development institute latest breaking news, pictures, videos, and special reports from the economic times. The way ethiopia created and nurtured a highvalue horticulture industry and expanded its air services exports was. The production of leather shoes in ethiopia dates from the late 1930s. Safety leather shoes sheba leather industry ethiopia. Ethiopian leather industry pdf ethiopia leather scribd. Indian experts were sent to 11 tanneries in ethiopia for benchmarking studies. Pdf the leather industry is suffering from the negative impact generated by the pollutionit causes to the environment. Indepth interviews were carried out through direct observation, focal group discussion using a semistructured.

Summary feasibility studies for selected sub sectors. Investment opportunity in leather footwear, garment and products as mentioned above, ethiopia s leather is of high quality and texture and of heavy substance. Sheba leather companys full grain safety leather shoes, women shoes, men shoes, boot, men boot, women boot, safety shoes, finished leathers, womens bag, safety shoes in ethiopia are chosen every where. This has doubled the construction industrys share of total employment from 0. However, foreign investors could also harm the ethiopian leather sector if they. With abundant and available raw materials, a highly disciplined workforce and the cheap cost of doing business, ethiopias leather sector, including the footwear. As a whole, the ethiopian leather processing industry by which we primarily. Revealed comparative advantage of ethiopian leather. Leather is also no friend of the environment, as it shares responsibility for all the environmental destruction caused by the meat industry as well as the pollution caused by the toxins used in. Ethiopias leather industry is showing considerable promise or at least india, one of the. This report is a comprehensive research of leather industry in ethiopia. Declining productivity and competitiveness in the ethiopian.

Although ethiopia has emerged as one of africas fastestgrowing economies, its manufacturing sector. Ethiopian leather sectorcurrent status and future prospects unido. The aim of this paper is to analyze the growth pattern of trade flow and trade comparative advantages of the leather industry products between some selected african economieskenya, egypt, tunisia and with particular focus on ethiopia between 2004 to 20. Ethiopian leather industry a neglected sector with huge.