EAC REGIONAL LEATHER FORUM URGES FOR CREATION OF A READY MARKET
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Fast Track the Implementation of Regional Leather Strategy- EABC says
EAC Partner States should create a readily accessible market for leather products in the EAC – EABC says
Arusha, Tanzania: 25th May 2019: The EAC Regional
Leather Forum convened by the East African Business Council brought together
over 40 Industry champions in the
leather manufacturing from Burundi, Kenya, Rwanda, South Sudan, Tanzania and
Uganda. The forum has recommended for the creation of a readily accessible
regional market for leather products and a conducive business environment to
promote regional value addition in the leather sector.
According to
World Bank Kenya Leather Industry - Diagnosis, Strategy and Action Plan, Leather and Leather products among the
most widely traded agro-based commodities in the world, with a global estimated trade value of over US$ 150
billion a year, more than five times that of coffee.
Despite owning about
15% of the world's cattle population, Africa
accounts for only 8% of the world production of cattle hides and 4% of
world leather production.
Speaking at the opening session, Hon. Christophe Bazivamo, EAC Deputy Secretary General Productive and Social Sectors represented by
Mr. Jean Baptiste Havugimana , EAC Director Productive Sectors
said “the EAC Secretariat
and the Partner States have prioritized the development of the Leather Sector
Value Chain for job creation and as a means of providing affordable, new
and quality options for leather products to the citizens.”
The 19th Ordinary Summit held in February 2018 in Kampala, directed the
Council to put in place mechanisms that support leather manufacturing in the
region. The EAC Secretariat is currently
finalizing the development of a regional EAC Leather and Leather Products
Strategy (2019 – 2029).
In his remarks
Hon. Peter Mathuki, EABC CEO said,” Leather is one of the flagship sectors of
the EAC, there is a need for continuous and collective advocacy to ensure
effective implementation of the regional EAC Leather and Leather Products
Strategy (2019 – 2029).” He urged leather industry players
to embark on the formation of the regional leather association in close
partnership with the EABC.
Ms. Beatrice
Mwasi, Secretary General Kenya Leather Apex Society urged EAC leather industry
to be more innovative, improve branding and urged the EAC Partner
States to offer incentives for value addition in the leather sector.
Among challenges facing the leather sector include lack of
defined standards, poor quality infrastructure of tanneries and abbotoirs, illicit
trade, insufficient supply of chemicals, equipment and accessories used in
leather, import levy on leather inputs by some Partner States, policy incoherence
and uncontrolled imports of leather.
The industrialists urged for
zero rate of imported inputs used in the
leather industry, establishment of
structures to implement policies, collectively and gradual phase-out
second hand leather shoes / poor quality leather products in the region, skills
development, amendment of outdated policies, business cooperation, promotion
of export diversification, curbing value
leakage and also reinvigorating the potential of the leather industry in
creating jobs, income generation and alleviation of poverty.
“The government to should fast
track implementation of regional leather strategy, be the first consumer of leather products and
ease trading of leather products among the EAC Partner State,” said Hon Peter
Mathuki, EABC CEO.
The forum charted out appropriate recommendations
on regional policy matters as espoused by the Summit and called for a coherent
and robust marketing strategy, good manufacturing practices, an enabling, predictable
and stable business environment by collectively addressing governance issues,
regulatory, market and information challenges which reduce incentives for
private investments along the leather and leather products value chain.
The EAC Regional Leather Forum is organized by the East African Business Council (EABC) in collaboration with
the EAC Secretariat and with the support of GIZ/GFA project on Socio-Economic
Integration.
About EABC
The East African Business Council (EABC)
is the regional apex body of Private Sector associations and Corporates from
the 6 East African Countries. It was established in 1997 to foster the
interests of the Private Sector in the Integration process of the East African
Community. Being the representative of Private Sector
associations in the region, EABC was
granted observer status in organs and activities of the East African Community
(EAC). EABC, therefore, participates in
various sectoral meetings, meetings of the Coordination Committee, the EAC
Council of Ministers, and the Summit of the EAC Heads of State; with a view to ensure that the agenda of the Private Sector is
well articulated and received by the policymakers.
Vision: Borderless East Africa for business and investment.
Mission: To promote sustainable Private Sector-driven growth.
EABC Membership is drawn from the six East African Partner States
and is open to all national and regional associations as well as Corporates
with interest in the EAC Integration process or
operations in the region. At the national
level, EABC activities are coordinated
through the EABC National Focal Points,
who are also the national Private Sector umbrella bodies. These are Federal
Chamber of Commerce and Industries Burundi (CFCIB), Kenya Private Sector Alliance
(KEPSA), Rwanda Private Sector Federation (PSF), Tanzania Private Sector
Foundation (TPSF) and Private Sector Foundation Uganda (PSFU).
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