Staff Reporter
Addis Ababa, Ethiopia, November 28 – The first workshop on “the Ethiopian Leather Industry and the African Continental Free Trade Area (AfCFTA): Opportunities and Challenges” took place at the Hilton Hotel in Addis Ababa on November 21, 2023. The event was co-organized by ECA’s African Trade Policy Centre (ATPC), the Ethiopian Chamber of Commerce and Sectoral Associations (ECCSA), and the Ethiopian Leather Industries Association (ELIA).
The primary objective of the workshop was to convene various stakeholders to discuss the opportunities and challenges that the AfCFTA presents to the Ethiopian leather industry. Furthermore, it sought to provide a platform for dialogue and problem-solving, aiming to position the Ethiopian leather industry strategically to capitalize on the benefits of the AfCFTA.
With a well-established leather industry dating back to the early 20th century, Ethiopia boasts the largest livestock population in Africa, ensuring a consistent supply of raw materials for its thriving leather sector. The industry, with diverse participation from both foreign and domestic businesses, holds immense potential to enhance export revenues, generate employment opportunities, empower women economically, and contribute significantly to Ethiopia’s overall development.
Ethiopia’s status as a State Party to the AfCFTA further amplifies the potential of its leather products, granting them access to a vast and expanding market of over 1.4 billion people, progressively free of duties and other trade barriers.
Recognizing Ethiopia’s comparative advantage in the leather industry and the opportunities arising from the AfCFTA, ECA, in collaboration with ECCSA and ELIA, initiated the workshop. This event is part of ATPC’s pilot project, aiming to directly engage with private sector representatives to support the successful implementation of the AfCFTA Agreement.
In his opening remarks, Mr. Stephen Karingi, Director of ECA’s Regional Integration and Trade Division, highlighted Ethiopia’s resource endowment and historical prowess in producing processed leather products, positioning the country as a potential key player in the emerging African single market resulting from AfCFTA implementation.
Representing Ethiopia’s Ministry of Trade and Regional Integration, Mr. Tages Mulugeta emphasized that AfCFTA signifies a new era of trade governance in Africa, presenting an opportunity for necessary structural reforms. He underscored the significant potential Ethiopia possesses in the leather industry.
ECCSA President Eng. Melaku Ezezew, representing the Ethiopian private sector, acknowledged the transformative potential of Ethiopia’s leather industry in job creation and economic growth. He stressed the need for coordinated efforts to address internal and external challenges faced by the industry.
The workshop included a presentation by Mr. Endale Seyfu, the Acting Secretary General of ELIA, covering the historical context, current state, and potential of the leather industry in relation to AfCFTA opportunities. Challenges such as insufficient access to foreign currency and inadequate marketing and promotion were also outlined, drawing attention to areas requiring attention.
With over 40 participants from relevant Ethiopian Government agencies, the private sector, international organizations (FAO, UNCTAD, and UNIDO), and regional stakeholders (e.g., the Africa Leather and Leather Products Institute), the workshop received positive feedback. Participants highlighted the importance of the targeted and sector-specific approach, emphasized the need for ongoing engagements, and expressed support for exploring options to organize a leather-specific trade fair around AfCFTA, either as a standalone event or as an enhancement to the existing annual All Africa Leather Fair.
