UNIDO supporting Ethiopia to harness potential of leather sector for transformation

With support from the Ministry of Agriculture, Ministry of Industry and Ministry of Labour and Skills, UNIDO overhauled the national hide and skin regulatory framework. 

UNIDO also developed a curriculum to guide the development of training manuals to serve TVET colleges and centers to train professionals on occupational standards, skills and practices of improving the quality production and marketing of raw hides and skins. 

As a pilot intervention, flaying machines have been introduced to six abattoirs to reduce the damage on raw hides and skins during flaying operation. Additionally, the machines and high-quality tools have successfully enhanced the quality of raw hides and skins and meat. 

UNIDO’s support came through the “Leather Initiative for Sustainable Employment Creation (LISEC)” project funded by the European Union (EU).

UNIDO-LISEC project is being implemented in and around Modjo City having been commissioned in 2018 to create greater economic and decent employment opportunities, especially for women and youth through the development of the Ethiopian leather industry and the Modjo leather industrial park that aims to cluster the leather industry for the sustainable operation of the leather production and environmental management.

The initiative of the Modjo Leather City (MLC), part of Ethiopia’s broader strategy of inclusive and sustainable industrial development, aims to boost the country’s exports and create jobs as well as the formation of a leather processing cluster that will address environmental issues as well as leverage on economies of scale for the development of backward and forward linkages in leather tanning and products manufacturing. 

In a recently held steering committee meeting of the project, it was emphasized that once the challenges faced by the leather value chain practitioners are addressed, the industry would regain its stature as a key player sector in job creation, income generation and economic growth.

In his remarks to the meeting, H.E. Tarekegn Bululta, State Minister of Industry highlighted the importance of the project in addressing the quality of hides and skins, leather value chain development and job creation initiative through micro, small and medium enterprises (MSMEs). 

The State Minister underlined the government’s commitment to upgrading the leather sector performance for its significant contribution to economic growth, employment creation, import substitution, and product diversification. 

“European Union is keen to continue supporting the leather value chain due to its potential to grow and create quality jobs,” said Roberto Schiliro, the European Union’s Head of Green Deal Team. “However, the sector needs a strong government commitment to address the quality of hides and skins and create a conducive working environment for long-term investments.” 

Mr. Roberto also underlined the need for the industry to address occupational safety issues, access to finance, and forex shortage for importing inputs by tanneries as well as other issues related to strategies and legislations.