Assessing the Main Priorities Area and Opportunities for Banks Financing in Leather Industry in Ethiopia

Abstract

This assessment is to identify the main opportunities of Ethiopian Banks for financing in leather sector. This can be done by analyzing data and drawn conclusions. The assessment also tries to identify comparative advantage of financing on leather sectors on banking performance. Also identified specific area of sub sectors to play significant roles in generating income from especially, exporting of the raw hides, skins, in leather sector. Also found from the assessment that Ethiopia have potential economy in the sectors because of the availability of such raw material, and high market supply of demand of leather from excess resource. Raw Hide and skin, and leather and finished leather sector has huge potential to achieve foreign exchange for Ethiopia, it is identified as one of the potential sectors that could play a crucial role in achieving long run the foreign currency earning of the country, expanding employment opportunities and attracting foreign direct investment (FDI) due to abundant labor and excess raw material. Then found, gain from the contribution of this sector to the country’s economy, highly significant and demanded in many international markets. The main export destination of Ethiopian leather and leather product are: China, Europe union’s countries (Italy, Germany, UK.), Japan, Hong Kong, United States of America, the main source of foreign exchange earner in each year.

Keywords: Leather, Leather product, Benefit, export

DOI: 10.7176/RJFA/13-1-01

Publication date: January 31^st 2022