COMESA Has Launched Its Regional Leather Value Chain Strategy

The Common Market for Eastern and Southern Africa (COMESA) has introduced a comprehensive policy framework aimed at restructuring Africa’s leather industry and positioning it as a formidable global competitor. Historically, Africa has functioned primarily as an exporter of raw hides and skins, while importing high-value finished leather goods at a premium. The Regional Leather Value Chain Strategy 2025–2029 seeks to redress this imbalance by addressing regulatory fragmentation, enhancing intra-African trade, and fostering industrial development. Through harmonised trade standards and strategic value chain integration, the initiative aspires to transition Africa from a supplier of raw materials to a centre for high-quality leather manufacturing, thereby reinforcing its economic sovereignty and competitiveness in the global marketplace.

Africa’s Leather Paradox: A Structural Imbalance

Despite possessing abundant raw materials, Africa remains a net importer of finished leather goods, with annual imports exceeding USD 1.1 billion. The region exports vast quantities of raw hides and skins, only to repurchase processed leather products at a premium. This structural imbalance underscores the urgent need for industrialisation and regional value chain integration.

Dr. Juma Mukhwana, Kenya’s Principal Secretary for Investments, Trade, and Industry, highlighted a key challenge: the continent’s fragmented trade environment. “Africa trades more with the rest of the world than with itself. Our intra-African trade is only 15–17%, while Europe’s stands at nearly 70%,” he noted. Addressing these trade disparities requires stronger regional supply chains and harmonised trade regulations.

Ethiopia: A Model for Success

Ethiopia’s industrial policy offers a compelling model for African economies seeking to bolster their leather industries. By investing in industrial parks, local processing facilities, and export-oriented manufacturing, Ethiopia has positioned itself as a leader in leather production. Dr. Mukhwana underscored the importance of such regional best practices, stressing that Africa must integrate its value chains to compete effectively on a global scale.

Overcoming Trade Barriers: The Role of Regulation

A critical aspect of the COMESA strategy is the harmonisation of trade standards. Divergent national regulations have historically impeded the seamless movement of goods across African borders, limiting economies of scale and restricting market access. Former COMESA Secretary General Erastus Mwencha emphasised that regulatory alignment is essential to fostering an enabling business environment. “Regulatory frameworks should serve as enablers rather than obstacles,” he noted. “Streamlining trade rules will make it easier for businesses to operate across borders and increase Africa’s participation in the global leather market.”

SMEs and the Centralised Trade House Concept

A significant component of the strategy is the establishment of a centralised Trade House, where small and medium-sized enterprises (SMEs) can access quality raw materials, chemicals, and accessories at competitive prices. SMEs play a pivotal role in Africa’s leather ecosystem, but they often face bottlenecks related to sourcing inputs and scaling production. By providing structured support, the Trade House aims to bridge this gap and enhance regional competitiveness.

Rethinking Leather: From Byproduct to High-Value Commodity

In many African communities, hides and skins are still perceived as byproducts rather than high-value commodities. This perception has contributed to inefficiencies in raw material collection and processing. Nobby Macharia, Chair of the African Leather and Leather Products Institute (ALLPI), underscored the need for industry-wide awareness. “It is essential to educate farmers and abattoir operators on the economic potential of leather,” he stated. “If managed efficiently, the sector could generate thousands of jobs and contribute significantly to revenue growth.”

Industrialisation and Job Creation: A Continental Imperative

The broader context of Africa’s industrialisation efforts remains a critical theme. Dr. Mukhwana’s remarks reflected on the continent’s disproportionate contribution to global manufacturing. “With 17% of the global population, Africa contributes less than 3% to world manufacturing. Meanwhile, Europe, with just 9% of the population, accounts for 24% of global manufacturing. Somebody is eating our cake.” His statement underscores the urgency of reversing Africa’s reliance on raw material exports in favour of value-added production.

Implementation: From Strategy to Action

While policy formulation is a necessary first step, successful implementation remains the real challenge. ALLPI Executive Director Nicholas Mudungwe likened the process of implementing a strategy to the dynamics of a committed relationship, noting that while developing a plan is comparable to courtship, execution demands the dedication and perseverance required in marriage. The event’s concluding discussions reinforced the need for political will, industry collaboration, and robust enforcement mechanisms to ensure the strategy’s success.

With a combined GDP exceeding USD 1 trillion and a population of 640 million, the COMESA region possesses immense economic potential. However, structural trade barriers, inadequate infrastructure, and a historical over-reliance on raw material exports have constrained its growth. The Regional Leather Value Chain Strategy 2025–2029 presents a crucial opportunity to recalibrate Africa’s position in the global leather market. If effectively implemented, this initiative could mark a turning point in Africa’s industrial trajectory, fostering economic resilience, job creation, and sustainable development across the continent.