Tanzania leather industry faces bleak future as global commodity price slump lowered demand for value added leather products from major importers.
Leather Association of Tanzania (LAT), Executive Secretary, Mr Joram Wakari, said in Dar es Salaam yesterday that leather exports have dropped to less than 5 per cent forcing some players to close down their businesses.
"The situation is worse as very little is being exported due to fall of demand from the most importing countries including China and Pakistan thus leaving most godowns full of packed semi processed leather products," he said.
For example, one leather factory in Shinyanga has closed down operations due to falling demand for semi processed leather products. The situation has not impacted only Tanzania, but also Kenya, Ethiopia and Brazil. He said most business people in the leather industry were frustrated and had incurred heavy losses since when the situation started to surface on the last quarter last year. The governments will also lose substantial revenues from the leather industry.