Since 2016 the Italian Agency for Development Cooperation (AICS) has supported the leather sector business in Addis Ababa. The UNIDO implemented the “Technical Assistance Project for the Up-Grading of the Ethiopian Leather and Leather Products Industry” which aims to increase the competitiveness of Ethiopian small and medium enterprises (SMEs) operating in the sector in Ethiopia.
The initiative stems from the results achieved by two previous projects that contributed to the establishment of the governmental Leather Industry Development Institute (LIDI) center and the creation of 4 leather clusters composed of more than 380 SMEs, one of them only managed by women.
The activities brought forward so far, among other achievements, have facilitated technical training – mainly focused on innovative product design, improvement of working conditions of employees, provision of state-of-the-art machinery, and the creation of links between enterprises and micro-credit institutions. Partnering leather businesses from the four clusters have also participated in national and international fairs to share their experiences and build relations with international buyers. Approximately 326 SMEs were involved, and 64 women entrepreneurs benefited from project activities. 1740 new jobs were created, and 3241 jobs were retained. In addition, the SMEs saw an increase in their total production by 52%, a reduction in the production costs of each unit by an average of 45%, and an increase in the average profit margin by 26%.
Among the results achieved, it is worth mentioning the establishment of the Creative Hub (www.creativehub.et), a common space for enterprises, start-ups and designers. Having a strong focus on gender, the project supported the creation of a platform of women entrepreneurs operating in the leather sector in Ethiopia. The project has seen the partnership of relevant actors, such as UNIDO, the Italian NGO CVM, the Ethiopian Ministry of Trade and Industry, the Leather Sector Development Institute, and the Ethiopian Enterprise