SMALL to medium enterprises in the leather sector have called for measures to improve access to affordable capital needed to upgrade machinery and enhance product quality to compete with imports.
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Zimbabwe’s leather sector is undergoing a structural evolution, transitioning from a reliance on raw hide exports to a high-value, design-driven production model anchored by the Zimbabwe Leather Sector Strategy (2021–2030).
Miss Nicole Sibanda of the Leather Witch Company said in an interview that capacitating SMEs in the leather sector was critical.
“To capacitate leather sector players financially, the Government and financial institutions should offer targeted funding schemes with reduced interest rates and collateral requirements,” she said.
“This is critical to ensure that, as leather SMEs, we can invest in modern equipment, develop e-commerce platforms, attend trade fairs, and explore export opportunities in the African Continental Free Trade Area (AfCFTA).”
She noted that financial literacy training would also assist SMEs in managing their finances effectively, while collaborating with local designers and brands could increase their visibility and help create new products.
Bulawayo Leather Cluster secretary, Mr Fungai Zvinondiramba, said there was a need for a sector-specific financing model for leather players.
“I think what we need is a revolving fund for SMEs in clusters within the leather sector, where if one gets an order, they can draw down from it. The finance process must be streamlined to make it faster and easier to work with,” he said.
Mr Zvinondiramba said if such a facility were put in place, it would promote the formalization of leather sector SMEs and allow them to grow their operations.
Formalised SMEs, he noted, would ensure the production of standardized products across the sector.
“We work with the Standards Association of Zimbabwe (SAZ) and the International Organisation for Standardisation (ISO) to get these products certified so that we can export to regional and international markets,” he added. “We are also looking at a situation where collaboration increases, because where there is access to financing, there is also a lot of work falling into the hands of our SMEs. They will need to collaborate while also taking advantage of the incubation centers or common facilities that we have.”
He said following the establishment of incubation centres in Harare and Bulawayo, similar systems would be introduced in Matabeleland South and North provinces, among other areas, to empower SMEs in the sector.
Mr Zvinondiramba added that improved access to funding for SMEs would also increase the uptake of leather from tanneries.
Soko Genuine Leather founder, Ms Violet Mhute, said capacitating leather sector SMEs with financial resources was key to addressing the influx of cheap imports that had a downstream effect on local players.
“The leather sector is suffering from the increase in cheap imports and smuggled second-hand shoes. Demand for local leather footwear has significantly dropped due to a decline in production output by local leather goods manufacturers who seek financial assistance,” she said.
She said most SMEs could meet the local demand for footwear, such as safety shoes and school shoes, among others; however, they were being stifled by limited funds and cheap imports flooding the local market.
Meanwhile, the Government continues to call for a shift from exporting raw hides to producing and exporting high-quality finished leather goods to grow Zimbabwe’s leather sector value chain.
The Zimbabwe Leather Sector Strategy is anchored on increased investments and maximising value addition and beneficiation to promote export-led industrialisation.-herald
