KEYIR NEWS - The Leather Industry Research and Development Centre has announced that Ethiopia’s leather and leather products sub-sector generated $217 million in production during the 2024/25 fiscal year, underlining its growing role in the nation’s industrial and economic transformation.
Director of the Centre, Zulfiqar Abajhad, revealed that the industry continues to expand its production and productivity by leveraging both domestic and international markets. He emphasised that the sector’s growth is essential to advancing Ethiopia’s wider economic agenda, particularly in boosting export earnings and creating jobs.
One of the notable developments, according to Ato Zulfiqar, is the increasing culture of domestic consumption of locally made leather goods. Rising quality standards and diversified product ranges have encouraged Ethiopian consumers to embrace home-grown products, reducing dependency on imports.
This trend has been particularly significant in the supply of essential goods to the country’s security forces, whose needs are now fully met by domestic manufacturers.
The director also noted progress in aligning the leather industry with international standards. To date, seven factories have obtained globally recognised certifications, enabling them to compete more effectively in export markets.
This marks a significant step towards improving the sector’s competitiveness and meeting stringent global requirements.
Zulfiqar further highlighted that recent macroeconomic reforms have facilitated improved access to foreign exchange, easing a major constraint that had long hindered industrial growth. These reforms, he added, have created renewed capacity for the revival and modernisation of the leather sector.
In terms of foreign currency earnings, the sector contributed $25.5 million in 2017. Looking ahead, authorities have set an ambitious target to double this figure to $50 million in the 2025/26 fiscal year. The plan involves expanding export markets, enhancing value addition, and supporting industries in meeting higher production benchmarks.
With Ethiopia’s abundant livestock resources, the leather and leather products industry is considered a priority manufacturing sub-sector. Its sustained development not only promises to strengthen the country’s industrial base but also to position Ethiopia as a competitive player in the global leather value chain.
The sector’s $217 million output signals steady progress, but stakeholders stress that further innovation, investment, and international integration will be critical to unlocking its full potential.
Source:- Gazette Plus