BY HIZKEL HAILU
It has been more than 90 years since the tanning and softening of the skin in Ethiopia began. Similarly, it has been almost a century since the leather industry began to change skin to shoes. 90 years ago, Armenian leather and footwear factories were established in the country.
Formerly, they were known as Asko Leather Factory and Asko Shoe Factory, they are now known as Addis Ababa Leather Factory and Black Nile Shoe Factory. The former Darmar Leather Factory and Shoe Factory are now Awash Leather Factory and Lion Shoe Factory.
According to Berhanu Serjebo, Director of the Communication Affairs Directorate of the Leather Industry Development Institute, Ethiopia ranks first in Africa and sixth in the world in livestock population. The country has 60.9 million cattle with 22 species. It is also a home to 31.8 million sheep of 15 species and 30.7 million goats of 11 species.
As to him, the institute is providing education and training in leather and leather products to support the sector. As a result, it is producing researchers and technologists in under and post graduate levels in collaboration with six universities in the country and two research institutes abroad.
In addition, to produce up to level four professionals in collaboration with 47 TVET colleges across the country, it is also providing short-term trainings to professionals engaged in leather, footwear and other leather products.
Additionally, chemical, physical, instrumental and environmental testing and certification are performed in internationally recognized laboratories in product quality testing of Shoes, bags, and clothing that follow the current fashion in product development. Similarly, product and productivity improvement counseling, environmental pollution counseling, trainings on input and product ratio and market management are being provided to support the sector.
On the other hand, the institute is providing technical supports like; equipment management and utilization, equipment maintenance and equipment technology selection and installation and commissioning. Besides, it helps the participants of the sector to get effective service from different concerned sectors like; customs, bank, electric Power and others, he noted.
Noting that there are 27 leather factories, 23 shoe factories, 4 glove factories, and 44 leather goods manufacturing industries in this sector this day, he stated that the leather factories have a capacity of tanning 34.2 million hides and 2.6 million skins per year with the current performance of 19.3 million hides and 1.7 million skins.
The leather industry is currently using about 20 million hides and 2 million skins from inland supply. The factories produce less than half of their average production capacity. As to him, the main problem here is lack of proper collection of raw hides and skins, poor quality of raw hides and skins and lack of operating funds.
Moreover, less availability of leather factories (only available at Mojo (18), AA (6), Bahir Dar (2), Wukuro (1), power shortage and a lack of market options are also among the challenges of the sector.
Similarly, the 23 shoe factories in Ethiopia have the capacity to produce 24 million pairs of shoes annually and have a performance of 13 million pairs. Export standard manufactures are providing 4.1 million pairs of shoes to the international market.
And the 4 glove factories have the potential to generate 7 million USD per annum while the rest 13 cloth manufacturing industries generating 5.5 million USD per annum.
As reported by the Ethiopian Revenue and Customs Authority (2017/2018), livestock and their products, mainly live animals, skins and hides, meat and meat products, and leather and leather products are among the leading export commodities, preceded only by coffee, oil seeds, gold, and Khat (Catha) as per their importance.
In this regard, the Ethiopian government has developed an ambitious Homegrown Economic Reform Plan with support of the IMF. The Homegrown Economic Reform plan identified structural and institutional bottlenecks affecting the agricultural sector in Ethiopia. Modernizing livestock production through improving veterinary infrastructure, research and innovation, and establishing linkages with other industries is among the prescribed plan.
In terms of expanding the sector in the current budget year, the institute has opened two branch offices in Mojo and Hawassa and is working on human resources. Apart from beginning activities to establish small laboratories in leather factories, discussions are underway with stakeholders to complete the four research projects carried out by the institute. Besides, short-term trainings are being provided in all factories.
By the same token, works are underway to introduce school uniforms and bags to each region in the country. And an agreement has been reached with the Addis Ababa City Administration Education Bureau to select factories to produce 500,000 shoes and bags.
Similarly, agreements have also been signed with Sidama and Oromia Education Bureaus. Accordingly, the machines manufactured by the institute have been handed over to shoe manufacturing enterprises in Addis Ababa and Sidama.
In the first five months of the fiscal year, a total of 16.1 million USD was earned from export and domestic market leather and leather products. It is 66 percent of the plan.
In addition to this, extensive work is being done to produce leather products from crocodile and fish skins coupled with beef, sheep and goat skins. It is well known that the demand for hides and skins is growing as the production capacity of leather and shoe companies grows.
In this regard, training and support is being provided by local technical and vocational colleges to enable enterprises engaged in the production of leather products to produce and supply various products to the local and foreign markets, Berihanu noted.
In the next ten years, the country is working to increase its product and productivity from 0.20 billion USD at the end of 2019/20 to 2.06 billion USD by 2029/30. It is planned to increase the average annual utilization rate of 58 percent achieved by existing industries to 87 percent and above by 2029/30.
At the sub-sector level, it is planned to increase the country’s foreign exchange earnings from 73.93 million USD in 2019/20 to USD 1.25 billion by 2029/30. By the end of the 2029/30, a total of 221.34 million square of finished leather, 49.31 million pairs of shoes, 1.68 million pairs of leather gloves, and 350,000 new leather goods and apparel projects are planned to be completed. During the development plan period, 150,000 new jobs will be created through the use of new and existing investment expansion projects.
Regarding the use of inputs, the institute is focusing on recycling of solid and liquid waste from leather factories. In addition to environmental protection, this research can be used as input for the leather and other sectors. Currently, glue, compost (natural fertilizer) and chrysanthemum are among the products that have been produced from the recycling process.
Completing problem solving research and focusing on new research to solve the sector’s problems in a sustainable manner, increasing the production capacity of existing industries and attracting new and quantitative investments in the sub-sector are among priority areas of the institute that will be conducted with the coming tem years.
As to him, the institute has also planned to expand regional and international market destinations, increase export share by creating sustainable and secure market opportunities in the sector, support all leather factories to meet local standards, emphasize on recycling factory and establishing laboratories to ensure the quality of leather factories.
During his recent visit to the National Small and Medium Manufacturing Industries Exhibition and Bazaar, Melaku Alebel, Minister of Trade and Industry of Ethiopia appreciated the research done by the Leather Industry Development Institute.
In the bazaar, the Institute has provided different materials from the recycling process including; protein filler, leftover glue lentils, natural compost, shoe heating, industrial heater, logo printer and school shoes and bags. Melaku also stated that Ethiopia will be a prosperous and promising country in the next 10 years via utilizing its resources like leather and hides.
The Ethiopian Herald 19 January 2021
