DRAFT

COMESA REGIONAL
STRATEGY FOR
THE LEATHER VALUE CHAIN
(MEDIUM TERM 2012-2016)
“TOMORROW’S LEATHER AND LEATHER
PRODUCTS IN COMESA TODAY”
JUNE 2011
Foreword

The COMESA Secretariat is working with its Member States to design and implement strategies whose main
objective is to promote industrialization and intra-trade in the region. Industrialization and the rapid
expansion of intra-trade is the cornerstone of the regional integration agenda.

The region is well endowed with natural resources which include, among others: livestock; minerals; and huge
tracks of arable land. Despite this huge resource base, the region continues to face high levels of
unemployment mainly because most of the minerals and crops are exported abroad in their raw state. This
scenario should not be allowed to continue like this. Thus, strategies must be put in place with the main
objective of enhancing value addition across all the value chains in the region. This would result in the
creation of employment, attraction of investment, GDP and intra-trade growth, thereby eradicating poverty.

It is within this context that the COMESA Secretariat, working in partnership with the ITC, has developed a
Strategy for the leather sector whose main objective is to transform the sector from the production and
marketing of raw materials towards the production and marketing of value added products. This is a result
oriented Strategy, which should inform the industrialization agenda of the leather sector in COMESA for the
foreseeable future.

The Strategy was developed through a participatory process that involved the consultation of both the private
and public sector stakeholders from the majority of COMESA countries. It focuses on the entire value chain,
starting from pre and post slaughter issues, which impact on the production of quality hides and skins, the
leather production process, up to the manufacture of footwear and other leather goods. Based on the main
performance issues at the regional level, the Strategy proposes specific activities to address quality and
capacity constraints at every stage of the chain, which are complemented by efforts towards improving access
to finance, creating an enabling policy and legal environment and ensuring institutional support.

The Strategy’s four main objectives are:

 Improving access to affordable finance;

 Creating enabling policy and legal environment and strengthen institutional framework;

 Facilitating the improvement of overall quality; and

 Improving information and marketing systems.

In conclusion, I would like to point out that the Strategy proposes practical responses to a variety of technical
and managerial constraints identified by the private and public sector stakeholders, who were consulted
during the crafting of the Strategy. I am confident that all the stakeholders will find it extremely useful in their
quest to enhance the performance of the leather sector in the COMESA region.

COMESA Secretary General

Sindiso Ngwenya
Vision 2012-2016

To be the lead contributor to the COMESA region’s economic development and livelihoods in a sustainable
manner

Mission

To create an enabling policy and legal environment, strengthen institutions, improve access to finance,
promote trade, information sharing, value addition and quality improvement of leather and leather products
in the COMESA region.

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Note to the Reader and Acknowledgements

The development of the present Strategy was championed by the COMESA Secretariat and was funded by
CIDA under the PACT II Programme.

The PACT II programme’s objective is to strengthen institutional capacities and build regional trade linkages
and export competitiveness of African Small and Medium-sized Enterprises (SMEs) in high potential sectors
and markets.

More than 150 private and public sector actors from COMESA leather producing countries representing
different stages in the value chain played a pivotal role in crafting the Strategy through their involvement in
national and regional meetings and workshops. More than 60% private sector participation was achieved in all
the meetings, resulting in private sector priorities and recommendations being reflected in this document.

In the context of the regional integration process, the leather sector Strategy aligns itself with, and
contributes to the COMESA Medium Term Strategic Plan (MTSP) and the Comprehensive African Agricultural
Development Program (CAADP). The Strategy contains an evaluation of present and future market potential,
current sector performance and response activities towards its implementation. It represents the way
forward for better sector integration and contribution to the livelihoods of COMESA citizens.

COMESA appointed a Core Team, composed of representatives of leather sector stakeholders, which led the
process so as to ensure that the interests of Member States and stakeholders were reflected in a transparent
way. The International Trade Centre (ITC) provided sector and buyer related expertise, as well as the overall
facilitation of the Strategy formulation process. It employed a market-led participatory stakeholder approach
focusing on domestic, regional and international market opportunities as well as the regional integration
elements related to the enabling environment, the policy framework and market access.

The COMESA Core Team will ensure that beneficiaries’ interests and the Strategy’s priorities are properly
addressed by acting as an advisory group and working in cooperation with COMESA, the COMESA Leather and
Leather Products Institute (LLPI) and with implementing partners and other development organizations.

A vote of thanks goes to all the leather sector stakeholders that participated in the regional and national
meetings, as well as to the Core Team members who have devoted their own time to the development of the
Strategy. The Core Team members are: Dr. Tadesse Mamo (Chair), COMESA/LLPI; Mrs. Hazel Magumise,
Ministry of Commerce of Zimbabwe; Mrs. Samia H. M. Elamin, National Leather Technology Center, Sudan;
Mr. Abdissa Adugna, Ethiopian Leather Industry Association, Ethiopia; Mr. Fred Kongongo, COMESA; Mr.
David Daka, Leather Institute Association of Zambia; and, until December 2010, Dr. Sam Kiruthu, Eastern and
Southern Africa Leather Industries Association.

Finally, COMESA would like to thank the ITC technical staff involved in supporting the Strategy development,
as well as the resource people from COMESA countries. These are: Mr. Frank Mugyenyi, (Regional Trade
Adviser, PACT II, COMESA); Mr. Hernan Manson (ITC Team Leader and Associate Adviser for Value Chain
Development); Mr. Ralph Arbeid, (Leather Sector Consultant); Mr. Nicholas Mudungwe, (Regional Consultant
and Core Team support). Thanks also to Mr. Alfredo Martinelli, Mrs. Mangoma Mulikita and Mrs. Roberta
Lascari for their contribution to the Strategy.

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Table of Contents

EXECUTIVE SUMMARY .....................................................................................................................................................7

Scope and introduction................................................................................................................................................... 7
Regional situation .......................................................................................................................................................... 7
Strategy response and priorities..................................................................................................................................... 8
Target Markets ............................................................................................................................................................... 9
Anticipated outputs, impact and beneficiaries ............................................................................................................... 9

INTRODUCTION ............................................................................................................................................................. 11

Scope of the Strategy ................................................................................................................................................... 12

Strategy Contribution to the COMESA Medium Term Strategic Plan .......................................................................... 13
Strategy Development Process ..................................................................................................................................... 13
Anticipated Results ....................................................................................................................................................... 16
Implementation Framework ......................................................................................................................................... 17

CHAPTER I CONTEXT .................................................................................................................................................. 19

Social and Economic Importance of the Sector ............................................................................................................ 19

Environmental Aspects ................................................................................................................................................. 19
Regional and International Markets ............................................................................................................................ 20

CHAPTER II THE SITUATION IN THE COMESA REGION.............................................................................................. 23

The Leather Value Chain............................................................................................................................................... 23

The COMESA Leather Value Chain................................................................................................................................ 25
The COMESA Leather Sector in the Global Context ...................................................................................................... 25

CHAPTER III REGIONAL SWOT ANALYSIS .................................................................................................................. 28

Detailed Analysis of Constraints per Value Chain Stage ............................................................................................... 29

CHAPTER IV THE STRATEGY ...................................................................................................................................... 37
Vision and Mission of the Strategy ............................................................................................................................... 37
Overall Development and Growth Objectives .............................................................................................................. 37
International Target Markets ....................................................................................................................................... 38
Strategic Objectives ...................................................................................................................................................... 38

Objective 1:Improve Access To Affordable Finance........................................................................................................ 39

Objective 2: Create Enabling Policy, Legal Environment And Strengthen Institutional Framework ................................ 40

Objective 3: Facilitate The Improvement Of Overall Quality .......................................................................................... 41

Objective 4: Improve Information And Marketing ......................................................................................................... 43

Log Frame For Strategy Objectives ................................................................................................................................. 45

ANNEXES ....................................................................................................................................................................... 52

ANNEX 1 - STRATEGY DEVELOPMENT PROCESS.......................................................................................................................... 53

ANNEX 2 - STRATEGY CONTRIBUTION TO THE MTSP .................................................................................................................. 54

ANNEX 3 – STRATEGY’S CONTRIBUTION TO MDGS..................................................................................................................... 56

ANNEX 4 - COUNTRY SPECIFIC CONSTRAINTS ............................................................................................................................ 57

ANNEX 5 – CASE STUDIES..................................................................................................................................................... 61

ANNEX 6 – REGIONAL DYNAMICS .......................................................................................................................................... 81

ANNEX 7 – MARKET TARGETS ............................................................................................................................................... 88

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ANNEX 8 – DETAILED STATISTICS ........................................................................................................................................... 91
ANNEX 9- PRICE DYNAMICS .................................................................................................................................................. 99
ANNEX 10- CORE TEAM TERMS OF REFERENCE ....................................................................................................................... 101
ANNEX 11- PARTICIPATION OF MEMBER STATES .................................................................................................................... 105
ANNEX 12 – LIST OF PARTICIPANTS ...................................................................................................................................... 106

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List of Tables

Table 1: The Leather Value Chain ........................................................................................................................ 23

Table 2: COMESA member States grouped by the level of development of the leather sector ......................... 25
Table 3: The COMESA Leather Value Chain's Importance and Performance in the Global Context ................... 26
Table 4: Value addition ........................................................................................................................................ 27
Table 5: Issues and Opportunities: Identified by Stakeholders ............................................................................. 28
Table 6: Objective One: Activities and Expected Results .................................................................................... 39
Table 7: Objective Two: Activities and Expected Results .................................................................................... 40
Table 8: Objective three: Activities and Expected Results .................................................................................. 41
Table 9: Objective Four: Activities and Expected Results .................................................................................... 43
Table 10: Log-frame for strategy objectives ........................................................................................................ 45
Table 11: Overall comparison of regional response objectives and national objectives .................................... 76

List of Figures

Figure 1: The Leather Value Chain ....................................................................................................................... 24

Figure 2: Current and Proposed Export Ratio (%) of Total Output...................................................................... 37

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List of Abbreviations

CAADP Comprehensive African agricultural Development Program

CIDA Canadian International Development Agency

COMESA Common Market for Eastern and Southern Africa

EAC East Africa Community

ESALIA Eastern and Southern Africa Leather Industries Association

ELIA Ethiopian Leather Industries Association

FAO Food and Agriculture Organization

FTA Free Trade Area

ITC International Trade Centre

LLPI Leather and Leather Product Institute of COMESA

MDGs Millennium Development Goals

MTSP Mid-Term Strategic Plan

PACT II Programme for African Capacity building on Trade

SADC Southern Africa Development Community

SWOT Strength Weaknesses Opportunities and Threats

UNIDO United Nations Industrial Development Organization

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Executive Summary

Scope and introduction

The broad goal of the leather sector Strategy is to transform COMESA leather value chain from the production
and trading of raw materials towards the production and trading of value added products.

This thrust would help boost intra trade, create employment and increase sector’s contribution to GDP and
poverty alleviation. The Strategy proposes practical activities that should be implemented at national level in
order to deliver tangible results that would directly impact on the welfare of the citizens of COMESA including
those at the grass roots level.

The Strategy has a strong strategic fit with the COMESA Medium Term Strategic Plan (MTSP), the
Comprehensive African Agricultural Development Program (CAADP) and the Leather and Leather Product
Institute (LLPI) of COMESA. One of the key objectives of the MTSP is to build a strong and competitive
productive base by strengthening key economic sectors - agriculture, industry and services - with a specific
focus on innovation and value-addition. Thus, the leather value chain Strategy directly contributes towards
the attainment of the given objective of MTSP.

The Strategy contributes also to the Millennium Development Goals (MDGs), in particular to MDG number
eight, which focuses on global partnership for development. The development of the leather value chain
should support development initiatives that are targeted towards poverty eradication within the entire
region.

The overall development of the Strategy was championed by the COMESA Secretariat together with COMESA
LLPI and was led by the Core Team. A wide representation of the sector stakeholders drawn from fifteen
COMESA countries directly participated in evaluating market opportunities and regional constraints and in
developing response activities through a series of regional and national workshops. Special effort was put in
place to ensure that over 60% of the participants were coming from the private sector representing actors at
different stages of the value chain including those living in rural areas.

COMESA and ITC provided technical support to the Core Team in the crafting of the Strategy and ensured the
participation of international and regional buyers and sector specialists in the participatory stakeholder
workshops.

Regional situation

COMESA participates only marginally in the global trade of leather products. Regional livestock herd has been
rising steadily over the years, but value addition has lagged behind. COMESA remains a net exporter of raw
materials and a net importer of finished leather goods, made from COMESA raw materials abroad. The
potential to add value to African raw materials runs into a staggering 563%, from a value of US$378 million for
raw materials to a value of US$2.5 billion for leather goods.

The region is plagued by a number of serious restraints. Natural and man-made defects are downgrading the
quality of hides and skins that are produced in the region. There is a wide gap between the latest technology
and what is currently being used in the region. Managerial, technical, marketing and creative skills are in need
of improvement. Modernization of existing facilities is crucial to make the region competitive in the global
leather and leather products theatre.

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The level of development of the value chain in the COMESA region is greatly varied across the Member States.
Some countries export only raw materials; others have tanneries but produce semi tanned leathers, whereas
only a few have a fully vertically integrated value chain from raw hides and skins to finished leather products.
This scenario creates opportunities for intra trade within the region.

The leather industry is considered to be one of the most polluting industries with high negative impact on the
environment. The Strategy recognizes the importance of adopting sustainable clean technologies in order to
achieve the basic goal of value addition and product quality development.

The stakeholders identified the following factors as major constraints to COMESA leather sector’s growth:

 Poor animal farming and husbandry practices;

 Unsuitable or absent slaughter facilities;
 Poor quality on value added products;
 Poor marketing of leather commodities;
 Absence of sector specific policies;
 Lack of technical and managerial skills;
 High cost of finance; and
 Production of poor quality products due to inadequate technology.

In addition to technical constraints, producers face logistical challenges and are not well informed about
market dynamics for finished leather goods. This scenario has discouraged them to produce and export
finished leather goods but to concentrate in the production of generic products, such as wet blue and crust
leather whose demand is generally stable.

Strategy response and priorities

The Strategy focuses on the entire value chain, starting from pre- and post-slaughter issues that impact on the
production of quality hides and skins, the leather production process up to the manufacture of footwear and
other leather goods. Based on the main performance issues at a regional level, the Strategy proposes specific
activities to address quality and capacity constraints at every stage of the chain, which are complemented by
efforts towards improving access to finance, creating an enabling policy and legal environment and ensuring
institutional support.
The Strategy’s four main objectives are:

1. Improving access to affordable finance;

2. Creating enabling policy and legal environment and strengthen institutional framework;
3. Facilitating the improvement of overall quality; and
4. Improving information and marketing systems.

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Target Markets

The Strategy focuses on markets segments which have been prioritized by sector stakeholders. These are
summarized below:

Raw materials and Finished Leather Footwear, Garments and

Semi processed leather Other Leather Goods
Exports Outside COMESA Medium Priority Medium Priority
Regional/Domestic Markets High Priority High Priority High Priority
Niche Market (artisanal, Medium Priority Medium Priority
ethical & boutique)

Specific geographical markets for specific products have been identified as follows:

 For hides and skins and wet blue: COMESA region;

 For crusts and finished: South Africa; COMESA; EU (Italy); India; Far East (China);

 For finished products: South Africa; COMESA; EU; North America.

Thus, COMESA countries’ long term objective is to completely eliminate the export of raw hides and wet blue
outside the region and to concentrate exclusively on the export of finished leather and leather products.

Anticipated outputs, impact and beneficiaries

The four main objectives and anticipated outputs are summarized below:

Objectives Anticipated Outputs

Objective 1: Improve access to affordable finance Available affordable finance

Objective 2 : Create an enabling policy, legal environment and Supportive policy, legal and institutional framework in place
strengthen institutional framework

Objective 3: Facilitate the improvement of overall quality Increased quality at all levels of the value chain

Objective 4: Improve information and marketing systems Improved information and market systems in place

The implementation of the Strategy would unleash productivity and quality improvement in the sector and
generate the following economic impacts in the COMESA region:

 An increase in value chain products intra-trade from an estimated average of 1% to 5%;

 A 15% increase in employment creation in the sector;

 A rise in the sector’s contribution to the GDP from the current estimate of 0.5 % to 1%.

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Approximately 70% of the population in the COMESA region draws their livelihood from agriculture.1 Given
the direct linkage between the leather value chain and agriculture, a robust performance of the former would
generate positive trickle down benefits to millions of people living in rural areas.

Additionally, the production of value added products would help reduce unemployment, which is above 25%
in most of the COMESA countries.2 Production of leather products such as footwear, garments, belts and
wallets is labour intensive.

End of executive summary.

1
Source: UNDP Development Indicators.
2
Source: World Bank Statistics.

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Introduction

The COMESA Secretariat is supporting its Member States to design and implement strategies to coordinate
the financing and delivery of a cohesive set of market-led prioritized development activities across the region.
Such strategies seek to reinvigorate those productive sectors from which most of the people in the region
derive their livelihoods. This initiative is timed so that enterprises, trade support organizations and
governments in COMESA countries could take advantage of the improvements in the trading environment
arising from their stable economies and from a harmonized customs zone.

The COMESA leather value chain Strategy is the outcome of various regional consultative roundtable meetings
on the leather sector. Similar efforts are being undertaken in other three sectors, namely: agro-food/business,
metallic industries and light engineering and niche tourism.

The leather value chain is a multi-billion dollar business that has immense potential of unlocking value across
a number of COMESA countries that are well endowed with a large livestock pool. The combined total of
bovine, sheep and goats is estimated at 370 million animals. Hides and skins are a by-product of the meat
industry, which constitute only 10% of the meat value chain. However, the total trade value of the leather
value chain is more than threefold the total trade of meat and meat products. This highlights the importance
of the sector as a major foreign currency earner and source of employment creation.

According to FAO data, global trade of the leather value chain was valued at more than US$69 billion in 2008,
with contributions from different commodities of the chain being split as follows: hides and skins (US$4.9
billion); finished leather of bovine, sheep and goats (US$18.3 billion); and leather footwear (US$46.5 billion).

COMESA’s contribution to global trade of the chain was only 3%, with a value of US$0.2 billion. Therefore, the
Strategy shall be implemented so as to unleash value addition in COMESA leather value chain in order to
upgrade its position in the global trade of leather commodities.

The leather sector, besides its relatively small size in comparison to other economic sectors, such as mining,
has the greater potential of unleashing value to 70% of COMESA citizens living in rural areas. Despite such a
potential, few African countries have managed to assert themselves in the world market, due to the fact that
most, if not all, African countries are net importers of finished leather products and net exporters of raw hides
and skins and semi processed leather. It is therefore important to add value to available hides and skins by
transforming them into finished leather and leather products. To this end, a number of COMESA countries
have instituted policy measures aimed at discouraging export of raw hides and skins. For example, Zambia
and Zimbabwe3 have imposed an outright ban on export of hides and skins, whereas Ethiopia, Kenya, Sudan
and Uganda have levied an export tax.

The primary objective of the Strategy is to transform the leather value chain from manufacture and export of
raw materials towards the production and export of value added products. This will result in a 5% increase in
intra-trade of leather products and in a 15% increase in employment creation.

3 Zimbabwe has recently reviewed this position and introduced export licenses as a measure for controlling the export of hides and skins.

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Scope of the Strategy

The COMESA regional leather sector Strategy was developed to define, coordinate and align cross-border and
intra-regional trade development activities in the COMESA region. It is also intended to influence resources
allocation, development of new policies and national investment plans.

The Strategy is not a summation of national strategies as it focuses on higher value issues of a regional nature.
It seeks to stimulate intra-regional activities for growth, diversity and competitiveness of the leather industry.
The overall expected result is the acceleration of the leather sector development throughout the region and
the improvement of the livelihoods of the population.

The Strategy represents a concerted partnership between the public and the private sector and it is
influenced by the following fundamental issues:

 Regional challenges based on industry goals and opportunities;

 Actions to be undertaken at the regional level by various actors with an overall coordination;

 Realistic policy goals;

 Resource prioritization and allocation;

 An effective implementation and management framework.

The Strategy seeks to enhance the leather value chain’s performance with the ultimate objective of boosting
production, manufacturing and trading of value added products. The action plan covers all parts of the sector
(animal husbandry, raw hides and skins issues, tanning, manufacturing, design, marketing, exporting and
support services) as well as support institutions in the COMESA region.

Moreover, the Strategy seeks to align regional course of action and agenda with validated market, private
sector and national priorities. The Strategy represents a platform for COMESA to dialogue with implementing
partners in order to ensure coherence and synergies in the interventions to achieve the strategic objectives.

The COMESA Treaty4 is the overall framework for the Strategy and its scope is defined by the COMESA
roadmap for integration, which aims to reinforce value addition and diversity across the region.5

4
According to Article 3 of the Treaty, the aims and objectives of the Common Market shall be:
i. To attain sustainable growth and development of the Member States by promoting a more balanced and harmonious development of its
production and marketing structures;
ii. To promote joint development in all fields of economic activity and the joint adoption of macro-economic policies and programmes to raise
the standard of living of its peoples and to foster closer relations among its Member States;
iii. To co-operate in the creation of an enabling environment for foreign, cross border and domestic investment including the joint promotion
of research and adaptation of science and technology for development;
iv. To co-operate in the promotion of peace, security and stability among the Member States in order to enhance economic development in the
region;
v. To co-operate in strengthening the relations between the Common Market and the rest of the world and the adoption of common positions
in international fora
vi. To contribute towards the establishment, progress and the realisation of the objectives of the African Economic Community.
5
The COMESA integration agenda is premised on the three frameworks of integration namely the: Market, Production or Project-directed, and
Development integration approaches. The Market Integration approach: focuses on trade liberalisation that entails the removal of both tariff and non-
tariff barriers to trade, investment and any other forms of commercial interaction across Member States. It is generally described as a linear approach,
as the integration process, progresses from a Free Trade Area (FTA), followed by the establishment of a Customs Union and ending with an Economic
Community (EC). The Production or Project-directed approach focuses mainly on the co-ordinated planning and implementation of productive activities
across Member States. The Development Integration approach has elements of both production and market integration approaches, but emphasises
equitable development through compensatory and corrective initiatives.
COMESA Strategy has so far placed much emphasis on the integration of the economic space through the removal of trade and investment barriers.
Although COMESA has made tremendous progress using this approach, and will continue to pursue it, the focus in the next decade and beyond will

12
Additionally, the COMESA Secretariat has recognized in its Mid Term Strategic Plan the role of the private
sector as the main driver of economic growth and committed to developing programmes for building
productive capacities and technological capabilities to enhance industrial and trade competitiveness
especially for SMEs. The Strategy scope is focusing on the above. It also complies with the 2006 COMESA
Summit directive to develop regional value chains in six priority sectors.

The Leather Strategy is a critical cornerstone to the COMESA’s development integration strategy, as it has
been led by the private sector and proposes initiatives that are aimed at addressing supply side,
commercialization and integration constraints in the region.

Strategy Contribution to the COMESA Medium Term Strategic Plan

In the context of the COMESA regional integration, the leather sector Strategy aligns itself with, and
contributes to the COMESA Medium Term Strategic Plan (MTSP)6 and to the Comprehensive African
Agricultural Development Program (CAADP).7

The MSTP represents a bold statement of commitment and a road map for the achievement of the goals of
regional integration. COMESA will continue to consolidate its internal market by making substantial progress
in removing barriers to factor mobility, thus facilitating freer movement of goods, services, capital and people.
Concurrently, it will continue to build a strong and competitive productive base by strengthening the key
sectors of agriculture, industry and services with a specific focus on innovation and value-addition. In order to
enhance regional trade and investment, structural constraints will be addressed and policies and regulations
will be harmonized among COMESA countries.

With regard to the CAADP, the COMESA regional leather Strategy aligns itself with Pillar 2 (Market Access)
objectives, which are to: 8

 “Accelerate growth in the agricultural sector by raising the capacities of private entrepreneurs
(including commercial and small-holder farmers) to meet the increasingly complex quality and logistic
requirements of markets, focusing on selected agricultural commodities that offer the potential to
raise rural (on- and off-farm) incomes; and
 Create the required regulatory and policy framework that would facilitate the emergence of regional
economic spaces that would spur the expansion of regional trade and cross-country investments”.

Furthermore, the Strategy contributes to CAADP Pillar 1 (Land & water management), in terms of clean
processing technologies and effluent water treatment, and Pillar 3 (Food supply and hunger), to ensure that
growing agricultural productivity, well-integrated markets and expanded purchasing power of vulnerable
groups combine to eradicate hunger and malnutrition through increased incomes.

Strategy Development Process

In 2007, COMESA organized a series of roundtable meetings that sought to bring together private and public
sector actors with the objective of identifying the main constraints in different economic sectors and to
develop policy recommendations at regional level.9

shift towards the development integration approach. This would imply that more resources would be invested towards addressing the supply side
constraints to regional integration. This shift recognises the importance of supporting enhancement in sector productivity across member countries. It
is within this context that the sector development strategies, such as the leather value chain Strategy would contribute towards the attainment of the
COMESA’s development Strategy.
6
The COMESA MTSP for the period 2011 – 2015 is currently under discussion.
7
http://www.caadp.net/index.php
8
See Annex 2.

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Such meetings were a success since they provided a channel for the private sector to discuss directly with
COMESA and national policy makers at a sector specific level. Mining and minerals, cotton and textiles, agro-
foods, tourism and leather were some of the COMESA priority sectors which were discussed in the roundtable
events. One of the recommendations resulting from the meetings was the need for COMESA to undertake a
more in depth market-led strategic planning exercise for the provision of support in each sector.

In the case of leather, a round table meeting took place in Addis Ababa, Ethiopia, in 2007 with the
participation of twelve COMESA member States, various sector associations and private sector entrepreneurs.
COMESA decided to champion the development of a regional sector Strategy for leather using a stakeholder-
led approach and requested ITC’s support through the CIDA funded PACT II programme to develop and
implement the Strategy.

In February 2010, a group of thirty sector experts representing eight countries and including the COMESA
Secretariat, COMESA/LLPI and ESALIA, met in Nairobi to agree on and customize the ITC approach. The
delegates recommended that a Core Team composed of private and public sector representatives be formed.

The Core Team mandate was to lead the Strategy’s development and implementation and to ensure that
stakeholders’ interests were duly represented. In its mandate, the Core Team will be supported by ITC,
COMESA and LLPI. Key constituencies or organizations, which are pivotal in the execution of the Strategy,
include: the COMESA Secretariat; Member States; the Core Team; LLPI; ITC; industrialists; and donors.

Who contributed to this Strategy?

The overall development of the Strategy was championed by the COMESA Secretariat and was led by the Core
Team. The private sector played an active role in the crafting of the Strategy; 60% of participants in all
meetings were from the private sector.

ITC provided support to the Core Team and COMESA in technical and financial matters related to the
participatory value chain based process, the Strategy development and its management. ITC also facilitated
the participation of international and regional buyers and sector specialists in the participatory stakeholder
workshops.

In total, more than 200 sector stakeholders were involved in the development of the Strategy in nine
participatory workshops at regional and national levels. The participants from the private sector were drawn
from all stages of the value chain (cattle farming to traders, abattoirs, hides and skin collectors, tanners,
manufacturers, designers, exporters, importers and banks) as well as from the public sector (Government
officials from Ministries of Livestock, Agriculture and Commerce) and regional institutions.

Overall, a total of 16 COMESA member States were represented and participated in the process, namely:
Burundi, Comoros, Djibouti, Egypt, Eritrea, Ethiopia, Kenya, Libya, Malawi, Mauritius, Rwanda, Seychelles,
Sudan, Uganda, Zambia and Zimbabwe.

What process was used?

The content of the Strategy, and most importantly the strategic direction and objectives, were formulated
through multi-stakeholder platforms that encouraged public-private dialogue at the regional level. The

9
See Annexes 11 and 12.

14
dialogue was instrumental in reaching a common understanding of shared sector issues as well as of market
potential.

In the participatory workshops, sector stakeholders agreed on target markets and intra-regional trade
priorities, analyzed value chain performance issues at national and regional level, and developed response
activities to the regional performance gaps. The most important contribution of the participatory workshops
is not the fact that consultation was done broadly, but that different stakeholders in the chain and from
different countries in the region (COMESA officials, tanners and manufacturers and livestock farmers)
managed to discuss their different points of view and needs for the first time under the same roof, with the
aim of reaching a common objective.

The Core Team, with the support of COMESA and ITC, articulated the Strategy document so that it reflects the
participatory outputs, stakeholder validated information and strategic course of action for the sector. The
following activities were performed by the Core Team to lay the foundation for the Strategy development:

 Training and Workshops:

• Regional Roll-out Event, Nairobi (22 – 23 June 2009);

• South-South Trade Development Workshop and ITC’s Business Methodology Training (Nairobi, 16
– 19 February 2010).

 National Leather Value Chain Analysis (Mapping) Workshops in:10

• Harare, Zimbabwe, July 1 – 2, 2010;

• Blantyre, Malawi, July 13 – 14, 2010;

• Kampala, Uganda, July 28 – 29, 2010;

• Regional Workshop, Kigali, December 1-2, 2010.

 Representation of the sector on the 4th Edition, All African Leather Fair (1 – 3 March 2011, Addis
Ababa) and support to ten SMEs to exhibit and participate in the fair drawn.

10
Value Chain Analysis Country Case Studies were produced for the above countries. See Annex 5.

15
Anticipated Results

The implementation of the Strategy’s objectives and activities will target the whole value chain stages and
direct beneficiaries are expected to be:

 Livestock farmers/producers/herders;
 Abattoirs, hides & skin collectors and traders;
 Tanners, manufacturers, traders and exporters;
 Sector & business support organizations (private sector associations, training institutions, banks);
 Actors in related-industries (through the improvement of enabling environment);
 Designers and fashion related professionals;
 National and Regional support service institutions;
 Research institutions; and
 COMESA’s leather goods consumers.

Additionally, the Strategy will contribute to:

 Develop a common course of action with country specific components;

 Create a legitimate platform that will guide and monitor implementation;
 Improve relevance, effectiveness and efficacy of regional initiatives and programmes;
 Increase the overall regional competitiveness and better integration of sector segments;
 Increase investment opportunities for value addition in the sector;
 Build on existing and new market opportunities (intra-regional, international) and set overall market
targets;
 Improve the regional enabling environment;
 Capitalize on lessons learned at national level and foster sector specific exchange (professional,
technicians, technology).

The proposed transition of the sector from the export of raw materials towards the export of value added
products will have as an effect to increase:

 Intra-regional trade by 5 %, from current estimation of less than 1%;

 Employment creation by 15%, from current estimation of around 5%; and

 Sector’s contribution to GDP by 1%, from current estimation of below 0.5%.

16
Implementation Framework

The Core Team is expected to play a leading role in the Strategy implementation. On the basis of the log-
frame, it should be able to develop annual work plans and proposed budgets, through the support of
fundraising modalities. Fund raising modalities will take the form of proposals and concept notes that will be
submitted to potential donors.
The diagram below portrays the proposed implementing framework which has been developed by the Core
Team and endorsed by COMESA in October 2010.

Implementing framework - COMESA

Member States
COMESA SECRETARIAT

Go ahead for IMPLEMENTATION in REC and

validation of modality (How)

Development Partners
CORE TEAM ITC/COMESA:
Core Team Capacity Building and
Consultative & Advisory
Support
Regional LEATHER STRATEGY
COMESA COMESA LLPI hosts Core Team
ITC PACT 2 and provides a secretariat
Implementation Components

Other Development Strategy Monitoring: Stakeholder

Partners Participation / Validation

The Core Team Terms of Reference (TOR) were finalized and validated by the Core Team together with the
implementation framework (see Annex 1). Its role is framed by the Strategy design and implementation in the
context of the COMESA Secretariat’s related activities.

The Core Team has two main objectives:

 To ensure that COMESA leather sector stakeholders’ interests are represented in the Strategy’ design,
planning and implementation, as well as in policy objectives; and

 To act as a consultative and advisory body for implementation and resource mobilization to COMESA
Secretariat and other development partners.

As per the above framework, it is envisaged that COMESA/LLPI provides budgetary, technical and secretariat
support to the Core Team, and that COMESA and ITC provide budgetary as well as technical support and
coaching to the Core Team for its functions and for the Strategy’s implementation.

It is envisaged that the Core Team will hold quarterly meetings to review implementation progress and will
interact regularly with implementing partners. The Core Team will also hold periodic stakeholder

17
consultations and progress review sessions and a bi-annual progress report meeting with COMESA Assistant
Secretary General.

The Core Team members appointed by stakeholders and endorsed by COMESA are:

Dr. Tadesse Mamo (Chair) COMESA/Leather and Leather Products Institute

Mrs. Hazel Magumise Ministry of Commerce, Zimbabwe

Mrs. Samia H. M. Elamin National Leather Technology Centre, Sudan

Mr. Abdissa Adugna Ethiopia Leather Industries Association, Ethiopia

Mr. Fred Kongongo COMESA

Mr. David Daka Leather Institute Association of Zambia, Zambia

Dr. Sam Kiruthu
(until December 2010)
Dr. Mwinyihija Mwinyikione
(with effect from June 2011)
Eastern and Southern Africa Leather Industries Association (ESALIA)
Secretary/Chief Executive Officer of the Leather Development Council,
Kenya

18
CHAPTER I Context

Social and Economic Importance of the Sector

The social and economic development within the COMESA region should be viewed in the context of the
general thrust of the United Nations Millennium Development Goals (MDGs).11 In particular, the Strategy is
framed in the context of MDG 8 on “Global partnership for development”: the development of the leather
value chain should support development initiatives that are targeted towards poverty eradication within the
entire region.

The poverty situation is reflected in the low level of income and high levels of human deprivation, with about
70% of COMESA population living below the international poverty line of US$2 per day and 30% below US$1
per day. This constitutes formidable social and demographic challenges for the region with a negative
implication on productivity improvement and economic growth.

It is within this context that the principle of equity should be recognized as the leather chain is composed with
actors from all social classes, ranging from the poorest farmer to the richest tannery owner. The leather value
chain in COMESA has the potential of delivering equitable value to all chain actors starting with small holder
farming communities, large and small slaughter houses, hides and skins collectors, artisan and industrial
tanneries and manufacturers of leather footwear and other leather products.

On the basis of December 2010 prices and sector statistics,12 the overall income generating potential for the
leather sector through commercialization (raw to finished leather) is estimated to be approximately US$2.5-3
billion per year.

Development of the leather value chain through value addition also contributes to female employment,
particularly in the upstream sector of leather finishing and leather product manufacturing. Production of
footwear and leather goods is the third level of the leather value chain, which has the potential for creating
transgender employment and to contribute towards poverty eradication. This is mainly because of the labour
intensive nature of footwear and leather articles production, thus a robust performance of commercial
enterprises in the production of the said products is set to create more jobs in the region.

Additionally there is also a great scope for SMEs and informal enterprises to produce leather articles like
shoes (sandals), belts and small leather goods. It is important that the region’s leather Strategy should come
up with strategies to boost this segment of the chain.

Environmental Aspects

The leather industry is considered to be one of the most polluting industries with high negative impact on the
environment. The most important mechanism to achieve the basic goal of value addition and product quality
development is through the adoption of sustainable clean technologies.
New clean technologies include the “3R approach”: Reduce, Re-use and Recycling of liquid waste (effluent),
which can lead to zero liquid waste. Solid waste can be used as inputs for useful by-products such as glue,

11
See Annex 3.
12
Source: The Sauer Report. www.thesauerreport.com. See Annex 9 for more details on hides and skins price dynamics.

19
gelatin, leather board, hair mats, etc. Therefore, technology transfer and adaption of what is appropriate is
highly essential.

It is also advisable for the COMESA region to seek accreditation for regional testing laboratories in order to
facilitate the achievements of the standards ISO 170 25, ISO 9000 and ISO 14000, so as to meet customers’
requirement and ensure environmental sustainability of leather production.

COMESA region lacks effective implementation of regulations and conformity with standards and
specifications, in spite there are some environmental acts and laws in member countries. This matter needs to
be tackled firmly for Africa to attract foreign direct investment. Hence strict measures are to be taken into
consideration by the concerned authorities at national levels.

When leather specialized industrial zones are established, clean technologies can be enforced to avoid any
more contamination and to control the waste flow through better quality management.

Regional and International Markets

Trends and dynamics

Until the late 1950’s, leather was mainly produced in developed countries, with Europe as the leading player.
Locally produced hides and skins were processed together with imported hides and skins, mostly from
developing countries. Slowly, value addition of hides and skins by industrial transformation shifted from
developed countries towards the East. Firstly, Pakistan, India and Bangladesh became large scale
transformers; then it was the Far East - Korea, Vietnam, and Indonesia - with China leading in terms of
quantity. China is today the largest producer of leather and leather goods in the world.

Nowadays, due to environmental and labor cost reasons, the production momentum of leather is shifting
towards the African continent, where local, European and Chinese tanneries have invested significant
amounts of money to set up production units that either transform hides and skins to semi-tanned, semi-
finished and/or finished leather or leather goods. The main reasons for which foreign companies are coming
to Africa are the availability of human resources; the availability of leather and low labor costs.

In order to compete, local companies are requested to give a quick response in terms of delivery times and
quality of finished products. In exchange, sub-contracting should transfer on to local companies enough
technological knowledge in order to enable them, in the mid-term, to get appropriate skills to penetrate new
foreign markets like the United States and the European Union. However, the reality is that at present these
targets sometimes are not fully reached, mainly for the following reasons:

 Incapability of foreign technicians to transfer knowledge mainly for language problems;

 Insufficient skills of local workers/controllers in some delicate productions stages (i.e.
finishing);
 Inadequate management of orders taking to delayed delivery times;
 Lack of appropriate components (like lasts, buckles, ornaments etc.);
 Limited availability of good quality finished leather; and
 Limited availability of technical services.

20
In some cases the negative impact of these factors together with the fact that local companies are
continuously squeezed by their contractors, obliged both parties to limit or even to interrupt their working
relationships.

Furthermore, from the COMESA’s point of view, market trends in terms of demand of leather types (bovine,
sheep or goat) and fashion are subject to sensible variations, mainly due to: fashion, exchange rates, logistics
(delivery times), price of the competitors in similar markets or similar commodities, political micro and
macroeconomic events, etc. Buyers and sellers alike look for the best opportunities and can change origin or
destination depending on the offered opportunities.

Buyer requirements and priorities both in developed and developing countries have been identified as
follows:

 Price;
 Convenience;
 Design;
 Quality;
 Certification of eco-compatibility;
 Corporate social responsibility;
 Branding.

In the global market, competition is tough and can be determined by a large number of factors, such as
import and export restrictions and/or incentives, environmental issues and transportation costs, among
others. For example, Chinese tanneries can compete on the raw market in almost any of the African countries;
they can import raw hides and skins and transform them into leather which is sold to Chinese leather goods
manufacturers. Chinese leather goods producers can then export to Africa a fully finished product, made out
of African raw hides and skins and tanned in China, at a more competitive price than locally made similar
products.

Intra-regional trade of leather goods

At least 80% of available leather in the world is used for the production of shoes, whose demand is expected
to increase particularly in emerging and developing countries. Increased spending capability in China has
created a huge increase in domestic demand for leather shoes. Similarly, African countries will see an
increasing trend of demand for more footwear, including the requirement to substitute cheap plastic shoes
and slippers with leather footwear, which is more durable, healthier and more fashionable.

At present, fully finished leather goods, like shoes and small leather goods, are traded in limited quantities
within COMESA and only few countries, particularly Ethiopia, Egypt and Kenya export overseas. Ethiopia is the
major exporter of leather goods in the region.
Main trade constraints faced by COMESA countries are: delivery times, quality consistency and transportation
costs. Also, most of the shoe companies in COMESA, included bigger and industrialized factories in Egypt and
Ethiopia, do not have their own collections reducing by far their possibilities to enter foreign markets or even
increase the number of local and regional customers.

In this context, COMESA countries shall achieve the following main targets:

21
  Contrasting the import of cheap foreign products sold on local markets;

 Piloting local new production towards regional and international markets; and

 Reducing poverty by increasing new working possibilities.

Regional integration process and trade opportunities

Through the establishment of a Free Trade Area in 2000 and the launch of the Customs Union in 2009,
COMESA has achieved a deeper level of economic integration. As a result, COMESA intra-trade has
quadrupled in the period 2000-2008.

The process of establishing a Common Market by 2015 is ongoing; in parallel, COMESA, SADC and EAC are also
negotiating the Tripartite FTA, which will result in a larger market with a single economic space attracting
investment and large-scale production. Such regional initiatives will stimulate COMESA intra-trade, not only
by reducing tariffs on regional imports, but also facilitating and enforcing cross-border trade procedures,
reducing transportation costs, eliminating non-tariff barriers, etc.

With regard to international markets, COMESA countries shall also take advantage of preferential trade
agreements that are in place or under negotiations, particularly with the EU. In 2009, over 56% of COMESA’s
exports went to the European market. Other strategic markets include: China, the United States, United Arab
Emirates and South Africa. COMESA countries shall use and implement preferential market access conditions
granted by their trading partners, in particular those least developed countries among them.13

13
See Annex 6 for further details.

22
CHAPTER II The situation in the COMESA region

The Leather Value Chain

The leather value chain is made up of the following segments: animal husbandry; collection of hides and skins;
slaughter of animals on farms, homes, slaughter slabs, slaughterhouses and abattoirs. After conservation
treatment, hides and skins are transformed into leather in tanneries. The tanning stage is followed by the
manufacture of leather products, which is often carried out in small, labour-intensive factories, though in
some countries well-developed shoe industries are in place. The marketing of intermediate and end products
at different stages in the chain is the key to success in the modern leather products industry.

At the global level, the chain used to be tightly controlled by international marketing agents who have both
market knowledge and a wide network of sales channels that allow them to manage complex supply chain,
contracting production, providing finance and servicing the customer on time. However, the emergence of
easy and unrestricted communications, as well as of e-commerce has weakened the role of agents. Many of
them have now become traders and are functioning as financing links between sellers, who need prompt or
advance payment, and buyers, who demand long-term payment delays.

Table 1 below summaries the leather supply chain, which is further illustrated in Figure 1.

Table 1: The Leather Value Chain

STAGES CRITICAL INPUTS OUTPUTS

Livestock production  Human resources  Milk
 Live animals  Pulling power
 Breeding techniques  Mature animal for slaughter
 Animal health services
 Animal feed
Slaughtering – Hides and skins  Human resource – technical and managerial skills  Heavy bovine hides
Recovery  Equipment and spare parts  Light bovine hides
 Slaughter facilities  Goat and sheep skins
Tanning  Raw hides and skins  Heavy and light bovine leather
 Human resource – technical and managerial skills  Light (sheep & goat) leather
 Chemicals  (pickled, wet blue, crust, finished) leather
 Machinery

Manufacturing  Human resource – technical and managerial skills  Leather products

 Machines  Footwear
 Accessories  Leather garments
 Components
 Design
 R&D
Marketing  Human resource – technical and managerial skills  Domestic, regional and international trade
 Information and IT
 Technical administrative support
 Institutions
 Promotion

23
Figure 1: The Leather Value Chain

Most producers at every stage of the leather chain in Africa, and in the developing world at large, lack
managerial skills and financial means to run their production as well as the necessary knowledge to identify
suitable target markets for their products. Technical barriers to trade, such as quality standards, also reduce
their chances of accessing regional and global markets. In many Sub-Saharan African countries, for instance,
traditional practices and customs make the development for commercial livestock rearing very difficult; as a
consequence, most hides and skins produced in the region suffer from pre-slaughter defects. Finally,
inadequate infrastructure and unstable political environments hinder upgrading.

24
The COMESA Leather Value Chain

The COMESA region is very important to Africa and the world in terms of the size of livestock herd and
production of hides and skins. However, COMESA’s contribution to global trade is very weak and was
estimated at 0.3% in 2008.

This is mainly attributed to the concentration in production and trade of non-value added commodities,
such as hides and skins.

COMESA Member States display different levels of development across the different stages of the value chain
and can be grouped as follows (see Table 2 below):

 The first group is composed of countries that only produce and export raw hides and skins because
tanneries were either closed down or don’t exist at all;
 The second level is occupied by countries that have some tanning capacity, however mostly limited to
the production and export of pickled and wet blue leather;
 The third group is made up of countries that produce and export finished leather, footwear and other
leather goods.

Table 2: COMESA member States grouped by the level of development of the leather sector

Level of Development of the Leather Value Chain

Low Medium High
Burundi Madagascar Egypt
Comoros Mauritius Ethiopia
DR Congo Uganda Kenya
Djibouti Sudan
Eritrea Zambia
Libya Zimbabwe
Rwanda
Seychelles
Swaziland

Ethiopia and Kenya contributed by 45.9% and 23.2%, respectively, to the total exports of hides and skins and
footwear by all COMESA member States in 2008. Sudan contributed by 13.9%; however its capacity to export
footwear was limited until recently.

The COMESA Leather Sector in the Global Context

Table 3 below shows COMESA’ leather value chain performance in the global context over the period 2001-
08. During the period surveyed, COMESA’s leather value chain experienced a positive performance, in
particular with regard to the primary segments of the value chain, which all grew significantly. In particular,
COMESA’ stock of goat skins increased by 28.6%, whereas at world level the same segment declined by 4.2%

In comparison, negative trends were recorded in the production of light bovine leather, which declined by 3.7
million square feet, and in the export of raw hides and skins and light bovine, with a loss of respectively US$67
and US$55 million. On the contrary, COMESA exports of footwear increased by US$11 million by value.

A similar trend was registered by Africa as a whole: unlike COMESA, African exports of light bovine recorded
an increase of US$10.6 million by value over the same period.

25
COMESA’s relative importance at the global level increased from 2001 to 2008 with respect to the primary
segments of the value chain: hoverer, at production and export levels, COMESA recoded negative
performances, with the exception of export of footwear, which remained stable over the period surveyed.

Table 3: The COMESA Leather Value Chain's Importance and Performance in the Global Context

Relative Importance (%) with Respect to the World

COMESA Growth 2001/08 (%) 2001 2008

Chain Segments Quantities
(2008)
World Africa COMESA Africa COMESA Africa COMESA

234.7 3.7 19.9 20 11.89 8.12 13.7 9.4

Cattle (millions)
14.3 0.2 16.4 18.2 8.06 4.03 9.09 4.6
Bovine hides
(million pieces)
25.5 6.8 21.4 2.4 13.8 4.9 15.6 4.7
Sheep skins
(million pieces)
35.9 -4.2 33.9 28.6 16.2 6.5 22.6 8.9
Goat skins
(million pieces)

Production (million square feet)

255.9 13.7 -4.5 -3.7 3.4 2.7 2.8 1.9
Light bovine
leather

Exports (USD million)

9.8 0.4 -6.2 -67 1.8 1.2 0.7 0.4
Raw hides and
skins
53.3 -0.3 10.6 -55 0.34 0.23 0.4 0.9
Light bovine
15.4 16.8 50 11 1.2 0.04 1.5 0.04
Footwear
Source: FAO 2010 Compendium.

Value Addition

Table 4 below provides a summary of the value addition progression across the various stages of the COMESA
leather value chain.14

14
It must be noted that available export data is controversial and statistics are not updated or do not reflect the actual situation. For example, the
COMESA region exported an estimated 14,800 tonnes of wet salted cattle hides in 2008, which is equivalent to 1,000,000 pieces. The same statistics
report production in COMESA of 268 million square feet of light bovine leather, which is the equivalent to 9 million pieces.
Considering that almost 15 million hides are reported to be produced, there is a balance of five million hides which are not accounted for. There is no
classification of the type of tannage for the 268 million square feet of processed bovine leather, which can be pickled, wet blue, crust or finished.
Reality suggests that the largest percentage of leather is in wet blue: out of the 268 million square feet of tanned leather, a value of US$15 million is
reported to have been exported, which is the equivalent of 750,000 hides. This is, if one takes a unit price of US$0.70 per ft² and an average surface of
28 ft² per piece into consideration. However, it is questionable if local industries can absorb 8.25 million processed hides.

26
 15
Table 4: Value addition

Production status Cattle Goat Sheep Total in US$ Value

Addition (%)
Available data
Livestock heads 145,191,000 120,516,000 104,357,000
Hides & Skins pieces 14,900,000 35,900,000 25,400,000
Hides & Skins sqft 417,200,000 161,550,000 177,800,000
Calculated values
Raw materials estimated market 100
220,000,000 70,00,000 88,000,000 378,000,000
value (in US$)
Wet blue estimated market value 143
300,000,000 125,565,000 116,500,000 542,065,000
(in US$)
Crust estimated market value 182
330,000,000 160,000,000 200,000,000 690,000,000
(in US$)
Finished estimated market value 231
400,000,000 210,000,000 265,000,000 875,000,000
(in US$)
Estimated market value finished 661
2,500,000,000
leather products
Source: Core Team Working Assumptions

The overall market potential of COMESA leather can grow from an estimated value for raw material of
US$378 million to an estimated value of US$ 875 million for fully finished leathers, which represents a value
addition of roughly US$500 million or about 150% of the value of raw materials.

Intra-trade

COMESA member States recognize the growth of intra-trade as central in the strengthening of regional
integration agenda, as witnessed by the establishment of the Free Trade Area (FTA) and the launch of the
Customs Union. However, intra-regional trade of raw hides and skins, leather, footwear and leather products
is still very weak or almost non-existent amongst most of the COMESA countries.
Rwanda is the only country that displays a high intra-trade ratio (37%) with respect to the export of raw hides
and skins of bovine to other COMESA countries. In comparison, the majority of member States displays intra-
trade ratios of less than 1%.

15
The above prices are calculated on an average basis for East African, Sudanese and Ethiopian material as published in the TheSauerReport of 12
December 2010.

27
CHAPTER III Regional SWOT Analysis

At the Regional workshop in Kigali, Rwanda, stakeholders identified the following as Strengths, Weaknesses,
Opportunities and Threats (SWOT) of COMESA leather value chain.

Table 5: Issues and Opportunities: Identified by Stakeholders

STAGES STRENGTH WEAKNESSES OPPORTUNITIES THREATS
CROSS CUTTING  Government  Lack of affordable  Large scope for value  Economic
commitment finance and sector addition downturn
 Available resources specific policies  Expanding regional  Political
 Low technology market instability
 Lack of transport  Availability of raw  Synthetic
 Sector associations materials materials
 Global demand  Influx of second
 Available workforce hand leather
products
 Dumping
 Tariff and non-
tariff barriers
 Lack of sector
policy
 Market
unpredictability
HIDE AND SKIN  Availability of raw  Poor handling of live  Renewable resource  Contagious
PRODUCTION materials animals  Readily available diseases &
 Poor slaughter and markets parasites
conservation  Market factors
techniques
 Poor infrastructure
TANNERIES  Available Production  Lack of technology,  Marketing  Pollution
capacity skills and  Labour  Indiscriminate
 Available work force management  Policy and legal export of raw
 Policy and legal support materials
framework  Room for  Increasing
 Finance and credit improvement human
 Lack of supporting consumption of
industry hides
 Poor environmental  Animal feed
control
MANUFACTORING  Human resources  Marketing through  Better export options  Rent seeking
design  Regional Integration
 Maintenance and  Company
spare parts management
 No training
(management and
workers)
 Lack of regional
design and brand
 R&D
SUPPORT  Telecommunications  Finance  Availability of
INSTITUTIONS  International support  Policy enhanced
 Trade facilitations international support
 Customs & advocating
 Capacity building  Trade expansion
 Lack of appreciation
of the sector
 Representation
 Dialogue
 Governance

28
The deliberations on the above issue led to the identification of the following strategic issues for the region,
in order of relative priority:

 Improve access to affordable finance;

 Create enabling policy, legal and institutional framework;
 Facilitate the improvement of overall quality; and
 Improve information and marketing systems.

Detailed Analysis of Constraints per Value Chain Stage

The stakeholders identified the following as the major factors that were constraining the growth of the
COMESA leather sector:

 Poor animal husbandry practices;

 Inadequate, unsuitable or absent slaughter facilities;
 Poor quality on value added products;
 Poor marketing of leather commodities;
 Absence of sector specific policies;
 High cost of finance;
 Production of poor quality products due to inadequate technology;
 Lack of technical and managerial skills;
 Weakness of Training and Technical Institutes; and
 Weakness of Associations.
A full Table of these issues, specified for each of the COMESA Member State, is summarized in Annex 4.

Poor Animal Husbandry

Animal Husbandry

Livestock is a renewable resource and also a source of livelihoods for the majority of people in the COMESA
region. It is generally held as a source of wealth rather than as a source of income. There is a limited
investment in the appropriate animal husbandry and this has undermined production of quality livestock and
hides and skins. There is a limited appreciation of the value of hides and skins in the communities: at
husbandry level, the overall health of an animal is the only concern. Major issues are:

 Skin diseases;
 Ectoparasites;
 Branding or scarring;
 Whip lashes, fence wire and thorn marks/injuries;
 Inadequate nutrition;
 Use of inappropriate means of transport; and
 Generally poor animal husbandry practices.

29
Veterinary Services

The veterinary services in COMESA countries appreciate the value of hides and skins; however their extension
support is constrained by lack of adequate resources. Thus Government Veterinary Services focuses almost
exclusively on contagious diseases, like foot and mouth disease. Key challenges are:

 Limited coverage of veterinary services in rural areas;

 High cost of veterinary drugs and treatment;
 Limited intervention mainly on contagious diseases;
 Inadequate qualified staff and transportation;
 Shortage of laboratory and diagnostic equipment.

Hides and skins

Production

Except for some of the big cities where a minimum of efficient supervision of abattoirs is exercised, the overall
situation of slaughter facilities in the COMESA region is rather inadequate in terms of animal welfare, food
safety, hygiene, meat production and flaying techniques. About 70% of the slaughter operations are taking
place in rural areas. Backyard and ceremonial slaughter are very common. The hides and skins produced in
rural areas are mostly affected by pre and post slaughter defects. All COMESA countries have appropriate
laws that govern slaughterhouse practices; however, law enforcement is very limited outside major cities.
Most abattoirs operating in major city centres abide with the slaughter by-laws. Some of the big city abattoirs
in most COMESA countries do not fully practise appropriate techniques as they flay animals on the slaughter
floor.

Vertical slaughter techniques deliver cleaner meat and better flaying quality of hides, than in horizontal
slaughter. Usually flayers are not supervised nor incentivized to produce good quality hides and skins. In
addition, there is an acute shortage of flaying knives. The local habit to consume fresh meat urges butchers to
get their meat as quickly and early as possible to their outlets, hence speed in production is the dominating
driver. After flaying, hides and skins are not preserved on time leading to putrefaction.

Sudan, Uganda, Zambia and Zimbabwe are important producers of exotic skins from reptiles (mainly farmed
crocodiles), fish skins (particularly in Uganda) and ostrich. COMESA countries in the southern region also
produce game skins. Except for ostrich and game skins, all reptile skins are exported in its raw state (wet-
salted). The followings are impacting negatively on the production of quality hides and skins:

 Poor animal husbandry practices;

 Animals are slaughtered on the floor in most cases;
 Lack of skilled flayers;
 Lack of proper flaying equipment like knives and mechanical pullers;
 Inadequate and delayed preservation of curing;
 High cost of salt;
 Lack of enforcement and implementation of regulations; and
 Lack of funds.

30
Trading

In order to promote value addition on the locally produced hides and skins, Zambia and Zimbabwe banned
the export of raw hides and skins, whereas Ethiopia, Kenya, Sudan and Uganda imposed an export levy, which
ranges from a minimum of 15% in Sudan to a maximum of 150% in Ethiopia.
Traders focus mainly on quantity and price rather than quality of the hides and skins. Few traders are willing
to buy hides and skins in a way where good quality is paid a premium and bad quality is penalised. Buyers are
interested in quantity and are prepared to pay the raw materials in bulk with an average price, whatever the
flay quality as long as the raw materials are properly treated for conservation. This way of trading is seriously
penalising a professional approach to hide and skin production.

Most COMESA countries benefited from the hide improvement training programs: however, due to domestic
and international trading habits (i.e. no remuneration for quality), such programs had a disappointing impact.
Professional collectors and exporters experience serious competition from non-professional, inexperienced
and fly by night traders particularly during the peak periods of trade. The hides and trade business is plagued
by the following challenges:

 Indiscriminate buying where price and not quality are the main factor;
 Lack of professional training;
 Lack of finance;
 Cost of salt;
 Inadequate and inappropriate transport;
 Lack of licensing enforcement; and
 In other cases the absence of professional licensing laws

Production of Value Added Products

Leather

Tanneries

Most tanneries in the COMESA region are poorly equipped, with the exception of some tanneries located in
Ethiopia and Zambia. Most of them work with out-dated and poorly maintained machines. Tanneries in
landlocked countries further experience logistical challenges on timely delivery of spare and wear parts for
their machines, with a negative impact on productivity and product quality.

The majority of tanneries have no access to affordable finance to buy modern machines. In addition, some of
them represent an environmental and health hazard due to poor management or to the non-existence of
effluent treatment plants. It is fundamental to recognize that tanneries are the linchpin of leather sector, thus
their underperformance have far reaching negative consequences on the performance of the of the
downstream industries.

Few COMESA countries have a chemical industry; hence most if not all of the required tanning chemicals,
even the basic ones like acids, are imported and in some countries they are subject to duty rates of 5% or
more. These factors have raised the cost of production of leather in the region and have given room to the
penetration in the regional market by competitively priced imports from the Far East or the Indian
subcontinent.
31
The overall quality of wet blue and finished leather produced in the region is generally good, however the
major challenge is the failure to ensure production of consistent quality leather over time due to lack of
modern equipment, IT technology and manpower skills. In other COMESA countries the tanning subsector is
dominated by cottage industries that produce leather with limited equipment, chemicals and technical
knowledge, which has resulted in the production of poor quality of leather. The following were identified as
the major constraints impacting on the performance of the leather sector in the region:

 Low quality raw materials;

 Inadequate technical training;
 Shortage of experienced technical personnel;
 Long lead-time for imported chemicals and parts;
 Unfavorable foreign exchange regulations;
 Absence of supportive sector strategies;
 Unfair competition;
 Lack of affordable finance; and
 Insufficient quality control systems.

Wet blue

Tanneries in the COMESA region are mainly producers of wet blue leathers, which after pickling is the first
transformation stage of perishable raw hides and skins into non-perishable leather. Technology is simple;
relatively few chemicals and less complicated equipment are used in this process. In some countries, like
Sudan and Ethiopia, quality is influenced by the temperature of available well water, which is higher than
actually required. The following constraints have been indentified:

 Inadequate technology and finance for further value addition from wet blue and beyond (crust and
various finished leathers);
 Inadequate knowledge, skills and production process controls.

Crust

Crust leather is the second stage of tanning and the first stage in which the leather is dry and useable, though
rarely used, for the production of leather products. Transport of crust leather is more efficient than wet blue,
due to its smaller weight.16 Most of the COMESA countries do not export crust, in spite of the fact that crust
has a large value addition. The following are the main issues:

 Inadequate technology and finance to enter the next stage of producing finished leather;

 Inadequate knowledge, skills and production process controls.

16
A container of wet-salted raw hides loads about 1’000/1’250 pieces, the equivalent of about 20’000 kilos (15’000/19’000 dried goatskins – the
equivalent of 10’000/12’000 kilos). The load factor for crust hides is between 1’500 and 2’000 pieces and for crust goat or sheepskins as much as
5’000/10’000 pieces.

32
Finished

The finishing stage is the ultimate stage of leather production and provides a final product that can be used
for production of finished leather products. It is the most technologically demanding stage of the tanning
process, whose inputs include very sophisticated chemicals and a number of expensive machines. In the
finishing phase; knowledge of fashion trends and market awareness are of great importance. The following
issues have been indentified:

 Inadequate technology and finance to enter the next stage of producing finished leather;

 Inadequate knowledge, skills and production process controls; and

 Limited knowledge of the fashion dynamics.

Leather goods production

Footwear and leather products

Few COMESA countries have an industrial production of leather footwear and a limited number of shoe
factories have created their own collection. The majority of firm produce footwear on a contract basis,
however this is associated with relatively lower prices and margins.17 The most debilitating factor for shoe
manufacturers that operate on the local markets are cheap imports from the Far East and second hand
footwear imports from the US and Europe.
The absence of the local producers of even simple accessories and components in the region further cause
serious logistical challenges to footwear manufacturers, as all these inputs must be imported. In some
countries, these inputs attract customs duties, which in turn escalate the cost of production. Few shoe
factories have their own design department, and few avail themselves of the assistance of professional
designers, a) locally because not available, b) internationally because highly expensive. Few shoe factories
attend important fashion presentations, like the extremely important Düsseldorf GDS trade fair in Germany,
which is very much focused on the presentation of new footwear fashion and related accessories, or the
fashion presentations in Garda, Italy. The following are some of the key constraints:

 Insufficient availability of locally produced finished leather;

 Few industrial factories;
 Lack of technical design and production skills;
 Lack of supportive sector policy and Strategy;
 Unfair competition;
 Lack of local accessory production;
 No home-made design;
 Absence of agents.

17
For example, in Ethiopia prices for the finished products were very low to the extent that the tanneries which supply the shoe factories with leather
have been forced to “adjust” their tanning processes in order to produce the quality of leather that can be afforded by shoe factories (UNIDO, 2010).
This adjustment seriously damages the overall quality of the leathers.

33
Crosscutting

Crosscutting issues are reported on finance, training, institutions and associations.

 Lack of communication and coordination within the value chain;

 Lack of representation of the value chain domestically towards the institutions;
 Lack of representation of the value chain domestically towards the foreign partners;
 Lack of affordable finance and insurance mechanisms;
 Lack of sector specific policies and strategies aligned at national and regional level;
 Lack of understanding of the sector needs by support institutions

Institutional performance

Private sector associations representing leather

Leather sector associations are weak mainly because of lack of funding and human resources administrative
skills. In most of the countries, the sector associations are not strong enough to influence policies. A number
of countries do not even have sector associations.

Banks and financial institutions

Banks have little knowledge of the leather value chain and consider it as a high-risk sector. Therefore, they are
very reluctant to loan money and require collateral that far exceeds the value of the loan. In rural areas, there
are no financial institutions available to stakeholders. Lending rates are very high (they vary from 8 to 32% in
the region) and this is further worsened by bureaucratic export financing procedures.

Sanitary extension services

Sanitary extension services are easily accessible in big cities, but difficult to reach in remote areas. Veterinary
certificates are mandatory in importing countries for raw hides and skins, but not for processed leather. It is
an obligation of the exporter (exporting country) to supply the bilaterally recognized certificate signed with
the accredited signature. Delays in the issuing of certificate by the veterinary authorities can seriously impact
on the business turnover of the supplier as this may result in the rejection of consignments. In a number of
countries the issuing offices are usually under staffed and de-centralized causing unnecessary and costly
delays. The main constraints which are experienced in the field include:

 Insufficient sanitary assistance and supervision in rural areas;

 Bureaucracy in the issue of mandatory export certificates.

Customs

Customs procedures in most of the COMESA region are complicated and time consuming. Ethiopia is an
example where customs can delay imports and exports for weeks for a minor reason. Rwanda has simplified
the customs procedures to the benefit of the importers and exporters, not only of the leather value chain.

34
Transport

Transport condition of animals and raw hides and skins are inadequate and contribute to the deterioration of
quality. Transport is a key constraint particularly for COMESA landlocked countries. Road transport is difficult
and time consuming, particularly in the rainy season due to bad conditions of most of the roads. Road
transport is also the most expensive after air cargo. Railway facilities are not available in most of the COMESA
countries.
COMESA countries are net importing countries and thus the cost of transport in arrival must cover also (at
least) part of the return voyage to the nearest port, even if the container travels empty. Only those countries
that export agricultural products face a lack of container for export because seasonally they are net exporters.
Rwanda, Uganda and Burundi face this problem in the coffee and tea season.

Some crust and almost all finished leather and leather goods, if exported, are exported by air. This is in most
cases expensive. National airlines are rarely adopting preferential transport rates for their country’s cargo
exports.

Communications

Communication was mentioned as an issue, mainly because of costs, not because of availability, except from
some remote rural areas where mobile phone communications are available but access to the Internet is less
easy. Both access and costs are diminishing in favour of the enterprises. The use of means of communications
is widespread in the whole region.

Trade facilitation mechanism and corridors

COMESA countries have rather weak trade facilitations. Besides institutional issues, other issues that on a
regional scale are minimal can have a big impact on regional and international trade. Often stakeholders are
unable to attend meetings or trade fairs due to complicated and/or lengthy procedures to obtain an entry visa
for particular countries.
Political instability in certain regions is an obstacle to trade. When partners and/or investors perceive their
participation in a country’s economy as too risky they will refrain from investing money or expertise.

Procedures to start a business are often extremely difficult, lengthy and subject to currency restrictions.

Foreign investors or trade partners, who in many cases pre-finance their purchases, encounter often
introduction of laws and regulations which are perceived to be aimed at “confiscating” the investor’s assets.
Therefore, in this context, the main obstacle is:

 A relatively bureaucratic business climate.

National Policy formulation mechanisms

Policy makers in number of COMESA countries are often not aware of the economic importance of the leather
value chain, which in contrast is considered as a renewable natural resource. Policy makers are not aware of
the social and economic potential that a well-developed and functioning leather value chain can contribute to
the national economy. The main issue in this context is:

 Difficult access to the policy makers to sensitize and create awareness of the sector’s importance.

35
Bureau of Standards

Although almost all COMESA countries have in place or are setting up Bureau of Standards; however, their
effectiveness is rather limited. None of the Bureau of Standards is equipped to check the quality and
consistency of imported materials. Often consumer goods are being imported and sold as “leather” but at
closer scrutiny are not leather. This is not only an issue for consumer, but creates also unfair competition for
local producers. Imported goods are not extensively checked if they contain prohibited substances, provided a
list of prohibited substances exists. Importers in COMESA countries are unable to check the actual consistency
of the chemicals that they import. Few have laboratories that can ascertain the composition and
concentration of the imported (or locally produced) chemicals or commodities. This can have as a
consequence that some chemicals cannot perform as they should because the actual composition is not
consistent with the purchased contents.

 Insufficient training and availability of equipment at Bureau of Standard.

Technical and Training Institutes

Sector stakeholders indicated that most of these institutes have difficulties in providing their services to
companies because of lack of resources and finance.18

18
A good example of the potentiality of such institutes is the Leather and Leather Industry Development Institute (LIDI, former LLPTI) in Addis Ababa,
Ethiopia. LIDI was born in close consultation between the Ethiopian Government and the Italian Development Cooperation. It was identified as a
“potential engine” for the development of local economy, given the productivity and export prospects of the leather sector. With such a support, the
Institute was put in a position to provide training based on state of the art equipments and to create the conditions for the local companies for higher
quality products that better compete in international markets. Italian Program AID has provided the LLPTI with: modern machineries, such as a fully
equipped tannery with the relevant waste treatment plant; a leather goods & leather garment factory; a modern shoe factory; laboratories for
chemical, physical and mechanical tests; Cad-cam facilities; a complete technical library; and vehicles. Born to be training and service center and also
the best hub of this kind n Africa, LLPTI was rapidly converted in a school oriented to leather technical matters without any practical service to be given
as a help to the local companies.

36
CHAPTER IV The Strategy
Vision and Mission of the Strategy

COMESA stakeholders resolved that the region must move away from production and export of raw materials
towards the manufacture and commercialization of value added products.
The situation in the region is in contrast with the developments in Asia, notably China, India and Pakistan,
where the industry has developed rapidly into the production of quality and value added products.

COMESA vision for the leather value chain is to be the lead contributor to the region’s economic development
and livelihoods in a sustainable manner, to facilitate the development of an enabling policy and legal
environment, to strengthen institutions, to improve access to finance, t promote intra-trade, information
sharing, value addition and quality improvement of products in the COMESA leather sector.

Overall Development and Growth Objectives

The Strategy aims to increase the production and export of value added products in order to promote job
creation, income and foreign exchange generation and economic growth.
Figure 2 below shows in proportionate terms the value of goods currently being exported, as well as the
projected exports that would result from the implementation of the Strategy. For example, 62.2% of raw
hides currently produced in COMESA are being processed within the region: the Strategy should raise such
threshold to 78.3%. The region proposes to lower its exports of wet blue from 72.2% to 43.3% of total
production; this would imply that more wet blue would be retained within the region for further processing to
produce finished leather. Exports of footwear, leather goods and garments are also projected to grow.

Figure 2: Current and Proposed Export Ratio (%) of Total Output

Source: Inputs from Stakeholder (Kigali Regional Workshop).

37
The Strategy aims to impact at different levels of the production and commercialization of leather products. In
the domestic market, COMESA member States have as a future objective to retain almost all their hides, wet
blue and crust that are currently destined for export and use them for domestic processing of leather-finished
goods.

At regional level, the objective is to boost intra-Community trade of finished leather products, shoes and
garments.

Similarly, COMESA member States seek to enter and compete in international markets with exports of
finished leather products, reducing or even stopping export of raw materials.

Annex 7 illustrates how domestic, regional and international market targets will look like after
implementation of the Strategy for a group of countries in the region. It is important to highlight that both
the private sector and government representatives are targeting value added products and intra-regional
trade as their number one priority.

International Target Markets

Stakeholders identified the following international markets, divided on the basis of product categories.

Hides and skins Wet blue leathers Crust & finished Finished products

Domestic South Africa South Africa South Africa

COMESA region EU (Italy) COMESA COMESA
EU (Greece) EU (Italy) EU
Turkey India North America
India Far East (China)
Pakistan
Far East

Strategic Objectives

The objectives developed by regional stakeholders will serve to address the various constraints identified at
every stage of the leather value chain. The four high level objectives are:

1. Improve access to affordable finance;

2. Create enabling policy and legal environment and strengthen institutional framework;

3. Facilitate the improvement of overall quality; and

4. Improve information and marketing systems.

38
Objective 1: Improve Access to Affordable Finance

The major constraint perceived by COMESA countries is the difficulty to obtain affordable finance; therefore,
the primary objective of the Strategy will be to put in place modalities for easier access to finance. All
members of the value chain require financing which they are unable to obtain due to cost, collateral
requirements and banking institutions’ lack trust of the value chain, which they consider as risky.
Due to the inadequacy of institutional financing, presently the value chain is financing itself. For example, at
the trading level of hides and skins, foreign buyers send advance money to collectors/exporters, which in turn
pre-finances butchers, abattoirs or domestic collectors. Such financing arrangement is not adequate enough
to promote capitalization at the tanning and leather goods production level. This scenario has undermined
the production of quality value added products within the COMESA region.

The following are activities and anticipated results for objective one.

Table 6: Objective One: Activities and Expected Results

Objective Expected Results

Objective 1: Improve access to affordable finance Affordable finance available
Activities/sub objectives
Conduct sector financial needs assessment for the leather Financial needs requirements published and disseminated.
sector, support industries and regulatory institutions in the
region
Identify and provide information on affordable finance Information on affordable finance published.
Develop sector specific financial instruments through the Financial instruments published and disseminated.
BADEA, ADB,PTA regional Commercial Banks and other
institutions for the whole value chain, including rural areas
Build the capacity of value chain actors including support Chain actors are in a position to apply for finance.
industries and regulatory authorities on modalities of
accessing finance

39
Objective 2: Create Enabling Policy, Legal Environment and Strengthen
Institutional Framework

The leather value chain actors perceive a serious lack of political, legal and commercial backing; hence, the
second priority of the Strategy is to create a constructive dialogue with COMESA governments in order to
influence the introduction of sector specific policies and legislations. The general objective is to introduce long
term legislation and regulations that create incentives for value addition and discourage imports of foreign
products. The expected results are to create a level playing field in which all actors have equal opportunities.

Table 7: Objective Two: Activities and Expected Results

Objective Expected Results

Objective 2 : Create an enabling policy, legal environment
and strengthen institutional framework
Activities/ Sub objectives
2.1 Policy and Legal
Assess the policy and legal environment of the leather
industry
Facilitate the formulation of leather sector strategies at
country level.
Undertake a study on the impact of existing trade policies
and applied tariffs on the main products of the value chain.
Supportive policy, legal and institutional framework in
place.
Policy and legal framework assessed.
National leather strategies are in place
Findings of the study disseminated regionally and
recommendations availed to national governments.

Promote harmonisation of trade tariffs at regional level Tariffs harmonized

Undertake a study on the technical, environmental and
economic benefits of establishing leather industrial zones.
Design FDI plan with COMESA to attract investment into the
sector
2.2 Institutional Framework
Assess the institutional frameworks in the leather sector
Initiate public and private sector dialogue platforms
Build the capacity of national associations, regulatory
authorities, technical and vocational institutions
Strengthen trade support organizations , farmers , butchers
and collectors associations
Promote the creation of incubators that promotes the
integration and collective use of production, environmental
facilities and support services
Study undertaken and findings disseminated.
Plans in place and disseminated
Institutional framework assessed and disseminated
Public and private sector (PPP) partnerships established
Improved performance of the institutions in supporting the
leather sector needs.
Organization of technical specialized courses on the single
working phases, in the companies
Improved service supply and delivery
Incubators established

40
Objective 3: Facilitate the Improvement of Overall Quality

Most COMESA countries produce leather and leather products that fail to meet quality requirements and
expectations of the major importing countries. This is attributed to the shortage of skilled labour and
management and to the unavailability of modern chemicals and production techniques, among others. This
has forced COMESA countries to focus on the production and export of raw materials and semi-processed
leather.

Objective 3 aims at addressing quality constraints across the whole value chain, from the source of raw
materials up to production of finished products. The identified constraints include: hides and skins pre and
post slaughter defects and use of obsolete technologies in the tanning and production of leather and leather
goods.

The reduction of these constraints would stimulate the production of quality products that would penetrate
national, regional and international markets. At the moment, regional finished products are facing
competition both at national and international markets. Furthermore, adequate controls are expected on the
quality of imported materials and goods so as to ensure a more fair competition with local producers. The
activities that must be undertaken in order to eliminate the quality constraints are summarized in the table
below.

Table 8: Objective three: Activities and Expected Results

Objective Expected Results

Objective 3: Facilitate the improvement of overall quality
Activities
3.1 Leather Production
Benchmark technologies in use across all the segments of the value
chain with best practices.
Conduct training on clean, modern leather technologies and
production costing.
Conduct regional training seminars on production quality
management, targeting technical and middle management staff
Increased quality at all levels of the value chain
Benchmarking report produced and disseminated
regionally.
Clean and modern leather production technologies are
institutionalized at national and regional level.
Improved productivity and reduced costs of production
Improved technical and managerial skills

Conduct training on tannery maintenance management Improved productivity as down times are reduced

Promote product or process specialization Specialization developed

Organize buyer-seller meetings at national, regional and international
trade fairs .
Conduct training on IT management system in processing
Improved technical knowledge on suitable equipment and
new technology
Improved relationships with potential suppliers of
machinery.
Consistency and quality products produced

Build the capacity of National institutions to carry out the controls and Reduced environmental pollution
manage ETP (effluent treatment plants) and promote regional
collaboration
3.2 Improve leather products

Provide an extensive training program on; costing, design , cutting, Increased quality and design of products and technical
stitching, lasting, assembling and finishing for technical staff skills.
Conduct training on maintenance management of leather products Reduced frequency in machine break downs and technical
machineries. skills.

41
Organize buyer-seller meetings at national, regional and international
trade fairs of leather machine suppliers and national
entrepreneurs
Organize missions for national and regional designers to visit
international fashion presentations to acquire knowledge on the latest
fashion trends
3.3 Hides and skins quality improvement
Assess the pre, peri and post slaughter defects at national and share
best practices at regional level
Develop a disease control campaign and eventual eradication
campaign through regional animal health care systems.
Promote harmonization of SPS regulations on hides and skins trade
regionally
Raise awareness to reduce informal abattoir practices
Strengthen and improve extension systems at national and regional
levels.
Conduct training on pre-, peri- and post-slaughter defects to farmers,
extension workers, flayers and collectors.
Introduce an incentive system to livestock holders, butchers, abattoirs
(flayers) and collectors to improve quality of hides and skins.
Promote flayer professional certification.
Promote the pricing based on grading system.
Modernize existing and establish new slaughterhouses and facilities in
order to increase quality and quantity of hides and skins.
3.4 Crosscutting
Develop and promote guidelines and code of conduct across the value
chain
Equip the Bureau of Standards and other relevant support institutions
with necessary technology
Promote single window system
Conduct training to the national bureaus of standards to set
harmonized norms to laboratories for chemical and physical testing.
(include other relevant institutions)
Promote research and development along the value chain
Mainstream gender issues in the leather value chain
Promote safety and occupational health across the value chain
Promote commercialization of by-products across the value chain
Promote environmental control management across the chain
Encourage the establishment of inputs manufacturing in the region
42
Improved technical knowledge on suitable and affordable
equipment
Improved relationship with potential suppliers of
machineries
Improved appreciation and knowledge of the latest fashion
trends
Hides and skins defects assessed.
Diseases controlled and eventually eradicated;
Hides and skins quality improved.
SPS regulations harmonized at regional level.
Improved awareness and quality of hides and skins
improved.
Improved animal husbandry and income to farmers.
Systems strengthened and institutionalized.
Improved of the overall quality of hides and skins.
Improved income butchers/flayers/collectors.
Improved overall hides and skins quality.
Improved quality of hides and skins
Improved hygiene, food safety and hides and skins quality
Guidelines and code of conducts developed
System in place for national replication
Improved support services to the sector.
Bureaucracy reduced
COMESA introduces a standard system similar to the CE
certification in Europe both for locally produced items and
imported items and materials.
Accredited national and regional laboratories established.
New technologies are transferred and adapted.
Gender issues mainstreamed
Safety and occupational health promoted.
By products are commercialized.
Income sources diversified
Environmental sustainability.
Inputs manufacturing established
Objective 4: Improve information and marketing

Although the access and use of the Internet is rapidly improving and increasing, actors in the leather value
chain find difficulties to have proper access to market information which is vital for proper production, design,
price structuring, marketing, etc. Stakeholders state that their visibility in the international markets is very
limited and that they have similar difficulty to research on production processes and market related issues.
Hence improvement in information and marketing systems is also fundamental. The expected results would
bring COMESA stakeholders into the networking age and, through networking, increase collection of crucial
market information and at the same time give visibility to COMESA products.

Table 9: Objective Four: Activities and Expected Results

Objective Expected Results

Objective 4: Improve Information and Marketing Systems
Activities
Asses existing information and marketing systems at national,
regional and global levels
Establish a directory of regional companies and institutions
(Website COMESA) in the leather value chain.
Promote dialogue between associations and government and
create a regional platform for information sharing for all actors of
the value chain
Raise awareness along the value chain stages about the existing
regional resources/services available in leather sector
associations; leather Institutes (national institutions and LLPI).
Train and strengthen National /Regional Associations to create
publications to disseminate information to all actors in the value
chain stages.
Arrange Intra Africa and international trade missions and support
visits of entrepreneurs
Organize and sponsor potential buyers- seller meetings during
trade fairs and other national, regional and international events.
Develop an African leather and leather fashion products regional
fair through COMESA
Create linkages and networking between regional sector
associations and international consortia systems and others in
order to learn best practices
Undertake product market profitability analysis at regional and
international level.
Develop curricula and conduct training on marketing tools and
management
Promote the establishment of e- trading system
Promote the collection of statistics for the production and trade
of products of the leather chain
Improved information and market systems in place.
The systems are assessed and disseminated
An online database of all COMESA leather value chain
stakeholders established.
Improved collaboration amongst stakeholders in the
region.
Value chain stakeholders acquired the knowledge of the
resources and services that are available in the region
Information available to stakeholders nationally and
regionally.
Partnerships and knowledge transfer achieved.
Markets relations created.
Fair organized and accessible to visitors from all over the
region and from overseas.
Linkages and dialogues created and best practices adapted.
Findings disseminated at national and regional levels.
Marketing management system established
Improved knowledge marketing techniques
E Trade system established.
System institutionalized at both national and regional level.

43
In the participatory stakeholder consultations in selected countries, value chain analysis and performance
review were undertaken by representatives of the private and public sector of the leather value chains in
Malawi, Uganda and Zimbabwe. The results of such consultations can be seen in Annex 5. Additionally, for
each value chain, response objectives were developed at national level, as illustrated in Table 11 of Annex 5.
The national objectives identified in the three countries by the private-public platforms contribute and are
linked to the regional one, proving the great level of consistency between the regional and national priorities.

44
LOG FRAME for Strategy Objectives

This section contains the Logical Framework Matrix and provides the road-map that will be used to implement
the Strategy. The objectives outlined in the preceding section can only be realized when the concomitant
strategies are implemented. This section therefore, contains the outputs and the supporting activities for
implementation together with indicators for measuring performance.

The Logical Framework Matrix has great value in implementation, monitoring and evaluation of this Strategy.
It clarifies the activities and tasks to be achieved and how progress on the development of the sector will be
evaluated. It captures the purpose of the strategic plan which is to develop an over-arching programme
framework for the leather value chain. The plan draws most of its activities from the inputs that were drawn
through a consultation process, which included member countries and regional stakeholders’ workshops. It is
thus fundamental to note that this Strategy captures the visions and aspirations of the COMESA industrial
players, policy makers and service providers.

Table 10: Log-frame for strategy objectives

Indicators / Targets Implementing

Partners
Design Summary Data Sources Assumptions
(by End of Strategy period
unless otherwise stated)

Impact

Lead contributor to the COMESA 1 Production and export of COMESA reports

 Continued
region’s economic development and value added products;
livelihoods in a sustainable manner. 2 Availability of suitable FAO and ITC support from
reports donors and
finance;
3 Vibrant sector policies technical
Member partners.
and institutions
strengthened. Countries  Continued
4 Improved intra trade in reports participation
the COMESA region. by regional
5 A common platform for stakeholders.
sharing information
across the value chain is  Continued
established. dedication
by the Core
Team to
drive the
Strategy.

Outcome:

Increase the export ratios of value 1 16 percentage points FAO Statistics,

 Availability
added products to international decrease in the export of ITC leather line,
markets. raw hides National of adequate
finance.
2 29 percentage points statistics, UNIDO
decrease in the export of industry  Improved
wet blue production policy, legal
3 14 percentage points statistics, Core and
decrease export of Team monitoring institutional
finished leather. reports framework.
4 24 percentage points  Continued
increase in the export of COMESA reports dedication
finished leather products by the Core
5 14 percentage points Team to
increase export of leather drive the
Strategy.

45
 Indicators / Targets Implementing
Partners
Design Summary Data Sources Assumptions
(by End of Strategy period
unless otherwise stated)

footwear

Outputs:

1 Improve access to affordable 1.1 A regional fund for the COMESA reports  Timely  COMESA
finance. leather sector is set up. execution of Secretariat
1.2 Improved availability of Core Team identified  National and
suitable finance reports activities. Regional
packages in all COMESA  Donor banks
countries. Donor reports interest  Technical
1.3 Availability in  Global partners (ITC,
preferential finance financial UNIDO, FAO)
packages in at least 50% performance  Core Team
of the COMESA countries .  Donors

2 Create enabling policy and legal 2.1 National and regional COMESA reports  National  COMESA
environment and strengthen leather associations and governments Secretariat
institutional framework. institutions Core Team and donor  National
strengthened. monitoring support. Governments
2.2 National sector specific reports  Stakeholders  Technical
policies put in place in at commitment partners (ITC,
least 50% of the UNIDO, FAO)
COMESA countries  Core Team
 Donors
3 Facilitate the improvement of 3.1 Technical and middle COMESA reports  Donor
overall quality managers from at least support  COMESA
50% of the COMESA Core Team availability Secretariat
countries receive monitoring  Commitment  National
specialized training; reports and support Governments
3.2 Training capacities from  Technical
improved at regional Member partners (ITC,
leather training States. UNIDO, FAO)
institutions.  Leather
associations
 Core Team
 Donor
 Bureau of
Standards
 Extension
departments
 Technical
Colleges
4 Improve information and 4.1 A regional information COMESA reports  Donor and
marketing system platform is established and technical  COMESA
operationalized Core Team support Secretariat
4.2 Industrialist are trained in monitoring  Commitment  National
marketing of leather reports and support Governments
products; from  Technical
4.3 Industrialists drawn from COMESA and partners (ITC,
all COMESA countries Member UNIDO, FAO)
participate in regional and States  Leather
international trade fairs associations
annually.  Core Team

46
 Indicators / Targets Implementing
Partners
Design Summary Data Sources Assumptions
(by End of Strategy period
unless otherwise stated)

 National
Export trade
bodies
 Donor
 National
trade
development
bodies/
Investment
centres
Indicative Activities for Objective
One

Conduct sector financial needs Completed by year 1 Study report  Timely  COMESA
assessment for the leather sector, execution of Secretariat
support industries and regulatory identified  National and
institutions in the region activities. Regional
 Donor banks
Identify and provide information on Completed by year 1 Study report interest  Technical
affordable finance  Global partners (ITC,
financial UNIDO, FAO)
Develop sector specific financial Completed by year 1 performance  Core Team
instruments through the BADEA, .  Donor
ADB,PTA regional Commercial Banks  National
and other institutions for the whole Associations
value chain including rural areas  Consultants
Build the capacity of value chain actors Completed by year 2 Annual and
including support industries and quarterly reports
regulatory authorities on modalities of
accessing finance

Indicative Activities for Objective Two

2.1 Policy and Legal

Assess the policy and legal Annual reports  National  COMESA

environment of the leather industry governments Secretariat
and donor  National
Facilitate the formulation of the support. Governments
leather sector strategies at country  Stakeholders  Technical
level. commitment partners (ITC,
UNIDO, FAO)
Undertake a study on the impact of the  Core Team
existing trade policies and trade tariffs  Donors
on the production and trade of the  Consultants
main products of the value chain.

Promote harmonization of trade tariff

at regional level

Undertake a study on the technical, Annual reports

environmental and economic benefits
of establishing leather industrial zones.

Design FDI plan with COMESA to Annual reports

attract investment into the sector

47
 Indicators / Targets Implementing
Partners
Design Summary Data Sources Assumptions
(by End of Strategy period
unless otherwise stated)

2.2 Sub-objective-Institutional
Framework

Assess the institutional frameworks in Assessment completed and  National  COMESA

the leather sector disseminated by year 1 governments Secretariat
and donor  National
support. Governments
 Stakeholders  Technical
Initiate public and private sector One regional seminar on training Annual and commitment partners (ITC,
dialogue platforms of facilitators on Public and quarterly reports UNIDO, FAO)
private sector dialogue  Core Team
 Donors
Organize quarterly meetings at
 Consultants
national level

Build the capacity of national Two regional Training seminars Annual and
associations, regulatory authorities, per year quarterly reports
technical and vocational institutions

Strengthen trade support organizations Two regional training seminars Annual and
, farmers , butchers and collectors per year quarterly reports
associations

Promote the creation of clusters that Two national seminars per year Annual and
promotes the integration and quarterly reports
collective use of production,
environmental facilities and support
services

Assess the institutional frameworks in Develop 3 project proposals to Annual and

the leather sector fund the given activities quarterly reports

Indicative Activities for Objective

Three

3.1 Improve quality of finished leather

Benchmark the technologies in use Study completed and Annual Reports  Donor
across all the segments of the value disseminated in year 1 support
chain with the best practices. availability
 Commitment
and support
from
Member
States.

Conduct training on clean, modern Three regional seminars per year Annual and  COMESA
leather technologies and production beginning in year 2 quarterly reports Secretariat
costing.  National
Governments
Conduct regional training seminars on Three regional seminars per year Annual and  Technical
production quality management, beginning in year 2 quarterly reports partners (ITC,
targeting technical and middle UNIDO, FAO)
management staff  Leather
associations
Conduct training on tannery Three regional seminars per year  Core Team
maintenance management. beginning in year 2  Donor
 Bureau of
Promote product or process One seminar per year beginning Annual Reports
Standards
specialization year 3
 Extension

48
 Indicators / Targets Implementing
Partners
Design Summary Data Sources Assumptions
(by End of Strategy period
unless otherwise stated)

Organize buyer-seller meetings at Annually Annual Reports departments

national, regional and international Technical
trade fairs of tannery machine Colleges
suppliers and national entrepreneurs

Conduct training on IT management One seminar per year beginning Annual Reports
system in processing year 3

Build the capacity of National One seminar per year beginning Annual Reports
institutions to carry out the controls year 3
and manage ETP (effluent treatment
plants) and promote regional
collaboration

3.2 Improve quality of leather

products

Provide an extensive training program Two regional seminars per year Annual and  Donor  COMESA
on; costing, design , cutting, stitching, beginning year 2 quarterly reports support Secretariat
lasting, assembling and finishing for availability  National
technical staff  Commitment Governments
and support  Technical
Conduct training on maintenance Three regional seminars per year from partners (ITC,
management of leather products beginning in year 2 Member UNIDO, FAO)
machineries. States.  Leather
associations
Organize buyer-seller meetings at Annually  Core Team
national, regional and international  Donor
trade fairs of leather machine suppliers  Bureau of
and national entrepreneurs Standards
 Extension
Organize missions for national and Annually
departments
regional designers to visit
Technical
international fashion presentations to
Colleges
acquire knowledge on the latest
fashion trends

Provide an extensive training program Three regional seminars per year

on; costing, design , cutting, stitching, beginning in year 2
lasting, assembling and finishing for
technical staff

3.3 Hides and skins quality Annual and

improvement quarterly reports

Assess the pre, peri and post slaughter Study completed in year 1 and Annual and  COMESA
defects at national and share best disseminated quarterly reports Secretariat
practices at regional level  National
Governments
Develop a disease control campaign Design completed in year 2 and Annual and  Donor  Technical
and eventual eradication campaign promoted nationally quarterly reports support partners (ITC,
through regional animal health care availability UNIDO, FAO)
systems.  Commitment  Leather
and support associations
Promote harmonization of SPS Draft document produced and Annual and from  Core Team
regulations on hides and skins trade disseminated quarterly reports Member  Donor
regionally States.  Bureau of
Standards
Raise awareness to reduce informal Material produced and Annual and
 Extension
abattoir practices disseminated by end of year 2 quarterly reports
departments

49
 Indicators / Targets Implementing
Partners
Design Summary Data Sources Assumptions
(by End of Strategy period
unless otherwise stated)

Strengthen and improve extension Systems put in place by end of Annual and Technical
systems at national and regional levels. year 2 quarterly reports Colleges

Conduct training on pre- peri- and Training executed annually Annual and
post slaughter defects to farmers, beginning by end of year 2, at quarterly reports
extension workers, flayers and national level.
collectors.

 Introduce an incentive system to Incentive system designed and Annual and

livestock holders, butchers, disseminated by end of year 2 quarterly reports
abattoirs (flayers) and collectors
to improve quality of hides and
skins.
 Promote flayer professional
certification.

 Promote the pricing based on Submit proposal paper to Annual and

grading system. national governments by end of quarterly reports
year two

 Modernize existing and establish Develop country specific Annual and

new slaughterhouses and facilities proposals annually quarterly reports
in order to increase quality and
quantity of hides and skins.

3.4 Crosscutting Annual and

quarterly reports

Develop and promote guidelines and Codes of conduct developed and Annual and  Donor  COMESA
code of conduct across the value chain disseminated quarterly reports support Secretariat
availability  National
By end of year 3  Commitment Governments
and support  Technical
Equip the Standards bureau and other Project proposals developed by Annual and from partners (ITC,
relevant support institutions with the end of year 2 to fund quarterly reports Member UNIDO, FAO)
necessary technology capitalization of Standard bureau. States.  Leather
associations
Promote single window system A concept paper on promoting Annual and  Core Team
single window system developed quarterly reports
 Donor
and disseminated by end of year
 Bureau of
2.
Standards
 Extension
Conduct training to the national Two regional training seminars Annual and  Donor
departments
bureaus of standards to set conducted by end of year 3. quarterly reports support
Technical
harmonized norms to laboratories for availability
Colleges
chemical and physical testing. (include  Commitment
other relevant institutions) and support
from
Promote research and development Annual and Member
along the value chain. quarterly reports States.

Mainstream gender issues in the A concept paper on Annual and

leather value chain mainstreaming gender issues quarterly reports
developed and disseminated and
circulated by end of year 2

Promote safety and occupational One regional seminar conducted Annual and
health across the value chain by end of year 3 quarterly reports

Indicative Activities for Objective Four Annual and

quarterly reports

50
 Indicators / Targets Implementing
Partners
Design Summary Data Sources Assumptions
(by End of Strategy period
unless otherwise stated)

Asses existing information and Completed and disseminated by Annual and  Donor  COMESA
marketing systems at national, regional year 2 quarterly reports support Secretariat
and global levels availability  National
 Commitment Governments
Establish a directory of regional Completed by year two Annual and and support  Technical
companies and institutions (Website quarterly reports from partners (ITC,
COMESA) in the leather value chain. Member UNIDO, FAO)
States.  Leather
Promote dialogue between One National dissemination Annual and associations
associations and government and workshop per year quarterly reports  Core Team
create a regional platform for  National
information sharing for all actors of the Export trade
value chain bodies
 Donor
Raise awareness along the value chain On going Annual and  National
stages about the existing quarterly reports trade
regional resources/services available in development
leather sector associations; leather bodies/
Institutes (national institutions and Investment
LLPI). centres

Train and strengthen National One regional workshop by end Annual and  COMESA
/Regional Associations to create of year 3 quarterly reports Secretariat
publications to disseminate  National
information to all actors in the value Governments
chain stages.  Technical
partners (ITC,
Arrange Intra Africa and international On going Annual and UNIDO, FAO)
trade missions and support visits of quarterly reports  Leather
entrepreneurs associations
 Core Team
Organize and sponsor potential buyers- On-going Annual and  Donor  National
seller meetings during trade fairs and quarterly reports support Export trade
other national, regional and availability bodies
international events.  Commitment  Donor
and support  National
Develop an African leather and leather The first to be held by end of Annual and from trade
fashion products regional fair through year 4 quarterly reports Member development
COMESA States. bodies/
Investment
Create linkages and networking First networking seminar Annual and
centres
between regional sector associations organised by end of year 2 quarterly reports
and international consortia systems
and others in order to learn best
practices

Undertake product market profitability Study undertaken and finding Annual and
analysis at regional and international disseminated quarterly reports
level.

Develop curricula and conduct training Curricula developed and first Annual and
on marketing tools and management training conducted by end of quarterly reports
year 3

Promote the establishment of e- System in place end of year 4 Annual and

trading system. quarterly reports

Promote the collection of statistics for Pilot scheme in place by end of Annual and
the production and trade of products year 4 quarterly reports
of the leather chain

51
ANNEXES

52
ANNEX 1 - Strategy Development Process

Strategy development process

2010: Feb-Sept 2010: Oct-Feb 2011 March 2011

Regional and Strategy inputs & Participatory Regional

National Integration of Nat Strategy Workshop
Consultation components 23-28 Nov 2010
Step 1:
Launch
• Validation of Step 3: Step 4:
relevance of
current strategy  Define Scope  Strategy drafted after
 Validate issues, regional workshop  Launch and
• Work plan and  Agree on market market priorities and  Circulation of adoption in
roles agreed priorities set action plan for documents for Ministerial
Step 2:  Agree on COMESA region comments meeting
crosscutting  Set regional priorities  Priorities validated  Implementation
• National value chain country issues and draft action plan and work plan continues
level input and fine established with imp
 Drafting of Strategy  Validation on partners
tuning
inputs Implementation
• Identification of key
framework
Step 5:
COMESA private  Preparatory work
sector experts (reps) for Regional
validation
Regional Core Team Core Team
Associations
Step 1: Comesa & LLPI, Lead Institutions COMESA
ESALIA Core team
Partners Regional Bodies
Core team Country VC
Country VC reps Donors and imp
Step 3:
Step 2 workshops partners
(Core team) Regional Workshop already provides key inputs
for planning and further implementation

53
ANNEX 2 - Strategy Contribution to the MTSP

ISSUES Strategy contribution COMESA MTSP (expected results)

The mission of the Strategy contributes to the Goal as below:

 Development of a Regional trade policy that creates and supports an enabling environment
 Strengthen institutions that promote enterprises competitiveness
Achieve the status of an operational  Establishment of a common platform for sharing information across the value chain
Common Market within the Tripartite  Promotion of intra-regional trade
Framework.  Value addition, quality improvement and product development
 Contributes to the COMESA region’s economic development and livelihoods in a sustainable manner
The COMESA Regional Leather sector Strategy defines, coordinates and aligns cross-border and intra-regional trade development activities in the East and Southern
Africa Free Trade Area. It is also intended to be taken into consideration in the allocation of resources, the development of new policies and national investment
plans.

Strategy contribution MTSP (expected results)

Strategy Objective 1 Strategy Objective 2 Strategy Objective 3 Strategy Objective 4

Through the availability of sector

Removal of Barriers to Factor Mobility
oriented financial instruments, Improved co-operation
between the public and Creation of a database of all COMESA leather value chain
stake holders can make and stakeholders,
propose business plans to financial private sectors.
institutions for modernization and Improved performance of Enhanced transparency of the profitability of leather and
viable management of the sectors the leather value chain. leather products in the COMESA region
in the value chain
Revised trade policies and

COMESA 2011-2015 MTSP Strategic Priorities

Building Competitive Productive
Capacity;
Addressing Supplies-Side Constraints
Related to Infrastructure;
Through the availability of sector
oriented financial instruments,
stake holders can make and
propose business plans to financial
institutions for modernisation and
viable management of the sectors
in the value chain
Publication of parameters that
indicate to banks and financial
tariffs in line with the
recommendations of the
study.
Improved collaboration amongst stakeholders
Increased quality of products
Creation of public and at all levels of the value chain Value chain stakeholder acquired the knowledge of what
private sector partnerships resources and services are available to business
Increased availability of Increased target market information allows enterprises
.
skilled personal and and support institutions to plan and operate better.
appropriate technology for
the sector
Increased production of
quality hides and skins
Improved inflow of FDI into Value chain stakeholders acquired the knowledge what
the sector resources and services are available to his business
54
 institutions which platform for
financial costs can be borne by the
industry all over the region

Provision of a stable policy Linkages and private public dialogue to create enabling
Peace and Security Improved inflow of FDI into the framework that will foster environment for governance and socio-economic
sector socio-economic development development
in the leather sector

Territorial concentration of
Integrate Cross-Cutting Issues the sectors of the value chain
(gender, youth, socio-environmental enabling integration and Clean and modern leather
health, climate change, knowledge collective use of production production technologies are
based society, statistical and environmental facilities institutionalised at national
development, cooperation and and support services and regional level.
partnerships and Aid for Trade) Reduced environmental
contamination.
Improved service delivery to
Provision of information for banks the leather sector
Institutional Strengthening. Improved performance of
and financial institutions to better Promotion and dissemination activities organized and
both national associations COMESA introduces a
assess the sector and provide accessible regionally and internationally.
and technical institutions standard system which is
access to finance for SMEs
internationally acceptable

55
ANNEX 3 – Strategy’s Contribution to MDGs
MDG Eradicate extreme poverty &
hunger
1 Improvement of access to finance
through innovative mechanisms
supports wealth creation
2. Improved policies and enabling
environment fosters socio-
economic development of sector
stakeholders
3. Improvement in sector efficiency
and sourcing result in better
resource flow to vulnerable
population including livestock
farmers.
STRATEGY OBJECTIVES CONTRIBUTIONS TO MDGs
4. Information and improved
marketing enhances trade and
income generated by the sector
Promote gender equality &
empower women
A regional fund for the leather
sector is set up that ensures
gender equality and women
empowerment
Policies formulated for the sector
have a gender sensitive
component
Skill and capacity building
activities performed with a
gender balance
Combat HIV/AIDS
Mainstreaming HIV
information /awareness in
all capacity building in the
sector
56
Ensure environmental
sustainability
Finance becomes available and
includes components for
environment and water
management
Reduced environmental
contamination.
Clean and modern leather
production technologies are
institutionalised at national and
regional level.
Quality of products improved
Improved hygiene, improved food
safety and improve hide and skin
quality
Sector compliance to Market
requirements on environmental
and clean manufacturing
practices will create environment
sustainability
Global partnership for development
Availability of information on value chain finance
needs for the region.
Through financial instruments, stake holders can
make and propose business plans to financial
institutions for modernization and viable
management of the sectors in the value chain
Improved inflow of FDI into the sector
Improved performance of the leather value chain
thanks to public private dialogue
Increased availability of skilled personal for the
sector
Improved technical knowledge on suitable
equipment
Improved efficiency from training and sector
support institutions
Improved appreciation of the latest fashion trends
Linkages and dialogue created between COMESA,
governments, development partners and private
sector to improve overall sector efficiency
 ANNEX 4 - Country Specific Constraints
Country Production
Small livestock production,
average slaughter facilities,
well developed hides and
Burundi skins trading and only
artisanal leather goods
production
Comoros Comoros has not sufficient raw materials for a leather value chain
Djibouti Djibouti has not sufficient raw materials for a leather value chain
Little is known about the DRC’s leather value chain. DRC data is either not available or reliable. As an example, DRC has a population of 68'693'000 and the by FAO published h&s production is not
DRC
consistent with this population
Western orientated leather
and leather goods
Egypt production. Tanneries
situated mainly in Old Cairo
Being a small country
livestock is limited. 5
tanneries producing only
semi-tanned leather
Eritrea
consuming the available
h&s. Industrial production
of footwear but with low
outputs
Large production of raw
hides and skins, all
transformed into leather
and partly in leather goods
Ethiopia
Livestock production is in
Kenya on quite an
Kenya interesting level. H&s are
collected and prepared for
export and/or local leather
Participatory Workshop per Country Raised Issues
Marketing Policy Representation Technology & Management Finance Quality & Standards
Live animals, hides As yet the Apart from a The country has no commercial Livestock holders are mainly auto Livestock and h&s quality is quite
and skins are locally country has no butcher’s farms. The tannery is managed financing. Butchers are financed by good for East African standards.
traded in a naturally policy for the association, there with simple technological means h&s buyers. The tannery has bank Leather quality is basic. No specific
developed fashion. leather value is no effective or and produce medium level financing standards are mandated or
No modern chain efficient quality. No industrial leather followed
professional trading representation of production
at any level the value chain
The marketing of There is no Efficient Management and production Finance is not perceived as a Quality in general of leather value
leather and leather overall leather representation are perceived as a constraint constraint chain products is limited and
products is sufficient value chain in spite of the presence or inconsistent. No presence of
to allow efficient institutional collaboration with foreign industrial standards
trading policy. partners
Total export ban on There is no Representation Technology and management Institutional finance is a main Quality limited and no standards
h&s. Marketing for apparent of the value need improvement constraint for the expansion of the
h&s adequate to the institutional chain both sector
country’s position in policy for the domestically as
the world market. leather value internationally
Leather goods only chain except for leaves space for
sold locally. the export ban of improvement
raw materials
Marketing is The country has The Ethiopian Technology is imported mainly Finance is a very serious issue in Although the overall quality is
perceived as a an institutional leather industry from Europe (Italy) both in Ethiopia. A number of laws and acceptable to domestic and foreign
constraint although leather value is suitably terms of tanning and design regulations deal with this issue. buyers, it’s consistency leaves room
the market visibility chain policy. represented Management is mostly in the for improvement
Marketing of domestically as hands of home-grown self-
Ethiopian leather well as abroad. made businessmen.
and related Addis Ababa
industries is Leather fair is an
significant international
event
Kenyan stakeholders Although there is Representation Technology is rather basic and Finance is perceived as an issue and Quality of hides and skins is affected
perceive marketing a policy of the value needs improvement according necessary modernisation suffers by traditional believes for which
an issue regarding the chain appears to the stake holders from lack of finance. animals are marked by scarring.
export of raw not to be an Quality in tanning is average to
h&s, issue good. Bata produces export quality
57

Country Production
production. Several shoe
factories are operative
among which Bata Kenya,
which is the main producer
of footwear in COMESA.
Libya has a small livestock population and only one or a few tanneries. The Libyan leather value chain has little or no international visibility. One tannery was reported to be in need of upgrading, repairs,
Libya
technical and managerial assistance, representation and marketing.
Relatively small livestock.
One tannery and raw
materials exceeding local
tanning is exported.
Madagascar
Malawi’s cattle farming is to
a relatively rather large
extent professional in
feedlots. Meat production
in Lilongwe and Blantyre is
professional. No leather
Malawi production. Small shoe and
leather goods production
In spite of a rather small
livestock population,
Mauritius Mauritius raises deer for
commercial purposes. The
country has two tanneries
Rwanda is a small country
where livestock permeates
daily life of almost the
whole population. Hides
and skins are produced
Rwanda partly officially, partly
unofficially exported. The
only well equipped tannery
is closed. The shoe wear
and leather goods
manufacturing is at cottage
Participatory Workshop per Country Raised Issues
Marketing Policy Representation Technology & Management Finance Quality & Standards
stakeholders shoes. Leather goods are targeted
judge the for tourists and of reasonable
present policy quality. There are no industry
insufficient standards
Marketing appears No known No industry production standards
not to be an issue institutional available or enforced.
because the raw value chain
material exporters policy
and the tannery
enjoy a demand
situation higher than
the production
Marketing is an The country has The value chain Feedlot farming is based on a Finance is a very big issue. The Quality of hides and skins is good at
important issue. no institutional has little or no somewhat technological country’s financial institutions feedlot level, in spite of significant
There is none. value chain representation approach. The once existing demand very high interest rates, brand mark damage. Rural h&s are
Whatever is policy, which was even if LLEPDEC tannery had a very low excessive collateral. Banks operate a of low quality. No industry
produced and sold is one of the is trying to technological profile. Shoe commercial exchange rate towards standards.
small time and reasons why the represent factories that operate with hard currencies, that is 15% lower
mainly to tourists existing tannery stakeholders at machines from the closed than the tourist rate
even if some regional closed. The cottage industry Bata factory are low-tech.
exports are reported Government is level
now considering
to introduce a
value chain
policy.
Insufficient information available
Marketing is not an Rwanda has tried The value chain The technology basis when Livestock holders consider their The quality of Rwandan h&s is
immediate issue due several value is inadequately the tannery was in operation animals an asset, The h&s trade is considered the best in East Africa.
to the lack of chain policies, all represented. was rather basic, in spite of a financed by foreign buyers both for The quality of leather was
marketable goods. of which brought number of installed machines. the official and unofficial exports. questionable and the quality of
only negative At leather products The country has more or less leather products is such that only
results production level technology is attractive financing schemes in place local buyers who cannot afford
a theoretical but not a but mainly for foreign investors imported materials are interested in.
practical entity. The skills of
the artisans are good.
58
 Participatory Workshop per Country Raised Issues
Country Production Marketing Policy Representation Technology & Management Finance Quality & Standards
industry level.

Seychelles The Seychelles not sufficient raw materials for a leather value chain
Sudan is one of the biggest Marketing for The country has The stakeholders The technology at the disposal Finance is a serious constraint. The The quality of Sudanese skins is
livestock holders in Africa. Sudanese tanners is a value chain believe that they of the Sudanese leather value lack of affordable finance reduces good. Tanning technology is
The tanning industry not an issue policy that is are adequately chain is rather basic the capability to expand the industry hampered by inconsistent quality
transforms the country’s however represented and lack of quality control. Updated
available h&s in pickled and restricting it’s and new technologies are necessary
Sudan wetblue leathers. Finished reach to the
leathers are for local partly ban on
consumption. export of raw
Manufactured leather materials.
goods are for local
consumption
Swaziland Little is known about the Swaziland’s leather value chain. Swaziland data is either not available or reliable.
Uganda has a concentrated Marketing is Institutional The value chain The value chain does not have Finance is a major constraint, being Quality control, quality consistency
production of cattle in the perceived a major value chain is believed to sufficient technological means expensive and difficult to obtain. The are lacking. Standards are not
so called cattle belt. A very constraint policies are not have at its disposal. industry therefore has difficulty to available nor demanded
diversified production of available except representation upgrade, modernize and expand.
leather which includes for the taxation but its
reptile and fish skins. Little of the export of effectiveness
Uganda finished and crust leather is raw h&s. An and efficiency
exported, but mainly wet efficient are rather
blue is produced. Leather implementation questionable.
goods are produced on a of this export
semi-industrial level. restriction
appears to be
difficult.
Zambia is one of the more Marketing doesn’t The country has Representation The value chain technology is Finance is difficult to obtain and Quality of Zambian leather is above
consistent producers of appear to be an issue a limited value is considered weak where the expensive average for the COMESA region.
livestock, particularly cattle. in Zambia chain policy that adequate transformation process is Tanned hides are exported to Europe
Crocodile skins are begins and stops concerned (tanning and but mainly to South Africa
produced in crocodile with the ban of manufacturing).
Zambia farms. In theory the export on raw
tanneries transform all hides and skins,
available h&s into leather. from which
The production of finished reptile skins are
leather goods is rather exempted.
weak
Zimbabwe produces mainly Marketing is an The institutional The value chain Technology has not been Availability of affordable finance is a Quality of h&s has seriously
hides which for 70% come important issue, also value chain is considered to upgraded during the last 10 major, probably “the” major issue deteriorated in the last 10 years.
Zimbabwe from rural areas and 30% because the image of policy is not have adequate years, nor in terms of for the sector Also the quality of leather products
from professional abattoirs. the country as adequate to the representation production not in terms of has lagged behind.
Cattle production has perceived abroad is capacity and machines.
59
 Participatory Workshop per Country Raised Issues
Country Production Marketing Policy Representation Technology & Management Finance Quality & Standards
decreased over the last 10 not ideal for the capabilities of
years, but is again on the business community the sector
rise.
Tanneries produce fully
finished leathers and
footwear on an industrial
level.

60
ANNEX 5 – Case Studies

Annex 5 presents three case studies on national value chain analysis for the leather industry in three
COMESA countries: Malawi, Uganda and Zimbabwe. The three countries were selected by the Core
Team because of their different stages of sector development and performance which accurately
represented the situation in the remaining COMESA countries.

The national case studies form part of COMESA efforts to develop the present regional leather
sector Strategy. They have been developed using the stakeholder-led participatory approach in
order to define sector priorities at national level and to coordinate and align them with regional
development activities. In these workshops value chain actors including farmers, traders, abattoirs,
tanners, manufacturers and distributors participated together with public sector employees and
policymakers.

Participatory workshops were therefore organized in each country with the objective of mapping the
value chain, identifying target markets and performance as well as development response activities.

The COMESA-ITC Workshops, which took place in July and August 2010, were the first occasions for
value chain stakeholders to meet under a common platform and discuss together target market
issues in the value chain and response priorities. Participants vowed to continue dialogue as an
industry under the COMESA platform and in some cases, like Zimbabwe, have met monthly and have
enabled national policy strengthening.

Table 11 at the end of this section represents a comparison between the regional strategy
objectives with the national priorities developed by the stakeholders for each of the three case
studies. As it can be seen from the table, there is a significant level of confluence and synergy
between priorities and the Regional framework becomes of capital importance to tackle the
national priority issues.

MALAWI

Introduction to the sector

Malawi is a landlocked country ranking among the world's most densely populated and least
developed countries. Its population amounts to 15.5 million inhabitants.

The economy is predominately agricultural with about 80% of the population living in rural areas.
Agriculture accounts for more than one-third of GDP and 90% of export revenues.

Malawi’s economy depends on substantial inflows of economic assistance from the IMF, the World
Bank and individual donor nations. In 2009, the country experienced some economic setbacks,
including a general shortage of foreign exchange, which has damaged its ability to pay for imports. In
the same year, investment fell by 23%. As a small landlocked country, Malawi’s export and import
prices are seriously influenced by transport costs.

Its natural resources are: limestone, arable land, and hydropower, unexploited deposits of uranium,
coal, and bauxite. Hides and skins are not considered as a priority natural resource.

61
Malawi has some quite developed cattle feedlots that buy their stock from local small scale cattle
farmers. The feedlots have their own abattoirs where the fattened animals are being taken for
processing. Apart from these feedlots and professional abattoirs, there is a myriad of small cattle
holders who sell their animals to butchers who slaughter the animals in small country abattoirs of
slaughter slabs. The only tannery in the country, donated by UNDP, closed and all its machines sold,
leaving Malawi without a tannery.

Several small footwear and leather goods manufacturers are active but suffer from lack of finance
and locally manufactured leather. Cheap imports, mainly from the Far East, represent a serious
damage to the development of Malawi’s leather industry.

A number of attempts and initiatives have tried to launch programs to improve industry’s conditions
but lack of financing remains an important constraint. Therefore, for Malawi to consider the leather
sector as one of its priority economic contributors with an appropriate comprehensive medium to
long term national strategy, it is important that the leather sector becomes one of the main
industrial entities of the country.

Target markets and value chain analysis

At the Blantyre Leather Workshop in July 2010, stakeholders identified projected target market,
based on present market knowledge and presumed future market requirements (see table below).

Product Segment Present Potential market Buyers Constraints Suggestions

market requirements
Raw hides Collectors Tanzania, Italy, India, China, Excessive Formalize trade
and skins Traders Kenya, South Africa, Kenya informal cross- and re-open
Greece, border trading tannery or
Turkey, with Tanzania build new
Pakistan, tannery
India, China,
Australia
Wet blue Traders Italy, China Italy, India, China, Tannery closed Re-open
Hides and South Africa, Kenya and machines tannery or
skins sold build new
Quality tannery
Crust Traders Italy, India, China, consistency, Tried but no Acquire
South Africa Reliability, consistency know-how
Technological and abandoned
Finished Manufacturers Domestic Italy, India, China, sound, Quality not up Acquire
Leathers market until South Africa On-time to know-how
tannery delivery, requirements
closed Ecological,
Shoes Military, 100% Regional, Bio-degradable No local Curb imports,
safety, school, domestic Mozambique, finished promote
Ladies/gents market Zambia, DRC, leather. production,
fashion Tanzania and niche No accessories allow duty-free
markets or components. import of
Cheap imports, components,
lack of design accessories.
technology Acquire
updated. know-how
No standards
Garments
Leather Key holders, Mozambique, No R&D, Acquire
Design
products wallets, belts, Zambia, DRC, no market know-how,

62
Product Segment Present Potential market Buyers Constraints Suggestions
market requirements
handbags, Tanzania and niche approach develop design
watchstraps markets
Ethical Niche markets USA, Europe No R&D,
fashion no market
approach

The value chain analysis was conducted at the following levels: livestock and farm level; abattoirs;
hides&skins collection and trading; tanneries; shoe factories; and leather goods manufacturers.
Value chain stakeholders also indicate the following issues that are common across the entire value
chain: inadequate managerial skills; insufficient R&D; lack of training; lack of sector representation;
transportation costs; high cost of finance; lack of market skills and research; etc.

The value chain diagram is presented below.

63
.

64
Priority actions for Malawi leather value chain

On the basis of the issues raised during the workshop, five priority objectives, with related sub-
objectives and activities to be realized at national level, have been identified (for a more detailed list
see Table X below):

 Objective 1: Productive capacity and industrial development - Sub-objectives: Revival

Tannery; Hides&Skins; and Leather Products. This objective will create an environment
where imported production materials are locally produced.

 Objective 2: Training for improvement quality throughout the value chain – Sub-objectives:
Hides&Skins; Animal Healthcare; and Leather and Leather Products. This objective will
improve, through training and awareness building, quality of the end products.

 Objective 3: Value chain policy alignment and government lobbying – Sub-objectives:

Policy actions; Training and development; and Facilitation policies. This objective will
contribute to the development of a long term value chain strategy to make the development
of the leather sector a priority for the country.

 Objective 4: Value chain representation. This objective will contribute to overcome

representation’s problem by constituting a permanent body for value chain consultations.

 Objective 5: Market promotion – Sub-objectives: Domestic market; Regional and

International markets. This objective will contribute to quality improvement of leather goods
and to represent Malawi leather industry abroad.

COMESA can contribute to the development of a national leather value chain in Malawi by, for
example: finding partners willing to invest in Malawi once a national leather sector strategy is in
place; regulating quality issues raised by stakeholders; facilitating harmonization of import and
export duties on raw materials, processing materials, spear and wear-parts; and facilitating
harmonization of national standards into Regional standards.

Pictures of Blantyre Leather Workshop

65
UGANDA

Introduction to the sector

The Government of Uganda embarked on an industrialization plan for economic development after
the political downturns of the 1970s and early 1980s. The National Industrial Policy (NIP) was
completed in 2008: one of its recommendations was to develop sub-sector policies.
The National Export Strategy of 2007 identified live stock and livestock products, including hides and
skins, leather and leather products among key export commodities. Export promotion of such
products is seen as a long-term strategy for poverty alleviation.

The Ugandan economy is one of the few African economies with a balanced GDP composition.
Agricultural employs 82% of the labor force but contributes only by 22.2% to GDP growth. On the
contrary, the industrial sector recruits only 5% of labor but adds 25.1% to annual GDP. Out of 22.2%
GDP contribution by agriculture, livestock contributes by 13% and most of the livestock’s
contribution is accounted for by pastoralists. This is because pastoralists and communal grazers hold
about 95% of all the cattle.19

Hides and skins are the highest export earner in the livestock sector and is estimated to be growing
at 3% per annum. In Uganda, hides and skins are derived from urban (20%) and rural (80%) slaughter
of cattle, sheep and goats. Uganda has four operative tanneries processing hides and skins from
slaughter animals plus one fish skin tannery. There are also eight cottage tanneries that mostly do
vegetable tanning distributed countrywide with production capacity of about 30,000 vegetable and
dressed skins per year.

The Ugandan shoe factories are small scale operations producing in a semi-artisanal way, but
reasonably well equipped with machines that were sold off by Bata Shoe Company when they
closed.

Leather goods manufacturers are numerous, most working on an artisanal level. They produce a big
variety of leather goods. No big scale production of leather goods is as yet available in Uganda. The
quality of the leather goods is quite good, even if not yet suitable to be launched on the
international market due to the relatively low quality of the leather. Numerous small artisans also
produce shoes.

In spite of the will of the Government to promote value addition by charging and export duty on raw
hides and skins, the implementation results very difficult and exporters circumvent these
dispositions. The lack of a policy that curbs dumping from the Far East and the massive import of
second hand leather goods, particularly the import of second hand shoes, seriously endangers the
development of the entire sector.

Target markets and value chain analysis

At the Kampala Leather Workshop in July 2010, stakeholders identified projected target market,
based on present market knowledge and presumed future market requirements (see table below).

19
Source: Ministry of Agriculture Animal Industry and Fisheries –DSIP: Development Strategy and Investment Plan 2010/11 – 2014/15.

66
 Product Segment Present Potential market Buyer Constraints Suggestions
market requirements
Raw hides Traders, Italy, India, Italy, India, China, Export allowed, Double export
and skins abattoirs, China, Pakistan, Kenya. subject to tax on raw
exporters, Pakistan, Exotic skins: Italy export tax hides and skins,
exotic skin Kenya. France, Japan guarantee
farms. Exotic skins: implementation
Fishery Italy France, and eliminate
industry Japan dishonest
behavior
Wet blue Tanners Italy, India, Italy, India, China, Quality Invest in
Hides and China, Pakistan, Vietnam, inconsistent technology, by
skins Pakistan, Regional markets using export tax
France, and COMESA. on raw hides
Japan, Exotic skins France, and skins
Vietnam Japan, Italy
Quality
Crust Tanners India Vast, among which Quality rather Update
consistency,
Italy, India, China, basic machines and
Reliability,
Pakistan, France, know-how by
Technological
Japan, Vietnam, using export tax
sound,
Regional markets on raw hides
Ecological,
and COMESA and skins
Bio-degradable
Finished Tanners Domestic Italy, India, China, Quality not up Update
Leathers market South Africa, to machines and
Pakistan, Vietnam, requirements know-how by
regional markets using export tax
and COMESA on raw hides
and skins

Shoes Military, Domestic Regional, Comesa, Cheap imports, Create brand

safety, market, USA Europe, USA lack of design and curb cheap
school, technology imports
Ladies/gents updated. No
fashion standards. Lack
of attractive
brand name
Leather Niche Domestic USA, Europe, No R&D, no
products markets market individual shops market
regional/Comesa approach
Design
Ethical Niche USA Europe No R&D, no
fashion markets market
approach

The value chain analysis was conducted at the following levels: livestock and farm level; abattoirs;
hides&skins collection and trading; tanneries; shoe factories; and leather goods manufacturers.
Value chain stakeholders also indicate the following issues that are common across the entire value
chain: inadequate managerial skills; insufficient R&D; lack of training; lack of sector representation;
lack of market visibility; lack of affordable credit; high interest rates; etc. Also, stakeholders had a
clear mind that if they could produce sufficient quantities of sufficient quality that they would have
easy access to foreign markets, regional and international.

The Ugandan leather sector industry knows where it wants to go, but is inhibited by lack of an
overall short, medium and long term policy that aims at value addition. Individual interests prevail
over sector interest.

The value chain diagram is presented below.

67
68
Priority actions for Uganda leather value chain

On the basis of the issues raised during the workshop, five priority objectives, with related sub-
objectives and activities to be realized at national level, have been identified (for a more detailed list
see Table X below):

 Objective 1: Market research and development promotion and value chain representation
– Sub-objectives: Product Improvement; Product Promotion and Market Research. This
objective will contribute to overcome one of the major weaknesses of the leather value
chain.

 Objective 2: Government Policy and Lobbying – Sub-objectives: Fiscal Policy; Regulatory

Policy; Sector Policy; Financial Policy; and Quality Improvement. This objective will
contribute to a more effective role of the Government and to a better representation of
sector’s professional associations.

 Objective 3: Training and capacity building – Sub-objectives: Training; Sensitisation and

Capacity Building; and Quality Improvement. This objective will create overall quality
improvement.

 Objective 4: Increase volumes and organize collection of hides by reestablishing grading

system – Sub-objectives: Technical Improvement and Upgrading; Partnership Development;
and Cost saving. This objective will put in place an incentive-based system for hides&skins
collection.

 Objective 5: Financing and Investment – Sub-objectives: Budgetary Policy; Extension

Services; and Macroeconomic interventions. This objective will improve access to finance.

In Uganda all the basics for a successful development of the leather sector are in place: livestock is
abundant; take-off is within normal limits hence supply is readily available. In this context, COMESA’s
intervention will contribute to the development of Uganda’s leather sector by:

 Organizing centralized regional training programs;

 Promoting regional policy against dumping;

 Promoting regional policy against imports of second hand shoes and leather good;

 Establishing a framework for regional standards on leather and leather goods in production,
import and export;

 Establishing guidelines on imports standards for chemicals and machines;

 Organizing regional events, such as a COMESA leather fair and/or the incorporation of the
COMESA trade mark at African leather fairs like Meet In Africa and the All African Leather
Fair;

69
  Organizing visits of foreign stakeholders to COMESA countries and vice versa of COMESA
stakeholders to overseas leather and leather goods producing countries for the exchange of
ideas on production and trade.

Pictures of Kampala Leather Workshop

70
ZIMBABWE

Introduction to the sector

Zimbabwe ranks amongst the few acclaimed leather producers in the history of the SADC region and
Africa as a whole. It has a cattle population of around 5 million heads. The cattle slaughter uptake is
at 7% of the national head per annum and this translates to about 350,000 hides being availed in the
market annually: this corresponds to a potential business of at least us$7million.

The challenge for Zimbabwe is how to derive maximum value from such an output. Firstly the quality
of more than a third of the hides is compromised through poor animal husbandry practices.
Secondly, preservation and storage methods barely meet the minimum standards of commercial
hides’ conservation with the consequent poor end product that sometimes fails the tannery grading
system. Small, medium and large abattoirs perform better hide processing than slaughter poles but
they lack financial resources to upgrade processing, preservation and storage systems.

A number of institutions - United Nations, Governments and NGOs - have projects aimed at quality
improvement of hides and skins in developing countries with the objective to increase their value
and improving the income of the value chain actors. Many countries with significant livestock like
Nigeria, Ethiopia, Sudan and countries with smaller livestock, have declared the leather sector a
priority for the national economy. At the regional level COMESA has given priority to the leather
industry. Zimbabwe shall also prioritize leather in its Industrial Development Policy.

An improvement in processing technology coupled with campaigns for improved animal husbandry
and the access to affordable credit should see Zimbabwe’s leather industry standards and quality
catching up with the rest of the world.

Target markets and value chain analysis

At the Harare Leather Workshop in July 2010, stakeholders identified projected target market, based
on present market knowledge and presumed future market requirements (see table below).

Product Segment Present Potential market Buyers Constraints Suggestions

market requirements
Raw hides Traders Export Italy, India, China, Export of raw Export what
and skins prohibited South Africa, hides local tanners
Kenya regulated. don’t absorb
Wet blue Traders Italy, India, Italy, India, China,
Hides and China, South Africa,
skins South Namibia, Namibia Quality
Africa, consistency,
Namibia Reliability,
Crust Traders Italy, India, Italy, India, China, Technological Not tried
China, South Africa sound,
South Ecological, Bio-
Africa degradable
Finished Manufact-urers Italy, India, Italy, India, China, Quality not up Update
Leathers China, South Africa to machines
South requirements and know-
Africa how

71
 Product Segment Present Potential market Buyers Constraints Suggestions
market requirements
Shoes Military, safety, 100% Regional, Comesa Cheap imports,
school, domestic niche markets lack of design
Ladies/gents market technology
fashion updated. No
standards
Garments
Upholstery Furniture & Car 100% Domestic, South Only small
1% of manufacturers domestic Africa, Europe, quantity of
available market USA, China Zimbabwean
raw hides suitable
materials
High quality Niche markets USA, Europe, No R&D, no
products individual shops market
regional/Comesa approach
Design
Ethical Niche markets USA Europe No R&D, no
fashion market
approach

The value chain analysis was conducted at the following levels: livestock and farm level; abattoirs;
hides&skins collection and trading; tanneries; shoe factories; leather goods manufacturers; and
associations. Value chain stakeholders also indicate the following issues that are common across the
entire value chain: importance of elaborating a medium- or long-term development policy for the
leather sector; insufficient support at institutional level; lack of affordable access to finance; high
interest rates; etc.

Leather industry in Zimbabwe wants to evolve and has the capability to do so; however, it is
discouraged by the difficult access to finance, which is considered as the major constraint.

The value chain diagram is presented below.

72
73
Priority actions for Zimbabwe leather value chain

On the basis of the issues raised during the workshop, five priority objectives, with related sub-
objectives and activities to be realized at national level, have been identified (for a more detailed list
see Table X below):

 Objective 1: Strengthen value chain coordination and policy alignment through a sector
association – Sub-objectives: Form a professional sector wide association; Improve Policy
making; and Awareness building and sensitization of stakeholders. This objective will
contribute to overcome the lack of communication and coordination among value chain’s
actors.

 Objective 2: Improve access to finance across the value chain – Sub-objectives: Situation
Analysis; Finance from the value chain; Finance from banking sector; and Promotion of FDI.
This objective will improve access to finance and will help attract FDI in the leather sector.

 Objective 3: Market Intelligence and Promotion – Sub-objectives: Define Data needs; and
Improve market intelligence and dissemination. This objective will contribute to improve
value chain stakeholders’ knowledge of foreign target markets.

 Objective 4: Manufacturing – Sub-objectives: Improve quality and reestablish grading

system and promote benchmarking throughout the value chain; Increase volumes quality
collected. This objective will improve quality of hides.

 Objective 5: Practical training for improving quality across the value chain – Sub-objectives:
Training for good husbandry practices; Training for good husbandry practices; Training of
best practices at tannery level; Training for best practices at manufacturer and design levels.
This objective will contribute to the implementation of training activities which are
tremendously important at all levels of the value chain.

COMESA`s role in the development of Zimbabwe leather sector is clear. It can assist with marketing
and training tools. It can facilitate promotion of available regional lines of credit. COMESA should
assist local policy makers to align their policies with regional ones. Regional promotion and
introduction of standards, tariffs and long term trade strategies with incentives for regional
production and protection from dumping and second hand imports from overseas will be a primary
role for COMESA to play.

74
Pictures of Kampala Leather Workshop

75
Table 11: Overall comparison of regional response objectives and national objectives
REGIONAL MALAWI
RESPONSE National National
OBJECTIVES Objective Sub-objectives/Activities
1. Productive a. Revive tanneries 1. Increase Volumes and a. Technical
Capacity and through Government’s
Industrial support; attraction of
Development FDI, involvement of
banks; recondition/
replacement of
equipment;
elaboration of studies
for effluent treatment;
elaboration of
business plans.
b. Improve quality of
hides&skins through
creation of clusters of
collectors to reduce
costs; introduction of
new breeds; increase
of penalty/review
legislations on cattle
theft; control imports
to reduce spreading of
disease; study
alternative
identification
methods.
c. Improve quality of
leather products
through creation of
policy to promote
qualitative leather
production; forming
clusters for efficient
1. Improve Productive Capacity/Organise Collection Of Hides&Skins
use of machines; use
of machines to
improve quality and
attractiveness.
UGANDA ZIMBABWE
National National National National
Objective Sub-objectives/Activities Objective Sub-Objectives/Activities
1. Increase Volumes a. Improve quality and
Organize Collection of Improvement and and Organize reestablish grading
Hides by Upgrading through Collection of Hides system and promote
Reestablishing promotion of big- by Reestablishing benchmarking
Grading System scale professional Grading System throughout the value
livestock farming; chain to improve
improve quality and quality
technologies; R&D consistence at all levels
for new clean of the chain;
technologies; reintroduce
creation of professional hide
cooperatives. collectors; provide
b. Boost Partnership extension and support
Development with services to villages.
foreign leather b. Increase volumes
technology quality collected
institutes; regional through improved
and international storage facilities;
experts for strengthened
knowledge and inspection services by
technology transfer; veterinary department;
improve capacity of introduction of
leather associations. mechanical flying
c. Obtain Cost Saving devices in abattoirs.
through bulk buying
of base materials,
slaughter house
equipment,
pharmaceuticals for
animal well care.
76
REGIONAL MALAWI UGANDA ZIMBABWE
RESPONSE National National National National National National
OBJECTIVES Objective Sub-objectives/Activities Objective Sub-objectives/Activities Objective Sub-Objectives/Activities
2. Training for a. Revive Hides&Skins 2. Training and Capacity a. Promote Training for 2. Practical Training for a. Training for good
Improvement of through renewed Building local artisans, Improving Quality husbandry practices
Quality training programmes, extension staff; across the Value through education on
throughout the for example on establish a Leather Chain animal treatment;
Value Chain internationally Training Institute; information on better
acceptable introduce “quality nutrition and
conservation for money” system dehorning; new
techniques; quality for better grades. branding techniques;
awareness building; b. Sensitisation and introduction of
provision of proper capacity building at effective disease
slaughter equipment farm and trading control.
for abattoirs. level; improvement b. Training for proper
b. Promote Animal of extension slaughtering and
Healthcare through services; flaying techniques.
less invasive branding; enforcement of c. Training for best
improved regulations animal cruelty act practices at tannery
from the Bureau of and of the branding level, through
Standards; act by the Ministry. introduction of grading
reinforcement of c. Achieve Quality system; improved
extension services; Improvement awareness of
awareness through recruitment international
programmes on of more extension standards; machines
animal husbandry staff for disease maintenance;
practice. prevention and organization of training

2. Training and Capacity Building

c. Improve leather and control; introduction sessions/exchange
leather goods of a grading system between countries.
production through at farm level; d. Training for best
training to tannery introduction of practices at
personnel; promotion mechanical flaying manufacturer and
of technology devices; promote design level to young
acquisition and proper disposal of entrepreneurs;
capacity building; used salt and hides acquisition of
creation of training and skins waste. appropriate technology
centres for the leather and new production
value chain. and processing
techniques.

77
REGIONAL MALAWI
RESPONSE National National
OBJECTIVES Objective Sub-objectives/Activities
3. Market Promotion a. In the Domestic 3.
Market, reduce
informal slaughter and
create better quality
meat and hides&skins;
use the media to show
the advantage of
leather vis-à-vis
synthetics to
consumers; implement
“Buy Malawi Build
Malawi” concept;
develop national
dedicate value chain
website.
b. In the Regional and
International Markets,
introduce data in
dedicated websites on
Malawi stakeholders
and products of the
leather value chain;
update export
promotion activities,
3. Improve Information and Marketing
such as fairs in Africa
and abroad.
UGANDA
National National
Objective Sub-objectives/Activities
Market Research and a. Achieve Product 3.
Development Improvement
Promotion and Value through
Chain Representation specialization and
outsourcing of
products for higher
quality standards;
empowerment of
Bureau of Standards
to control/regulate
imports and
standards; establish
partnership for
knowledge transfer.
b. Achieve Product
Promotion through
trade fairs, radio, TV
and press;
conduction of
awareness and
visibility campaigns;
receive update
information on
global trends.
c. Develop Market
Research on
competitors and
target markets; tariff
preference in and
outside COMESA;
promote cluster
initiatives.
78
ZIMBABWE
National National
Objective Sub-Objectives/Activities
Market Intelligence a. Define Data Needs
and Promotion through value chain
consultations; creation
of a database of
industry members.
b. Improve Market
Intelligence and
Dissemination through
targeted market
studies on business
potential;
dissemination of
national products by
media and trade fairs;
updated information
on global trends;
assessment of tariff
advantages in and out
COMESA.
REGIONAL MALAWI
RESPONSE National National
OBJECTIVES Objective Sub-objectives/Activities
4. Value Chain Policy a. Adopt Policy Actions 4.
and Government for import
Lobbying substitution; enforcing
controls and
protective measures
against informal cross-
border trade; give
free-farmers land for
grazing; new branding
techniques.
b. Improve Training and
Development through
major use of national
institutions; major use
of IT; enhance
negotiations and
lobbying skills; create
course on
management.
c. Encourage Facilitation
Policies on formal
slaughter; improve
veterinary vigilance;
harmonize veterinary
standards on imports
4. Government Policy and Lobbying
of leather and leather
goods at regional level.
UGANDA ZIMBABWE
National National National National
Objective Sub-objectives/Activities Objective Sub-Objectives/Activities
Government Policy a. Fiscal Policy: 4. Strengthen Value a. Form a Professional
and Lobbying increase export Chain Coordination Sector-wide
taxes on raw and Policy Association to
hides&skins; Alignment through a represent all actors of
impose/enforce high Sector Association the value chain; assess
duties on cheap/ sector performance
second hand imports through participatory
b. Regulatory Policy: approach;
introduce business consultations with
licences; enforce private sector.
compliance of b. Improve Policy
standards; oppose Making: assess private
informal cross- sector’s needs;
border trade; harmonize policies at
oppose unfair trade regional level; consider
practices. application of export
c. Sector Policy: lobby duties; provide
for prioritization by incentives to exporting
the Government of companies.
the leather sector; c. Awareness building
regulate waste and Sensitization of
disposal; improve Stakeholders through
collaboration among communication
stakeholders. campaigns, private
d. Financial Policy: sector meetings and
facilitate access to attraction of SMEs into
affordable credit; sector associations.
train bankers on
leather business
risks; farmers to
lobby for subsidies
on acaricides.
e. Quality
Improvement on
hides&skins quality;
transport of animals;
farm structures.
79
REGIONAL MALAWI UGANDA ZIMBABWE
RESPONSE National National National National National National
OBJECTIVES Objective Sub-objectives/Activities Objective Sub-objectives/Activities Objective Sub-Objectives/Activities
- - 5. Financing and a. Adopt Budgetary 5. Improve Access to a. Undertake Situation
Investment Policies to fund Finance across the Analysis on finance
SMEs in leather Value Chain demand from the
technologies; sector; lower interest
improve access to rates and provide
credit; improve finance of working
budgetary capital; lobby central
allocations for and private banks for
livestock production affordable credit.
and veterinary b. Explore opportunities
services; for Finance from the
b. Improve Extension Value Chain; identify
Services through export market/buyers
recruitment of more willing to pay upfront;
staff and attract FDI.
establishment of c. Improve Finance from
regulatory body for the Banking Sector,
insurance issues. through innovative
c. Adopt fiscal schemes; reduce
Macroeconomics interest rates; train
Interventions to bankers to better

5. Improve Access to Finance

create leather assess leather
development funds business.
from collection of d. Promotion of FDI.
export duties and
buffer system to
balance market
drops.

80
ANNEX 6 – Regional dynamics

COMESA Integration Process

The COMESA region has achieved a deeper level of economic integration with the establishment of the Free
Trade Area (FTA) in 2000 and the launch of the Customs Union in 2009. The process for establishing a
Common Market in 2015 is on-going.20

COMESA member States that participate in the FTA grant duty-free and quota-free access to their respective
products, provided that such products meet the COMESA rules of origin. The thirteen countries forming part
of the FTA are: Burundi, Comoros, Djibouti, Egypt, Kenya, Libya, Madagascar, Malawi, Mauritius, Rwanda,
Sudan, Zambia and Zimbabwe. Member States that are not in the FTA (DR Congo, Eritrea, Ethiopia, Seychelles,
Swaziland and Uganda) either grant partial tariff reduction or do not offer any tariff reduction.

The overall intra-COMESA trade grew between 2000 and 2008; however it declined from US$ 13.7 billion in
2008 to US$ 12.7 billion in 2009. This was mainly attributed to the decline in the intra-trade among major
players such as Kenya, Egypt, Uganda, Zambia, DR Congo and Sudan. All these countries registered either
negative growth in intra-exports or imports or both in 2009. The percentage of intra-COMESA trade to total
COMESA trade was around 4% for the period 2004 – 2007.

Intra-COMESA Trade (US$ millions)

1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009
Exports 1,505 1,571 1,380 1,497 1,319 1,882 1,670 1,804 2,583 2,702 3,950 6,157 5,879
Re-exports 128 97 21 200 400 267 475 531 625 268 570 614 742
Total
exports 1,632 1,669 1,401 1,697 1,719 2,149 2,145 2,335 3,208 2,970 4,520 6,772 6,621

Imports 1,434 1,437 1,192 1,419 1,718 2,218 2,173 2,223 3,046 3,757 4,554 6,932 6,110
Total Trade 3,066 3,106 2,593 3,116 3,437 4,368 4,318 4,558 6,254 6,728 9,074 13,704 12,731
Source: COMESA COMSTAT database

With regards to intra-COMESA market shares in 2009, Egypt had the biggest export market share (28%),
followed by Kenya, Uganda, Zambia and DR Congo with 22%, 11%, 10 and 7% shares respectively.21 On the
import side, Libya had the biggest import market share in 2009 (18%), followed by DR Congo and Egypt with
12% each, while Zambia ranked fourth with 11%.22 The table below lists the top thirty commodities that are
traded amongst COMESA Member States.

20
The following areas are advancing faster: services liberalization; agriculture; elimination of non-tariff barriers; trade facilitation; market information;
visa relaxation; energy; peace and security; formulation and implementation of a regional industrial policy; formulation and implementation of a
regional intellectual property policy; as well as programs for harnessing science and technology and the Tripartite Free Trade Agreement.
21
Egypt’s intra-COMESA exports which consisted of various products were mainly exported to Libya, Sudan and Kenya. Kenya’s major intra-export
products were tea to Egypt and Sudan (US$ 186 million) and cement to Uganda (US$ 84 million). Uganda’s intra-COMESA exports in 2009 were mainly
coffee, tea and cement to Sudan, Kenya and Rwanda. http://comstat.comesa.int/
22
Libya’s intra-COMESA imports were of various products mainly from Egypt, while DR Congo’ s major intra-COMESA imports in 2009 were raw cane
sugar, Portland cement, sulphuric acid and wheat flour from Zambia. DR Congo also imported cement worth US$23 million from Uganda.
http://comstat.comesa.int/

81
Intra-COMESA top 30 Export Products, 2009 and Rankings 2009 - 2005

Export
Sitc Product description Value (US$ 2009 2008 2007 2006 2005
m), 2009
07414 Other black tea (fermented) and other partly fermented tea, whether or not flavoured 259 1 1 1 1 2
66122 Portland cement 248 2 4 2 2 3
2831 Copper ores and concentrates 230 3 2 6 17 37
3346 Petroleum oils and oils obtained from bituminous minerals (other than crude) and preparations
200 n.e.s.,
4 containing
6 by3 weight3 70 % or
1 more of petroleum oils or of oils obtai
68251 Copper alloys (other than master alloys) of refined copper 174 5 5 4 1,743 1,345
1211 Tobacco, not stemmed/stripped 164 6 8 14 7 7
06111 Cane sugar, raw 145 7 7 12 4 10
68212 Refined copper 144 8 3 8 79 4
77312 Co-axial cable and other co-axial conductors 92 9 13 144 186 238
1222 Cigarettes containing tobacco 87 10 9 7 11 18
3425 Butanes, liquefied 86 11 26 9 15 72
06129 Beet sugar, raw, other 81 12 20 13 31 65
28793 Cobalt ores and concentrates 76 13 571 693 203 117
66245 Glazed ceramic flags and paving, hearth or wall tiles; glazed ceramic mosaic cubes and the 71 like,14whether
19 or not35
on a backing
40 42
55141 Resinoids of a kind used in the food or drink industries 67 15 11 15 12 14
1123 Beer made from malt (including ale, stout and porter) 64 16 10 20 26 82
07111 Coffee, not roasted, not decaffeinated 63 17 12 16 10 11
7812 Motor vehicles for the transport of persons, n.e.s. 63 18 30 10 23 16
69969 Articles of iron or steel, n.e.s. 58 19 21 94 47 54
54293 Medicaments, n.e.s., put up in measured doses or in forms or packings for retail sale 58 20 22 21 14 22
67413 Semi-finished products of iron or non-alloy steel, containing by weight 0.25% or more of carbon....otherwise
56 21 15 plated19 or coated,
6 of a9 width of 600 mm or more
2225 Sesame (Sesamum) seeds 54 22 14 72 9 27
42229 Refined oil and its fractions 52 23 29 25 29 25
67321 Semi-finished products of iron or non-alloy steel, containing by weight 0.25% or more of carbon....of
48 24 a width 32 of 60089 mm 38or more,52in coils
59899 Other chemical products and preparations 48 25 127 251 297 532
1212 Tobacco, wholly or partly stemmed/stripped 48 26 17 17 5 19
56216 Urea, whether or not in aqueous solution 46 27 38 148 75 12
51112 Propene (propylene) 46 28 16 69 175 70
62921 Transmission belts or belting 45 29 1,306 1,221 1,434 1,356
69979 Articles of aluminium, n.e.s. 44 30 70 793 625 887
Note: Due to the change in the product classification used (Hs to Sitc) , proudct rankings may have been affected
Source: COMESA COMSTAT database

Intra-COMESA trade in raw hides & skins and leather products is indicated in the Table below. Product
categories have been aggregated at HS 4-digit level.

82
Intra-COMESA trade of hides and skins and finished leather products, 2009-2010 (US$ thousands)

Export Import
HS code Product description
Value in 2009 Value in 2010 Value in 2009 Value in 2010

41: Raw hides and skins (other than furskins) and leather

4101 Raw hides&skins of bovine/equine animals 888 5,050 647 3,218

4102 Raw skins of sheep or lambs 553 856 559 532

4103 Raw hides&skins nes 1,003 1,927 3,084 3,865

Leather of bovine/equine animal, other than

4104 220 1,307 151 939
leather of hd 4108/4109

Sheep/lamb skin leather,other than leather of hd

4105 84 0 80 8
no4108/4109

Goat/kid skin leather, other than leather of hd no

4106 98 21 212 0
41.08/41.09

Leather of other animals, o/t leather of hd no

4107 14 372 103 1,365
41.08/41.09

Leather further prepared after tanning or crusting

4112 0 23 0 23
""incl. parchment-dressed leather"", of

Leather further prepared after tanning or crusting

4113 4,113 29 50 59
""incl. parchment-dressed leather"", of

Chamois leather, incl. combination chamois

4114 1 0 1 1
leather (excl. glacé-tanned leather subsequentl

Composition leather with a basis of leather or

4115 203 353 210 354
leather fibre, in slabs, sheets or strip, w

42: Articles of leather, animal gut, harness, travel goods

Saddlery and harness for any animal, of any

4201 5 5 6 3
material

Trunks,suit-cases,camera cases,handbags etc,of

4202 1,285 1,288 1,435 1,804
leather,plas,tex etc

Articles of apparel&clothing access, of leather or

4203 102 228 93 203
composition leather

4205 Articles of leather or composition leather, nes 248 213 81 296

64: Footwear, gaiters and the like, parts thereof

W/p foot, outer sole/upper of rbr/pla upper not

6401 7,599 10,592 7,225 8,885
fixd to sole nor assemb

Footwear nes, outer soles and uppers of rubber or

6402 14,918 12,160 12,778 11,777
plastics

6403 Footwear, upper of leather 1,519 8,877 1,171 8,609

6404 Footwear, upper of textile mat 3,856 3,409 2,597 2,795

6405 Footwear, nes 17,606 7,325 2,483 6,015

Part of footwear; removable in-soles, heel cushion

6406 548 1,001 575 713
etc; gaiter etc
Source: ITC Trade Map
The data aggregated are mirror and direct data

83
In 2009, the Committee on the Customs Union developed a work programme over three years (2009-2012)
for COMESA member States to adjust to the requirements of the Customs Union - alignment of the national
tariffs to the COMESA Common External Tariff (CET),23 use of the COMESA Common Tariff Nomenclature
(CTN) by all member States, and domestication of the Regulations on the Customs Union – in order to ensure
its full operation. The architecture of the Customs Union provides for policy space and flexibility that allow
member States to address national issues; for example, some products may be indicated as sensitive (not
more than 20% of the total tariff lines of the CTN) or may be excluded from the CET (not more than 5% of the
total lines).

Some COMESA member States have facilitated procedures for cross border trade, through simplified customs
declaration document and a certificate of origin, and have agreed on lists of products that benefit from the
simplified procedures.24 With regard to transit procedures, the Regional Customs Transit Guarantee (RCTG)
Scheme has been rolled-out in the Northern Corridor Countries of Kenya, Uganda, Rwanda and Burundi with
effect from September 2009. Preparations are underway to commence operations in the North-South corridor
comprising DR Congo, Malawi, Tanzania, Zambia and Zimbabwe as well as in the Horn of Africa corridor
comprising Djibouti, Ethiopia and Sudan. This will assist Member States, particularly landlocked countries, in
reducing costs of transport and transit, delays at border posts and long transit times.

The COMESA Council also adopted a decision on the elimination of non-tariff barriers (NTBs) and most
Member States have established National Enquiry Points and National Monitoring Committees to implement
the national and regional NTBs elimination plans.

Other regional organizations

Some of COMESA member States are also members of different regional organizations in Eastern and
Southern Africa, for example:

 Burundi, Kenya, Rwanda and Uganda are members of the East African Community (EAC), a customs
union since 2005 which evolved into a common market in 2010;

 DR Congo, Madagascar, Malawi, Mauritius, Seychelles, Swaziland, Zambia and Zimbabwe are
members of the Southern African Development Community (SADC), an FTA which provides for the
gradual elimination of customs duties by 2012;

 Comoros, Madagascar, Mauritius and the Seychelles are members of the Indian Ocean Commission
(IOC), whose objective is to promote cooperation and to strengthen economic and commercial ties
among the Indian Ocean islands. Under the IOC, Mauritius and Madagascar are granting each other’s
products duty-free treatment.

Furthermore, Swaziland is a member of the South Africa Customs Union (SACU); DR Congo is member of the
Economic Community of Central African States (ECCAS); Libya is a member of the Arab Maghreb Union (UMA);
and Djibouti, Eritrea, Ethiopia and Sudan are members of the Intergovernmental Authority on Development
(IGAD).

23
It comprises three bands: 0%, 10%, and 25%.
24
These are: Malawi, Zambia, Zimbabwe, Uganda, Kenya, Rwanda, Burundi, Ethiopia, Sudan and DR Congo.

84
In this context, initiatives such as that of the Tripartite Arrangement will help reduce overlapping membership
and harmonize trade regimes.

Tripartite Free Trade Agreement (COMESA, EAC, SADC)

On 12 June 2011, COMESA, EAC and SADC launched the negotiations of the Tripartite FTA, comprising 26
countries and with an estimated market potential of US$ 1 trillion. Negotiations will be based on three pillars:
market integration; infrastructure development and industrial development. The first two phases of
negotiations are expected to be concluded within three years of the signing the agreement, i.e. by June
2014.25

The Tripartite FTA will result in a larger market with a single economic space which will attract investment and
large-scale production. Estimates are that exports among the 26 tripartite countries increased from US$7
billion in 2000 to US$27 billion in 2008, and imports grew from US$9 billion in 2000 to US$32 billion in 2008.
This increase was in large measure spurred by the free trade area initiatives of the three organizations.26

Trade agreements

Over 56% of COMESA’s exports in 2009 were destined to the EU, while 9% went to China. Other markets
included the United States, Switzerland, United Arab Emirates and South Africa. A number of COMESA
member States sourced their imports from the EU with a regional figure of 35% of total imports. Swaziland
sourced 98% of its imports from South Africa in 2009.27

For the purpose of negotiating the Economic Partnership Agreement (EPA) with the EU, COMESA member
States were divided into two groups:

 Eastern and Southern Africa (ESA), including: Comoros, Djibouti, Eritrea, Ethiopia, Madagascar,
Malawi, Mauritius, Seychelles, Sudan, Zambia and Zimbabwe; and
 East African Community (EAC), including: Burundi, Kenya, Rwanda and Uganda.28

An interim EPA has been initialed in 2007 between the EU and six ESA states: Comoros, Madagascar,
Mauritius, Seychelles, Zambia and Zimbabwe; however, only Mauritius, Seychelles, Zimbabwe and
Madagascar signed the EPA with the EU in August 2009 (Zambia and Comoros are still negotiating). The EPA is
not yet into force and the EU has been granted preferential market access to all ESA states under Council
Regulation 1528/2007 of 20 December 2007.29

EC Regulation 1528/2007 applies to all ACP countries that have initialled an EPA with the EU and provides
duty-free quota-free access for all ACP imports (excluding arms and ammunition) into the EU as from 1
January 2008. The four ESA countries that have signed the EPA will implement their liberalization
commitments with regard to EU imports upon entry into force of the agreement. However, they have the

25
The roadmap of negotiations is available at:
http://programmes.comesa.int/attachments/article/211/4%20Roadmap%20for%20Negotiating%20and%20Establishing%20TFTA%20-
%2013.05.2011.pdf
26
Regional Integration in COMESA, State of Play and Challenges (August 2010). www.comesa.int
27
www.comesa.int
28
EAC countries, which are also COMESA members, were part of the negotiating process between the EU and COMESA until mid 2007 when EAC
decided as a region to negotiate a separate EPA given the existence of the customs union. Libya and Egypt do not participate in the EPA negotiations
with the EU, whereas DR Congo is part of the Central Africa EPA group and Swaziland of the SADC EPA group.
29
EC Regulation 1528/2007 provided transitional arrangements for rice, which was liberalized in January 2010, and sugar, which will be liberalized in
September 2015.
http://eur-lex.europa.eu/LexUriServ/LexUriServ.do?uri=OJ:L:2007:348:0001:0154:EN:PDF

85
opportunity to exclude some sensitive products from liberalization: for example, Mauritius has excluded
articles of leather and fur skins; Seychelles has excluded leather articles; and Zimbabwe has excluded
footwear.30

Negotiations for a comprehensive EPA resumed at the beginning of 2008 with all ESA countries. The objective
is to conclude a comprehensive agreement at regional level, which supports development and fosters regional
integration. Outstanding issues for ESA countries include: trade coverage of the agreement, non-
discrimination ("MFN") clause, export taxes, safeguards and rules of origin.

EAC countries also initialed an EPA with the EU in 2007, which includes:

 duty and quota-free access for EAC imports to the EU (currently implemented under EC Regulation
1528/2007);

 gradual liberalization (removal of duties and quotas) over 25 years of 82% of EU exports (64% in 2010,
16% in 2023 and 2% in 2033) into EAC (to be implemented once the EPA is signed and entered into
force);

 exclusion of EAC sensitive sectors from liberalization for the remaining 18% of EU imports (e.g. coffee,
tea and spices, fish, meat, dairy products, certain vegetables and oils, cut flowers, footwear);

 special agreements on extensive co-operation on sustainable fishing;

 new and extended Rules of Origin for farming, fishing and clothing; and

 rules for settling trade disputes.31

Both EAC and the EU reiterated their commitment to work collaboratively to resolve areas of divergence and
negotiations for a comprehensive EPA at regional level are ongoing.

COMESA countries (except Egypt, Eritrea, Libya, Sudan and Zimbabwe) are also beneficiaries of the United
States “Africa Growth and Opportunity Act” (AGOA)32 which offers duty and quota-free market access to 38
Sub-Saharan African countries for approximately 7,000 product tariff lines.33 These include 11 lines of HS
Chapter 41 (Raw hides and skins); 26 lines of HS Chapter 42 (Articles of leather); and 90 lines of HS Chapter 64
(Footwear, gaiters and the like; parts of such articles).

COMESA Least Developed Countries (LDCs) - Burundi, Comoros, DR Congo, Djibouti, Eritrea, Ethiopia,
Madagascar, Malawi, Rwanda, Sudan, Uganda and Zambia - are benefiting from the improved Generalized
System of Preferences, such as EBA from the EU and other preferential market access conditions granted
individually by other countries (for example, Japan, Australia, New Zealand, Switzerland etc.). COMESA non-
LDCs – Egypt, Kenya, Libya, Mauritius, Seychelles, Swaziland and Zimbabwe – are benefiting from the
Generalized System of Preference (GSP) with reduced or zero tariff rates over the MFN rates for their imports.

The Table below provides an overview of applied tariffs to imports of raw hides and skins and leather from
COMESA countries into target markets.

30
http://trade.ec.europa.eu/doclib/html/142193.htm
31
http://ec.europa.eu/trade/wider-agenda/development/economic-partnerships/negotiations/index_en.htm#_eac
32
http://www.agoa.gov/
33
The AGOA preferences have been extended until 2015.

86
 Target Market Value Tariff
(US$ thousands) (%)
2010
HS 41 COMESA 5,097 0
(of which 3,084 are HS 4103)
South Africa 2,148 0-5
EU
Italy  75,839
(of which 39,135 are HS 4104) 0
 626
Greece
(of which 400 are HS 4104)

Turkey 11,179 0/
(of which 5,463 are from HS 4104) 1.35 to non-LDCs
India 39,551 6-10/
(of which 17,023 are from HS 4104 and 16,728 are from 4105) 0 to Ethiopia, Madagascar,
Malawi, Rwanda, Uganda.
Pakistan 5,262
(of which 1,053 are HS 4106) 0-1
China 44,053 0-5/
(of which 21,294 are from HS 4106) 21-30/
40 to Seychelles

Australia 21,000 0
(only from HS 4101)

HS 42 South Africa 82,000 30/

(of which 67,000 are from HS 4202) 0 to DR Congo, Madagascar,
Malawi, Mauritius,
Swaziland, Zambia,
Zimbabwe
COMESA 1,734 0
(of which 1,288 are from HS 4202)
EU 40,417 0
(of which are from HS 4202 and 4205)
United States 4,245 0/
(only from HS 4203) 4.34 to Eritrea and
Madagascar/
6.29 to Libya, Sudan,
Zimbabwe

87
ANNEX 7 – Market Targets

The charts below are based on data collected from participants in the Kigali workshop in November 2010.

Domestic markets

Chart 1 shows the proportion of commodities that are presently consumed in the domestic market, for
example, in Ethiopia 100% of the raw hides and skins, as well as all wetblue leathers are utilized in the
domestic. 30% of leather produced as crust remains inside the country and hence 70% is exported. 90% of the
leathers that are produced as fully finished remain inside the country. It can therefore be deducted that the
30% of crust leathers that remain inside the country are used to produce finished leather (90%), which is used
for local shoe or leather good production, of which 95% is produced for the local market. The only country
that reports a consistent production of pickled leathers is Sudan.

Chart 1: Present situation

120

100 Raw Hides

80 Pickled
Wet Blue
60
Crust

40 Finished
Shoes
20
Leather goods
0 Garments
Exotic / Crociodile

Chart 2 illustrates the presumed situation in the short term (5 years). For example, Ethiopia expects to export
no crust leather, meaning that it will finish all available leathers, and to export 50% of its fully finished leather
production, whereas the remaining 50% of finished leathers will be locally used for the production of shoes,
leather goods and garments. The country also expects to export 50% of the produced shoes and leather goods
and 82% of the produced garments. The same principle of the graphically representations applies to the other
countries.

88
Chart 2: Medium term (5-year) expectancy

120

100
Raw Hides
80
Wet Blue

60 Crust
Finished
40
Shoes

20 Leather goods
Garments
0 Exotic / Crociodile

The table below gives the detailed summary per country with regard to the current and future situation with
regard to the utilization and export of the various commodities of the leather value chain in the COMESA
region. For example currently Egypt is utilizing 50 percent of its raw hides in the domestic industry and the
balance is exported. Its future target is to utilize 100 percent of its raw hides and skins within the domestic
industry. This kind of interpretation applies to all countries listed in the table.

Current and Proposed Scenarios in the Production and Marketing of Various Products

Current Situation – Percentage distribution by Market

Products Burundi Egypt Ethiopia Kenya Rwanda Sudan Uganda Zambia Zimbabwe
Raw hide and skins
Domestic 60 50 100 85 10 100 5 100 50
Region (COMESA) 40 0 0 0 70 0 10 0 35
International 0 50 0 15 20 0 85 0 15
Wet blue
Domestic 0 20 100 15 10 50 0 20 35
Region (COMESA) 0 0 0 0 0 0 0 0 0
International 100 80 0 85 90 50 25 80 15
Crust
Domestic 0 20 30 50 100 100 0 100 100
Region (COMESA) 0 0 0 0 0 0 0 0 0
International 0 80 70 50 0 0 0 0 0
Finished Leather
Domestic 0 20 90 80 90 100 5 20 90
Region (COMESA) 0 0 0 20 10 0 0 0 8
International 0 20 10 0 0 0 0 80 2
Shoes
Domestic 0 90 95 90 100 100 5 70 60
Region (COMESA) 0 5 0 10 0 0 30 20 30
International 0 5 5 0 0 0 65 10 10

89
Leather goods
Domestic 0 90 99 60 100 100 5 90 65
Region (COMESA) 0 5 0 25 0 0 30 10 20
International 0 5 1 15 0 0 65 0 15
Garments
Domestic 0 100 98 0 100 0 0 90 90
Region (COMESA) 0 0 0 0 0 0 10 10 10
International 0 0 2 0 0 0 90 0 0
Future Target – Percentage Distribution by Market
Products Burundi Egypt Ethiopia Kenya Rwanda Sudan Uganda Zambia Zimbabwe
Raw hide and skins
Domestic 0 100 100 100 30 100 75 100 100
Region (COMESA) 0 0 0 0 50 0 10 0 0
International 0 0 0 0 20 0 15 0 0
Wet blue
Domestic 0 50 100 100 20 100 0 80 60
Region (COMESA) 0 0 0 0 0 0 0 0 30
International 0 50 0 0 80 0 50 20 10
Crust
Domestic 0 50 100 50 100 75 0 10 100
Region (COMESA) 30 30 0 20 0 0 0 10 0
International 70 20 0 30 0 25 15 80 0
Finished Leather
Domestic 40 80 50 75 100 100 90 40 85
Region (COMESA) 40 10 25 15 0 0 0 0 10
International 0 10 25 10 0 0 10 60 5
Shoes
Domestic 50 80 50 80 80 25 15 50 50
Region (COMESA) 50 10 25 15 20 25 30- 30 30
International 0 10 25 5 0 50 55 20 20
Leather goods
Domestic 25 70 50 10 100 0 15 50 50
Region (COMESA) 25 15 10 5 0 50 30 30 50
International 0 15 40 85 0 50 55 20 0
Garments
Domestic 0 100 15 20 100 0 5 50 15
Region (COMESA) 0 0 25 30 0 50 10 30 50
International 0 0 60 50 0 50 85 20 35

90
ANNEX 8 – Detailed statistics

The various segments of the global leather supply chain grew in the period 2001-2008. Major expansion was
recorded in the production of light bovine leather (13.7%) and footwear exports (16.8%). The COMESA region
registered negative growth of -3.7% in the former and expanded by 11% in the later. The COMESA region
witnessed a significant growth in the primary segments of the chain; for example bovine hides and goats’
skins output increased by 20 and 28.6%, respectively. Africa as a whole also displayed a similar pattern of
growth. Production of light bovine leather declined by an average of -42% in COMESA, whereas global
position improved by 4.6% with regard to the same segments.

LIVESTOCK POPULATION

Livestock production grew by an average of 24.6% across the three subsectors of cattle, sheep and goats.
Rapid growth in cattle production was registered in Burundi (54%), Egypt (33%) and Ethiopia (39%). However,
marginal decreases were recorded in Zimbabwe (-6%), DR Congo (-5%) and Mauritius (-3%).

Table 1: Number of bovine animals (000’s)

Burundi

Comoros

DRC

Djibouti

Egypt

Eritrea

Ethiopia

Kenya

Libya

Madagascar

Malawi

Mauritius

Rwanda

Seychelles

Sudan

Swaziland

Uganda

Zambia

Zimbabwe
2001 315 - 793 - 7,333 1,950 35,383 11,745 130 8,800 749 2 8 816 - 38,325 - 6,144 2,700 5,752

2002 324 - 761 - 7,530 1,900 40,639 11,993 130 7,877 753 2 8 815 - 38,183 - 6,328 2,900 5,600

2003 355 - 760 - 8,004 1,927 39,000 12,531 130 8,020 782 2 8 992 - 39,760 - 6,519 2,900 5,400

2004 374 - 758 - 8,214 1,930 38,749 13,022 130 8,105 765 2 8 1,004 - 39,760 - 6,567 2,800 5,350

2005 396 - 757 - 8,394 1,950 40,390 13,019 130 9,500 778 2 7 1,004 - 40,468 - 6,770 2,900 5,300

2006 434 - 756 - 8,547 1,950 43,125 12,436 130 9,573 799 2 6 1,000 - 40,994 - 6,973 2,800 5,400

2007 479 - 754 - 9,037 1,960 45,000 12,900 130 9,600 871 2 6 1,000 - 4,000 - 7,182 2,850 5,400

2008 480 - 753 - 10,046 1,960 49,298 13,523 130 9.700 947 2 7 1,000 - 41,400 - 7,398 2,850 5,400

2009 486 - 752 - 10,023 2,024 49,452 13,830 130 9,750 958 2 7 1,000 - 41,713 - 7.598 2,948 5,400

Source: FAO Compendium, 2010

91
Table 2: Number of sheep and lambs (000’s)
Burundi

Comoros

DRC

Djibouti

Egypt

Eritrea

Ethiopia

Kenya

Libya

Madagascar

Malawi

Mauritius

Rwanda

Seychelles

Sudan

Swaziland

Uganda

Zambia

Zimbabwe
2001 230 - 911 - 4,671 2,150 11,438 8 ,2 3 8 4,500 633 115 12 278 - 47,043 - 1,180 150 600
2002 230 - 897 - 5,105 2,000 14,322 8 ,2 0 8 4,500 655 110 12 301 - 48,136 - 1,141 165 600
2003 240 - 898 - 4,939 2,100 16,000 8 ,1 9 5 4,500 843 108 11 372 - 48,440 - 1,175 170 550
2004 236 - 899 - 5,043 2,100 18,875 10,299 4,500 800 125 11 470 - 48,910 - 1,552 180 530
2005 243 - 900 - 5,097 2,100 20,734 10,034 4,500 695 157 11 464 - 49,797 - 1,600 190 500
2006 267 - 900 - 5,385 2,100 23,633 9 ,8 7 1 4,500 712 175 13 470 - 50,390 - 1,648 195 610
2007 293 - 901 - 5,467 2,120 26,117 9 ,4 2 9 4,500 715 186 11 470 - 50,944 - 1,697 200 610
2008 295 - 902 - 5,023 2,120 25,017 9 ,9 0 7 4,500 720 189 1 470 - 51,100 - 1,748 200 610
2009 296 - 906 - 5,050 2,189 25,017 9 ,9 5 7 4,589 722 189 1 470 - 51,379 - 1,757 201 611
Source: FAO Compendium, 2010

Table 3: Number of goats (000’s)

Burundi

Comoros

DRC

Djibouti

Egypt

Eritrea

Ethiopia

Kenya

Libya

Madagascar

Malawi

Mauritius

Rwanda

Seychelles

Sudan

Swaziland

Uganda

Zambia

Zimbabwe
2001 7 8 0 - 4,067 - 3,497 1,700 9,621 10,980 1,263 1,180 1,670 70 757 - 39,956 - 6,620 1,400 2,968
2002 8 2 0 - 4,004 - 3,582 1,700 11,000 11,226 1,265 1,220 1,660 55 920 - 41,485 - 6,852 1,500 2,950
2003 8 5 0 - 4,010 - 3,811 1,800 12,000 11,946 1,265 1,252 1,717 57 941 - 42,030 - 7,092 1,700 2,970
2004 8 8 0 - 4,016 - 3,889 1,850 14,851 13,391 1,265 1,397 1,922 40 1,264 - 42,179 - 7,566 1,880 2,980
2005 9 0 0 - 4,022 - 3,915 1,850 16,364 13,883 1,265 1,219 1,961 30 1,340 - 42,526 - 7,800 1,950 2,960
2006 1,439 - 4,028 - 3,3960 1,700 18,560 12,856 1,265 1,249 2,301 24 1,400 - 42,526 - 8,034 1,950 3,000
2007 1,607 - 4,034 4,211 1,720 21,700 13,966 1,265 1,250 2,720 25 1,400 42,987 - 8,275 2,000 3,000
2008 1,650 - 4,046 4,237 1,720 21,884 14,478 1,265 1,260 3,106 25 1,400 43,100 - 8,523 2,000 3,000
2009 1,658 - 4,063 4,260 1,776 21,884 14,500 1,288 1,263 3,108 25 1,440 43,336 - 8,565 2,007 3,003
Source: FAO Compendium, 2010

PRODUCTION OF RAW HIDES AND SKINS

Hides and skins overall production grew by an average of 16%: growth in production of bovine hides and skins
was 18%, of sheep skins 2% and of goat skins 28%. Growth in production of hides and skins in the bovine and
goats subsectors were in tandem with increases in the number of livestock in the respective categories.
On the contrary, production of sheep skins grew by 2%, yet sheep population increased by 25%; this could be
explained by a decline in consumption of mutton.

Table 4: Production of bovine hides and skins (million pieces)

Burundi

Comoros

DRC

Djibouti

Egypt

Eritrea

Ethiopia

Kenya

Libya

Madagascar

Malawi

Mauritius

Rwanda

Seychelles

Sudan

Swaziland

Uganda

Zambia

Zimbabwe

2001 0.1 - 0.0 - 2.5 0.1 2.8 1.9 0.0 0.7 0.1 0.0 0.2 - 2.7 - 0.7 0.3 0.5
2002 0.1 - 0.0 - 2.6 0.1 3.3 2.2 0.0 0.7 0.1 0.0 0.2 - 2.7 - 0.7 0.3 0.4
2003 0.1 - 0.1 - 2.9 0.2 3.1 2.3 0.0 0.7 0.1 0.0 0.2 - 2.7 - 0.7 0.3 0.4
2004 0.1 - 0.1 - 3.2 0.2 3.0 2.4 0.0 0.9 0.1 0.0 0.2 - 2.7 - 0.7 0.3 0.4
2005 0.1 - 0.1 - 3.1 0.2 3.1 2.7 0.0 1.0 0.1 0.0 0.2 - 2.7 - 0.7 0.4 0.4
2006 0.0 - 0.1 - 3.2 0.2 3.5 2.8 0.0 1.1 0.1 0.0 0.2 - 2.9 - 0.7 0.4 0.4
2007 0.0 - 0.1 - 2.5 0.2 3.3 3.0 0.0 1.2 0.1 0.0 0.2 - 2.8 - 0.7 0.4 0.4
2008 0.0 - 0.1 - 1.8 0.2 3.3 3.0 0.0 1.2 0.1 0.0 0.2 - 2.9 - 0.7 0.4 0.4
2009 0.0 - 0.1 - 2.4 0.2 3.3 3.0 0.0 1.2 0.1 0.0 0.2 - 2.9 - 0.7 0.4 0.4
Source: FAO Compendium, 2010

92
Table 5: Production of sheep skins (million pieces)
Burundi

Comoros

DRC

Djibouti

Egypt

Eritrea

Ethiopia

Kenya

Libya

Madagascar

Malawi

Mauritius

Rwanda

Seychelles

Sudan

Swaziland

Uganda

Zambia

Zimbabwe
2001 0.1 - 0.2 - 2.1 0.6 7.0 2.2 1.9 0.2 0.0 0.0 0.1 - 10 - 0.4 0.0 0.0
2002 0.1 - 0.2 - 2.1 0.6 6.2 2.2 1.6 0.2 0.0 0.0 0.1 - 9.0 - 0.4 0.0 0.0
2003 0.1 - 0.3 - 1.9 0.7 6.1 2.6 1.6 0.2 0.0 0.0 0.1 - 9.0 - 0.6 0.0 0.0
2004 0.1 - 0.3 - 1.6 0.7 6.0 3.0 1.6 0.3 0.0 0.0 0.1 - 9.1 - 0.6 0.0 0.0
2005 0.1 - 0.3 - 1.7 0.7 6.8 3.1 1.6 0.2 0.0 0.0 0.1 - 9.3 - 0.4 0.1 0.0
2006 0.1 - 0.3 - 1.7 0.6 7.8 2.9 1.7 0.2 0.1 0.0 0.1 - 9.3 - 0.4 0.1 0.0
2007 0.1 - 0.3 - 1.7 0.6 8.5 2.8 1.7 0.2 0.1 0.0 0.1 - 9.3 - 0.4 0.1 0.0
2008 0.0 - 0.3 - 1.7 0.6 8.2 2.8 1.7 0.2 0.1 0.0 0.1 - 9.3 - 0.4 0.1 0.0
2009 0.0 - 0.3 - 1.7 0.6 8.2 2.9 1.7 0.2 0.1 0.0 0.1 - 9.1 - 0.4 0.1 0.0
Source: FAO Compendium, 2010

Table 6: Production of goat skins (million pieces)

Burundi

Comoros

DRC

Djibouti

Egypt

Eritrea

Ethiopia

Kenya

Libya

Madagascar

Malawi

Mauritius

Rwanda

Seychelles

Sudan

Swaziland

Uganda

Zambia

Zimbabwe
2001 0.3 - 0.6 - 1.4 0.7 7.3 3.1 0.4 0.4 0.5 0.0 0.2 - 9.4 - 2.1 0.4 1.1
2002 0.3 - 0.6 - 1.4 0.7 6.3 3.2 0.4 0.4 0.5 0.0 0.3 - 9.7 - 2.1 0.5 1.1
2003 0.3 - 0.6 - 1.1 0.7 5.8 3.3 0.4 0.4 0.6 0.0 0.3 - 9.7 - 2.4 0.6 1.1
2004 0.4 - 0.6 - 0.9 0.7 5.2 3.8 0.4 0.5 0.8 0.0 0.4 - 10.7 - 2.4 0.6 1.1
2005 0.4 - 0.6 - 1.0 0.7 5.7 3.9 0.4 0.4 0.9 0.0 0.4 - 14.3 - 2.4 0.6 1.1
2006 0.6 - 0.6 - 1.0 0.7 6.5 3.9 0.4 0.4 1.2 0.0 0.5 - 14.3 - 2.4 0.6 1.1
2007 0.6 - 0.6 - 1.0 0.7 7.6 4.1 0.4 0.4 1.4 0.0 0.5 - 14.3 - 2.4 0.6 1.1
2008 0.6 - 0.6 - 1.0 0.7 7.6 4.1 0.4 0.4 1.6 0.0 0.5 - 14.3 - 2.4 0.6 1.1
2009 0.6 - 0.6 - 1.0 0.7 7.6 4.3 0.4 0.4 1.6 0.0 0.5 - 14.1 - 2.4 0.6 1.1
Source: FAO Compendium, 2010

TRADE IN RAW HIDES AND SKINS

The COMESA region was not active in the importation of raw hides and skins in the period under review; this
is mainly because the region is producing enough feedstock for its needs.
Exports of bovine hides/skins and sheep skins declined by 55% and 36%, respectively, whereas goat skins
increased marginally by 11%. The following countries experienced a decline in bovine hides and skins exports:
Zimbabwe (-91%), Uganda (-78%) and Zambia (-66). The decline of Zimbabwe exports may be attributed to
three factors, namely: the decline in the commercial farming sector, which impacted negatively on the off-
take rate; the economic down turn, which slowed meat consumption (bovine hides and skins production
declined by -20%); and the ban of raw hides and skins exports by the Government. Uganda and Zambia’s
exports retreat may be explained by the introduction of an export tax of around US$0.45 per kg and a ban in
the export of raw hides and skins, respectively. The contraction in the export of sheep skins was influenced by
export declines in Egypt (-50%), Eritrea (-80%) and Sudan (-63%). In Egypt, this decline may be explained by an
increase in domestic tanning capacity, as production of raw sheep skins increased by 19% in the same period.
Eritrea and Sudan exports decline was associated by a static and decrease in production of raw sheep skins.

93
Table 7: Imports of bovine hides and skins (000’s wet salted)
Burundi

Comoros

DRC

Djibouti

Egypt

Eritrea

Ethiopia

Kenya

Libya

Madagascar

Malawi

Mauritius

Rwanda

Seychelles

Sudan

Swaziland

Uganda

Zambia

Zimbabwe
2001 0.0 - 0.0 - 0.4 - - 0.1 - - - 0.0 - - - - - - 0.8
2002 0.0 - 0.0 - 0.7 - - 0.1 - - - 0.0 - - - - - - 0.8
2003 0.0 - 0.0 - 0.4 - - 0.2 - - - 0.0 - - - - - - 0.7
2004 0.0 - 0.0 - 0.1 - - 0.1 - - - 0.0 - - - - - - 0.5
2005 0.0 - 0.0 - 0.4 - - 0.3 - - - 0.0 - - - - - - 0.2
2006 0.0 - 0.0 - 0.1 - - 0.4 - - - 0.0 - - - - - - 0.1
2007 0.0 - 0.0 - 0.4 - - 2.3 - - - 0.0 - - - - - - 0.0
2008 0.0 - 0.0 - 0.4 - - 2.0 - - - 0.0 - - - - - - 0.1
Source: FAO Compendium, 2010

Table 8: Imports of sheep skins (000’s dry weight)

Burundi

Comoros

DRC

Djibouti

Egypt

Eritrea

Ethiopia

Kenya

Libya

Madagascar

Malawi

Mauritius

Rwanda

Seychelles

Sudan

Swaziland

Uganda

Zambia

Zimbabwe
2001 0.0 - - - - - - 0.0 - - 0.0 - 0.1 - - - - - 0.1
2002 0.0 - - - - - - 0.1 - - 0.0 - 0.1 - - - - - 0.0
2003 0.0 - - - - - - 0.8 - - 0.0 - 0.0 - - - - - 0.0
2004 0.0 - - - - - - 0.6 - - 0.0 - 0.0 - - - - - 0.0
2005 0.0 - - - - - - 1.1 - - 0.0 - 0.0 - - - - - 0.0
2006 0.0 - - - - - - 1.3 - - 0.0 - 0.0 - - - - - 0.0
2007 0.0 - - - - - - - - - 0.0 - 0.0 - - - - - 0.0
2008
2009
Source: FAO Compendium, 2010

Table 9: Exports of bovine hides and skins (000’s wet salted)

Burundi

Comoros

DRC

Djibouti

Egypt

Eritrea

Ethiopia

Kenya

Libya

Madagascar

Malawi

Mauritius

Rwanda

Seychelles

Sudan

Swaziland

Uganda

Zambia

2001 0.4 - 0.0 - 0.1 0.8 4.7 9.3 0.2 3.0 0.3 0.1 0.4 - 3.3 - 8.0 0.3 Zimbabwe
3.4
2002 0.4 - 0.0 - 0.5 0.8 5.5 7.0 0.2 3.6 0.2 0.1 0.7 - 2.7 - 9.2 0.1 2.8
2003 0.5 - 0.0 - 0.0 0.8 4.5 14.9 0.1 4.3 0.2 0.1 1.1 - 2.4 - 7.0 0.1 3.5
2004 0.7 - 0.0 - 0.1 0.8 4.0 17.4 0.2 6.6 0.2 0.1 0.5 - 2.7 - 10.2 0.1 3.0
2005 0.9 - 0.0 - 0.0 0.8 4.5 12.7 0.2 4.2 0.2 0.1 0.5 - 1.5 - 10.0 0.1 2.0
2006 0.7 - 0.0 - 0.0 0.8 6.9 11.7 0.2 5.2 0.3 0.1 0.2 - 2.0 - 9.9 0.1 1.0
2007 0.5 - 0.0 - 0.0 0.5 3.1 2.4 0.1 6.0 0.1 0.1 0.2 - 2.5 - 7.6 0.1 0.5
2008 0.5 - 0.0 - 0.2 0.5 2.0 0.8 0.1 5.5 0.1 0.1 0.4 - 2.9 - 1.7 0.1 0.3
2009 - - - - - - - - - - - - - - - - - - -
Source: FAO Compendium, 2010

94
Table 10: Exports of sheep skins (000’s dry weight)
Burundi

Comoros

DRC

Djibouti

Egypt

Eritrea

Ethiopia

Kenya

Libya

Madagascar

Malawi

Mauritius

Rwanda

Seychelles

Sudan

Swaziland

Uganda

Zambia

Zimbabwe
2001 0.0 - - - 0.2 0.0 2.0 0.1 0.5 - - - - - 1.9 - 0.2 - -
2002 0.0 - - - 0.2 0.0 1.5 0.1 0.5 - - - - - 2.0 - 0.2 - -
2003 0.0 - - - 0.1 0.0 1.5 0.1 0.5 - - - - - 1.8 - 0.0 - -
2004 0.0 - - - 0.1 0.0 2.5 0.1 0.4 - - - - - 1.8 - 0.1 - -
2005 0.0 - - - 0.1 0.0 2.7 0.2 0.3 - - - - - 1.7 - 0.0 - -
2006 0.0 - - - 0.0 0.0 2.5 0.0 0.2 - - - - - 1.3 - 0.1 - -
2007 0.0 - - - 0.1 0.0 1.6 0.0 0.1 - - - - - 1.0 - 0.1 - -
2008 0.0 - - - 0.1 0.0 2.0 0.0 0.1 - - - - - 0.7 - 0.2 - -
2009
Source: FAO Compendium, 2010

Table 11: Export of goat skins (000’s dry weight)

Burundi

Comoros

DRC

Djibouti

Egypt

Eritrea

Ethiopia

Kenya

Libya

Madagascar

Malawi

Mauritius

Rwanda

Seychelles

Sudan

Swaziland

Uganda

Zambia

Zimbabwe
2001 0.0 - - - - - 1.0 0.7 - - 0.0 - 0.1 - 0.4 - 0.3 - 0.1
2002 0.0 - - - - - 1.8 0.6 - - 0.2 - 0.1 - 0.4 - 0.5 - 0.1
2003 0.1 - - - - - 1.2 1.3 - - 0.1 - 0.0 - 0.3 - 0.7 - 0.1
2004 0.1 - - - - - 1.7 06 - - 0.1 - 0.0 - 0.1 - 0.6 - 0.1
2005 0.1 - - - - - 2.1 0.8 - - 0.1 - 0.0 - 0.1 - 1.1 - 0.1
2006 0.1 - - - - - 1.6 0.2 - - 0.1 - 0.0 - 0.1 - .8 - 0.0
2007
2008
2009
Source: FAO Compendium, 2010

PRODUCTION AND TRADE OF FINISHED LEATHER

Production of heavy and light leather declined in the region by 26% and 3% respectively.

This scenario mirrored the retreat in the production of raw hides and skins in the same period. Production of
light leather from sheep skins went up significantly by 400%, mainly driven by Sudan (1064%), DR Congo
(85%), Ethiopia (22%) and Kenya (45%).

Trade in finished leather displayed a mixed picture in the period under review, for example imports of light
leather from sheep and goats increased sharply by 1733%, however this was from a low base. This rapid
increase was only contributed by Egypt and Libya, whose imports expanded by 2300% and 300%, respectively.
The rest of COMESA countries trade was negligible. Exports in light leather form bovine animals declined by
33%, with a 75% decrease in Zimbabwe and Egypt. During the same period, exports by Kenya and Zambia rose
by 132% and 27%, respectively.

95
Table 12: Production of heavy leather from bovine animals (000’s tonnes)
Burundi

Comoros

DRC

Djibouti

Egypt

Eritrea

Ethiopia

Kenya

Libya

Madagascar

Malawi

Mauritius

Rwanda

Seychelles

Sudan

Swaziland

Uganda

Zambia

Zimbabwe
2001 - - - - 8.0 - 0.4 - - - - - - - 3.8 - - - -
2002 - - - - 8.0 - 0.4 - - - - - - - 3.8 - - - -
2003 - - - - 9.0 - 0.4 - - - - - - - 3.8 - - - -
2004 - - - - 9.6 - 0.3 - - - - - - - 3.5 - - - -
2005 - - - - 9.7 - 0.3 - - - - - - - 3.0 - - - -
2006 - - - - 9.7 - 0.3 - - - - - - - 3.2 - - - -
2007 - - - - 7.6 - 0.3 - - - - - - - 3.1 - - - -
2008 - - - - 5.6 - 0.3 - - - - - - - 3.1 - - - -
2009

Source: FAO Compendium, 2010

Table 13: Production of light leather from bovine animals (million square feet)
Burundi

Comoros

DRC

Djibouti

Egypt

Eritrea

Ethiopia

Kenya

Libya

Madagascar

Malawi

Mauritius

Rwanda

Seychelles

Sudan

Swaziland

Uganda

Zambia

Zimbabwe
2001 - - - - 120.0 - 17.8 45.5 - - 1.2 - 0.3 - 61.0 - - 7.0 13.0
2002 - - - - 125.0 - 17.5 44.0 - - 1.1 - 0.3 - 62.0 - - 7.1 12.5
2003 - - - - 120.0 - 17.8 43.0 - - 1.1 - 0.3 - 60.0 - - 7.2 12.2
2004 - - - - 120.5 - 17.6 44.0 - - 1.1 - 0.3 - 58.0 - - 7.5 12.2
2005 - - - - 120.6 - 18.3 45.0 - - 1.1 - 0.3 - 60.0 - - 9.0 12.5
2006 - - - - 120.1 - 18.6 57.1 - - 1.0 - 0.3 - 62.0 - - 10.2 12.7
2007 - - - - 124.9 - 19.5 69.7 - - 1.3 - 0.3 - 61.4 - - 10.3 12.9
2008 - - - - 75.1 - 20.7 73.1 - - 1.3 - 0.2 - 62.0 - - 10.4 13.1
2009
Source: FAO Compendium, 2010

Table 14: Production of light leather from sheep and goats skins (million square feet)
Burundi

Comoros

DRC

Djibouti

Egypt

Eritrea

Ethiopia

Kenya

Libya

Madagascar

Malawi

Mauritius

Rwanda

Seychelles

Sudan

Swaziland

Uganda

Zambia

Zimbabwe

2001 - - 0.7 - 14.4 02 48.0 45.0 4.2 2.4 - - 3.3 - 70.0 - - - 3.6
2002 - - 0.6 - 14.8 0.2 46.0 50.0 3.9 2.5 - - 3.2 - 68.0 - - - 3.7
2003 - - 0.7 - 13.8 0.3 41.0 55.1 3.8 2.5 - - 2.7 - 74.0 - - - 3.7
2004 - - 0.8 - 11.8 0.2 44.0 61.1 4.2 2.5 - - 3.0 - 64.0 - - - 3.4
2005 - - 1.0 - 12.2 0.2 50.0 57.7 4.7 2.5 - - 3.2 - 69.0 - - - 3.5
2006 - - 1.3 - 12.4 0.1 55.0 73.9 5.2 2.6 - - 3.2 - 70.0 - - - 3.7
2007 - - 1.3 - 14.0 0.1 62.0 70.7 5.5 26 - - 3.0 - 78.0 - - - 3.9
2008 - - 1.3 - 13.0 0.1 59.0 65.4 5.7 2.6 - - 3.0 - 815 - - - 3.9
2009
Source: FAO Compendium, 2010

96
Table 15: Imports of light leather from sheep and goats (million square feet)
Burundi

Comoros

DRC

Djibouti

Egypt

Eritrea

Ethiopia

Kenya

Libya

Madagascar

Malawi

Mauritius

Rwanda

Seychelles

Sudan

Swaziland

Uganda

Zambia

Zimbabwe
2001 - - - - 0.2 - - 0.0 0.1 - - - - - - - - - -
2002 - - - - 0.0 - - 0.0 0.1 - - - - - - - - - -
2003 - - - - 0.1 - - 0.2 0.1 - - - - - - - - - -
2004 - - - - 0.8 - - 0.1 0.0 - - - - - - - - - -
2005 - - - - 0.2 - - 0.0 0.0 - - - - - - - - - -
2006 - - - - 0.4 - - 0.0 0.0 - - - - - - - - - -
2007 - - - - 1.1 - - 0.0 0.0 - - - - - - - - - -
2008 - - - - 2.0 - - 0.0 0.1 - - - - - - - - - -
2009
Source: FAO Compendium, 2010

Table 16: Export of light leather from bovine animals (million square feet)
Burundi

Comoros

DRC

Djibouti

Egypt

Eritrea

Ethiopia

Kenya

Libya

Madagascar

Malawi

Mauritius

Rwanda

Seychelles

Sudan

Swaziland

Uganda

Zambia

Zimbabwe
2001 - - - - 50.4 - - 12.0 - - - - - - 7.7 - - 3.3 8.0
2002 - - - - 55.6 - - 12.5 - - - - - - 5.8 - - 3.7 7.7
2003 - - - - 64.6 - - 12.0 - - - - - - 10.4 - - 2.9 8.5
2004 - - - - 57.1 - - 12.0 - - - - - - 14.1 - - 1.7 4.7
2005 - - - - 52.7 - - 14.0 - - - - - - 9.4 - - 0.8 2.8
2006 - - - - 49.5 - - 16.8 - - - - - - 9.0 - - 1.9 3.2
2007 - - - - 72.6 - - 27.2 - - - - - - 8.0 - - 2.0 1.3
2008 - - - - 12.6 - - 27.9 - - - - - - 7.3 - - 4.2 2.0
2009

Source: FAO Compendium, 2010

Table 17: Export of light leather from sheep and goats (million square feet)
Burundi

Comoros

DRC

Djibouti

Egypt

Eritrea

Ethiopia

Kenya

Libya

Madagascar

Malawi

Mauritius

Rwanda

Seychelles

Sudan

Swaziland

Uganda

Zambia

Zimbabwe

2001 - - - - 0.7 - 46.0 36.0 - - - - - - 52.7 - - - -

2002 - - - - 0.9 - 44.3 40.0 - - - - - - 49.7 - - - -
2003 - - - - 1.5 - 34.8 44.0 - - - - - - 66.7 - - - -
2004 - - - - 0.7 - 40.0 48.9 - - - - - - 47.4 - - - -
2005 - - - - 1.1 - 45.0 46.2 - - - - - - 39.9 - - - -
2006 - - - - 1.2 - 50.0 59.1 - - - - - - 45.0 - - - -
2007 - - - - 2.0 - 57.5 56.5 - - - - - - 47.0 - - - -
2008 - - - - 2.0 - 54.7 52.3 - - - - - - 48.1 - - - -
2009 - - - - - - - - - - - - - - -
Source: FAO Compendium, 2010

97
PRODUCTION AND TRADE OF FOOTWEAR

Footwear production increased by 16% across nine COMESA countries, except for Zimbabwe that registered
static growth. The major change was recorded in the importation of leather footwear, which contracted by -
3178%. Mauritius and Madagascar recorded the deepest cuts in imports, -4050% and -8100%, respectively.
This scenario may be explained by increased consumption of footwear with synthetic uppers.

Table 18: Production of leather shoes (million pairs)

Burundi

Comoros

DRC

Djibouti

Egypt

Eritrea

Ethiopia

Kenya

Libya

Madagascar

Malawi

Mauritius

Rwanda

Seychelles

Sudan

Swaziland

Uganda

Zambia

Zimbabwe
2001 - - 1.0 - 49.5 2.2 4.4 1.5 2.5 0.3 0.3 - 0.1 - 3.8 - - 2.0 4.2
2002 - - 1.0 - 50.5 2.3 4.5 1.5 2.5 0.3 0.3 - 0.1 - 4.2 - - 2.2 4.2
2003 - - 1.1 - 51.5 2.4 4.6 1.6 2.5 0.3 0.3 - 0.1 - 4.8 - - 2.2 4.2
2004 - - 1.1 - 52.5 2.4 4.7 1.6 2.5 0.3 0.3 - 0.1 - 5.0 - - 2.2 4.2
2005 - - 1.1 - 53.6 2.5 4.8 1.6 2.6 0.3 0.3 - 0.1 - 5.2 - - 2.2 4.2
2006 - - 1.2 - 54.7 2.6 5.0 1.6 2.6 0.3 0.3 - 0.1 - 5.4 - - 2.2 4.2
2007 - - 1.2 - 55.7 2.7 5.1 1.7 2.7 0.3 0.3 - 0.1 - 5.5 - - 2.3 4.2
2008 - - 1.2 - 56.8 2.8 5.2 1.7 2.8 0.3 0.3 - 0.1 - 5.6 - - 2.3 4.2
2009
Source: FAO Compendium, 2010

Table 19: Imports of leather shoes (million pairs)

Burundi

Comoros

DRC

Djibouti

Egypt

Eritrea

Ethiopia

Kenya

Libya

Madagascar

Malawi

Mauritius

Rwanda

Seychelles

Sudan

Swaziland

Uganda

Zambia

Zimbabwe
2001 - - 0.3 - 0.3 0.2 - 0.1 4.6 0.2 0.7 0.7 0.2 - - - 0.2 0.3 0.1
2002 - - 0.3 - 0.5 0.2 - 0.2 4.2 0.2 0.7 0.7 0.1 - - - 0.5 0.1 0.1
2003 - - 0.2 - 0.4 0.2 - 0.2 3.8 0.2 0.5 0.5 0.1 - - - 0.6 0.1 0.2
2004 - - 0.2 - 0.7 0.2 - 0.2 3.4 0.3 0.5 0.5 0.1 - - - 0.5 0.2 0.4
2005 - - 0.1 - 0.6 0.2 - 0.2 3.0 0.1 0.6 0.6 0.1 - - - 0.6 0.3 0.2
2006 - - 0.1 - 0.8 0.2 - 0.2 2.5 0.4 0.6 0.6 0.1 - - - 0.5 0.2 0.4
2007 - - 0.0 - 0.6 0.1 - 0.2 2.0 0.3 0.7 0.7 0.0 - - - 0.8 0.1 0.1
2008 - - 0.0 - 0.3 0.1 - 0.4 1.5 0.1 0.8 0.8 0.0 - - - 0.5 0.1 0.2
2009 - - - - - - -
Source: FAO Compendium, 2010

Table 20: Exports of leather shoes (million pairs)

Burundi

Comoros

DRC

Djibouti

Egypt

Eritrea

Ethiopia

Kenya

Libya

Madagascar

Malawi

Mauritius

Rwanda

Seychelles

Sudan

Swaziland

Uganda

Zambia

Zimbabwe

2001 - - - - 0.3 0.0 0.3 0.3 - 0.0 0.0 0.1 - - - - - 0.0 0.3
2002 - - - - 0.3 0.0 0.4 0.4 - 0.0 0.0 0.0 - - - - - 0.0 0.2
2003 - - - - 0.1 0.0 0.4 0.4 - 0.0 0.0 0.1 - - - - - 0.0 0.3
2004 - - - - 0.1 0.0 0.6 0.6 - 0.0 0.0 0.1 - - - - - 0.0 0.4
2005 - - - - 0.1 0.0 0.5 0.5 - 0.0 0.0 0.0 - - - - - 0.0 0.4
2006 - - - - 0.1 0.0 0.6 0.6 - 0.0 0.0 0.0 - - - - - 0.0 0.4
2007 - - - - 0.1 0.0 0.3 0.3 - 0.0 0.0 0.0 - - - - - 0.0 0.5
2008 - - - - 0.3 0.0 0.2 0.2 - 0.0 0.0 0.0 - - - - - 0.0 0.4
2009 - - - - - - - - - -
Source: FAO Compendium, 2010

98
ANNEX 9- Price dynamics

As illustrated in the graphs below, prices for hides and skins register positive trends. However, at present
COMESA countries can benefit poorly from such high price since they are not able to meet the demand of top
quality skins.

Sauer Hide Index (1) French wet salted cows 32/+ kgs (2)

Tanzania wet salted hides 10/13 kg/pc (3) Kenya wet salted hides 13/16 kg/pc (4)

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 Dry hides 8/12 kg Index (5) Sudanese dry salted hides 7/8 kg/pc (6)

Sauer Goat Index Kenya wet blue goatskins

Source: TheSauerReport, June 2011.

100
ANNEX 10- Core Team Terms of Reference

101
102
103
104
ANNEX 11- Participation of Member States

COMESA Roundtable, Addis Ababa, August 2007

Of the 19 COMESA Member States, 15 countries producing hides and skins (including fish skins) and leather
products took part in the Leather Roundtable Meeting in Addis Ababa between 27 and 30 August 2007. These
included: Burundi, Comoros, Djibouti, Ethiopia, Kenya, Libya, Madagascar, Malawi, Mauritius, Rwanda,
Seychelles, Sudan, Uganda, Zambia and Zimbabwe.

COMESA/ITC Roundtable, Nairobi, 16-19 February 2010

Roundtable participants from Governments included: Burundi, Egypt, Ethiopia, Kenya, Sudan, Uganda, Zambia
and Zimbabwe. Sector associations included ESALIA and LLPI.

National Workshop Harare, Zimbabwe, 1-2 July 2010

More than 50 participants from the private and public sectors attended the workshop in Zimbabwe.

National Workshop Blantyre, Malawi, 13-14 July 2010

Around 30 participants from the private and public sector attended the workshop in Malawi.

National Workshop Kampala, Uganda, 28-29 July 2010

Around 45 participants from the private and public sectors attended the workshop in Uganda.

COMESA/ITC Roundtable, Kigali, 1-2 December 2010

Roundtable participants from Governments included: Burundi, Egypt, Eritrea, Ethiopia, Kenya, Malawi,
Rwanda, Sudan, Uganda, Zambia and Zimbabwe. Sector associations & entrepreneurs included ESALIA and
LLPI.

For a detailed list of participants per event, see the following Annex.

105
ANNEX 12 – List of Participants

COMESA/ITC Roundtable, Nairobi, February 2010

Name Country
Adugna Abdissa Ethiopia
Daka David Zambia
Dawes Richard Zimbabwe
Desta Solomon Ethiopia
Elamin Samia Hamid Mohammed Sudan
El-Kahir Maher Abou Egypt
Elsheileh Awad Elseed Sudan
Hailemariam Tadesse Ethiopia
Jack Bev Zimbabwe
Kariuku Purity Wanjiru Kenya
Kebede Zewdu Ethiopia
Kiruthu S. M. Kenya
Mangoma S. D. Zimbabwe
Lubemba Miyoba Zambia
Mhiti Taurai Zimbabwe
Mucunguzi Harriet Uganda
Muheberusoni Jeanne Burundi
Muriuki John M. Uganda
Musisi Bam Uganda
Mwebe Emmanuel Uganda
Mwila Chungu Zambia
Naran Hashmook P. Zimbabwe
Ndirangu Anne W. Zambia
Nkala Similo Zimbabwe
Sibanyoni Linda K. Zimbabwe
Stabile Milo Zimbabwe
Wainains Francis K. Kenya
Wairiuko Joseph W. Kenya

106
Harare, Zimbabwe National Workshop, July 2010

Name Organization
Mr Machingura Cold Storage Commission
Dr U. Ushewokunze-Obatolu Veterinary Services
Mr B. Makodza Livestock Department
Mr N. Mudungwe Practical Action
Mr S. M. Zindoga Leather and Hides/NEC Leather Industry
Dr Bruce Douglas Livestock and Meat Advisory Council
J. Chindabata Kingdom Bank
Ms S. Mlilo Leather Institute of Zimbabwe
Ms Aulia Ayazema Superior Holdings
Mr B. Jack Leather and Allied Industries Federation of Zimbabwe
Mr C. Shoko Imponente Tanning
Mr H.. Naran Conte Shoes
Mr Muzeyah Shippy Marketing
Tafara Shoko Tricastol
Mrs Munyararadzi Luxury Leather
Mr P. Munyaradzi Luxury Leather
Mr P. Livaditakis Pama Abattoirs
Mr R. Dawes Superior Holdings
Mr C. Tsorayi Superior Holdings
Mr N. E Chanakira Ngezi Enterprises
Mr Ruzvidzo Adam Bede
Mr Roger Tavares Bulawayo Abattoirs
Mr T. Wena Salelane Enterprises
Ms N. Shumba Tanners and Shoe Manufacturers Association
Mr N. Mpofu Wet Blue Industries
Mr T. Ruzvidzo Super Hide and Bone Collectors
Mathias Musungapasi Footwear and Rubber
Mr S. Nkala ZIMTRADE
Mr J. Chivanga Zimbabwe Bata Shoe Company
Mr T. Mhiti Galo Shoes
B. Nyamangara Pasango Agro Dealers
Mr E. Chipfuwamiti Amazim Zim
E. Patsika Ministry of SMEs
Ms A. P. Mugova Ministry of Agriculture
Ms J. Mbaimbai Ministry of Agriculture
Mr N.E. Zengeni Ministry of Industry and Commerce
MR F. Myambo Ministry of Industry and Commerce
Ms H. Magumise Ministry of Industry and Commerce
Mr A. Kachepa Ministry of Industry and Commerce
Miss L. Murombo Ministry of Industry and Commerce
Mr V. Cheure Ministry of Industry and Commerce
Mr P. Siyakiya Ministry of Industry and Commerce
Mr T. Mufundisi Ministry of Industry and Commerce
Perpetua Chikololere Standard
Babongile Sikhonjwa ‘Ancestor’ Bulawayo Natives
Rutendo Nyahoda Livestock and Production Development
Dr Tadesse Hailemariam Mamo Leather and Leather Products Institute
Mr Adugna Abdissa Leather and Leather Products Institute
Dr Sam Kiruthu KENYA
107
Name Organization
Ms Samia Hamid Mohamed Elamin (Ass Prof) Sudan
Mr David Elias Daka Zambia
Dr Chungu Mwila COMESA
Ms Ann Ndirangu COMESA
Mr Frank D Mugyenyi COMESA
Mr Ralph Arbeid International Trade Centre
Mr Hernan Manson International Trade Centre

108
Kampala, Uganda National Workshop, July 2010

Name Organization
Agnes Akello Bank of Uganda
Ahmed Kezaala M.D Kishita Young Farmer Slaugher House
Alibaruho Stephen Big Leather Goods Ltd
Bakayomura A Livestock/Footwear
Baseeta T Lauben UCCCU
Byabasheija John Webshoes and Leather Craft
Clovice Kankya Makerere University
David Daka LIAZ/COMESA
Dr Ahimbisibwe DVO KCC
Dr George Were Mbale DVO
Dr LN Mayega Masaka DVO
Dr. Kyokwijuka Benon Ministry of Agric Animal Ind and Fisheries
Dr. SM Kiruthu COMESA/ITC
Hazel Magumise COMESA/ITC
Isaac Ntujju NEMA
John David Kabasa Makerere University
Joshua Mutambi MTTI
Kabishanga Emmanuel COPASCO
Kassim Omar UNCCI/Novelty Tannery
Kulumba Zirimenya Agriculture College-Bukalasa
Luzze Andrew Uganda Manufacturers Association
Masonari Sunada MTTI/JICA
May Sengendo Gender Studies Dept Makerere University
Mulindwa Misaeri Renewable Energy Options
Musisi Bam Training and Common Facilities Center
Musugo George Kishita Young Farmer
Mwebe Emmanuel ULAIA
Naguyo Naitala C Leatherworks 1986 Ltd
Niaz Hirani Leather Industries of Uganda
Nuwagira E Mugisha Kabasanda Technical Institute
Ojamuge Norman MTTI
Okot Robert Skyfat Tannery
Oscar olaro MTTI
Prosie Kikabi Uganda Investment Authority
Rutazaana Daphne Keitesi MFPED
Rwachwende Naome Dairy Development Agency
S.R Rao Hoopoe Trading Company
Sanjay Ghosh Leather Industries of Uganda
Sekandi Abdul Hakim Elgon Leather Co/ULAIA
Sheila Kyomugisha Singiza Uganda Revenue Authority
Ssenyondo Benjamin Trainer
Titus Kisenyi Mpanga Uganda National Livestock Traders Ass
Stephen Baguma Dairy Development Agency
Gomba Fishing Industries Uganda Fish Skins Tannery-Ntinda Industrial Area

109
Kigali, Rwanda Regional Workshop, December 2010

Name Country
Adugna Abdisa Ethiopia
Awale Yassin Kenya
Bamabanze Felicien Rwanda
Baseeta T. Leuben Uganda
Chawaka Abdissa Ethiopia
Dedudu Rediman Ethiopia
Dukuzimana Jean Pierre Rwanda
Elasyouti A. M. Sudan
El-Kahir Maher Abou Egypt
Elkarim Awad Elseed Elsheikh Awad Sudan
Elseed Awad Sudan
Getu Solomon Ethiopia
Hailemariam Tadesse Ethiopia
Khair Taha Seedahmed Saeed Mohamed Sudan
Kalimanire Eugene Rwanda
Kimeriamuraya Bedan Kenya
Kongongo Fred COMESA
Livadtakis Peter Zimbabwe
Lungu Mathias Zambia
Magumise Hezel Zimbabwe
Martinelli Alfredo Italy
Mebratuworau Ethiopia
Megemangango Augustin Rwanda
Mohamed Elamin Samia Sudan
Mufuranzima John Rwanda
Mugemangango Augustin Rwanda
Mugemanyi Emmanuel Rwanda
Mugyenyi Frank COMESA/ITC
Muheberisoni Jennedith Burundi
Mukashyyaka Germaine Rwanda
Mulamfu Simuyuni Zambia
Munyarachi Naomi Zimbabwe
Muraya Bedan Kenya
Mutambi Joshua Uganda
Mwinyihija Mwinyikione Kenya
Nyamutera Vianney Rwanda
Raseeta Leuben Uganda
Saidahmed Taha Sudan
Shoko Clement Zimbabwe
Wamokoi Gitau Rwanda
Workou Mebratu Ethiopia

110
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