An exploration into the successful development of the. The aim of this paper is to analyze the growth pattern of trade flow and trade comparative advantages of the leather industry products between some selected african economieskenya, egypt, tunisia and with particular focus on ethiopia between 2004 to 20. The first two chapters of the report feature the country profile by giving general information on ethiopia and by thoroughly studying its economic state, including key macroeconomic indicators and their development trends. Investment opportunity in leather footwear, garment and products as mentioned above, ethiopia s leather is of high quality and texture and of heavy substance. Ethiopian leather industry development institute latest breaking news, pictures, videos, and special reports from the economic times. Akoten and keijiro otsuka abstract the leathershoe industry in ethiopia is thriving, and in the early 2000s, it managed to recover the domestic. For this purpose, a survey of the leather and footwear. Growing manufacturing industry in ethiopia case study. Investment opportunity in leather and leather products. Ethiopia has a cattle population of more than 53 million, and sheep and goat population of 25. The ethiopian leather industry is an important strategic sector for the economic and. Global value chains, industrial policy, and sustainable. Currently, the manufacturing industry contributes about 19% of ethiopias gdp.
Our parent company is the endowment fund for the rehabilitation of tigrai effort group, which owns more than 15 companies in ethiopia. With abundant and available raw materials, a highly disciplined workforce and the cheap cost of doing business, ethiopias leather sector, including the footwear. Currently, the manufacturing industry contributes about 19% of ethiopia s gdp. Jan 29, 2018 ethiopias leather industry huge potential but somehow neglected. In doing so, it has been calculated the balassa index of revealed comparative advantage using industry data at the hs 2digit level. In the path to industrialize ethiopia, the sector is given prominent position in boosting export, creating job opportunities, and as a model to other sectors as well. Overview of the sector ethiopias textile and garment industry witnessing rapid growth, as a number of domestic and multinational firms are being engaged in the production of textile and apparel for domestic and global markets. An exploration into the successful development of the leather.
Leather product export shar es in total exports and world s total. Ethiopia experienced famine in 1984 that killed one million people and civil war that resulted in the fall of the derg in 1991. Networking small enterprises in ethiopias leather sector. Ethiopias leather industry is showing considerable promise or at least india, one of the worlds fastest growing economies, seems to think so. The article covers the prehistory and history of ethiopia from its emergence as an empire under the aksumites to its current form as the federal democratic republic of ethiopia as well as the history of other areas in what is now ethiopia such as the afar triangle. Investment opportunity in leather footwear, garment and products as mentioned above, ethiopias leather is of high quality and texture and of heavy substance.
This resulted in the establishment of the federal democratic republic under meles zenawi. A few days ago, bogale feleke temesgen, state minister for industry of ethiopia announced different facility for indian investors. 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. Eastern africas manufacturing sector african development bank. Ethiopia remains impoverished, but its economy has become one of the worlds fastestgrowing.
The growth of the manufacturing sector within industry is essential to build national technological capacity, industrial capability and create broad based job opportunity and improve income. Ethiopia has nearly 175 textile units, which is still a low amount in terms of global perspectives. This topic was discussed on one of the panels at the world footwear congress that took place in mexico, in the city of leon in november last year. Find out what makes the african countrys leather business a global success. June, dustrial polices in the leather industry in ethiopia. Safety leather shoes sheba leather industry ethiopia. Revealed comparative advantage of ethiopian leather industry. Manufacturing industry in ethiopia market research. According to the eic, chinese companies, with close to 379 projects that were either operational or under implementation in 20122017 period, are on top of ethiopia s investment landscape, both in. An aggregate cobbdouglas production function for ethiopia is estimated by expressing the production function in intensive form.
The floriculture industry has been chosen as the first topic of the series of studies, considering the fact that it is an emerging industry that has shown a significant growth for the last few years in ethiopia, besides the conventional industries such as coffee, leather and garments. Production and export of finished sports and dress gloving leather from sheepskin, finished shoe upper from goat. An exploration into the successful development of the leather shoe industry in ethiopia tetsushi sonobe, john e. Ethiopias industrialization drive under the growth and. Why ethiopia is attractive for textile and garment investments. According to a report presented by peter mangione, one of the leading experts on the global footwear industry, ethiopia was the country with the lowest labour costs for manufacturing footwear in 2014. One of the worlds oldest civilizations,ethiopia is also one of the worlds much poor countries.
The role of foreign investment in ethiopias leather value chain deborah brautigam, margaret mcmillan and xiaoyang tang. Ethiopia is located at the center of the world with easy access to international value chains, and has access to a stateoftheart container port djibouti. Elico was established in august 1997 as the leather wing of midroc ethiopia to manage and operate two tanneries and a leather garment and leather goods manufacturing factory that were acquired from the ethiopian privatization agency. Download all the latest market reports you need on the manufacturing industry in ethiopia. The industry has tremendous potential for foreign exchange earnings, creating employment and has the capacity to attract tremendous and profitable foreign investment. An exploration into the successful development of the leathershoe industry in ethiopia tetsushi sonobe, john e. In addition to this, the development of the manufacturing industry helps to improve the total factor productivity and competitiveness of the overall economy and its trickledown effect to up and down the. Throughout a twoweek journey in ethiopia, we had the opportunity to analyze the ethiopian leather industry, from the livestock farming to the tanneries and the transformation into finished leather products. Ethiopian leather industry development institute blogs, comments and archive news on. Ethiopian leather industry pdf ethiopian leather industry pdf download direct download. Agriculture and allied activities contributed 30% to the increase while the service and industry sectors provided 56% and % respectively. This report is a comprehensive research of leather industry in ethiopia. Ethiopias industrialization drive under the growth and transformation plan 35 real gdp growth has been 11% per annum on average, and poverty incidents declined visibly. Akoten and keijiro otsuka abstract the leather shoe industry in ethiopia is thriving, and in the early 2000s, it managed to recover the domestic market which had once been swept by imported chinese shoes.
This paper uses the ethiopian leather sector as a case study to. Chavaninstitute of technology for textile, garment and fashion design bahir dar university, bahir dar, ethiopia 2010 2. Challenges of the ethiopian manufacturing sector under the gtp ii. The growth of the ethiopian textile industry afrosartorialism. Potential to develop a competitive cotton or textiles industry due to good climatic and soil conditions. Sheba leather industry plc, ethiopia, manufacturer. Domestic production, import and export data covering the period 20012011 is presented in table 3. Ethiopian leather industry pdf ethiopias footwear industry and its leather sector in general. Oct 05, 2015 the aim of this paper is to analyze the growth pattern of trade flow and trade comparative advantages of the leather industry products between some selected african economieskenya, egypt, tunisia and with particular focus on ethiopia between 2004 to 20. Ethiopian textile industry present status andfurture growth prospects prof.
Footwear shoe manufacturing six times cheaper in ethiopia. Options for better business and womens empowerment in a frontier market 2 this working paper was developed as part of bsrs scoping process to determine the best way for herproject to contribute to embedding good practice in. Challenges of the ethiopian manufacturing sector under the. Ethiopias leather industry is showing considerable promise or at least india, one of the. Pdf historical survey of tourism industry in ethiopia. Networking small enterprises in ethiopias leather sector 5 funded by the italian agency for development cooperation, upgrading of the ethiopian leather and leather products industry is a unido project whose primary objective is to facilitate the further development of the countrys leather. Agriculture to industry and then there are the stylish designs created from a different type of animal skin, these are made to keep fingers warm in tokyo, paris and rome. The role of foreign investment in ethiopias leather value. Corporate social responsibility learning in the ethiopian leather and footwear industry mathias nigatu bimir. Ethiopia also exports a substantial amount of leather shoes to the international market. This study hopes to address the problems involved in the lack of competitiveness in the ethiopian leather sector with particular focus on the level of factor productivity based on experiences of sample firms.
The textiles sector has consistently been presented as one of ethiopias great potentials, but has too often fallen far below expectations, reports dawit endeshaw, fortune staff writer. Click here to instantly access all the reports, in one place. According to the eic, chinese companies, with close to 379 projects that were either operational or under implementation in 20122017 period, are on top of ethiopias investment landscape, both in. Our research questions the commonly admitted fact that ethiopia has a natural comparative advantage in the leather sector. Not only did the share of manufacturing real value added in total industrial gdp decline, ethiopias manufacturing sector is also lagging in. Ethiopias laudable pace towards industrialization has been commended by several internationally renowned scholars and institutions. Historical survey of tourism industry in ethiopia and its potential foreconomic development. Pdf revealed comparative advantage of ethiopian leather. Does ethiopia have a comparative advantage in the leather. The role of foreign investment in ethiopias leather value chain. This is to be achieved by shift ing economic activities from low productivity to high pro ductivity sectors, especially in the manufacturing sector.
Growth equation is estimated with a time trend to capture the rate of technological progress within a cointegrational framework. The footwear industry in ethiopia is thriving, and in the early 2000s, it managed to recover the domestic market which had been swept by imported chinese shoes in the late 1990s. However, since the year 2000 there has been a steady decline in the export performance of this sector. The ethiopian llp industry significantly relies on foreign investments from east asian countries, an aspect that exposes its production processes to external shocks. The ethiopian empire abyssinia was first founded by ethiopian people in the ethiopian highlands. Declining productivity and competitiveness in the ethiopian. Ethiopia has sustained to be the leader in its livestock resources in africa which proves the availability of a huge potential for the countrys leather industry. Pdf the development of the footwear industry in ethiopia. Revealed comparative advantage of ethiopian leather industry with selected african economies ta ble 6. Case studies of textile and garment industries in ethiopia tsegay tesfay mezgebe ethiopian institute of technologymekelle, mekelle university hadush berhe asgedom ethiopian institute of technologymekelle, mekelle university asayehgn desta. Ethiopias leather industry huge potential but somehow neglected.
Productive capacity and economic growth in ethiopia. Sheba leather companys full grain safety leather shoes, women shoes, men shoes, boot, men boot, women boot, safety shoes, finished leathers, womens bag, safety shoes in ethiopia are chosen every where. Options for better business and womens empowerment in a frontier market 2 this working paper was developed as part of bsrs scoping process to determine the best way for herproject to contribute to embedding good practice in the ethiopian apparel industry from the beginning. The case of lake tana region article pdf available november 2016 with 10,844 reads how we. Productive capacity and economic growth in ethiopia 1 introduction ethiopia is one of the largest least developed countries ldcs in subsaharan africa, with a popula. Therefore, the country is seeking foreign investment in this sector. Ethiopia wants to join the ranks of emerging economies by. However, ethiopia has the means to change those factors that are coming together at the same time, such as cheap labor force and welleducated, trainable and inexpensive labour and. Revealed comparative advantage of ethiopian leather. A series of studies on industries in ethiopia embassy of japan. In its vision of transforming the country to a middle income nation by 2025, the government of ethiopia plans to increase the share of its manufacturing sector to 27% the government sees the leather industry subsector as one of its strategic investment priority areas. In order to better understand the impact of foreign, and, in particular, asian investment on ethiopias leather industry, we conducted a census of all formal firms currently active in the leather value chain. This makes ethiopia the 1st from africa and the 9th from the world in its cattle population which enable the country to have a strong raw material base for the leather industry.
Chinese companies keep investing in ethiopia business. Half of ethiopian textile and apparel companies are smes of 500 workers. Corporate social responsibility learning in the ethiopian. Sheba leather companys full grain safety leather shoes, women shoes, men shoes, boot, men boot, women boot, safety shoes, finished leathers, womens bag. The role of foreign investment in ethiopias leather value chain deborah brautigam, margaret mcmillan and xiaoyang tang in ethiopia, significant potential for private sector transformation lies in the leather value chain. The industrial sector occupies a key position in the countrys economic transformation. Abstract the past few decades have shown an increasing progress towards business role in social and environmental concerns other than business as usual. The structure and performance of the ethiopian manufacturing sector.