Ethiopia

Country Information

Ethiopia's economy is based on agriculture, accounting for half of GDP, 60% of exports.

Country Size:	1.2 million sq km
Population:	77 million
Currency:	Birr (ETB)
Languages:	Amharic (official), Oromiffa, Tigrigna, Somaligna, Sidamgna, Wolaitigna, Afarigna, Hadiyigna (among 80 other languages spoken), English
Capital City:	Addis Ababa
GDP (US$):	$54.89 billion (2004 est.)
Main Economic Sectors:	Coffee, gold, leather products, live animals, oilseeds.
Main Exports:	Coffee, gold, leather products, live animals, oilseeds.
Main Imports:	Food and live animals, petroleum and petroleum products, chemicals, machinery, motor vehicles, cereals, textiles.
Industry (Main Industries):	Food processing, beverages, textiles, chemicals, metals processing, cement, leather processing.
Natural Resources:	Small reserves of gold, platinum, copper, potash, natural gas, hydropower.
Agriculture (Main Products):	Cereals, pulses, coffee, oilseed, sugarcane, potatoes, hides, cattle, sheep, goats.
International Organization Member:	ACP, AFDB, AU, FAO, G-24, G-77, IAEA, IBRD, ICAO, ICRM, IDA, IFAD, IFC, IFRCS, IGAD, ILO, IMF, IMO, Interpol, IOC, IOM (observer), ISO, ITU, MIGA, NAM, ONUB, OPCW, PCA, UN, UNCTAD, UNESCO, UNHCR, UNIDO, UNMIL, UPU, WCO, WFTU, WHO, WIPO, WMO, WTO, WTO (observer).
Infrastructure:	Highways: 31,571 km total (3,890 km asphalt; 12,380 km gravel; 13,521 km rural road; 2,000 km sub-rural) Airports: 120 total, 84 usable Railway: 778-km railway line from Addis Ababa to Djibouti. Communication and Transport: Despite its geographical complexities, the country has a well-developed system of transport and communications. An extensive road network connects the capital, Addis Ababa, with various regional and urban centers. There is also a highway from Addis Ababa to Nairobi. A railway system links Addis Ababa with the port cities of Djibouti, while Ethiopian Airlines links Ethiopia to most major countries in Africa, Asia, Europe and North America. Telecommunication services in major urban centers are served through a microwave system. There is an open-wire relay system to Sudan and Djibouti and microwave radio relay to Kenya and Djibouti. Excellent international communications are also maintained through two satellite earth stations-(1) Atlantic Ocean INTELSAT and (2) Pacific Ocean INTELSAT. There are four AM broadcast stations and 1 television station. Most of the Ethiopian people listen to radios for information, although almost every village has a television in the community center, where the villagers can gather to watch television programs. There are several foreign-language newspapers published in Ethiopia, including the daily Ethiopian Herald, printed in English, and the Arabic weekly newspaper Al-Alem. Energy: There is substantial hydroelectric and thermal power potential in Ethiopia. Its hydropower potential has been estimated at about 650 billion kilowatt hours (kWh). To date, the aggregate electricity generated is more than 1.2 billion kWh, which is much less than one percent of the potential. Electricity: Distribution stations: 114 Production capacity: 528 Megawatt Electricity production: 493 million KWH Production by source: Hydro ('%): 99.2 Others (%): 0.8 Number of customers: 625,496 Total coverage: 13.4% Banking: Efficient facilities for banking and insurance are available in the country. The National Bank of Ethiopia is the central bank and its responsibilities include conducting implementation of monetary policy and exchange rate policy as well as regulation and supervision of banks and other financial institutions. Currently there are eight commercial banks and one development bank with 267 branches, nine insurance companies with 91 branches and 16 micro-finance institutions.

Livestock

Cattle Population:	41 million
Sheep Population:	25 million
Goat Population:	23 million
Camel Population:	1 million
Cattle Off Take Rates:	7.7%
Sheep Off Take Rates:	33%
Goat Off Take Rates:	37%
Livestock Policy:	Animal and animal products Quarantine laws and regulation existsAn analysis of the Ethiopian LLPI was made and taking into consideration theglobal context, a Master Plan was developed for the Leather and LeatherProducts Industry (LLPI) applying the "Pull" concept. The Business Plan applies market segmentation for the three leather products sub-sectors and proposes target countries for exports. The resource and logisticalrequirements of the programme are discussed, as are the roles to be played by the different stakeholders in implementing the plan targets, together with thecoordination mechanisms that are required to be established. The strategy proposed is to follow the "Top-Down (Pull)" Approach (TDA). This approach requires that the development of footwear should "pull" the tanning sector to produce more, better quality finished leather; resulting in turn in an increase in the demand from the tanners for more, better quality hides and skins.
Slaughter Facilities:	Number of abattoirs 114: 20% of slaughter 80% animal slaughter: backyard

Industry profile

blue line

Hides and skins

Quantity Hides:	1.1 million
Quantity Sheep:	8.5 million
Quantity Goat:	7.5 million
Annual Collection Level Hides:	1.1 million
Annual Collection Level Sheep:	8.5 million
Annual Collection Level Goat:	7.5 million
Flaying Methods:	Knife flayed
Preservation Methods:	Sheep skin: 98% Wet salted Goatskin: 75% wet salted and 25% Air dried Hides: 96% Air dried, 3% wet salted, 1% green.
Grading Systems, available grades and percentage of Each:	Air dried based on 40/50/10 proportion for grades I,II and III Salted: Reject out
Hides & skins trade channels:	Primary (farmers) or households, small collectors, medium merchants, big suppliers, Tanners Abattoirs, traders (tanners)
Market (%):	Local 100%
Average market Bovine price:	0.3 US$/kg
Average market Sheep price:	3.2 US$/pc
Average market Goat price:	1.5 US$/pc

blue line

Tanning

Number of Tanneries:	21
Installed tanning capacity:	Skins (Sheep & Goats): 32 million pcs/year Hides: 1.4 million
Tanneries in Operation:	21
Utilized capacity:	60% for skins 80% for hides
Output of the industry:	Sheep skin (annual) Pickled: 8 million pc. Crust: 4 million sq ft Finished: 4 million sq ft Goat skin (annual) Wet blue: 6 million pc Crust and finished: 3 million sq ft Hides Crust and finished: 20 million sq ft
Number of employees:	5000
Market (%):	International 80% and local 20% Major markets: 60% Europe, 30% Asia and 10% USA and Africa.
Estimated Annual Export Value (US$):	66.5 million (2004)

blue line

Footwear

Number of Footwear Factories:	15 (formal) - 700/1000 (informal producing units)
In Operation:	15 (formal) - 700/1000 (informal producing units)
Manufacturing capacity:	Installed: 8 million pairs Utilized: 7 million pairs
Number of employees:	4000
Market (%):	International 1% and local 98% Major markets: EU countries and Africa

blue line

Leather goods

Number of Leather Goods and Garment Factories:	15
In Operation:	15
Manufacturing capacity:	Installed: 500/day
Number of employees:	200
Market (%):	International: 0.5% and local 99.5% Major markets: African and EU
Estimated Annual Export Value (US$):	500,000 (2004)

blue line

SWOT analysis

Strengths:	Easily trained labour Considerable resource base Hides - fine grain pattern and good fiber structure and internationally known for quality upper leather Sheep skin - world's finest and compacted texture globally well recognized as excellent raw materials for the production of high quality dress glove, sports glove and garment Goat skins - classed as Bati-genuine (the international name of high quality goats skin and Bati type with higher great demand in the international fashion sued leather. Some tanners pulled out them selves from export of semi processed and already started export of finished leather and others are being on the track.
Weaknesses:	Lack of highly Skilled man power in leather technology, market intelligence, etc Lack of high technology Lack of waste treatment plants Low productivity, efficiency
Opportunities:	Priority sector well recognized by the Government Investment opportunity Hides & skins, leather and leather products have highly significant in the global trade The high demand for Ethiopian hides and skins Confidence of international development partners (ITC, UNIDO, USAID, CDE,CFC, DTZ, etc.)
Threats:	Poor animal husbandry The growing threats of spread of ekek Absence of extension strategy for raw hides and skins improvement Flay cuts problems Inadequate slaughterhouses Lack of organized supply collection systems Inadequate quality due to high rate of defects and poor preservation techniques Shortage of raw materials Long supply chain and price speculations of raw hides and skins High costs of environmental control.

Government policy

Fiscal Policies:	Income Tax Holiday Any income derived from an approved new manufacturing and agro-industry investment or investment made in agriculture shall be exempted from the payment of income tax for the periods depicted in the following table, depending upon the area of investment, the volume of export, and the location in which the investment is undertaken. Profit tax holiday is granted subject to Council of Ministers Regulation No.84/2003 issued on the basis of the Investment Proclamation No. 280/2002 as follows: Areas and Periods of Tax Exemption: Conditions for Profit Tax Eligibility An investor engaged in a new manufacturing or agro-industry activity: If he exports at least 50% of its products If he supplies at least 75% of its products, to an investor, as an input for the production of export items If it exports less than 50% of its products If the project is evaluated under a special circumstance by the BOI If the production is for the local market If the production mentioned above in (c) is considered by the BOI to be a special one Profit tax exemption An investor engaged in a new manufacturing or agro-industry activity: If he exports at least 50% of its products-5yrs If he supplies at least 75% of its products, to an investor, as an input for the production of export items-6yrs If it exports less than 50% of its products-5yrs If the project is evaluated under a special circumstance by the BOI-6yrs If the production is for the local market-2yrs If the production mentioned above in (c) is considered by the BOI to be a special one-3yrs If the expansion or upgrading increases the existing production by 25%, in value and 50% of the production is to be exported-2yrs Profit Tax exemption for investments made in underdeveloped regions If he exports at least 50% of its products-7yrs If he supplies at least 75% of its products, to an investor, as an input for the production of export items-8yrs If it exports less than 50% of its products-2yrs If the project is evaluated under a special circumstance by the BOI-3yrs If the production is for the local market-5yrs If the production mentioned above in (c) is considered by the BOI to be a special one-6yrs If the expansion or upgrading increases the existing production by 25%, in value and 50% of the production is to be exported-3yrs.
Monetary Regulations:	The National Bank of Ethiopia is the central bank established by the government to maintain price and exchange rate stability and also foster a sound financial system including undertaking other function as are conducive to the economic growth of Ethiopia. Its establishment proclamation, Monetary and Banking Proclamation No. 83/1994 prescribes the Bank's powers and duties. These are: 1. Coin, print and issue legal tender currency; 2. Regulate the supply, availability of money and credit and applicable interest and other charges; 3. Implement exchange rate policy, allocate foreign exchange, manage and administer the international reserves of Ethiopia; 4. License, supervise and regulate banks; 5. Set limits on gold and foreign exchange assets which banks and other financial institutions authorized to deal in foreign exchange can hold in deposits; 6. Set limits on the foreign exchange position and on the terms and the amount of external indebtedness of banks and other financial institutions; 7. Make short and long terms refinancing facilities available to banks and other financial institutions; 8. Accept deposits of any kind from foreign sources; 9. Promote and encourage the dissemination of banking and insurance services through out the country; 10. Prepare periodic economic studies, together with forecasts of the balance of payments, money supply, price and other relevant statistical indicators of the Ethiopian economy useful for analysis and for the formulation and determination by the Bank of monetary, saving and exchange policies; 11. Act as banker, fiscal agent and financial advisor to the government; 12. Exercise such other powers, perform such other functions and carry out such other activities as central banks customarily perform.
Trade regulations:	1. Customs Import Duty One hundred per cent exemption from the payment of import customs duties and other taxes levied on imports is granted to an investor to import all investment capital goods, such as plant machinery and equipment, construction materials, as well as spare parts worth up to 15% of the value of the imported investment capital goods, provided that the goods are not produced locally in comparable quantity, quality and price. Investment capital goods imported without the payment of import customs duties and other taxes levied on imports may be transferred to another investor enjoying similar privileges. Some investment areas such as hotels (other than star designated), whole sale, retail and import trade, maintenance service, etc. are not eligible for exemption from customs duty. (Please see schedule two). Exemptions from customs duties or other taxes levied on imports are granted for raw materials necessary for the production of export goods. In accordance with the Proclamation No. 249/2001, three duty incentive schemes are available for exporters. They are Duty Draw-Back Scheme, Voucher Scheme and Bonded Manufacturing Warehouse Scheme. Taxes and duties paid on raw materials are drawn back at the time of export of finished products. The duty draw back scheme applies to all taxes at the time of importation, and those paid on local purchases. 2. Exemption from Payment of Export Customs Duties Ethiopian products and services destined for export are exempted from the payment of any export tax and other taxes levied on exports.

Investment environment

Requirements For Foreign Investment / Joint ventures:

Board of Investment

Moreover, the Council of Ministers may also award profit tax holiday for greater than seven years. However, the Board may issue a directive to deny income tax exemption right granted to investors producing only for local market, as may be necessary. The period of exemption from profit tax begins from the date of the commencement of production or provision of services, as the case may be.

Loss Carried Forward

Business enterprises that suffer losses during the tax holiday period can carry forward such losses for half of the income tax exemption period following the expiry of the exemption period.

Guarantees to Investors

Ethiopia provides the following guarantees to foreign investors:

Repatriation of Capital and Profits

Capital repatriation and remittance of dividends and interest is guaranteed to foreign investors under the Investment Proclamation. Any foreign investor has the right, in respect of an approved investment, to make the following remittances out of Ethiopia in convertible currency at the prevailing exchange rate on the date of remittance:

profits and dividends accruing from an investment;
principal and interest payments on external loans;
payments related to technology transfer or management agreements;
proceeds from sale or liquidation of an enterprise;
proceeds from the sale or transfer of shares or of partial ownership of an enterprise to a domestic investor;
compensation paid to a foreign investor;
Expatriates employed in an enterprise may remit, in convertible foreign currency, salaries and other payments accruing from their employment in accordance with the foreign exchange regulations or directives of the country.

Guarantee Against Expropriation

The constitution of the Federal Democratic Republic of Ethiopia protects private property. The Investment Proclamation also provides investment guarantee against measures of expropriation and nationalization that may only occur for public interest and in compliance with the requirement of the law. Where such expropriations are made, the Government guarantees to provide adequate compensation corresponding to the prevailing market value of property and such payment shall be effected promptly.

Other Guarantees

Ethiopia is a member of the World Bank-affiliated Multilateral Investment Guarantee Agency (MIGA) which issues guarantees against non-commercial risks to enterprises that invest in signatory countries. Ethiopia is currently concluding bilateral investment promotion and protection agreements with a number of developed and developing countries, and it is ready to conclude such treaties with any country at any time. Ethiopia has also signed the World Bank treaty, "the International Convention on Settlement of Investment Disputes between States and Nationals of other States (ICSID)".

Tax Incentives:

Taxation

The principal taxes currently in place are profit tax, turn over tax (TOT), value-added tax (VAT), excise tax, customs duty and income tax from employment. VAT has replaced sales tax. TOT and withholding taxes have been introduced recently. Other taxes include corporate tax, dividend income tax, royalties and stamp duties.

The Government has recently been introducing a series of measures to reform the tax system with a view to encouraging investment and foreign trade. On the whole, the reform process is to reduce the rates but broaden the base.

Corporate Income Tax

The corporate income tax (tax on profit) in Ethiopia is 30 per cent.

Turn Over Tax (TOT)

A 2 per cent tax is payable from supplying of goods to the local market and rendering of construction, grain mill, tractor, combine harvesting services undertaken in the country. A 10 per cent tax is payable on other sectors excluding the above mentioned services.

Excise Tax

Excise tax is levied on selected items when produced locally or imported from abroad. The tax rate ranges from ten per cent to hundred per cent.

Customs Duties

Customs duties are payable on imports by all persons and entities which have no duty-free privileges. The main regulation on customs duty has introduced a harmonized system of classification of goods and the rate of customs duty ranges from 0 to 35 per cent.

Income Tax from Employment

Personal income tax is payable as per Proclamation No.286/2002. According to this law, the first Birr 150 of monthly personal income is exempted from payment of income tax. For monthly income of Birr 151 and above the marginal tax rates range from 10 per cent to 35 per cent with 7 income brackets as shown below:

Monthly income (Birr)- Up to 150
Tax rate(%)-Nil
Monthly income (Birr)- 151-650
Tax rate(%)-10
Monthly income (Birr) - 651-1400
Tax rate(%)-15
Monthly income (Birr) - 1401-2350
Tax rate(%)-20
Monthly income (Birr) - 2351-3550
Tax rate(%)-25
Monthly income (Birr) - 3551-5000
Tax rate(%)-30
Monthly income (Birr) - Above 5000
Tax rate(%)-35

Export Taxes

There are no taxes on export products and services from Ethiopia.

Withholding Tax

Withholding tax is payable on import of goods and is set at 3 per cent of the same cost, insurance and freight. In case of organizations, having legal personality, government agencies, private non-profit institutions, and non-governmental organizations (NGOs), the amount withheld is 2 per cent of the gross amount of payment.

Value Added Tax

Value added tax is levied on those businesses whose turnover is over and above Birr 500,000 per year. They are expected to pay 15 per cent VAT. All export goods and basic services, however, are exempted from VAT.

Principal Taxes &Tax Rate
Turn Over Tax (TOT)-2% and 10%
Excise Tax-10% up to 100%
Customs Duties-0% up to 35%
Income Tax from Employment-0% up to 35%
Export Taxes-Nil
With holding Taxes-2%
Value Added Tax-15%
Corporate Income Tax-30%

Tax Treaties

Ethiopia has concluded tax treaties with a number of countries and is also ready to conclude similar treaties with other countries for the purpose of avoidance of double taxation.

Institutional support

Institute names

Leather and Leather Products Technology Institute (LLPTI)

Animal and Fishery Marketing Department (Minister of Agriculture & Rural Development, MOARD)

Ethiopian Investment Agency

Ministry of Trade and Industry

Ethiopian Standard Authority

blue line

Leather and Leather Products Technology Institute (LLPTI)

Contact Name:	Dr.eng. Belay W/yes
Job Title:	Director
P.O.Box:	704
City:	Addis Ababa
Country:	Ethiopia
Phone:	251-11-4391700
Fax:	251-11-4392258
Email:	llpti@ethionet.et
Activity:
Activity:	Training

blue line

Animal and Fishery Marketing Department (Ministry of Agriculture & Rural Development, MOARD)

Contact Name:	Mr. Belachew Hurissa
Job Title:	Head
Institute Name:	Animal and Fishery Marketing Department (Ministry of Agriculture & Rural Development, MOARD)
P.O.Box:	3735/62347
City:	Addis Ababa
Country:	Ethiopia
Phone:	251-11-5502481
Fax:	251-11-5511543
Activity:
Activity:	Ministries

blue line

Ethiopian Investmen Agency

P.O.Box:	2313
City:	Addis Ababa
Country:	Ethiopia
Phone:	251-11-5510033	--
Fax:	251-11-5514396	--
Email:	ethiopian.invest@ethionet.et
Website:	http://www.ethioinvestment.org

blue line

Ministry of Trade and Industry

Contact Name:	Mr. Seleshi Lema
Job Title:	Head Leather and Textile Development Department
Institute Name:	Ministry of Trade and Industry
P.O.Box:	704
City:	Addis Ababa
Country:	Ethiopia
Phone:	+251-11-551 8025
Fax:	+251-11-551 4288
Email:	sileshilemma2002@yahoo.com
Website:	http://www.niin.gov.et
Activity:	Ministries

blue line

Ethiopian Standard Authority

Institute Name:	Ethiopian Standard Authority
P.O.Box:	2310
City:	Addis Ababa
Country:	Ethiopia
Phone:	251-11-6460111
Fax:	251-11-6460880
Email:	qsae@ethionet.et
Website:	http://www.qsae.org

Technical cooperation projects

Adding Value to African Leather

Duration:	3 years
Status:	Completed
Description:	The Project seeks to improve the capacity and quality of leather and leather products produced in selected countries. The project seeks to achieve this through upgrading the capacity of technical skills, establishing quality control systems, and market development. For this purpose training institutions shall be strengthened and support will be given to selected units.

blue line

CDE Leather Program for Eastern and Southern Africa

Duration:	3 years
Status:	Ongoing
Description:	The priority of CDE Strategy in EAF & SAF for the leather sector is on SME development, focusing on the three subs-sectors which constitute the leather sector, that is: Raw Hides and Skins; Tanning, Footwear and Leather products. The Strategy will ensure that interventions are demand driven and there is ownership at the enterprise level. It is structured to address and respond to challenges/ constraints in the leather sector and promote interventions which are likely to yield high impact and sustainable outputs.

blue line

Raw Hides And Skins Grading And Pricing Systems In Eastern And Southern Africa

Duration:	3 years
Status:	Completed
Description:	The project specifically addressed the non-harvested revenues in the hides, skins and leather sectors of 4 eastern and southern African countries. The incentive scheme at its core redressed a situation of substantial losses incurred due to inferior quality on the one hand and non-collection of hides and skins on the other hand.

Surveys and reports

Master and Business Plan for the Ethiopian Leather and Leather Products Industry

Corporate Author(s):	UNIDO and Ministry of Trade Industry of Ethiopia
Year of Publication:	June 2005
Number of pages:	250 pages
Language(s):	English
Abstract:	The leather and leather products industry in Ethiopia has reached a relatively high stage of development and now enjoys a reputation as a producer of good quality leather, recognized in international markets. However, since the year 2000 there has been a steady decline in the export performance of this sector. Recent analysis of data on levels of production and capacity utilization indicate that the stagnation of the LLPI is due to low levels of competitiveness in the domestic and the external markets. This is in spite of comparative advantages such as the large resource base in hides and skins, an internationally recognized high quality sheep and goatskins, and the investment opportunities that the country offers to leather industries from industrialized countries. The development strategy of Ethiopia envisages that the leather industry should in the short-term, move all leather production from the wet-blue stage to crust, and then to finished leather. For the long-term it is proposed that all hides and skins be processed to finished leather products. This approach follows an export-led, capital saving and labour-intensive strategy. It is expected to ensure the rapid and sustainable growth of the leather and leather products industry. This document is the response of UNIDO to the request from the Government of Ethiopia to prepare a Master Plan and a Business Plan for the Leather and Leather Products Industry (LLPI), based on the principal factors of competitiveness, and that would assist this industry to access the global LLPI value chain. These documents are based on criteria such as: (i) ability to access regional and global markets; (ii) potential for value addition, job creation and income generation; (iii) potential to attract domestic and foreign investment. The report offers answers to the following questions: What are the major constraints causing the present stagnant situation of the Ethiopian LLPI? Which paths have countries such as China, India, Italy and Vietnam followed in order to become export leaders in the LLPI world market? What lessons can Ethiopia learn from their experience? Can the Ethiopian LLPI still operate in the changing environment of the global leather and leather products market? What is the most appropriate development programme for the Ethiopian LLPI? The results of this study were obtained through the analysis of the Ethiopian leather and leather products sector, taking into consideration the global context. Applying a systems approach to the analysis the principal constraints and bottlenecks that affect the competitiveness of the sector have been identified. The use of tools such as SWOT analysis and Benchmarking have allowed the identification of strengths of the system and the opportunities and threats, leading in turn to the formulation of the most appropriate policy mix and plan of action for the LLPI to compete in the national, regional and global value chains. The strategy proposed would take as a model the policy mix, experimented with in China and Italy for the footwear industry according to a "Top-down (Pull)" Approach. According to this approach the leather products, mainly, footwear, leather goods and leather garments should be developed in a way that they would "pull" the tanning sector to produce better quality and increased quantity of finished leather; subsequently the quantity and quality of raw material. The starting point for the application of the "Top-down (Pull)" Approach is a strategy for the penetration of the domestic market, followed by the development of new production lines through appropriate interventions, and finally for entry into external markets. The main drivers of the implementation of this approach would be the Leather and Leather Products Technology Institute and the mechanism of subcontracting. There are also five areas of interventions that have been identified to provide support to the two main drivers of the "Top Down (Pull) Approach". These are: 1) Macro-Economic and Finance; 2) Raw Material; 3) Industrial Management and Market Support; 4) Investment Promotion; 5) Infrastructure The Industrial Development Strategy already approved by the Government of Ethiopia for the Leather and Leather products industry has been used as the frame of reference throughout the analysis and for the preparation of proposals for action. The Methodology and the Outline of the Approach to be followed for the revitalization of the Ethiopian LLPI was presented at a High-level Meeting held on 9 October 2004 in Addis Ababa, at the presence of H.E. Meles Zenawi, Prime Minister of Ethiopia and H.E. Ato Girma Birru, Minister of Trade and Industry. During this meeting, the proposed concept was approved and adopted as Phase 1 of an endeavor leading to a Business Plan (Phase 2) that UNIDO was requested to prepare, having as strategic drivers the Leather and Leather Products Technology Institute and the mechanism of Sub-Contracting. Subsequently the original Terms of Reference for the Master Plan were modified in accordance with the request made during the High-level Meeting. This report provides the background to a Business Plan for the LLPI, which is presented as a separate document and constitutes Phase 2 of the Master Plan. The Business Plan makes the Master Plan operational, and covers an initial period of five years for a product mix that includes footwear, leather garments and leather products. The Business Plan is based on market segmentation for the three leather products sub-sectors and the selection of target countries for exports of Ethiopian leather products. Outputs to be expected are given in terms of export earnings, employment generated and investments required.
Publisher:	UN Published
Type of Document/Material:	Soft and hard copies

Company profiles

Company Name	Products
Abay Tannery	Limed - Wet Blue
Abyssinia Leather Garments	Belts - Jackets - Coats - Large Leather Goods - Skirts - Small Leather Goods
Addis Ababa Tannery Share Company	Air/Frame dried - Chrome crust - Footwear - Lining leather -Footwear - Upper leather - Garment Leather - Leathergoods Leather - Limed - Other - Upholstery leather - Vegetable crust -Wet Blue - Wet salted
Anbessa Shoe Share Company	Children's shoes - Men's shoes - Women's shoes
Colba Tannery	Pickled - Wet Blue - Wet salted
Davimpex Enterprises Bahir Dar Tannery Plc	Chrome crust - Foorwear - Lining leather - Garment Leather -Pickled - Wet Blue - Wet salted
Debere - Berhan Tannery Plc	Chrome crust - Pickled - Wet Blue
Dessie Tannery	Chrome crust - Pickled - Wet Blue
Dire Industries	Footwear - Lining leather - Footwear - Upper leather - Garment Leather - Gloving Leather - Pickled - Wet Blue
Ethio-Leather Industry Plc (ELICO)	Fashion Gloves - Gloving Leather - Jackets - Coats - Large Leather Goods - Small Leather Goods - Sport Gloves -Upholstery leather
Ethio-Sung Bin Leather Garments	Belts - Jackets - Coats - Large Leather Goods - Skirts - Small Leather Goods - Trousers
Ethiopia Tannery	Chrome crust - Chrome crust - Footwear - Lining leather -Footwear - Upper leather - Garment Leather - Gloving Leather -Pickled - Wet Blue
Gaafar Enterprise (Blue Nile Tannery) Plc	Footwear - Lining leather - Footwear - Upper leather - Garment Leather - Wet Blue - Wet salted
Gamb Trading & Industry	Boots - Children's shoes - Men's shoes - Sandals - Women's shoes
Hafde Tannery	Chrome crust - Footwear - Upper leather - Wet Blue
Jamaica Shoe Factory	Children's shoes - Men's shoes - Sandals - Sport - Women's shoes
Jonzo Leather Plc	Belts - Footwear - Upper leather - Jackets - Coats - Large Leather Goods - Skirts - Small Leather Goods - Trousers
Modern Zege Leather Products Industry Plc	Belts - Fashion Gloves - Industrial Gloves - Jackets - Coats -Large Leather Goods - Skirts - Small Leather Goods - Sport Gloves - Trousers
Modjo Tannery Share Company	Chrome crust - Footwear - Lining leather - Footwear - Upper leather - Garment Leather - Other - Pickled - Wet Blue
MT Shoe Factory	Children's shoes - Men's shoes - Women's shoes
Ras Dashen Shoe Factory	Boots - Children's shoes - Men's shoes
Sheba Tannery	Chrome crust - Pickled - Wet Blue
Shoa Tannery	Pickled - Wet Blue
Tikur Abbay Shoe S/C	Children's shoes - Footwear - Lining leather - Footwear - upper leather - Men's shoes - Sandals - Sole leather - Split Leather -Sport - Women's shoes
Wallia Shoe Factory	Men's shoes - Military - Safety - Sandals - Women's shoes
Wallia Tannery	Chrome crust - Footwear - Upper leather - Pickled - Wet Blue

Environment and social responsibility

Environment Legislation:	Enforcement of Environmental Pollution Control Proclamation No. 3002/2002 in place and as result an agency: Ethiopian Environment Pollution Control Authority established since 2002. Quality and Standard Authority of Ethiopia
Labour Laws:	Compliance with ILO Labour law Proclamation number 377/2003 already in place
Other:	Poverty reduction programmes or strategies Disaster Prevention and Preparedness Commission

Botswana	Ethiopia	Niger	Uganda
Burkina Faso	Ghana	Rwanda	Zambia
Cameroon	Kenya	Senegal	Zimbabwe
Chad	Malawi	South Africa
Côte d'Ivoire	Mali	Sudan
Eritrea	Mauritania	Tanzania

Select a country:

Ethiopia

Country Information

Livestock

Industry profile

Hides and skins

Tanning

Footwear

Leather goods

SWOT analysis

Government policy

Investment environment

Institutional support

Institute names

Leather and Leather Products Technology Institute (LLPTI)

Animal and Fishery Marketing Department (Ministry of Agriculture & Rural Development, MOARD)

Ethiopian Investmen Agency

Ministry of Trade and Industry

Ethiopian Standard Authority

Technical cooperation projects

Adding Value to African Leather

CDE Leather Program for Eastern and Southern Africa

Raw Hides And Skins Grading And Pricing Systems In Eastern And Southern Africa

Surveys and reports

Master and Business Plan for the Ethiopian Leather and Leather Products Industry

Company profiles

Environment and social responsibility