ELIA: Sector Information

Ethiopia’s Leather Industry

Ethiopia’s leather industry benefits from the country’s status as the 10th largest livestock producer in the world, and the largest livestock population in Africa, with approximately 78 million cattle, sheep and goats. The country has a rich tradition of turning hides and skins into finely crafted products that are marketed worldwide. These include raw leather and skin materials, as well as fine finished products such as footware, handbags, leather garments, upholstery and other goods. Ethiopian manufacturers supply these goods to major fashion houses and distributors in Europe, North America and Asia, including custom design and exclusive brand items.

Some basic facts about Ethiopia’s leather industry:

Leather is now the second largest export industry for Ethiopia, after coffee.
On average, Ethiopian producers supply 16 to 18 million pieces of hides and skins to local tanneries annually.
There are presently 27 tanneries operating in the country, employing over 5,000 people and with capacity for producing 1.3 million hide pieces and 32 million skins.
Ethiopia produces an estimated 7,000 pairs of shoes daily.
The country has recently entered the international market for luxury designer goods.

The leather industry in Ethiopia produces hides, pickled sheep skins, wet-blue goat skins, crust and finished leather, and leather products such as footwear, garments, gloves, bags, wallets and travel goods. The industry enjoys a plentiful supply of high quality raw material, including the finest and most sought-after varieties of leather, including Cabretta (hardy breed of highland hair sheep) and Bati Genuine (high quality goatskin). The highland bred sheep produces a skin recognized worldwide for its tensile strength, elasticity, and flexibility that is used in the manufacture of gloves for fashion and sport. Bati derives from goatskins, and is thick, highly flexible and has a clean inner surface. It is used in the manufacture of the finest (and thinnest) suede for the garment industry.

The country has solidified its reputation for producing world-quality hides and skins, as evidenced by recent export growth. In 2006, Ethiopia exported a record 17 million tons of leather and leather products worth US $81 million. Data from the first half of 2007 show an increase in export value of 17 percent over the same period for the previous year. Major markets for Ethiopian leather and leather goods include Italy, the United Kingdom, Denmark, the Netherlands, Germany, Romania, Sweden, Finland, India, Pakistan, Thailand, Japan, Malaysia, and the United States.

While Ethiopia's leather industry has traditionally focused on semi-processed and processed leather goods, several manufacturers have successfully entered the international market for high-end leather goods and accessories under the TAYTU – Made in Ethiopia brand. TAYTU is the first luxury designer label to emerge from Ethiopia and its products were featured at fashion shows in New York and Paris in late 2007.

Ethiopia offers many additional advantages for the manufacture of leather and leather goods:

Geography: Its proximity to European and Middle Eastern markets provides opportunities for the production of exportable leather products.
Trade Incentives: As a beneficiary of the Africa Growth and Opportunity Act (AGOA) since 2000, most categories of Ethiopian leather exports to the United States enter the country free, while others receive preferential rates. Ethiopia also benefits from access to the European Union under the EU ACP initiative.
Investment Incentives: Several incentives are offered by the Government of Ethiopia to support investment in the country’s leather industry:

Income tax exemption.
Duty incentive schemes.
Carry forward losses.
Land (provided with a nominal price for investors).
Minimal capital allocation for foreign investors (US$ 100,000 for single investments and US$ 60,000 for joint investments with domestic investors).

Please contact ELIA for more information on investment opportunities.

Information on individual suppliers of leather and leather goods can be found at the Members page.

HOME NEWS & EVENTS ABOUT ELIA MEMBERS SECTOR INFORMATION PHOTO GALLERY LINKS CONTACT		SECTOR INFORMATION Ethiopia’s Leather Industry Ethiopia’s leather industry benefits from the country’s status as the 10th largest livestock producer in the world, and the largest livestock population in Africa, with approximately 78 million cattle, sheep and goats. The country has a rich tradition of turning hides and skins into finely crafted products that are marketed worldwide. These include raw leather and skin materials, as well as fine finished products such as footware, handbags, leather garments, upholstery and other goods. Ethiopian manufacturers supply these goods to major fashion houses and distributors in Europe, North America and Asia, including custom design and exclusive brand items. Some basic facts about Ethiopia’s leather industry: Leather is now the second largest export industry for Ethiopia, after coffee. On average, Ethiopian producers supply 16 to 18 million pieces of hides and skins to local tanneries annually. There are presently 27 tanneries operating in the country, employing over 5,000 people and with capacity for producing 1.3 million hide pieces and 32 million skins. Ethiopia produces an estimated 7,000 pairs of shoes daily. The country has recently entered the international market for luxury designer goods. The leather industry in Ethiopia produces hides, pickled sheep skins, wet-blue goat skins, crust and finished leather, and leather products such as footwear, garments, gloves, bags, wallets and travel goods. The industry enjoys a plentiful supply of high quality raw material, including the finest and most sought-after varieties of leather, including Cabretta (hardy breed of highland hair sheep) and Bati Genuine (high quality goatskin). The highland bred sheep produces a skin recognized worldwide for its tensile strength, elasticity, and flexibility that is used in the manufacture of gloves for fashion and sport. Bati derives from goatskins, and is thick, highly flexible and has a clean inner surface. It is used in the manufacture of the finest (and thinnest) suede for the garment industry. The country has solidified its reputation for producing world-quality hides and skins, as evidenced by recent export growth. In 2006, Ethiopia exported a record 17 million tons of leather and leather products worth US $81 million. Data from the first half of 2007 show an increase in export value of 17 percent over the same period for the previous year. Major markets for Ethiopian leather and leather goods include Italy, the United Kingdom, Denmark, the Netherlands, Germany, Romania, Sweden, Finland, India, Pakistan, Thailand, Japan, Malaysia, and the United States. While Ethiopia's leather industry has traditionally focused on semi-processed and processed leather goods, several manufacturers have successfully entered the international market for high-end leather goods and accessories under the TAYTU – Made in Ethiopia brand. TAYTU is the first luxury designer label to emerge from Ethiopia and its products were featured at fashion shows in New York and Paris in late 2007. Ethiopia offers many additional advantages for the manufacture of leather and leather goods: Geography: Its proximity to European and Middle Eastern markets provides opportunities for the production of exportable leather products. Trade Incentives: As a beneficiary of the Africa Growth and Opportunity Act (AGOA) since 2000, most categories of Ethiopian leather exports to the United States enter the country free, while others receive preferential rates. Ethiopia also benefits from access to the European Union under the EU ACP initiative. Investment Incentives: Several incentives are offered by the Government of Ethiopia to support investment in the country’s leather industry: Income tax exemption. > Duty incentive schemes. Carry forward losses. Land (provided with a nominal price for investors). Minimal capital allocation for foreign investors (US$ 100,000 for single investments and US$ 60,000 for joint investments with domestic investors). Please contact ELIA for more information on investment opportunities. Information on individual suppliers of leather and leather goods can be found at the Members page.
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