The structure and performance of the ethiopian manufacturing. Our research questions the commonly admitted fact that ethiopia has a natural comparative advantage in the leather sector. 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 unido project is upgrading ethiopias leather industry and leather products download pdf, 2. Networking small enterprises in ethiopias leather sector a progress report. Preslaughter, slaughter and postslaughter defects of skins and hides at the sheba tannery and leather industry, tigray region, northern ethiopia article pdf available august 2015 with 1,272. Ethiopian leather industry pdf ethiopias footwear industry and its leather sector in general. The production of leather shoes in ethiopia dates from the late 1930s. However, ethiopia has the means to change those factors that are coming together at the same time, such as cheap labor force and welleducated, trainable and inexpensive labour and. Lugano wilson from various ministries visited the ethiopian leather industry development institute.
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. The leather industry is one of ethiopias biggest foreign exchange earners, and pittards, a u. Does ethiopia have a comparative advantage in the leather. 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. Ethiopian industrial development strategic plan 202025 fdre ministry of industry. Jan 25, 2018 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 ethiopian investors suffer from dependence on imports for most of their inputs and export unfinished products other countries use as raw materials, tied up operation capital, as well as from lack of modern animal husbandry in the c.
These are further channeled to 850 leather enterprises for manufacturing of leather products eca, 2012. Pdf ethiopian industrial development strategic plan. Ethiopian leather industry a neglected sector with huge. This growth was driven by government investment in infrastructure, as well as sustained. Ethiopia moves towards expansion in leather exports. This study aimed at examining the existence of technical efficiency differences among tanneries and leather processing firms using stochastic frontier production. Pressure from the population surrounding existing tannery buyers, the community and ngos. Sheba leather companys full grain safety leather shoes, women shoes, men shoes, boot, men boot, women boot, safety shoes, finished leathers, womens bag.
The leather industry sector is one of the fast growing economic sectors in ethiopia. This was the first step of an integrated leather industry largely based on the livestock annuity. To be the premier association spearheading the emergence of the ethiopian leather industry as a key global player representative of its members who are. Current problems of the leather industry agricultural. Safety leather shoes sheba leather industry ethiopia. Consequently, the unido study provides an analysis of the contemporary demand for leather products footwear, leather goods, gloves. The government of ethiopia is committed to expanding.
Ethiopias leather industry development institute lidi partnered with two indian government institutions, to improve its technological knowledge of the leather industry in 2011. Ethiopian investors suffer from dependence on imports for most of their inputs and export unfinished products other countries use as raw materials, tied up operation capital, as well as from lack of modern animal husbandry in the. The major export contributor of the manufacturing sector in ethiopia is the leather and footwear industry, which contributed 70% of the export earnings for the year 20052007 16. Ethiopias leather industry huge potential but somehow neglected. Ethiopia s leather industry development institute lidi partnered with two indian government institutions, to improve its technological knowledge of the leather industry in 2011. 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. 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. The total value of export of the leather and leather product is usd 66. Indian experts were sent to 11 tanneries in ethiopia for benchmarking studies. In doing so, it has been calculated the balassa index of revealed comparative advantage using industry data at the hs 2digit level. The list of operations that leathers undergo vary with the type of leather.
All remaining errors and omissions are the sole responsibility of the authors. Ethiopia has a cattle population of more than 53 million, and sheep and goat population of 25. Our research questions the commonly admitted fact that ethiopia has a. 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 role of foreign investment in ethiopias leather value. Currently there are 19 functioning leather tanneries with 20 new leather. 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. Hides and skins production and marketing systems in ethiopia. The government plans to maximise the impact of this growth through value addition, thereby creating more jobs and further boosting exports. Ethiopia the second most populous country in africa is a oneparty state with a planned economy.
Currently, the manufacturing industry contributes about 19% of ethiopias gdp. Hides and skins are the basic raw materials for the leather industry and ethiopia is capable of supplying 16 to 18 million hides and skins per. The operation flow has to follow the preparatory tanning crusting surface coating subprocess order without deviation, but some of the subprocesses can be omitted to make certain leathers. 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. Pdf preslaughter, slaughter and postslaughter defects of. Ethiopias leather industry is showing considerable promise or at least india, one of the worlds fastest growing economies, seems to think so. This report is a comprehensive research of leather industry in ethiopia. Ethiopias leather industry is showing considerable promise or at least india, one of the.
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. In the 1960s there were a handful of tanneries and mechanized footwear factories, all. Current problems of the leather industry agricultural research. A series of studies on industries in ethiopia the embassy of japan in ethiopia march 2008. The existing limitations have put a limit to the growth of leather products industries. Ethiopia has a comparative advantage in exporting textile and garments, leather and leather products, processed agricultural products as a result of its natural resource endowments 17,18. 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. Ethiopian fashion leather sheba leather industry ethiopia.
Pdf the role of trade policy on ethiopias leather industry. Jan 29, 2018 ethiopias leather industry huge potential but somehow neglected. The leather manufacturing process is divided into three subprocesses. Study on the leather footwear industry in ethiopia 4. The leather making process is in general restricted to batch processing, but if the surface coating subprocess is added then some continuous processing can be included. 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. Upgrading ethiopian leather and leather products industry. Revealed comparative advantage of ethiopian leather. Role of leather sector to the manufacturing export and national economy. Ethiopian leather industry pdf ethiopia leather scribd. 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. Currently there are 19 functioning leather tanneries with 20 new leather industry facilities in the planning stages. Current problems of the leather industry langston universitys.
The role of foreign investment in ethiopias leather value chain. Downstream industries such as footwear, leather garment and leather goods, depend on the tanning industry for supply of quality leather. Ethiopian leather sectorcurrent status and future prospects unido. Ethiopia has one of the largest livestock populations in the world providing a strong raw material base for the leather and leather products industry. Does ethiopia have a comparative advantage in the leather industry. Pdf identifying and prioritizing operational performance. Sisay addis is a phd resear ch scholar in mechanic. 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. Hides and skins production and marketing systems in. The transformation industry grew, providing jobs and rising the margin of the country on the leather. Production and export of finished sports and dress gloving leather from sheepskin, finished shoe upper from goat.
With abundant and available raw materials, a highly disciplined workforce and the cheap cost of doing business, ethiopias leather sector, including the footwear. Pdf ethiopian industrial development strategic plan 20. For more than a decade before 2016, gdp grew at a rate between 8% and 11% annually one of the fastest growing states among the 188 imf member countries. A further subprocess, surface coating may be added into the sequence. Investment opportunity in leather and leather products. Chinese company brings ethiopias leather industry to life duration. 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. 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. Ethiopia ranks 1st place in africa and 10th in the world in terms of livestock population. Ethiopia has a growing leather goods industry, with 21. Ethiopian leather industries association africa business. A group of tanzanian delegates visited the ethiopian leather industry development institute. 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.
Currently, the manufacturing industry contributes about 19% of ethiopia s gdp. Ethiopia leather evaluation final 208 sinoethiopian. Future trends in the world leather and leather products. Pdf on sep 26, 2016, wegayehu fitawek and others published the role of trade policy on ethiopias leather industry. The name was again changed, as of january 2007 to the ethiopian leather industries association elia. Oct 15, 2014 the leather industry is one of ethiopia s 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. Buying leather directly contributes to factory farms and slaughterhouses because skin is the most economically important coproduct of the meat industry. Background a pre1974 ethiopia commenced exporting raw hides and skins along with the openingup of the economy in the 1920s. Revealed comparative advantage of ethiopian leather industry. Pdf preslaughter, slaughter and postslaughter defects.