Eswatini's leather sector has the potential to significantly grow in value through processing and manufacturing. The Ministry of Commerce, Industry and Trade recently held a validation workshop for the Eswatini Leather Joint Procurement Framework. This framework aims to address challenges in the local leather value chain. The sector currently exports most hides and skins in raw or wet-salted form. Stakeholders believe that processing these hides and skins into finished products could increase their value substantially.
The Swaziland Leather Value Chain Strategy 2016–2025 identified leather as a key opportunity for value addition, enterprise development, and employment creation. According to the strategy, Eswatini produces approximately 220,000 to 250,000 hides and skins annually. However, most are exported without being processed. The Ministry of Commerce stated that processing these hides and skins could increase their value from E78.7 million to E943.8 million. This represents a significant opportunity for the country to retain more value locally.
One of the major gaps in the local leather value chain is the absence of a commercial tannery. The footwear and leather-goods market in Eswatini has historically been heavily dependent on imports. Local producers rely substantially on imported leather and other inputs, increasing production costs and limiting competitiveness. The proposed Joint Leather Procurement Framework aims to address these challenges by consolidating the requirements of leather artisans and MSMEs.
The framework is intended to help enterprises benefit from economies of scale, stronger bargaining power, and lower transaction and transport costs. This approach is consistent with the Leather Value Chain Strategy, which identified joint bulk procurement as a short-term intervention. Longer-term interventions will focus on developing capacity for semi-processed and finished leather. The Ministry of Commerce emphasized that procurement alone will not transform the sector.
Principal Secretary Melusi Masuku, represented by Under Secretary Phesheya Dube, stressed that areas requiring continued attention include tanning capacity, skills, machinery, product design, standards, finance, and market access. The ultimate objective is to progressively move Eswatini from exporting raw hides and skins towards processing and manufacturing finished leather products. The United Nations Economic Commission for Africa (UNECA) supports the initiative.
UNECA Director Eunice Kamwenda, represented by Zodwa Mabuza, stated that the framework could establish a foundation for a revolving fund mechanism aimed at improving access to working capital for leather and footwear enterprises. The framework is not only about procurement but also about advancing a more industrialized and integrated Africa. Africa's leather market was valued at approximately US$3.9 billion in 2024.
The leather sector offers opportunities extending beyond footwear to handbags, belts, wallets, travel goods, furniture upholstery, automotive leather, protective equipment, and other specialized products. The success of the framework will depend on effective governance, particularly transparency, accountability, sustainability, and confidence among participating stakeholders. The Ministry of Commerce and UNECA believe that the leather sector can create jobs and wealth in Eswatini and across Africa.
Key points
- Eswatini's leather sector could grow from E78.7m to E943.8m through processing and manufacturing.
- The proposed Joint Leather Procurement Framework aims to address challenges in the local leather value chain.
- The framework could establish a foundation for a revolving fund mechanism to improve access to working capital for leather and footwear enterprises.
