Government struggling to fund leather cluster project

Ethiopia
Published:  03 February, 2015

According to local media reports, the plan by Ethiopia’s Ministry of Industry to construct a leather tannery cluster in Mojjo is stalling as it has not yet secured the US$58 million investment required to begin phase one of the project.

The Ministry has already conducted a feasibility study for the first phase of construction that has been estimated to cost US$58 million. The design of the cluster was prepared a year and a half ago with the aim of concentrating tanneries in Mojjo town. The aim is to improve the environment performance of the industry and move the plants away from urban areas. The design shows there will be 20 tanneries that will share wastewater treatment facilities.

Birhanu Serjabbo, Public Relations Head of Leather Industry Development Institute (LIDI), said that the cluster would include new machinery and equipment for leathermaking.

“Some interested partners such as the United Nations Industrial Development Organisation (UNIDO) and the French Development Agency (AFD) have showed their willingness to assist us and I hope the construction will begin shortly,” Birhanu added.

The Ministry’s plan was to relocate leather factories in three to five years, to Mojjo where there will be different industrial units ranging from raw material storage, leather processing units and a central effluent treatment plant (CEPT).

Source: Capital

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