Business
Malawi Govt. lauds potential for leather industry
December 20, 2019 / Wahard Betha
The Malawi Government says the county’s underexploited leather industry has the potential to contribute up to 4% to Malawi’s Gross Domestic Product if fully exploited.
Minister of Industry, Trade and Tourism Salim Bagus said this during the Africa Leather and Leather Products Institutes (ALLPI) annual regional consultative forum that took place at Bingu International Convention Center (BICC) in Lilongwe.
Bagus said that Malawi’s leather industry has overwhelming potential as demand for footwear alone is estimated at 16 million pairs against current production of around 0.3 million pairs per annum as of 2018.
“The demand is projected to reach 18 million pairs per annum in tandem with population growth this year, which clearly shows that there is potential and viability of investing in a tannery in Malawi which can feed the Leather Design Studio with finished leather as well as supplying the deficit countries in the region,” he said.
Bagus said with support from ALLPI, Malawi managed to develop the Leather Value Strategy in 2015 to transform leather value chain from the production and export of raw hides and skins and processed products to the production and export of value added products including finished leather, footwear and leather garments.
He said: “As part of implementation of this Strategy, my Ministry has been supporting the sector by among other things, initiating the setting up of the Small and Medium Enterprises (SMEs) Association and; training of SMEs and Cooperatives in Vegetable Tanning and Footwear Making.”
“We have been also in the forefront sponsoring the SMEs to participate in various international Leather Trade Fairs where they could exhibit their products and explore many skills through networking with foreign leather SMEs,” he said.
Bagus said his ministry established the Satellite Leather Design Studio in Blantyre to promote investment in the sector through setting up of a tannery to complete the existing leather value chain gap.
This year’s regional indaba was celebrated under the theme of ‘Developing Africa’s Leather Value Chain through research, business linkages and technology Transfer,’ and the Minister said it is a well-chosen theme whose adoption will help to free-up some SMEs who are pinned by challenges in the industry.
Efforts to promote Malawi’s SMEs in the Leather Value Chain have mostly been undermined by challenges such as lack of modern technology and low levels of research and development (R&D) in support of the sector.
In his remarks, Director of Administration and Finance in the Ministry Joseph Mkandawire described the sector as one of the priority areas for the Government due to its potential to change the welfare of the SMEs and the outlook of the national economy.
Mkandawire said the sector has the potential to immensely contribute to job creation, poverty reduction and the overall economic growth of the country.
He said: “The sector analysis shows that the value chain has the potential of grossing up to US$102 million dollars (MK45 billion), if all hides and skins produced in Malawi are utilized and processed into finished goods locally.”
“It is also estimated that the industry can potentially generate 3,500 jobs in the manufacturing of footwear and a couple of thousand jobs in accessories, manufacturing and footwear distribution and marketing.”
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