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Tanzania to continue exporting hides & skins
22
Jul '11
Tanzania would have to keep on exporting hides and skins, as the domestic tanning industry is ill-equipped to process the raw inputs.

Presently, there is an extra stock of 1.5 metric tons of raw hides and skins that the existing six tanneries are unable to process due to their below average performance and other inefficiencies.

The six operational tanneries in the country are Kibaha Tannery, Tanzania Leather Industries, Afro Leather, Himo Tanners, Moshi Leather Industries and Salex Tanners.

These tanneries house a capacity of processing 40 million square feet of leather, but are now operating below 50 percent of their actual capacity, while a seventh one, Africa Tanneries has shelved production for need of an efficient effluent treatment plant.

Tanzania has a potential to produce 3.8 million goat skin, 1 million sheep skin and 2.8 million cattle hides each year. Industry stakeholders assert that better handling of skin and hides could help in enhancing leather's role in national food security, bringing down poverty and increasing rural employment rate.

During a meeting with the Parliamentary Committee on Trade and Industries in Dar es Salaam, the industry stakeholders demanded that the tax levy on export of raw skin and hides be hiked from the present 40 percent to 90 percent or a complete ban be imposed on export of these items.

Some countries in the region like Nigeria, Uganda, Ethiopia, Zambia and Sudan have already imposed a total ban on raw hides and skin exports to ensure supply of raw inputs to domestic industries.

To revive its leather industry, the Tanzanian Government has introduced a leather development plan which contains a provision to impose a levy of 40 percent export duty on raw skin and hides export, to discourage exports of these items and to promote domestic processing.

Fibre2fashion News Desk - India


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