The leather sector in Africa is a significant part of the continent’s economy, with the potential for growth and job creation. The sector encompasses the entire leather value chain, from animal husbandry to leather processing, and provides employment to millions of people. The growing demand for sustainable and ethically produced leather products presents an opportunity for the industry to tap into a niche market.
Here are some statistics and prices related to the industry:
- Production: Africa produces approximately 210 million square meters of leather annually, which accounts for about 4% of the global production. The top African countries for leather production are Egypt, Ethiopia, South Africa, and Morocco.
- Egypt: Egypt produces approximately 45 million square meters of leather annually, with the majority of production coming from the Cairo area. The leather produced in Egypt is mainly used for shoes and leather goods.
- Ethiopia: Ethiopia produces approximately 36 million square meters of leather annually, with the majority of production coming from the Addis Ababa area. The leather produced in Ethiopia is mainly used for shoes and leather goods.
- South Africa: South Africa produces approximately 24 million square meters of leather annually, with the majority of production coming from the Cape Town area. The leather produced in South Africa is mainly used for shoes and leather goods.
- Morocco: Morocco produces approximately 22 million square meters of leather annually, with the majority of production coming from the Casablanca area. The leather produced in Morocco is mainly used for shoes, leather goods, and upholstery.
- Tanning: The majority of hides and skins produced in Africa are exported raw, with only a small percentage processed locally. This is due to the lack of modern tanning technology, which makes it difficult for African tanneries to compete with their global counterparts.
- Export: Africa is a significant exporter of raw hides and skins, accounting for around 30% of the world’s exports. The major destinations for Africa’s raw hides and skins are Asia, Europe, and North Africa. Africa exports approximately 6% of the world’s leather and leather products, which is valued at around $3.5 billion. The top African countries for leather exports are South Africa, Morocco, Tunisia, Egypt, and Ethiopia.
- South Africa: South Africa is the largest exporter of leather and leather products in Africa, with exports valued at around $580 million. The main export products are finished leather, shoes, and leather goods.
- Morocco: Morocco is the second-largest exporter of leather and leather products in Africa, with exports valued at around $510 million. The main export products are finished leather, shoes, and leather goods.
- Tunisia: Tunisia is the third-largest exporter of leather and leather products in Africa, with exports valued at around $440 million. The main export products are finished leather, shoes, and leather goods.
- Egypt: Egypt is the fourth-largest exporter of leather and leather products in Africa, with exports valued at around $300 million. The main export products are finished leather, shoes, and leather goods.
- Ethiopia: Ethiopia is the fifth-largest exporter of leather and leather products in Africa, with exports valued at around $140 million. The main export products are finished leather and shoes.
- Price: The price of raw hides and skins in Africa varies depending on the type and quality of the material. As of February 2023, the price of raw cow hides in Kenya ranges from $1.5 to $3 per square foot, while in Nigeria, the price ranges from $1.8 to $3.5 per square foot. The prices of leather products in Africa vary depending on the type of product and the country. In Ethiopia, a pair of leather shoes can cost between $20 and $50, while in South Africa, a pair of leather shoes can cost between $60 and $200. In Morocco, a leather handbag can cost between $50 and $200. However, these prices can vary greatly depending on the brand, quality, and style of the product.
- Employment: The leather industry provides employment for approximately 2 million people in Africa, with the majority of workers being in Ethiopia, Kenya, and Nigeria. The majority of the workforce is employed in the informal sector, with a relatively small number of people employed in the formal sector.
- Ethiopia: The leather industry is a major employer in Ethiopia, providing employment for approximately 1 million people. The majority of workers are employed in the informal sector, with a smaller number of people employed in the formal sector.
- Kenya: The leather industry provides employment for approximately 50,000 people in Kenya, with the majority of workers being in the informal sector.
- Nigeria: The leather industry provides employment for approximately 200,000 people in Nigeria, with the majority of workers being in the informal sector.
One of the main challenges facing the leather industry in Africa is the lack of modern technology and infrastructure. Many leather processing companies in Africa still use traditional methods that are not only inefficient but also contribute to environmental degradation. Additionally, there is a lack of modern infrastructure such as tanneries and processing plants, which hinders the growth of the industry.
Furthermore, there are issues with the supply chain, such as the quality and availability of raw materials. African countries often export their raw hides and skins to other countries for processing, resulting in lost economic opportunities and the inability to add value to their local resources.
Despite these challenges, there are several African countries such as Ethiopia, Kenya, and South Africa that have made significant progress in the leather industry. They have established modern tanneries, developed quality standards, and created training programs to develop skilled labor. These efforts have helped to increase the value of the African leather industry, and there is potential for further growth and development in the future.
Ultimately, the leather industry in Africa has significant potential to contribute to the continent’s economy, but there is a need for investment in modern technology, infrastructure, and institutional support to unlock this potential. By addressing these challenges, the industry can create more jobs, increase exports, and generate more income for African communities.
