The COMESA/LLPI in its endeavor to transform the COMESA leather value chain is leaving no stone unturned and is engaging all relevant stakeholders nationally, regionally and internationally to develop robust programs that would spur growth of the sector.
To achieve the growth and development of the sector in a holistic and sustainable manner, it has adopted the triple helix and the inclusive markets approaches. The employment of the two approaches ensures that the Cluster Development process takes into account the critical elements of sustainable growth, technology transfer, market consolidation and policy support. It places the Private Sector at the center of wealth creation and rural industrialization through the creation of value addition, jobs, intra-trade and contributing revenue to the fiscus. According to UNDP (2013) "Inclusive businesses integrate low-income individuals into value chains in various capacities, be it as consumers, producers, employees and entrepreneurs. Thus, they bring the benefits of growth directly to low-income communities. This is not charity. Inclusive businesses create a strong foundation for profit and long-term growth by bringing previously excluded people into the marketplace".
As part of the overall framework, with limited resources, COMESA/LLPI has supported the development of the Leather Value Strategy in Zimbabwe and is currently working with Rwanda, Uganda and Sudan in the development of the same. The formulation process of the strategies is participatory and brings the key actors to the fore and makes them accountable in the implementation of such a strategies. The strategies embrace the Inclusive Business Ecosystem Diamond, which outlines the four primary functions required to support inclusive businesses:
- Information provides businesses with the awareness, knowledge, technology and know-how required to operate in low-income markets;
- Incentives provide businesses with the impetus to engage with low-income communities by rewarding positive externalities and reducing the cost of doing business;
- Investment provides the financial backing that enables businesses to venture into challenging low-income markets;
- Implementation support provides the logistics, transaction, marketing and communication, and micro-business support services that allow inclusive businesses to function in a variety of dynamic environments.
COMESA/LLPI is ready to support Member States beyond the crafting of the strategies, by supporting them in the process of implementing the strategies, monitoring and evaluation.
To complement the above soft issues, the COMESA/LLPI is also engaging on action and tangible results based activities such as skills development and promotion of intra-trade. To this end it trained 240 SMEs in five COMESA countries and it also supported the participation of SMEs in seven regional trade fairs. These activities have led to the production of quality footwear products and also trade linkages have been established among SMEs in the COMESA countries. Mr. Simon Ng'ang'a and SME from Kenya, has had this to say about COMESA/LLPI interventions "the future of SMEs is bright, given the proactive stance, which COMESA/LLPI has taken in engaging all the key stakeholders from the smallest to the biggest".
In order to promote and reduce the cost of technology transfer from global premier institutions in leather technology COMESA/LLPI has signed MOUs with CLRI and KIFLT of India and South Korea respectively. It is currently in the process of signing similar MOUs with Ege University of Turkey. Templates for auctioning these MOUs are in the process of being developed.
At national level activities are being implemented in partnership with national technical and business organizations. For example, in Malawi, LLPI is working with Malawi Chamber of Commerce and Industry, in Zimbabwe it is working with the Leather Institute of Zimbabwe and in Zambia with the University of Copperstone, Zambia Development agency. This applies to many countries in the region. To reinforce this partnership and COMESA/LLPI has been quick to concretize an MOU, which was signed between AMSCO and the COMESA Secretariat, by submitting a project proposal to the former. The initiation phase of this project started in February 2014, and this program would be premised on the inclusive market approach, which ensures that critical movers are committed to the project. One critical actor in the equation is an "off-taker", that is a committed buyer of the products from the SMEs. Member States Government can are expected to function as the most important off taker in the procurement of footwear for security and other government departments. A commitment by Governments to purchase 2% of their footwear requirements from SMEs, would injects US$25 million in the SMEs. COMESA/LLPI would soon be engaging relevant government departments, in order to agree on quality standards of such footwear, which would in turn inform the nature of the footwear to be produced by SMEs, in order to satisfy such orders.
COMESA/LLPI is also embracing the e commerce high way; it has designed a leather online portal, where the profiles and pictures of products are currently being uploaded. This is set to strengthen the intra and international linkages of SMEs at minimal cost. This site can be accessed at http://portal.comesa-llpi.org.
COMESA/LLPI is working tirelessly to contribute the overall mandate of COMESA, by complimenting the work of trade and industry divisions of COMESA. In addition to this it has participated in most of the events which have been organized by the COMESA Business Council, mainly because the voice of the business is important. The SMEs, being growth by COMESA/LLPI are the future of the voice of business.
The COMESA Summit in DRC, has also assisted COMESA/LLPI to identify contact points to work with, in regard to the development of the leather value chain in DRC and also to link it with regional suppliers of finished leather, footwear and leather goods. DRC has the potential to grow the footwear making industry, as reflected by the high quality footwear currently being produced by SMEs. On the other hand DRC has a big market with huge profit margins.
International development partners, such as the European Union, remain pivotal in ensuring the success of a number of interventions. The year 2013, has recorded successful interventions in capacity building, promotion of intra trade and strengthening the cluster management capacity at Member States level have mainly been supported by the European Union. The COMESA/LLPI has also developed a number of project proposals, which have been submitted to several potential development partners.
In conclusion COMESA/LLPI would want to thank the Members States and the Secretary General COMESA, who have supported it during difficult times and we would like to assure them that your patience and investment is now bearing fruits.
