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Mekelle, Ethiopia - Millennium Cities Initiative - Columbia University

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40 <strong>Mekelle</strong>, <strong>Ethiopia</strong>: Potential Opportunities for Investment<br />

Processed leather and leather goods<br />

for export<br />

There are investment opportunities in relation to leather processing<br />

driven by the large livestock population and special characteristics<br />

of <strong>Ethiopia</strong>n leather. Nevertheless, these opportunities are currently<br />

restrained by the quality of raw skins and hides and strong irregularity<br />

in supply.<br />

Indicative market size for hides, skins and<br />

leather, 2008<br />

Asia<br />

Europe<br />

Ghana<br />

US$9,877m<br />

US$4,018m<br />

Source: UN Comtrade, 2008<br />

Note: a. Market size is based on import<br />

figures for hides and skins (other than<br />

fur skins) and leather<br />

b. Asian market includes China, Russia,<br />

Hong Kong, Malaysia, Indonesia, Japan<br />

<strong>Mekelle</strong> provides opportunities in relation<br />

to leather processing and leather goods<br />

production due to large livestock resources<br />

available in the region, the special quality<br />

of local leather, as well as the high<br />

potential for export to Europe and Asia.<br />

<strong>Ethiopia</strong> has the largest livestock<br />

production in Africa, and the tenth<br />

largest in the world. Sheep and goat<br />

skins account for the bulk of <strong>Ethiopia</strong>n<br />

leather production.<br />

<strong>Ethiopia</strong>n leather is considered to be of<br />

premium quality and is in high demand in<br />

international markets:<br />

• Cabretta: Hide from highland hair<br />

sheep is famous for its natural<br />

characteristics of flexibility, thickness,<br />

strength and compact texture, which<br />

makes it especially suitable for high-<br />

quality gloves (including industrial<br />

gloves) and sports equipment.<br />

• Bati: Goat skin, which is in demand<br />

for the production of fashionable types<br />

of leather, especially suede.<br />

© 2010 KPMG International Cooperative (“KPMG International”), a Swiss entity. Member firms of the KPMG network of independent firms are affiliated with KPMG International. KPMG<br />

International provides no client services. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG<br />

International have any such authority to obligate or bind any member firm. All rights reserved.

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