Footwear • Leather Goods

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					              Leather Programme
        for Eastern and Southern Africa
             “Targeted Support Programme for Small
               and Medium Sized Enterprise (SME)
               Development in the Leather Sector”


Finished Leather • Footwear • Leather Goods


          Sector Support Services
          The joint CDE/PRO€INVEST Leather Programme provides
          valuable services to African private sector businesses:
          • Product development, marketing and production
            support services for selected African businesses
          • Information on sourcing and cooperation opportunities
            for European and African businesses
          • Trade and Investment Promotion
          • Business cooperation and partnership development
          • Strengthening of African leather associations
          • Provision of comprehensive sector information




 September 2004
                CDE is an institution of the ACP Group of States and the EU in the framework of the Cotonou Agreement.
              Pro€Invest is a programme of the ACP Group and the European Commission for the promotion of investment.
The Leather Sector
in Eastern and Southern Africa
The target region of the CDE/PRO€INVEST Leather Programme comprises 10 African countries with a total population of
around 225 million. The annual production of hides and skins in Africa accounts for 129 million pieces (Cattle, Sheep and
Goats), from which about 50 million pieces are produced in the target countries of the programme. The local labour costs in
the region are low and are expected to remain that way at least in the mid-term. The sector has many advantages and
opportunities for foreign companies in terms of procuring semi-finished and finished leather and for sourcing footwear and
leather goods. These include:

    • Locally available raw material
    • Established small and medium sized enterprises in the region (tanneries and footwear producers)
    • Direct access to finished leather (for the local footwear and leather goods production)
    • Low labour costs in the region
    • Governmental policies promoting export trade and foreign direct investment
    • Potential for local and regional market

In addition to the outlined opportunities, there still exist a multitude of challenges for the leather producing sector in the region.
Labour productivity is moderate compared to other regions in the world and the impact of the local political and economic
framework conditions, as well as the shortcomings in social services delivery, hamper the development of private enterprises
in many countries. Longer term partnerships between African and European/International enterprises, which combine sourcing
with staff training and the provision of technical assistance, are required to overcome those disadvantages.



Objective and Strategy
The overall objective of the CDE/PRO€INVEST Leather
Programme is to support the regional economies, where
they are strong and potentially competitive with other
regions of the world, in order to foster private sector
development and, in the longer run, to reduce poverty in a
sustainable way. As the leather sector is one of the major
foreign currency earners of the region with a significant job
creation potential, CDE/PRO€INVEST decided to develop a
targeted support programme in the three leather sub
sectors, i.e. tanning, footwear and leather goods with the
following major components:

• Increase of Company Competitiveness (by providing short
  term technical assistance in the fields of product
  development, marketing and production assistance)
• Improvement of Quality of Raw Material (by targeted measures such as the EKEK parasite prevention measures)
• Trade and Investment Promotion (by organising partnership meetings, marketing events and direct support at company level)
• Strengthening of Intermediary Leather Organisations (by supporting capacity building + policy advocacy activities of leather
  associations, training institutions and other related intermediaries)

The entire programme is demand driven, based on requests and needs formulated by the African businesses and the national
industrial federations. The activities of CDE are locally coordinated by the Eastern and Southern African Leather Industries
Association (ESALIA) in Kenya.




1
    Ethiopia, Eritrea, Kenya, Malawi, Namibia, Uganda, Sudan, Tanzania, Zambia and Zimbabwe
2
    equal to 10% of the world production in 2000 (Source: World Statistical Compendium for raw hides and skins,
    leather and footwear 1982 – 2000, FAO 2001)
Services Framework
for African Businesses
Selected African SMEs (Tanneries, Footwear Producers and Leather Goods Manufacturers) receive
a set of services, which are targeted to increase their competitiveness. These services include for
example the provision of product development training, in-house advisory services and marketing
services at regional and international level. The programme specifically targets those private
businesses with the highest potential for business expansion, in order to stimulate a pace-setter
function with impact throughout the sector. Furthermore, horizontal measures such as the support
of intermediary organisations are intended to improve the business environment for the leather
industry in the region with an anticipated positive impact on the overall private sector development.


Benefits & Advantages
for EU Businesses
European businesses are able to gain valuable information on the leather sector in the region and
have the opportunity to get in contact with potential African suppliers and cooperation partners.
This process is actively supported by several measures such as the sector information base provided
on the ESALIA web-site (www.africaleather.com) and the organisation of company visits in the
Eastern and Southern African region.


 Activity Calendar
 CDE Activities & Events

 November 2002          Technical Workshop for Tanneries at Lineapelle, Bologna, Italy
 November 2002          Footwear Marketing Seminar, Vicenza, Italy and Nairobi, Kenya

 September 2003         Finished Leather Training, Nairobi, Kenya
 November 2003          Footwear Product Design & Development Training, Thika, Kenya
 November 2003          Tannery Management Seminar, Vicenza, Italy

 May - June 2004        Leather Goods Design and Development Training, Thika, Kenya
 June - July 2004       Footwear Design and Development Training, Thika, Kenya
 May - October 2004     Technical Assistance to selected tanneries in Eastern Africa
 September 2004         European Round-Trip of African Footwear Entrepreneurs to visit European Cooperation Partners
                        (in Western and Central Europe)
 October 2004           European Cooperation Partner Mission to EAF & SAF for Footwear Sector
 November 2004          Tannery Management Training, Eastern Africa
 2004                   Implementation of Ekek Parasite Prevention Project in Ethiopia
 2005                   Continuation of Training Seminars and Follow-up of 2004 Activities

 PRO€INVEST Events

 July 2003              EU/African Company Matchmaking Leather Sub-Sector Meeting, Nairobi, Kenya

 March 2004             Policy Advocacy Workshop and Business Development Services Workshop on Regional Trade
                        Development and Tariff Harmonisation in the leather sector, Kenya
 October 2004           Italian and Spanish Company Partnership Mission to Ethiopia
 October 2004           Business Development Services Workshop at the occasion of ‘Meet in Africa Fair’, Ethiopia

 July 2005              EU/African Company Matchmaking Leather Sector Meeting, Eastern Africa
 December 2005          African Company partnership Mission to Spain

Please visit the ESALIA website under www.africaleather.com for updated information on activities and events for CDE and PRO€INVEST.
Facts and Figures
The following table provides core data on the leather sector of some selected countries in the Eastern and Southern African region.

                                                          Eritrea              Ethiopia              Kenya              Sudan             Tanzania           Uganda
 Population                                               4,447,307            67,851,281           32,021,856         39,148,162          36,588,225        26,404,543
 Number of tanneries                                           5                   20                    8                 17                   5                 6
 Number of employees in the tanning sector               Approx. 250          Approx. 6,500        Approx. 1,000      Approx. 2,000        Approx. 200      Approx. 170
 Value of exported hides and skins (yr. 2001)                 -/-            USD 69 million      USD 14.1 million    USD 16.9 million     USD 7.5 million   USD 6 million
                                                                            (semi-processed)     (semi-processed)
 Number of footwear enterprises                              81                   160                   62                 22                  25                12
 Total Number of employees                              Approx. 5,000         Approx. 4,000        Approx. 2,000      Approx. 1,500        Approx. 400       Approx. 300
 in the footwear sector
 Footwear production (yr 2001)                            6 million            24 million           1.3 million         5.0 million       0.06 million        0.3 million
                                                        pairs/annum           pairs/annum          pairs/annum         pairs/annum        pairs/annum        pairs/annum
 Export value of footwear (yr 2001)                     USD 100,000           USD 500,000          USD 14,000              N/a             USD 4,000          USD 8,000
 Number of leather goods and                                  5                    50                   35                  23                 14                 18
 leather garments companies
 Value of leathers goods and                            USD 100,000          USD 1,000,000         USD 500,000             -/-                 N/a                -/-
 leather garments produced
                                                    Production of Hides & Skins (estimate) / million pieces
 Cattle                                                       0.1                  2.1                  1.5                2.1                 1.4                1.1
 Sheep                                                        0.4                  8.5                  1.8                8.5                 0.4                2.4
 Goats                                                        0.5                  7.0                  2.8                7.0                 0.8

Source: ESALIA / PRO€INVEST PM Footwear Sector (Further country data at request)




The Support Organisations
CDE The Centre for the Development of Enterprise (www.cde.int) is an institution of the ACP Group of States and the European Union in the
framework of the Cotonou Agreement. It forms part of the general system of support the European Commission created for promoting the
private sector and thus helping to combat poverty. The CDE works in co-operation with other key development players, particularly local,
public and private sector multilateral and bilateral agencies. Its resources are derived mainly from the European Development Fund (EDF), but
also from other European programmes or countries, which may assign it appropriations or offer co-funding for operations.
PRO€INVEST (www.proinvest-eu.org) is a programme of the ACP Group of States and the European Commission for the promotion of
investment and technology transfer to the ACP countries and operates through the strengthening of ACP intermediary and professional
organisations and support to the development of company partnerships. Its management has been entrusted to a Management Unit within
the Centre for the Development of Enterprise (CDE) under the supervision of the EuropeAid Office of the European Commission.
ESALIA - The Eastern and Southern Africa Leather Industries Association (www.africaleather.com) was established and registered in 1995
to promote the interests of the Regional Leather and Footwear Products Industry in the countries of Eastern and Southern Africa, namely,
Ethiopia, Eritrea, Kenya, Malawi, Namibia, Sudan, Tanzania, Uganda, Zambia and Zimbabwe, and any other country in the region that
expresses interest in joining the Association.

Contact Persons and Addresses
African and European Companies interested in the CDE Leather programme are invited to contact one of the following organisations for
further information:




                       CDE
              Mr Klaus Niederländer                                                Dr. Sam Kiruthu                                    Mr Paolo Baldan
  52, Avenue Herrmann Debroux • B-1160 Brussels                         P.O. Box 1391 • 00606 Nairobi, Kenya           52, Avenue Herrmann Debroux • B-1160 Brussels
   Tel: +32-2-679 18 58 • Fax: +32-2-675 26 03                  Tel: +254-20 44 46 49 01 • Fax: +254-20 44 45 34 4      Tel: +32-2-679 18 50 • Fax: +32-2-679 18 70
               E-Mail: kni@cde.int                                            E-Mail: admin@esalia.org                         E-Mail: pba@proinvest-eu.org