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Zimbabwe Leather Sector Strategy A Strategy for Development. Participatory Process : For Zimbabwe by Zimbabweans. The entire industry participated in the strategy with representation across the value chain: implementation started since day 1.
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ParticipatoryProcess:For Zimbabwe by Zimbabweans The entire industry participated in the strategy with representation across the value chain: implementation started since day 1
The Coordinating Committee: a public-private platform representing the whole value chain
Leather Industry Context in Zimbabwe • Critical Situation: Industry as a whole facing serious challenges
The Leather Sector in 2011 Employment and Companies, 2011 (Source: Official Statistics and Core Team) Zimbabwe’s trade in leather and leather products (Inc. exotic) Average USD value per year 2006-2010 (Source: Trade Map)
Leather Value Chain Volumes in 2011 Participatory Mass Balance Analysis (Source: Official Statistics Ag, Trade, ZIMRA, Reserve Bank + Core Team estimations + License agreements) Footwear (leather and non-leather) domestic market size: 6 MILLION PAIRS/YEAR
Relative Industry Competitiveness based on Market + Buyers Requirements
Vision and Market Segments “To be a vibrant and internationally competitive leather industry contributing to sustainable development through value addition”
The issues weidentify as priority: • Lack of understanding among value chain players • Lack of access to affordable finance and FDI (across the VC) • Farmers perceive they are selling at a loss (no fair distribution of income) & no incentive to commercialize hides at grass-root level: LOSS of hides • Support institutions not responding to sector needs (incl. banks, trade supporting institutions, extension and veterinary services) • Overall feeling by Private Sector that leather is not a priority for Gov. • Lack of coordination and information flow (market and other) • Lack of competitiveness and high costs of inputs (across VC) • Tanneries produce insufficient quantities and volumes due to low availability of raw materials, which are instead exported • Lack of trained and skilled workers to improve design and manufacturing
The Strategy Key Thrust: Leather Development and Investment Fund
Anticipated Impact • Increase employment creation and support to Micro, Small and Medium Enterprises (MSMEs) + Rural area stakeholders (to be quantified still) • The anticipated CASH generation impact, from Private Sector targets are met: growth from USD80 to 120 million in sales (150%) The anticipated impact, provided the private sector targets are met:
Strategy’s alignment with policies for economic development The Medium Term Plan 2011-2015 The IndustrialDevelopment Policy 2012-2016 The National Trade Policy 2012-2016
Strategy’s alignment with policies for economic development Agricultural Policy for the livestock sector COMESA RegionalStraetgy for the Leather Value Chain
10 months and impact is already happening… One shared vision: VALUE ADDITION Leather recognized as a priority in the IDP 2012-2016 (Obj. 1) Coordinating Committee recognized as catalyst and driver of sector development (Obj. 1) Hides and Skins Collectors Association created in response to improve collection and quality of hides for local tanning (Obj. 4) Contract Tanning: Tanners + Hide Collectors agreement for wet blue exports Committee being consulted by policy makers on hides and skins export control measures (Obj. 1) Bata, AWIDE, Imponente are implementing cluster manufacturing with SMEs + rural collection system Leather Development Fund supported by local banks and VC firms COMESAand key development partners (e.g USAID, FAO, ILO, UNIDO, NGOs) willing to support the strategy’s implementation