The Ministry of Trade Industry and Tourism says according to a research by the Small and Medium Enterprises Development Institute (SMEDI), Malawi loses almost MwK5 billion annually in the leather industry, due to the lack of proper processing machinery to add value to Malawian products.
Industrial and Development Officer (IDO) in the ministry, Yasin Mwachande, revealed this to the Malawi News Agency (MANA) this week, in an interview. He said there are various interventions that government, through the ministry, is undertaking to promote value addition of local products in order to promote trade in the country.
“The ministry, is trying to promote the leather sector, and this is evident by it being prioritized in the National Industry Policy (NIP). We used to have a leather turnery in Liwonde, which was a processing machinery for animal skins and hides. By then Bata Shoe Company, used to be a big player in utilizing the value-added leather, but unfortunately the company closed in the 1990s, and currently we have no other big user of it,” Mwachande said.
Change of policy in the 1990s, necessitated the privatization of the Turnery, which unfortunately resulted in the plant shut down.
He further indicated that the current situation is causing Malawi to export raw hides and skins at a very low price to other countries such as Tanzania, China, and Zimbabwe. These countries process the leather and sale its products back to us at a higher price.
According to Mwachande, the main emphasis is on value-addition of the skins and hides, to create better pricing on the international and local market.
A 2016, Small and Medium Enterprises Development Institute (SMEDI) fact-finding analysis established that the almost non-functional leather sector, is costing the country almost MwK4 billion annually. If however, the sector was revamped, it could also make a great employer.
SMEDI’s Public Relations Officer (PRO), Mian Mpesi, explained that a vibrant leather sector would benefit various players ranging from the cattle farmers, processers to manufactures.
According to Mpesi, over 100 SMEs, are bound to directly get involved, once the Esther industry is reintroduced.
For a more organized revamp of the leather industry, the ministry is now planning to populate goats and cattle in the country.
Currently, there are no goat and cattle population records in the country.