Targeted Beneficiaries Executed Activitiesdoc AfricaLeather (DOC)

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					1   Targeted Beneficiaries

The entire CDE leather programme for 2006 specifically targeted enterprises in Ethiopia and Kenya in
terms of improvement of production processes and marketing. However, enterprises from other countries
were also targeted to benefit from other interventions such as seminars and workshops and were mainly
included on a needs analysis. The selection of the enterprises was based on the following criteria;

        1. Ownership:          - Commitment of company to develop further
        2. Management :        - Competence, Skills and Experience
                               - Commitment to success of intervention
                               - Vision of the enterprise
        3. Finance:            - Ability and willingness to provide counter part inputs
                                 (around 33% of cost of the intervention).
        4. Access:             - Ability to have market access for range of products in
                                  the domestic and export markets
                               - Access, cost and availability of raw material
        5. Infrastructure:     - current status of machinery and equipment installed
        6. Performance:        - Present status on capacity utilization and availability of/access to
                                 working capital
                               - Growth prospects of business

The following enterprises from different countries have benefited from the programme in 2006;

Tannery Sub-sector
Country                         Company
Ethiopia                        Dire Industries
                                Hafde Tannery
                                Wallia
                                Blue Nile
Kenya                           Leather Industries of Kenya
                                Alpharama
                                Zingo Investments
Rwanda                          Rwanda Leather Industries Ltd
Sudan                           Alfarooq Tannery
Tanzania                        JAET Ltd
Zimbabwe                        Imponente Tanning

Footwear Sub-sector
Country                        Company
Ethiopia                       Peacock Shoes
                               Anbessa
                               Wallia
Kenya                          Leather Industries of Kenya
                               TPCSI
Leather garme nts and goods sub-sector
Country                         Company
Ethiopia                        Universal Leather - ELICO
                                Jonzo Plc
                                Modern Zege
                                Ethio Sung-bing
                                Genuine Leather Craft
Kenya                           Leather Masters
                                Brasbuckle

2   Executed Activities

ESALIA specifically, and in close consultation with CDE Leather sector coordinator, the Lead consultant
and where necessary the Germax Consultants, undertook the following tasks under different components;

2.1 Promotion and sensitisation of the proposed programme activities amongst the beneficiaries
ESALIA was able to communicate through different forums the opportunities present under the CDE
Leather programme for companies. ESALIA also sent out reminders to the various companies to update
their company profiles to match the standard form now in use.

2.2 Creating of company and sub-sector database
ESALIA has submitted to CDE the summarised company data sheet. However most of the figures
contained are estimates due to lack of information from the companies contacted.

2.3 Updating of the programme’s website
Various updates have been made to the programme‟s website in consultation with CDE, the Associate
Expert. This is an on-going activity. Below is a view of the news page on the website. (
http://www.africaleather.com/cdeleatherprogramme/ )
2.4     Facilitation of enterprises to participate in the organised workshops (Tannery,
        Footwear and Leather goods training seminars) and potential marketing initiatives

The lead consultant in collaboration with ESALIA and in close consultation with ASSOMAC, ICE and
CDE prepared the terms of reference for the management seminar on environment. ESALIA coordinated
invitations, selection and other logistical issues for the enterprises to participate in the workshop;

2.4.1    Management Seminar on Environme ntal Friendly Tanning and Manufacturing
         Techniques for Tannery Managers from Eastern and Southern Africa, Florence,
         Bologna, Italy, 16th – 19th October 2006

                                                             CDE Contract ID/
Module ID: Module Title:
                                                             Implementing Partner
Component Management Seminar On
1: Module 2 Environmental Friendly Tanning And
            Manufacturing Techniques For
            Tannery Managers From Eastern And
            Southern Africa
Start Date:     16th October 2006
End Date:       19th October 2006

The seminar was organized with the objective of providing specific technical support to a group of 12
African top managers, participating in the focused Environmental management-training seminar, study
tours to leading Italian tannery district and effluent treatment plants as well as in the participation at the
international leather fair „Lineapelle‟ in Bologna.

The four-day management seminar on “Environmental Friendly Tanning and Manufacturing” was held in
Florence, Italy from 16th – 19th October 2006, and was attended by nine participants from five Eastern and
Southern African countries.

This intervention was funded by the Italian Institute of Foreign Trade (ICE) and Centre for Development
of Enterprises (CDE). The Italian National Association of Leather Machinery Producers,
(ASSOMAC/PISIE) also greatly supported the intervention in Italy through identification of the
Consultants and provision off logistical support which went a long way in ensuring smooth overall
implementation of the initiative.

Participating Countries, companies and individuals

Country                   Company                                         Representative
   1. Ethiopia            Addis Ababa Tannery Share Company               Solomon Getu Beyene
   2. Ethiopia            Dessie Tannery Plc                              Tamiru Gogale
   3. Ethiopia            Dire Industries PVT Ltd Co                      Teshome Fita
   4. Ethiopia            Hafde Tannery                                   Hussein Feyissa Degaga
   5. Ethiopia            Wallia Tannery Plc                              Melaku Alemayehu
   6. Kenya               Zingo Investments Ltd                           Robert Muthara Njoka
   7. Rwanda              Rwanda Leather Industries Ltd                   Gitau Wamukui
    8. Sudan             Alfarooq Tannery                              Ibrahim Alrufai Abdulhassan
    9. Zimbabwe          Imponente Tanning                             Clement Shoko

Executed Activities
In view of various considerations, including the limited time that entrepreneurs and managers are able to
spend away from their enterprises, the seminar activities were carried out in four days. The seminar
included a one day in-house participatory seminar at the Hilton Metropole Hotel in Florence, followed by
two days of field trips/visits, a one day visit to Lineapelle fair in Bologna and a wrap up session on the
last day.

The visits were to the following companies;

Company Name                             Activity
SIFUR Tannery                            Chrome tannery from raw to finished leather
ITALPROGETTI engineering                 Equipment for tannery and effluent treatment
TFL Company                              Chemical supplier & leather technology
Alpha Company                            Chemicals supplier & Leather technology
LMF Biochimica Company                   Chemicals Supplier & Leather Technology
ELLEGI PELLAMI                           Chrome tannery from wet-blue and wet-white
PO.TE.CO                                 Institute for the research and training for the leather industry
AQUARNO                                 Common effluent treatment plant for tannery effluents
ECOESPANSO                              Common plant for the dewatering and thermal treatment of
                                        tannery sludge
Achieved Results

The objective of the seminar was aimed at empowering ACP tanneries to mitigate environmental
constraints associated with the tanning process. The new waste management techniques were acquired by
the participants through training on the following areas;
    1. Impact of new technologies in leather processing on the Global leather Industry
    2. Environmental constraints facing African tanneries in selected African countries
    3. Enterprise experiences in coping with new environmental legislations

The visit to Santa Croce provided valuable insights on Environmental Friendly Tanning and
Manufacturing Techniques and contributed to the achieving the objective of the intervention.

Visiting the Lineapelle Fair in Bologna further enhanced the participants‟ knowledge on the current status
of the global leather industry and gave them an opportunity to transact business with old and new EU
partners.

Success Indicators

    -   New waste management techniques acquired by 9 participants.
    -   Fielding of a leather tanning consultant to Zingo Investments in Kenya and Rwanda Leather
        Industries Ltd resulting in the tanneries improving their production processes with regard to
        environmentally friendly tanning.

Means/Resources/Inputs

    -   CDE/ICE provided main financial support in order to carry out the seminar
    -   PISIE carried out logistical arrangements for the venue and presentations as well as coordinating
        the field visits in Italy
    -   The participants provided counterpart inputs in regard to their travel costs from their host
        countries.
Other

A detailed report has been submitted to CDE by ESALIA.

Recommendations

CDE/ICE should continue to hold these initiatives as they have continually built on the knowledge base
of the participants, imparting skills that go a long way into improving the quality of human resource
management skills, quality and productivity within the leather sector in Africa.

2.4.2   Leather Industry Consultations
        a.      Ethiopia (in collaboration with Ethiopia Tanners Association – ETA)

The Centre for the Development of Enterprise (CDE) together GERMAX Consultants, ESALIA and the
Ethiopian Tanners, Footwear and Leather Products Manufacturing Association (ETFLPMA) organised a
Leather Industry Consultation in Addis Ababa. The consultation was held on 31 st August 2006 at the
Leather and Leather Products Training Institute (LLPTI).
The main theme of the event was to develop further steps in the internationalisation process of the
Ethiopian leather industry. The event built upon on achieved successes in internationalising the Ethiopian
leather sector and in particular the finished leather sectors of footwear and leather goods/garments, in
which CDE has been considerably involved over the last three years.

ESALIA provided guidance to ETA as it promoted the activity amongst stakeholders in the sector.
Several other activities were also carried out as follows;
   - Liaison with GERMAX on workshop programme
   - Liaison with ETA on meeting venue and other logistical arrangements such as hotel
        accommodation and local transport for the consultants.
   - Formulation of budget for the consultation together with ETA.

Outcome

The consultation provided an opportunity to evaluate CDE initiatives already undertaken in order to re-
focus future CDE inputs in the sector. The results arising from the leather consultation emphasised there
is still need for CDE inputs especially in match-making and joint ventures. The industry also sought to
have more sector wide assistance beyond the scope of CDE‟s present budget possibility.

    b. Leather Industry Consultative Mission in Tanzania

ESALIA in collaboration with GERMAX and with the assistance of the Leather Association of Tanzania
(LAT) organised a one day consultation, which was held at the Ministry of Livestock Development
Conference Room in Dar es Saalam on 25th August 2006. The meeting was organised with the aim of
interacting with various stakeholders to better understand the needs of the leather sector in Tanzania. In
addition the meeting set a stage for positioning the Tanzanian leather sector with the aim of providing a
window for CDE‟s intervention.
ESALIA together with LAT carried out a number of activities as outlined below;
   - Identification of stakeholders to be invited to participate in the one day meeting.
   - Identification and reservation of meeting venue
   - Logistical support to consultants as regards hotel accommodation, local transport and one to one
      meetings with enterprise owners.

Outcome
   - The CDE mission team were able to gain greater insight into the Tanzanian leather sector and
      identify possible areas of intervention by CDE to enhance the industry.
   - Need for CDE assistance was requested by the stakeholders.
   - The stakeholders were requested, as the drivers of the development of the leather sector in
      Tanzania need to initiate proposals for assistance from CDE
   - CDE team to evaluate mission results in order to integrate Tanzania into the Export Development
      support programme, in the manufacture of footwear and leather products.

2.4.3     Tanne ry, footwear & leather goods Export Development s upport for Enterprises.

2.4.3.1    Tannery

A leather finishing expert, Mr. Jos Vogtlander, was contracted to work with two selected tanneries on
developing recipes for the processing of quality exotic skins. The main aim of this intervention was to
improve the processing and use of fish, camel and ostrich skins while developing suitable leathers for the
export market. Two tanneries were identified to participate in the trials namely JAET of Tanzania, in the
case of fish skins, and Leather Industries of Kenya, in the case of camel and ostrich skins. A copy of the
terms of reference is attached to this report.

The lead consultant, together with ESALIA Secretariat coordinated mission logistics for Mr. Vogtlander
with the two tanneries in regard to the intervention such as chemical and raw material supply. The
intervention took place from 2nd – 19th September 2006, initially at LIK and then at JAET.


Kenya Mission: - LIK - 02/09/2006 - 10/09/2006

The leather finishing expert worked at the Leather Industries of Kenya (LIK) on finishing techniques on
wet-blue camel leather. Three different formulas were used and the samples have been sent to Mr. Schultz
by LIK.

The expert has advised the tannery‟s management on the maintenance of their machines. He noted that
the tannery has experienced problems with gaining access to spare parts for some of the machines.

Tanzania Mission: - JAET - 10/09/2006 - 19/09/2006

The leather expert carried out trials on Nile Perch skins upto the wet blue stage. He also made
recommendations on chemicals to be bought, in particular those to be used to water proof the leathers.
The expert was also to carry out finishing trials at Stahl and send the samples back to JAET with the
corresponding formulas.
Outcome

The major output from Mr. Vogtlander mission was the development of the suitable leathers suitable for
the export market. A full report has been submitted to CDE by the expert.

2.4.3.2    Export Development initiatives for footwear and leather goods

In line with the objective of the CDE Leather Programme, the activities carried out concentrated on the
promotion and the marketing of prime movers at European level as well as supporting the successful
generation of export business. Activities were carried out in collaboration with GERMAX whose tasks
involved the identification of suitable EU partners. ESALIA‟s tasks concentrated on creating linkages
with African enterprises.

In this regard, ESALIA carried out the following activities in close collaboration with GERMAX;
     - Local support for marketing activities carried out by GERMAX with potential EU partners. This
         included provision of information regularly of the progress of African enterprises and their
         response to potential cooperation with EU footwear and leather goods.
     - Kick-side support on negotiation process between European and African firms in regard to joint
         ventures and/or partnerships.
     - Business mission and round trips in Europe – supporting prime movers in developing production
         partnerships with EU companies
     - Facilitation of In-house production training to selected companies
     - Organisation of several design and development seminars as well international marketing and
         management seminars.
     - Organisation of industrial consultations in Ethiopia and Tanzania

The lead consultant together with GERMAX undertook a mission to Ethiopia and Kenya, in May 2006
(8th - 19th May 2006) with the objective of;
          Following up activities carried out in 2005 with specific focus to the progress made in
             constructing possible linkages with potential importers of finished leather form selected
             African companies.
          To plan and coordinate the next major implementation modules together with the selected
             companies, the Ethiopian Tannery Association (ETA) and ESALIA.
Various companies were visited by the team and samples requested, for purposes of product promotion, in
the EU market. The companies identified for the export development phase of the CDE leather
programme are listed below;
Ethiopia
   1.     Blue Nile Tannery
   2.     Genuine Leather Craft
   3.     Hafde tannery
   4.     Jonzo Plc
   5.     Modern Zege
   6.     Ethio Sung –bin
   7.     Universal Leather – ELICO
   8.     Wallia
   9.     Anbessa
Kenya
    10. Alpharama Tannery
    11. Brasbuckle
    12. Leather Industries of Kenya
    13. Leather Masters

The lead consultant, ESALIA and ETA in close collaboration with GERMAX have closely followed the
preparation and sending of the samples to the respective EU companies. The lead consultant and ESALIA
have supported the marketing activities of the EU consultants and continue to follow up on samples
requested (preparation and shipment) by GERMAX for purposes of marketing to EU enterprises and at
selected specialized EU leather fairs.
As part of ensuring that prompt follow up is carried out in Ethiopia and Kenya, there emerged the need
for local support structures in the two countries. In this regard, the Lead consultant in collaboration with
ESALIA developed TORs for the establishment of local support structures for Ethiopia and contracted the
Ethiopia Tanners Association (ETA) for this role.
In addition to the creation of the local support structures, the international consultants required support on
technical issues in relation to sample preparation and quality. ESALIA in collaboration with GERMAX
and CDE identified Paul Tierney in Ethiopia and Benjamin Karanja in Kenya.

ESALIA and the lead consultant under the support provided to the consultants undertook the following
activities;
    - Logistical support to consultants with regard to hotel reservations and arrangements for local
         travel as well as scheduling of meetings with proposed companies
    - Confidence building efforts and ensuring commitment from the companies at individual and
         corporate levels

These tasks contributed , in our assessment, at least 50% towards the successful results of the activities
carried out by the consultants.

Italy Mission: Meeting with Melania, TPCSI and LIK
GERMAX and the lead consultant met with Melania, from 19th – 21st November 2006 in Italy, to follow
up on discussions in regard to production of children‟s shoes in the region with specific focus to the
following enterprises; LIK, Wallia, Hafde and TPCSI.

Substantial quantities of samples have been sent to MELANIA for observation and feedback.

Outcome

Joint Venture between Melania Children Shoes and three African firms (Wallia, Hafde, Leather
Industries of Kenya and TPCSI) : Currently under final negotiation. This initiative is planned to
produce 10.000 pairs of shoes/day and 25,000 shoe uppers/day within 2 years. The annual production
value is planned to reach an estimated 30 - 40M USD.

Bodo Moden – Leather Masters: Negotiation is currently underway. The cooperation intends to produce
fine leather goods for the European market with the focus on Camel Leather Products (developed under
the CDE Leather Programme).

More than 50 sample / trial orders have been acquired in the run of 2005 – 06 involving 12 African firms
and about 10 highly interested European firms. A complete list of samples dispatched to GERMAX seen
below.

Other
Peacock – Adelchi cooperation: Peacock produces around 2,500 pairs/day for the export market, an
approximate annual value of 6M USD. The employment created by this cooperation accounts for an
estimated 400 jobs. Within the next two years the companies plan to reach a production volume of 10.000
pairs/day, representing an annual production value of around 20M USD

				
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