CII signs MoU with Ethiopian Leather Industries Association

25 Mar '08

4 min read

Leather and leather product is one of the sectoral focuses of Ethiopian development strategy. Their main target is production of 8 to 20 million pairs footwear annually; 87 thousand to 405 thousand pieces of leather garment and 41 to 275 thousand pieces leather goods per annum.

So it holds great importance for Indian private manufactures and associations to actively participate in leather business in Ethiopia on the eve of the agreement that has been signed also between the Ethiopian leather industries association (ELIA) and Confederation of Indian industry (CII).

Ethiopia also has favourable environment for foreign investors as it is providing duty free incentives for foreign investors, tax holidays of 2 to 8 years depending on the area of interest and volume of export.

Mr Yizzaw Assefa, chairperson, Ethiopian leather industry, also emphasized the area where India and Ethiopia can have trade partnership. Leather is the top priority area for export earning.

Ethiopia supplies 16 million skins per annum. Ethiopia now is looking for producing finished leather products rather to remain a raw leather exporting country only. However the shoe industry is a very new one based on local technology and traditional methods.

He asked the Indian counterparts to join in this particular segment. He also invited Indian companies to participate actively in the coming second ALL AFRICAN LEATHER FAIR 2009, January 20-22.

Mr M.Rafeeque Ahmed who represented CII and signed MOU on behalf of Indian groups have shown a sense of urgency to send high powered delegates to Ethiopia. He also emphasized that India can be good support for Ethiopian leather sector to grow.

Mr G.K Pillai also cited some of the key issues to expand the leather market. He emphasized how important is building trade relations between developing countries in the scenario of dominance of world economy by the developed countries.

Developed countries induced developing countries to produce export goods where the products are always valued grossly low.

He asked all African countries to think immediately and should build their trade relations more and more with countries like India.

Joint venture and investments in leather sector must help the locals of Ethiopia for their betterment a final point made by Mr. Pillai as concluding remarks. It is now important to both the countries how they proceed to each other to develop their respective leather sectors.

Confederation of Indian industry

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