By NOXOLO DLAMINI
PIGG’S PEAK – Eswatini’s leather sector could unlock significant economic value through collective procurement, local processing and stronger support for leather artisans and Micro, Small and Medium Enterprises (MSMEs), stakeholders heard during a Leather Sector Joint Procurement Framework Validation Workshop held at ECODEC.
The workshop, hosted by the Ministry of Commerce, Industry and Trade in collaboration with the United Nations Economic Commission for Africa (UNECA) and the African Leather and Leather Products Institute (ALLPI), brought together government officials, members of the Eswatini Leather Cooperative, development partners and other stakeholders to validate a proposed framework aimed at improving access to quality leather and production inputs.
The proposed Joint Leather Procurement Framework seeks to consolidate the purchasing needs of local leather businesses, allowing artisans and MSMEs to potentially benefit from bulk purchasing, stronger bargaining power and reduced transaction and transport costs.
RAW HIDES, LOST VALUE
Eswatini has the capacity to produce an estimated 220,000 to 250,000 hides and skins annually, but most are exported in raw or wet-salted form.
This limits opportunities for local value addition, with significant economic benefits generated further along the leather value chain outside the country.
The Swaziland Leather Value Chain Strategy 2016–2025 estimated that the value of hides and skins could rise from approximately E78.7 million at the raw stage to about E943.8 million at the finished-products stage.
The figures highlight the potential economic gains from increasing domestic processing and manufacturing of leather products.
PROCUREMENT AS A SOLUTION
Speaking during the workshop, Acting Principal Secretary in the Ministry of Commerce, Industry and Trade Phesheya Dube said the leather industry had the potential to contribute to value addition, enterprise development and employment creation.
“Our objective is to progressively move from exporting raw hides and skins towards processing and manufacturing finished leather products, thereby retaining more value within Eswatini and creating opportunities for MSMEs and employment,” said Dube.
The sector, however, continues to face challenges, including the absence of a commercial tannery, dependence on imported leather and other production inputs, high production costs and limited access to quality materials.
The proposed procurement framework is therefore expected to help businesses overcome some of these constraints by pooling their procurement requirements.
Through collective purchasing, leather enterprises could access inputs more efficiently and potentially at lower costs, while improving their bargaining power with suppliers.
MORE THAN PROCUREMENT NEEDED
Dube cautioned that procurement alone would not be sufficient to transform the sector, noting that further investment and support would be required across the leather value chain.
These areas include tanning capacity, skills development, machinery, product design, standards, access to finance and market development.
The Ministry also acknowledged UNECA’s support towards the development of the Joint Leather Procurement Framework, as well as ALLPI’s technical assistance in areas such as value addition, skills development, product development, standards and strengthening leather value chains.
Stakeholders were urged to provide practical input during the validation process to ensure that the framework is transparent, commercially viable and responsive to the needs of local leather enterprises.
The validation process is expected to contribute to refining the framework as Eswatini works towards strengthening its leather value chain, increasing local production and creating more opportunities for MSMEs and employment.
If effectively implemented alongside investment in processing, skills and market access, collective procurement could help local leather businesses become more competitive while keeping a greater share of the value generated from Eswatini’s hides and skins within the country.
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