by Charles ARTHUR
During visits to a leather tannery and an agro-industrial park, UNIDO Director General Gerd Müller highlighted the potential of the leather and agro-processing sectors to transform Ethiopia’s economy.
Leather has long been a mainstay of the country’s economy and, with technical assistance from UNIDO, the productivity and quality of leather produced has greatly increased. Revenue from the export of mainly finished leather rose to US23m. in 2013 and to US133m. in 2018. However the biggest and, as yet, unrealized advantage lies in the production, in Ethiopia itlself, of leather goods such as shoes, gloves, handbags, luggage, garments, and horse saddles and harnesses.
On a visit to the Colba tannery in the town of Modjo, 40 or so miles south-east of Addis, Director General Müller spoke to Ayele Dejene, general manager of Colba Tannery Plc, about UNIDO’s work to make the leather tanning process here and at other nearby tanneries less damaging to the environment.
Müller also said UNIDO wanted to do more to help Ethiopia develop the leather value chain in the country. He pointed out that the leather for the manufacture of a pair of shoes sells for just a few dollars, while the wholesale price of a finished pair of shoes in Europe can be hundred dollars or more.
A specialized leather city project, financed by the European Investment Bank and implemented by UNIDO, is currently under construction in Modjo. The city will have infrastructure facilities for a state-of-the-art waste treatment plant, chemical and shoe factories, and dozens of tanneries, including the 14 existing tanneries in Modjo which will be relocated.
Modjo Leather City
Later Müller visited the site of an integrated agro-industrial park (IAIP) in Bulbula, some 90 miles south of the capital. The Bulbula IAIP is one of four parks set up by UNIDO to boost agribusiness in Ethiopia. It was opened by Prime Minister Abiy Ahmed in May 2021.
Ethiopia’s wheat production is increasing, both to provide the local market with flour and products such as bread and pasta, and for export. Ethiopia expects this year’s harvest to amount to 2.4 million metric tons, compared to 1.42 million tons in 2021. Part of the increase will be achieved by halving post-harvest losses, currently representing 20% of harvested wheat.
Bulbula IAIP officials, including Yohannes Mekonnen, coordinator of the project at the Oromia Region Industrial Parks Corporation, explained that the IAIP will help both reduce post-harvest losses by providing effective storage, and increase value by processing the wheat grown by farmers in Oromia regional state.
Earlier on his mission to Ethiopia, Müller met industry minister Melaku Alebel, who expressed his government’s appreciation of UNIDO’s support for the development of the four integrated agro-industrial parks and voiced interest in UNIDO feasibility studies for a further three parks.