TANZANIA is poised to become a leader in manufacturing of leather products if more investments are directed to the huge untapped potential in the sector.
According to the Leather Association of Tanzania (LAT), Executive Secretary, Mr Joram Wakari, Tanzania currently use only a fraction of its potential in leather industry while spending substantial amount of its scarce foreign exchange to import footwear and other leather materials from abroad.
“The country spends substantial amount of its scarce foreign exchange to import around 50 million shoes annually.
Other imports on leather products being bags and handbags, wallets and belts that can be made locally using the available raw hides and skins,” he said in an interview in Dar es Salaam.
He said statistics show that Tanzania is second in Africa after Ethiopia with highest livestock population of more 22 million cattle, 16 million goats and seven million sheep. Ethiopia is the leading producer and exporter of leather products in Africa.
He said despite its abundant raw materials, Tanzania continue to be the largest importer of leather products with only a fraction being manufactured locally. He said however, the association is optimistic with the fifth government industrialization drive that put the sector among the top priorities to increase its contribution to the economy and poverty alleviation.
“The country’s export earnings from semi processed leather materials are disproportionate with the substantial amount of foreign exchange spent in importing shoes, mostly low quality plastic made which are healthy and environmentally hazardous,” he said.
Furthermore, he said concerted efforts should be put in place to curb smuggling which is taking from the country over 50 per cent of the raw hides and skins produced in the country thus creating shortage to local manufacturers.
Presently, the local manufacturers can make less than one million footwear annually. He said the sector offers huge potentials for local investors to develop the present small scale leather factories as well as establishing the new ones.