Leather & Leather Products Inst (LLPI)
- Reference: P-Z1-BG0-001
- Appraisal Date: 13/12/1901
- Board Presentation: 13/12/1901
- Status: LendingLEND
- Implementing Agency: --
- Location: ADDIS ABABA (Ethiopia)
The COMESA subregion is endowed with livestock. In terms of livestock population, the subregion has 126.3, 104.2 and 91.3 million cattle, sheep and goats, respectively. Hides, skins and leather products rank highest in value of world agricultural commodities to about US$ 30 billion per annum. Africa accounts for only 1.1% of world trade despite the fact that it had 18.1% of global livestock population in 1992. The COMESA subregion accounts for 66.3% of cattle in Africa, 50.6% of sheep and 53.7% of goats which is equivalent to 8.9%, 9.2% and 15.7% of world populaion of livestock, respectively.
Leather industry contribution to manaufacturing sector in COMESA area is less than 1%. It is estimated that if this sector is properly developed Africa would earn an additional US$ 3.72 billion from world trade in leather and leather products to account for 12.1% of world trade. In fact, a number of COMESA states depend on hides, skins, leather and leather products. Contribution of leather industry in some countries is between 15% to over 50% of total manufacturing exports. Finally, the leather industry can provide various opportunities and challenges.
The objective of LLPI is to improve the quality of leather and leather products exports from the COMESA countries in order to meet international standards and to retain value added through local processing.
The great potential of the leather industry is outlined under the project description. The rationale for the project is to address
(i) low recovery of raw hides and skins,
(ii) poor quality of raw materials and products,
(iii) poor linkages between production and processing resulting in exports of low value products and under-utilized capacities and
(iv) lack of skills, technology, processing facilities and relevant information. Moreover, the institute will provide well established satellites in the member states for the leather and leather products development on continuous basis. The project will also offer a wider scope for co-operation among the COMESA countries and will provide a basis through which consultancy services could be offered in the leather industry in the subregion.
The main project benefits can be summarized as follows:
1. Utilization of abundant local hides and skins 2. Foreign echange generation and additional revenues for member states; 3. Job creation 4. Retention of Value added 5. Technologing transfer 6. Tranining of local perssonel etc.
ADDE Giama Abscir Hassan - OPSD3