Sundaymail EditorBulawayo Bureau
ZIMBABWE’S livestock value chain holds immense potential, particularly in the leather sector, which continues to face significant challenges that have stifled growth and competitiveness.
A recent panel discussion at the inaugural ZITF Livestock Conference in Bulawayo explored opportunities and challenges, and outlined strategies to revitalise Zimbabwe’s leather industry through investment, policy reforms and infrastructure development.
One of the key concerns raised was the leather industry’s declining contribution to Zimbabwe’s economy.
Currently, the manufacturing sector contributes only 2 percent to the gross domestic product (GDP), with leather-related industries experiencing continuous output declines (-2 percent in 2023 and -1,5 percent in 2024).
ZimTrade regional manager Ms Jaqueline Nyathi said capacity utilisation in the leather sector remained low, with firms operating at a mere 21 percent — far below the industry average of 52 percent.
Companies in the leather industry are reportedly operating at only 21 percent capacity, far below the 52 percent industry average.
Zimbabwe has become a net importer of leather products, losing its competitive edge in exports, except for crocodile skins.
The high cost of doing business, exacerbated by multiple taxes, regulatory hurdles and an unfavourable business environment, has made local production expensive, discouraging investment and expansion in the sector.
Opportunities
Despite these setbacks, the industry has several untapped opportunities.
Expanding the national herd is a crucial step towards increasing raw hides and restoring the country’s former status as a competitive player in processed leather.
Currently, valuable by-products such as tallow, gelatine and adhesives remain underutilised, despite high demand in local and international markets.
Delegates heard that tallow — a fat that comes from ruminant animals such as cows, sheep and goats — has a monthly demand of 1 500 tonnes, while the gelatine industry could generate between US$200 000 and US$300 000 annually.
Tallow has many uses, including cooking, making candles, soaps, skincare products, lubricants and biodiesel.
Zimbabwe has had to import tallow and gelatine, a protein made from animal collagen, usually from cows and pigs, for production of various products.
Additionally, goat and sheep skins, which are high in quality and suitable for luxury leather products, are largely wasted despite an annual slaughter of two million goats.
If properly harnessed, these skins could contribute significantly to value-added production.
The leather sector also has vast potential in producing handbags, footwear, gloves, belts and upholstery, all of which have strong market demand but require improved processing infrastructure.
Secretary for the Zimbabwe Leather Development Council (ZLDC) Mr Jacob Nyathi said for Zimbabwe to realise the full potential of its leather industry, policy and financial incentives were necessary.
The Government, he said, should also incentivise industries focused on tallow, gelatine and leather waste processing, thereby reducing import dependence and enhancing local production capabilities.
Mr Nyathi said public-private partnerships were essential for the revival of Zimbabwe’s leather industry.
ZLDC is actively working with universities and regional bodies such as the Southern African Development Community and the Common Market for Eastern and Southern Africa, as well as industry players, to strengthen the sector.
Investment in modern leather processing facilities is another crucial step, he said.
Infrastructure development, including halal-certified abattoirs, tanneries and leather processing plants, would enable Zimbabwean producers to access export markets, particularly in Islamic countries.
“Increasing national herd entails expanding cattle numbers to restore Zimbabwe’s former competitive edge in raw hides and processed leather.
“In terms of by-product utilisation, the sector is missing opportunities in tallow (1 500 tonnes monthly demand), gelatine (worth US$200 000- US$300 000 annually), fertilisers, adhesives and biofuels,” said Mr Nyathi.
“Goat and sheep skins (with two million goats slaughtered annually), their high-quality skins can support luxury leather products, yet they are largely wasted. Value-addition potential, including handbags, footwear, gloves, belts and upholstery, have strong market demand, but require processing infrastructure to be competitive.”
Local leather products are in demand in regional markets such as Zambia, Malawi and Botswana.
However, Confederation of Zimbabwe Industries (CZI) chief economist Dr Cornelius Dube told delegates that high production costs have rendered the industry uncompetitive.
“Regional and international demand is there, as Zimbabwean leather products have high demand in Zambia, Malawi and Botswana, but pricing remains uncompetitive due to high production costs,” he said.
“A case study from Ethiopia provides a valuable lesson. Ethiopia dominates Africa’s leather market due to government incentives and a large national herd, allowing it to produce cheaper, high-quality leather products.”
Dr Dube said sustainability and ethical sourcing was crucial, with international markets now requiring sustainable sourcing certifications, including fair labour practices and animal welfare compliance.
The halal market, he added, has potential as Zimbabwe can export leather to Islamic markets if its abattoirs are halal-certified.
“To compete on a global scale, Zimbabwe must also prioritise sustainability and ethical sourcing.
”International markets increasingly require sustainable sourcing certifications, including compliance with fair labour practices and animal welfare standards. The halal market represents another opportunity, as Zimbabwean producers could gain access to Islamic markets if abattoirs meet halal certification standards.”
A delegate, Mr Sibonile Khoza, said Zimbabwe’s leather sector remains underperforming but holds significant untapped potential.
Key steps to unlocking growth include expanding the national herd, supporting by-product processing, improving the ease of doing business and strengthening regional trade partnerships.
“Government policies, infrastructure development and private-sector investment are critical to reviving Zimbabwe’s leather industry and positioning it as a competitive player in regional and global markets,” he said.
“By addressing these challenges and implementing strategic reforms, Zimbabwe can reclaim its position as a leading producer of high-quality leather goods, driving economic growth and job creation in the process.”
Online Reporter