Expert Says Ethiopian Leather Competitive At Int'l Market

14 August 2006

By Yonas Abiye
Addis Ababa

Ethiopian leather industry sector is showing the country's highest potential for the countries competitiveness, but needs some capacity building to fully satisfy the need in the world market, an expert said on Friday.

In an exclusive interview with The Daily Monitor, German Muller, Head of Value Chain Promotion and Business Re-Engineering with Engineering Capacity Building Project (ECBP) said Ethiopia's leather product was reaching "a high quality level." Muller, who just conducted week long training on capacity development to leather industry technical staff drawn from six regions, said he was impresses by most of the country's leather industries he visited "I have never thought that Ethiopia would have such a quality of leather products. It is really an ambitious venture showing there could a better achievement. You find a high potential that the country has in the leather industry," he said adding he did not expect to this in Ethiopia.

"The shoe export that Ethiopia sends to Italy for one can be taken as a good indicator Ethiopian shoe companies are getting reputation in the international market." But the expert indicated the sector was with some problems.

"Of course" he said "there might be some problems and challenges that should be addressed." Muller said.

Asked what these problems were, he reiterated the need for capacity development about which he believes the country must do a lot.

"Leather export is one of the most important export products of Ethiopia. It indicates the potential source. However, we should do much in capacity building sector" he said.

According to Muller, strengthening national competitiveness requires a systemic view on economic development.

"The competitiveness of a national economy is not only a question of the entrepreneurial and technical capability of individual enterprises. It becomes manifest in a well developed market, that is, in established marketing relationships, the availability of technology and specialized business services, access to qualified staff, the existence of stable market regulations, of active business organizations, among others. It is the combination of favorable conditions that allows enterprises to grow and to get more competitive." He urges that all stake holders including the private sector and the government should come to one direction to upgrade the quality and productivity of the leather sector.

The first Training Seminar ECBP organized from August 7th to 11th held at ILRI center on capacity development in value chain promotion aimed at providing an overview of the essential concept and methodology of a value chain promotion approach in development assistance.

It follows an interactive method, in which the presentation of concepts, facts and methodology alternates with exercises to apply the tools to real world situations, participants are involved in. The seminar develops the methodology inductively, building on case material.

The value chain, as part of the private sectors is one of the key ideas of ECBP.

ECBP Joint Ethiopia-German partner ship, considers the private sector as the catalyst for development which it promotes it through reform of technical and vocational training system, including non-formal education as well as reform of universities, technical faculties be strengthening quality management and production standards.

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