Leather sector calls for harmonization of primary products

Business Reporter
THE leather sector is calling for a policy decision to clearly state who should control the primary raw materials in the manufacture of products in the sector amid revelations that the hides which provide 65 percent input into production is under the Ministry of Agriculture, Mechanisation and Irrigation Development.

Most leather industries, however, fall under the Ministry of Industry and Commerce.

Leather Institute of Zimbabwe chairman Mr Cornelius Sunduza said the main challenge that the sector was facing is poor harmonisation of the value chain players of the leather sector.

“A decision needs to be made at policy level as to who controls the hides which provides about 65 percent input into leather products manufacturing. As an industry we do not have control of our main product. Hides are by- products of the meat industry under the Ministry of Agriculture and yet it is the primary raw material in the leather sector which falls under the Ministry of Industry and Commerce,” said Mr Sunduza.

He said the issue of raw materials was making leather products uncompetitive in the market.

Mr Sunduza said manufacturers import raw materials such as chemicals which attract duty in South Africa and Zimbabwe. He also bemoaned the low capacity utilisation in the manufacturing sector mainly due to the unavailability of finished leather from the tanneries saying, “this coupled with the cost of doing business in Zimbabwe has affected the leather sector greatly.”

Mr Sunduza said most companies were just hanging in hoping for a breakthrough although they expect the formation of the Zimbabwe Leather Development Council to help address issues affecting the sector.

He urged sector players to support the development aimed at bringing new reforms and resuscitating the leather industry.

However, Industry and Commerce Deputy Minister Chiratidzo Mabuwa said the mandate of the ministry was to add value to raw materials and it did not matter under which ministry those raw goods were from as it is one Government working towards production.

“The ministry is of no consequence unless if there are any overlaps then that is when stakeholders should let us know and we deal with them. We have two primary colours that undergo value addition that is green for agriculture and yellow for minerals,” said Deputy Minister Mabuwa.