adminOliver Kazunga Business Reporter
THE Government will today launch the Leather Sector Strategy in Bulawayo, Industry and Commerce Minister Professor Welshman Ncube said yesterday. The leather sector strategy is being launched because Government has noted that the industry presents investment opportunities that lie along value addition.
“It is true that it will be launched tomorrow in Bulawayo at the Zimbabwe International Trade Fair,” he said.
Due to challenges such as shortage of working capital, ageing equipment and power constraints, a number of firms in Bulawayo including those in the leather industry have either closed or were operating at low capacity utilisation levels.
The leather sector needs more than $50 million to recapitalise.
Addressing delegates at this year’s Zimbabwe International Business Conference during the Zimbabwe International Trade Fair, Prof Ncube said the leather industry had much potential if right partners were found.
As a result of opportunities in the leather industry, Government through the Ministry of Industry and Commerce plans to approach some countries and other stakeholders to participate in the implementation of the leather strategy.
The launch of the leather strategy comes at a time when Government was encouraging value addition or beneficiation in order to bring about positive changes to the economy.
At the moment, raw hides and skins in the leather industry were being exported and this did not auger well for the country in general.
Zimbabwe is endowed with exotic skins obtained from crocodiles, buffalo, hippo and other wildlife and this is an area where investment was critical as products made from such skins were sought after in the major European fashion houses.
Online Reporter