Sikhulekelani Moyo
Zimpapers Business Hub
THINKTANK, Africa Economic Development Strategies executive director Professor Gift Mugano has called for value addition and beneficiation in the leather sector, stressing that Africa’s greatest opportunity lies in finished leather products, not the export of raw hides and skins.
Speaking at the COMESA Green Industries Connect forum on Monday, Prof Mugano demonstrated the significant value gap along the leather value chain, noting that a salted hide worth between US$5 and US$10 can generate approximately US$110 once tanned and finished.
Professor Mugano made the remarks in his presentation titled “Trade and Investment Opportunities for Leather and Circular Economy”.
He pointed out that while the global footwear market is valued at approximately US$172 billion and leather goods at about US$97 billion annually, the global hides and skins market is worth only around US$15 billion, highlighting that the real value lies in downstream processing and manufacturing rather than raw material exports.
Prof Mugano observed that although COMESA and Africa possess a significant livestock base, the region continues to export largely raw leather while importing large volumes of finished products.
According to Professor Mugano, COMESA’s largest leather exporter, Egypt, ships out roughly US$61 million annually, while Zimbabwe exports approximately US$36 million, despite the region controlling around 11 percent of the world’s cattle population.
“At the same time, Africa exports roughly US$169 million worth of raw leather products annually but imports approximately US$1,1 billion worth of finished leather products,” he said.
Professor Mugano said this imbalance reflects “a continued export of jobs, industrial opportunities and value, resulting in an estimated loss of over US$1,3 billion annually in potential revenue and industrial activity.”
