Leather industry stakeholders call for measures to protect local producers
THE leather sector is urging the Government to implement measures that protect local producers and enhance their capacity to create employment opportunities.
This plea was made during the Confederation of Zimbabwe Industries (CZI) Leather Value Chain Seminar in Bulawayo, where stakeholders gathered to discuss key findings from surveys conducted last year.
According to Mr Simon Mutisya, chairman of the Shoe Manufacturers and Tanners Association, and country manager of Bata Shoe Company, the sector faces stiff competition from imported products.
While acknowledging that competition is not inherently bad, Mr Mutisya appealed to the Government to establish a level playing field between imported products and local manufacturers.
Bata Shoe Company country manager Mr Simon Mutisya.
“The footwear we import needs to meet minimum threshold standards to protect consumers. If they’re not produced within SADC protocols or outside SADC, we expect taxes and levies to be paid, just like we do,” Mr Mutisya said.
“We’re not asking for unfair advantages but for fair competition in the marketplace.”
He underlined the leather value chain’s potential to contribute to Zimbabwe’s economic growth, citing its labour-intensive nature.
“There’s great potential in the untapped leather industry. If we rebound, we’ll create many jobs, leading to improved income and livelihoods.”
Last year, the sector faced significant challenges, with most players reducing production.
However, with improved rainfall this year, household income is expected to increase, leading to higher demand for leather products.
“This year looks promising, and we expect capacity to increase. We’re aiming to take our capacity from 27-30 percent last year to 45 percent this year,” said Mr Mutisya.
Zimbabwe Leather Development Council secretary, Mr Jacob Nyathi, suggested that the Government can support the sector by procuring leather products from local producers.
“We’re engaging relevant officials to discuss this initiative,” Mr Nyathi said.
CZI trade and research economist, Ms Perpetua Muzondo, presented key findings from the surveys, highlighting Zimbabwe’s significant decline in shoe production from 17 million pairs per annum at its peak to just 1,5 million currently.
Delegates following proceedings at the CZI leather value chain seminar.
“At its peak, the sector employed around 12 000 formal employees, but now it’s down to 1 800,” Ms Muzondo said.
She stressed the country’s potential to supply the African continent, which has an annual market demand of US$437,8 million for raw hides and US$975,7 million for leather products.
“Players in the sector must take value addition seriously to penetrate the export market through the African Continental Free Trade Area (AfCFTA),” said Ms Muzondo.
The leather value chain is a crucial component of agro-processing, and stakeholders are emphasising the need for improved leather quality and research and development to meet international standards.
However, players in the sector are struggling with high production costs due to reliance on imported raw materials, which reduces their competitiveness. —chrncile