This paper investigates the leather value chain in Tanzania. Tanzania has large livestock production that potentially provides raw materials for the leather industry but the contribution of the leather industry in the economy is remarkably minimal. Analysis finds that challenges related to inadequate livestock management, limited coordination of downstream and upstream activities, low capacity utilisation and limited adoption of skills and technology inhibit the leather value chain development in Tanzania. The study recommends an integrated approach to address existing challenges in livestock production, slaughtering facilities, hides and skins collection, tanning industry, and light manufacturing in order to move up the leather value chain, raise the sector’s competitiveness, and increase its contribution to GDP.
This report identifies easily adaptable international best practices employed by other developing countries in the global south including China, India, Tunisia, Ethiopia, and Kenya to scale the leather value-added chain. These include a common framework approach to support key value enabling facilities such as tax incentives, leather research institutes, grading institutions, innovation, and dedicated training facilities. Such an approach could revitalise Tanzania’s policies for the leather industry by strengthening the capacity for effective implementation of export competitiveness and diversification.
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