The East African Business Council (EABC) and the Africa Leather and Leather Products Institute (ALLPI) have signed a memorandum of understanding (MoU) aimed at promoting growth and competitiveness in the leather industry across the East African Community (EAC) and the Common Market for Eastern and Southern Africa (COMESA) regions.
The five-year agreement focuses on policy advocacy, investment promotion, research, and capacity building to strengthen the regional leather value chain and enhance its contribution to job creation and trade.
EABC Acting Executive Director Adrian R. Njau said the partnership aligns with the organization’s goal of promoting private sector–led growth and regional integration.
“The leather sector holds immense potential for value addition, job creation, and export diversification across the EAC,” Njau said. “Through this MoU, we aim to address policy bottlenecks, improve standards, and enhance trade and investment in the sector.”
Representing ALLPI, Michael Kiraye said the collaboration will help connect the EAC and COMESA regions through innovation and knowledge exchange.
“This partnership with EABC is an important step in bridging the COMESA and EAC regions,” Kiraye said. “Together, we will promote trade and investment while empowering SMEs, women, and youth in the leather industry.”
According to regional reports, the East African Community has one of Africa’s largest livestock populations, with more than 188 million cattle, sheep, and goats across its member states. The region accounts for roughly 3% of the world’s bovine herd and 5% of the global goat herd, providing a strong raw-material base for leather production, according to the East African Community Leather and Leather Products Strategy and Implementation Roadmap 2020–2030.
Yet, despite this potential, only about 10% of hides and skins are processed into finished leather goods. The East African Herald reports that local production meets just 10% of the region’s monthly demand for industrial footwear, while The EastAfrican notes that Rwanda alone loses an estimated $170 million annually due to limited local leather processing capacity.
Across the wider Common Market for Eastern and Southern Africa (COMESA) region, member states collectively produce over 42 million hides and skins each year, but still import finished footwear worth about $1.1 billion annually, according to COMESA’s April 2025 e-Newsletter.
The Africa Leather and Leather Products Institute (ALLPI) estimates that value addition could boost the sector’s annual earnings from $378 million to $875 million, and potentially up to $2.5 billion if countries move from exporting raw hides to producing finished goods. The COMESA Leather Value Chain Strategy (2025–2029) identifies priorities such as industrial upgrading, skills development, and technology transfer to strengthen intra-African trade in leather products.
Under the new MoU, EABC and ALLPI will collaborate in areas including policy advocacy, research, training, and investment promotion. The partnership also emphasizes sustainable production practices and gender inclusion.
The MoU will be reviewed annually to align with regional priorities. Both organisations said they plan to jointly mobilise resources to implement programs that benefit businesses in the leather sector.
