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Rwanda, Uganda lack policies to save leather sector

Thursday March 10 2016

The continued export of raw hides and skins from Rwanda has slowed the development of the leather sub-sector, which analysts say has the potential to generate $130 million annually.

The latest data indicate that the most the country earned from exporting raw hides and skins was $12 million in 2014.

“Currently, the production of hides and skins is growing but almost all is exported raw to Uganda, Kenya and China,” said Francois Kanimba, Rwanda’s Minister for Trade and Industry.

Already, Kigali Leather Ltd, which has started producing wet blue hides and skins, is complaining that it does not get enough raw materials and has asked the government to ring-fence the local leather market. 

The Rwandan hides and skins dealers say they find the regional market in Democratic Republic of Congo, Uganda and Kenya competitive in pricing, partly because of the developed tanneries in those countries.

In Uganda, the sub-sector has the potential to inject $5 billion into the economy yearly.

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But for more than a decade now, the sub-sector has been generating not more than $45 million, thanks to the influx of synthetic products into the market, particularly secondhand footwear.

“The preference for imported second-hand footwear is crippling the development of the leather sub-sector. This is because the population does not have an option,” said Nicholas Mudungwe, a regional development expert with the Common Market for Eastern and Southern Africa.

“Studies show that with value addition, skin and hides are capable of injecting $5 billion into the economy every year,” added Mr Mudungwe.

Trade and Industry Ministry data shows that the country imports footwear worth $40 million per year.

To hit the projected earnings of Ush12 trillion every year, Mr Mudungwe argued that there is a need for policy on processing of hides and skins.

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