The Kingdom of Eswatini is seeking to unlock an estimated E943.8 million in leather value by strengthening local processing and manufacturing capacity. This opportunity was discussed at a leather sector joint procurement framework validation workshop held at ECODEC in Ezulwini. The workshop brought together government, industry representatives, and development partners to address persistent constraints affecting local leather enterprises.
Eswatini has the capacity to produce between 220,000 and 250,000 hides and skins annually, but much of this production has traditionally been exported in raw or wet-salted form. This limits the value retained domestically. The Swaziland Leather Value Chain Strategy 2016–2025 estimated that the value of the country's leather output could rise from about E78.7 million at the raw stage to approximately E943.8 million at the finished-products stage.
The Joint Procurement Framework is designed to consolidate the requirements of leather artisans and micro, small and medium-sized enterprises (MSMEs). This will enable them to purchase inputs collectively and potentially secure better prices and terms. Under Secretary Phesheya Dube, speaking on behalf of Principal Secretary Melusi Masuku, said collective procurement can create economies of scale, improve bargaining power, and reduce transaction and transport costs.
The absence of a commercial tannery remains a major structural constraint for the industry. Local footwear and leather-goods producers also continue to depend heavily on imported leather and other production inputs, adding to costs and limiting competitiveness. The ministry recognises that procurement alone will not transform the sector and that investment in tanning capacity, skills, machinery, product design, standards, finance, and market access is needed.
The approach is consistent with the country's previous leather-sector strategy, which identified joint bulk procurement as a short-term measure for addressing shortages and high input costs. The United Nations Economic Commission for Africa (UNECA) has supported the development of the procurement framework, while the Africa Leather and Leather Products Institute (ALLPI) has provided technical expertise on value addition and skills development.
Masuku urged stakeholders to ensure that the framework is "transparent, commercially viable and responsive" to the needs of leather enterprises. The workshop highlighted the importance of partnerships in advancing the sector. The initiative could help businesses overcome one of the sector's most immediate challenges: access to affordable and reliable raw materials.
Moving more leather through tanning, manufacturing, and finished-product stages could support enterprise development, employment creation, and import substitution. This would allow local businesses to capture a larger share of the value generated by the sector. The potential value addition gap is estimated at +E865.1 million, which is the unrealized revenue targeted via joint procurement and tannery investment.
Key points
- E943.8 million is the estimated value of Eswatini's leather output at the finished-products stage.
- The country has the capacity to produce between 220,000 and 250,000 hides and skins annually.
- The Joint Procurement Framework aims to consolidate the requirements of leather artisans and MSMEs to secure better prices and terms.
