ADDIS ABABA - The African Continental Free Trade Area (AfCFTA) is set to offer a significant market opportunity for Ethiopia's burgeoning leather industry, as indicated by the United Nations Economic Commission of Africa (UNECA).
According to Ethiopian News Agency, a workshop in Addis Ababa titled "the Ethiopian Leather Industry and the African Continental Free Trade Area (AfCFTA): Opportunities and Challenges" was co-organized by the ECA’s African Trade Policy Centre (ATPC), the Ethiopian Chamber of Commerce and Sectoral Associations (ECCSA), and the Ethiopian Leather Industries Association (ELIA). This event aimed to gather various stakeholders to discuss how the Ethiopian leather industry can benefit from the AfCFTA while addressing existing challenges and exploring strategies for optimal positioning within the trade area.
Ethiopia, known for having the largest livestock population in Africa, possesses a significant supply of raw materials essential for its leather industry. The sector is populated with numerous businesses, both foreign and domestic, operating across different segments. The industry is poised to increase export revenues, create job opportunities, empower women economically, and contribute to Ethiopia's overall development.
Being a State Party to the AfCFTA, Ethiopia's leather products can now access a vast market of over 1.4 billion people, increasingly free of duties and other trade barriers. This presents a potential comparative advantage for Ethiopia in the leather industry, considering the opportunities AfCFTA offers to its economy.
ECA's initiative to organize the workshop, in collaboration with ECCSA and ELIA, is part of the ATPC's pilot project aimed at working directly with private sector representatives to support the successful implementation of the AfCFTA Agreement.
Stephen Karingi, the Director of ECA’s Regional Integration and Trade Division, noted Ethiopia's rich history and resource endowment in producing and supplying processed leather products, positioning it as a potentially competitive player in the emerging African single market under the AfCFTA.
Tages Mulugeta, representing Ethiopia's Ministry of Trade and Regional Integration, highlighted that the AfCFTA marks a new era in trade governance in Africa. He emphasized that it should be seen as an opportunity for Ethiopia to implement necessary structural reforms, particularly in capitalizing on its significant potential in the leather industry.
The workshop, attended by over 40 participants, included representatives from Ethiopian government agencies, the private sector, and international organizations such as the FAO, UNCTAD, and UNIDO, along with regional stakeholders. This gathering underscore the collaborative effort to harness AfCFTA's potential for Ethiopia's leather industry and its broader economic impact.