Regional Countries Unite to Strengthen Leather Value Chain in COMESA

In a significant move aimed at revitalizing the leather industry in Eastern and Southern Africa, the Africa Leather and Leather Products Institute (ALLPI) has launched a pivotal initiative to address the sector’s development challenges. The Regional Leather Value Chain Strategy Validation Workshop, currently underway in Nairobi, is uniting member states of the Common Market for Eastern and Southern Africa (COMESA) to enhance the leather industry’s potential through comprehensive reforms and strategic planning.

The workshop, which brings together key stakeholders from across the region, is focused on overcoming critical barriers that have hindered the growth of the leather sector. The agenda includes discussions on improving financial access for businesses involved in the leather value chain, strengthening policy frameworks, promoting sustainable production practices, and expanding both intra-regional and global trade in leather products.

Industrialisation Secretary Nobby Machariasa, who opened the workshop, underscored the strategic importance of this initiative. “This workshop represents a crucial step towards unlocking the vast potential of the leather sector in our region. The strategic plan we aim to validate will provide a clear roadmap for transforming our industry, enhancing its global competitiveness, and creating sustainable employment opportunities,” Machariasa stated.

The leather sector in COMESA holds significant promise for driving economic growth and job creation. However, participants at the workshop identified several key challenges that need to be addressed. Low levels of value addition, limited access to affordable finance, and inadequate policy and regulatory frameworks across member states were highlighted as major obstacles.

Nicholas Mudungwe, Executive Director of ALLPI, emphasized the importance of the workshop in laying the groundwork for a more competitive and sustainable leather industry. “This is not just another meeting; it’s where we set the stage for a more integrated and resilient leather sector in the COMESA region. The outcomes of this workshop will have profound effects on our economies, communities, and our standing in the global market,” Mudungwe remarked.

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The development of the Regional Leather Value Chain Strategy has been supported by the European Union through the Regional Enterprise Competitiveness and Access to Markets Programme (RECAMP). This collaboration reflects a commitment to enhancing the competitiveness of the leather industry in the region by providing the necessary resources and expertise.

Key areas of focus during the workshop include strategies for increasing the value added to leather products within the region. Currently, much of the leather processed in COMESA countries is exported in raw or semi-processed forms, leading to missed opportunities for higher-value manufacturing and job creation. By improving local processing capabilities and encouraging investment in value addition, the region aims to capture more of the economic benefits from the leather supply chain.

Access to finance is another critical issue being addressed. Many businesses in the leather sector struggle to secure affordable loans and investment due to perceived risks and lack of collateral. The workshop aims to explore innovative financial solutions and partnerships that can provide the necessary capital to support growth and modernization in the sector.

Strengthening policy and regulatory frameworks is also a central theme of the discussions. A cohesive and supportive policy environment is essential for encouraging investment, ensuring fair trade practices, and promoting sustainable production methods. The workshop seeks to develop recommendations for policy reforms that can foster a more conducive environment for the leather industry’s growth.

Sustainable production practices are increasingly becoming a priority, reflecting global trends towards environmental responsibility. The workshop will discuss ways to integrate sustainable practices into the leather value chain, including reducing waste, improving resource efficiency, and adopting eco-friendly technologies.

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By addressing these challenges through collaborative efforts and strategic planning, the COMESA member states aim to transform their leather industry into a competitive and sustainable sector that can thrive in both regional and global markets. The outcomes of the workshop will be pivotal in shaping the future of the leather industry in Eastern and Southern Africa, paving the way for enhanced economic development and greater employment opportunities across the region.

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