China and Japan to set up tannery in Ethiopia

August 20th, 2008 | by addis portal |

China’s position as the top producer of shoes and leather goods is fuelling its hunger for raw hides in other countries.

August 20, 2008: A Chinese-Japanese joint venture is planning to build four leather factories in Ethiopia, attracted by the country’s beneficial investment policies.

The planned investment is worth $34 million (Sh2.3bn), said Hei Tian Ming Liang, the Chinese partner in the venture.

“Ethiopia has good quality goat hides. They also offer favourable investment conditions,” Mr Hu, director of the company’s corporate communications department, told Business Daily.

Leather is Ethiopia’s second biggest export after coffee, though most of the product leaves the country as processed hides or semi-processed leather. The government has been trying to add more value to the sector by encouraging production of finished leather and leather goods.

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