16/05/2008 ::
According to a report from the US International Trade Commission Ethiopia is emerging as one of the leading sub-Sahara footwear exporters, along with South Africa, Kenya, Zimbabwe and Cape Verde. These 5 countries amount for 80 % of the shoe exports from the region. The development comes on the eve of substantial private investment in shoe production in Ethiopia, and exports are also benefitting the country's trade balance. Exports have been helped by improved quality in the production among other reasons because of a government established Training Institute giving six months training for employees in the industry. The industry is also benefitting from tax exemption in imports of materials for the production and export taxes on the ready products. From only a few government owned factories until the 1990s, Ethiopia now boast approximately 30 shoe factories.
A definite comparative advantage for Ethiopia is that the country has the biggest livestock population on the African continent (and the tenth largest in the world) and thus easy accesibility to leather. Initatives to improve the quality of hides and skins is underway to increase the industry's competitiveness in the higher quality markets.
Business relationships for the export producers have been estbalished between the Ethiopian footwear producers and companies/agents in Europe, mainly in Italy. Imports from Ethiopia now complement the Italian producers own production in Italy and are sold under the company's brand names throughout Europe, according to the report. At the same time the Ethiopian producers has benefitted from the guidance of Italian technicians and designers. According to the report men' shoes account for the bulk of Ethiopian footwear exports, while women's shoes is also being developed.
The Embassy visited today Peacock Shoe Factory, one of the five biggest in the country with 390 permanently employed and 60-100 seasonal workers. Peacock was the first Ethiopian factory to export shoes consistently and in bulk. The factory, based in Addis Ababa produces some 2000 pairs of shoes daily and exports 300.000 pairs of shoes annually, the rest being sold in the emerging Ethiopian market. The Manager of the family owned company, Eliyas Bedada said that their shoes find their way to the Norwegian market, but only through Italian agents. He said the company would like to link up directly to Norwegian companies. Peacock benefit from the fact that their mother company also owns two tanneries and a transporting company, thus securing safe delivery at agreed times, as is required in the international market, said the manager. He said that productivity in Ethiopia now can compete with India and labour costs are lower. This has created interest among foreign investors and he urged Norwegian investors to take advantage of the good investment climate.