Sector players decry illicit leather trade

By Steve Umidha

Players in the leather sector have decried the uncontrolled importation of cheap leather products from China claiming it is hurting small and medium enterprises in the region.

Leather industry stakeholders from East Africa, Egypt and Ethiopia attending South-South Leather Industry Exchange (SSE) in a virtual forum last week, are now calling for the development of policies between Governments and the private sector if the vice is to be eliminated.

More collaboration will be needed among trading countries in the region in the elimination of fake and illicit leather from the market, strengthening of national associations in policy formulation and implementation and knowledge transfer enable the region contributes more to the global leather industry.

“If all measures and policies are agreed upon by member states, the sector will contribute more with a positive socio–economic impact through the targeted market share in States.

Time limits need to be put in place to ensure no delays in implementation of agreed policies in the East African Community,” said Mukashaka Germaine Chairperson, Leather Value Chain Industry Platform, Rwanda.

The Ministry of Industrialization, Trade and Enterprise Development (MoITED) through the acting Director, at the Directorate of Agro – Industries Simon Atebe stated that Kenya’s Ngozi leather park will be ready for occupation by December 2021 when the effluence plant will be complete & facilities for firms to occupy are ready citing one of the Kenyan government’s support on the industry.

Unfair competition from counterfeit products, tax avoidance, illicit imports, dumping and extra taxes on imported raw materials have reduced competitiveness in the sector in the past years.
This, coupled with limited access to the market, lack of skills beyond basics in production, low expertise to produce finished leather and leather products, and high cost of capital are hurting small businesses.