USAID Program Strengthens Hides, Skins and Leather Industry in Ethiopia

December 8, 2006
No. 46/06

Addis Ababa (U.S. Embassy) -- The United States Agency for International Development (USAID) took another step in boosting Ethiopian exports yesterday by bringing together key players in the hides, skins and leather (HSL) industry.  Over 50 leaders from business and government gathered in an historic meeting to identify critical issues and challenges impeding the growth and development of the sector, and to discuss ways to move forward.  

This meeting was organized by USAID’s Agribusiness and Trade Expansion Program, which was officially launched in September 2006.  The overall goal of the program, implemented with technical support by Fintrac Inc., is to increase rural incomes and employment in horticulture, coffee, oil seeds, and leather.  One of its specific aims is to increase exports of hides, skins and leather from Ethiopia by 74% over the next three years. 

The Agribusiness and Trade Expansion Program works in close cooperation with the government, private sector and other donors in Ethiopia.  His Excellency Ato Tadesse Haile, State Minister of the Ministry of Trade and Industry, delivered opening remarks at yesterday’s meeting and expressed his support for the initiative.       

“Ethiopia has the largest domestic animal population in Africa.  Our Agribusiness and Trade Expansion Program envisions the development of this important sector, and wants to see Ethiopia unlock the tremendous potential of the hides, skins and leather industry,” Dr. Kevin A. Rushing, Acting Mission Director, USAID Ethiopia, said.  “Collaboration and a shared vision between the public and private sectors in Ethiopia can make this happen.” 

During the meeting, the working group committed to implementing at least eight new initiatives each year to improve export performance through the creation of ‘competitive clusters’ in the HSL sector.  Clusters are geographic concentrations of competing and collaborating businesses in a shared market, who work together to achieve specific results beneficial to the cluster. 

The concept of economic clusters is being used increasingly in developed and developing countries alike to boost export performance.  Examples in the United States include California’s Silicon Valley, a concentration of hundreds of high technology firms.  In Europe, Italy’s leather district clusters have brought together firms that were once fierce competitors, and now collaborate in marketing, production and resource-sharing.  The cluster competitiveness activity under USAID’s Agribusiness and Trade Expansion Program is facilitated by the world-renowned Economic Competitiveness Group.   

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For more information:
http://www.ecgroup.com/home.htm
http://www.fintrac.com/ethiopia.asp
http://www.ethiopiaag.org/about.asp