The Beneficial Special Incentive Plan May Expand The Growth Of Small Leather Enterprises.

According to industry experts, if Tanzania Leatherwear The industry's future vision plan can be implemented, and 50 million pairs of raw materials can be produced and processed annually. leather shoes It is enough to meet the local market demand.

 

Joram Wakari, executive secretary of the Tanzania Leather Association, said Tanzania failed to develop the potential of the leather industry and import large quantities of shoes and leather materials from abroad every year. The income of export semi finished leather is disproportionate to the expenditure of a large number of imported footwear products, and most of the imported shoes belong to synthetic leather shoes, which are neither healthy nor conducive to environmental protection.

Tanzania is second only to Ethiopia. It is the second largest livestock breeding country in Africa, with 22 million cattle and 16 million sheep. Ethiopia is the largest producer of leather goods in Africa. At present, Tanzania needs to import large quantities of foreign exchange into 50 million pairs of shoes every year, while other leather products, such as bags and handbags, wallets and belts, can be made from raw leather.

John Magufuli, President of Tanzania, advocated industrialization in the inaugural address of the Congress and plans to revitalize the development of leather industry. Ma Gu Fu Li said that the government supports labor intensive industries to make use of their own resources to produce consumer goods needed by their own country. By 2020, 40% of the labor force will be engaged in its own industrial production.

According to Joram Wakari, executive secretary of Tanzania Leather Association, the raw material resources provided by the country can completely meet the needs of footwear production, replace imports, and have surplus exports. Shoemaking Industry investment potential is huge.

Tanzania gives tax-free and preferential loans to raw materials used in the footwear industry, giving preferential policies to local tanneries. The tax on imported semi finished leather materials will be increased, and import tariffs of 100% on imported leather products will be increased to protect the development of domestic enterprises.

Hossain, director of the Policy Office of the Tanzania Federation of industry, stressed that if the government provides a special incentive scheme, small leather enterprises will grow and grow. In addition, it is also necessary to effectively prevent smuggling of raw materials. If local shoemaking enterprises improve quality standards and produce high quality military boots, they can effectively promote production and expand market share, and increase the contribution of leather industry to GDP production in the country. At present, the output value of leather industry accounts for only 4% of GDP.