Leather and Footwear
Imani Development
Common Characteristics • • • • •
Abundant availability of raw materials, Easy access to raw materials, Poor quality of raw materials, Difficult access to financial services, Limited research and development and processing technology • Despite large domestic animal population, Africa is a minor supplier of raw hides and skins, semifinished leathers, footwear and other leather products. 2
Imani Development
Animal Population (million head; FAO, 2000) Bovine
Sheep
Goat
Total
Africa
173
160
160
493
World
1,515
1,058
720
3,293
African (%)
11.41
15.1
22.0
14.7
Hides and Skins Production (million pieces)
3
Africa
18.4
57.8
52.5
128,7
World
322
530
340
1,192
African (%)
5.71
10.91
15.44
10.80
Imani Development
Value Chain on Leather and Leather Products (McCormick and Atieno, 2003) Livestock farmers: Hides and skins
Tanneries: wet blue
Leather manufacturers: Crust leather
Domestic shoe manufacturers
4
Imani Development
Value Chain Data 1. 2. 3. 4.
Hides and Skins Tanning Industry Footwear Industry Other leather goods and garments
•
Data Available for Botswana, Malawi, Tanzania, Zambia and Zimbabwe – some for South Africa Sourced from ITC ‘African Platform’
•
5
Imani Development
Hides (Thousands)
Botswana Malawi
Zambia
Tanzania Zimbabwe
Quantity Hides:
163
210
180
2,600
550
20
45
0
880
90
20 1,101
100
3,100
123
Quantity Sheep: Quantity Goat:
6
Imani Development
Tanning Industry Number of Tanneries:
Botswana
Malawi
1 tannery and several small artisan tanneries
1 (not operational currently)
Tanzania
Zambia
6
Installed tanning capacity:
240,000 wet blue hides per annum
300 hides/day and 3000 skins/day
Zimbabwe
5
1,500 hides p.d (wet blue), 2000 hides per day (finished leather)
39,160,000 sq ft
15
For different products 600 000 hides (estimate)
Tanneries in Operation: 1 None Utilized capacity:
50-60 %
Not applicable currently, but it used to be 70% utilization capacity.
2
8.80%
4
40% 40-70%
11
Tanning Industry Output of the industry:
Botswana
Malawi
Wet blue 120,000144,000 hides per annum
Finished: 77,000 sqft of finished leather/year
41
60, when operational
Tanzania
Zambia
Zimbabwe
Wet blue 1,958,000
90% wet blue, 8% finished, 2% crust
All
Number of employees: 60
420
249
Marketing (%): International 100% (EU)
100% local
2001: $ 8m, 2004 $ 2m
None. All is domestically consumed. Actual annual value: US$5,026,850.
Estimated Annual Export Value (US$):
All exported
90% export (china, EU, Africa)
N/A
US$ 7 million (2003)
US$ 7.3 million
South Africa – Hides and Tanning • Hide production in South Africa is insufficient to meet local demand • Hide supply – 2.2 million hides p.a. (Static over the last decade); • South Africa’s tanning capacity of 2.5 million hides p.a; • Demand (automotive) – 2 million hides p.a. Imani Development
9
Footwear Industry
Botswana
Number of Footwear Factories:
Malawi
Tanzania
7
In Operation:
2
2 - neither produce leather 7 shoes now
Not provided by factories
Zimbabwe
1
5
49
1
3
43
Manufacturing capacity:
Inst. 70,000 pairs/month, Utilised 60%
Zambia
500 pairs per day
Inst. 10,000 pairs /day; 30% utilisatio n
Not available
Number of employees: Approx 290
196
45
1,500
6015
Footwear Industry
Botswana
Malawi
Tanzania
Zambia
Zimbab we
100% domestic (local) market
Internati onal: 25%, 75% local
80% export, 20% local
Domest ic & COMES A
Estimate d (2003) 80,000
414,09 0 (2000 data)
1,7 million
Market (%):
Local (100%) Estimated Annual Export Value (US$): No Export
None
South African Footwear • • • • • •
120 footwear factories Employment between 10 000 and 12 000 R2 billion output Annual production of 26 million pairs p.a. exports 1,5m pairs of footwear per annum Types of footwear produced – – – –
fashion footwear and leisure and sports footwear, industrial footwear, such as safety boots. Both leather and synthetic materials. 56% have leather uppers.. The majority of footwear is manufactured using stitch down and injected moulding processes. Imani Development
12
Leather Goods and Garment Industry
Botswana
Malawi
Tanzan ia Zambia
Zimbab we
Number of Leather Goods and Garment Factories: 11 None
N/A
2
15
11 None
N/A
2
12
N/A
None
N/A
N/A
N/A
Est 300
None
N/A
800
N/A
Local
N/A
In Operation: Manufacturing capacity: Number of employees:
Market (%): Local
N/A
N/A
80% export
N/A
N/A
N/A
N/A
Estimated Annual Export Value (US$):
Action Plan • Improve Quality and Efficiency of Existing Production • Value Addition • Promote Regional Institutions and Centres of Excellence
14
Imani Development
Improve Quality and Efficiency of Existing Production • • • • • • • • • •
15
Better use of Grading standards Improve utilisation of capacity Adherence to current world standards Capacity building, including upgrading of human capital relevant to industry Involve stakeholders in the establishment of Centers of Excellence at national and regional levels; Promote improved technique knowledge across all sectors of the value chain Review of animal husbandry practices; Develop innovative cattle financing schemes; Develop adequate training facilities; Notification of veterinary requirements Imani Development
Value Addition • Develop artisan tannery skills • Promote better environmental production – tap into the Eco Leather market
16
Imani Development
Regional Institutions • African Federation of Leather and Allied Industries (AFLAI) • ESALIA – Eastern and Southern Africa Leather Industries Association
17
Imani Development
