THE ETHIOPIAN LEATHER AND LEATHER PRODUCTS SECTOR OVERVIEW, CHALLENGES, OPPORTUNITIES & FUTURE OUTLOOK-A REVIEW OF LITERATURE

Teklay Asgedom Teferi (PhD)*, Zewditu Alemu Bekele (BSc),Hailemariam Tesfay Gidey (MSc)

ABSTRACT

The Ethiopian leather and leather products sector is a cornerstone of the nation's manufacturing industry, holding significant potential for economic transformation. This overview provides a holistic analysis, underscoring its critical role in industrial growth, export diversification, and employment generation. Historically, the sector has been a top non-agricultural export, contributing notably to GDP (Gross Domestic Product) and foreign exchange earnings. Its value is amplified through substantial employment and value addition, providing jobs across the entire value chain from livestock husbandry and hides and skins collection to sophisticated manufacturing and retail. Despite its potential, the sector faces profound challenges. These include low productivity in animal husbandry, resulting in poor raw material quality, limited domestic value addition, reliance on imported inputs, manufacturing inefficiencies, and fluctuating global demand. However, these are counterbalanced by considerable opportunities. Ethiopia's vast livestock population, competitive labor costs, and growing domestic market present a strong foundation for expansion. Market analysis reveals significant potential to shift from exporting raw materials to high-value finished products in lucrative international markets. Realizing this potential is heavily influenced by government policies, which have evolved from state-led control to more supportive, market-oriented interventions aimed at encouraging investment and promoting exports. The sector's future hinges on strategic vision for transformation, requiring a coordinated effort to improve raw material quality, embrace technological modernization, strengthen linkages, build international brands, and leverage trade agreements. By addressing its constraints and capitalizing inherent advantages, the Ethiopian Leather and leather Products sector can transition into a globally competitive, value-added manufacturing hub, thereby making an even greater contribution to national economy.

Keywords:

Ethiopia, leather, leather products, opportunities, challenges

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