Chinese-owned Huajian shoe factory in Dukem, Ethiopia. PHOTO | JENNY VAUGHAN | AFP
Some time around the year 2000, the Ethiopian shoe industry faced an unprecedented period. The market began opening its doors to cheaper, shiny and attractive plastic shoes from China that left local dealers anxious about the possibility of being pushed out of business.
Many factory owners were torn between trying to beat the Chinese at their game and shifting to other businesses.
“It was a very difficult time. The majority of local customers fell in love with Chinese shoes largely because of their superior finishing and unique designs,” said Mulugeta Megenas, the owner and manager of Duka Leather Products factory.
“While many shoe makers shifted to doing other businesses, a number of us with designing skills decided to learn from the Chinese. With time, customers began to appreciate durable, well-designed local shoes, which helped us stay afloat.”
It also helped that the country had huge livestock resources meaning that raw material was not difficult to come by. The government too revised its leather policy, labour was cheap and readily available and the demand for local shoes had started to grow.
The Ethiopian shoe industry survived and today, the sector is attracting investors from across the world including bigwigs such as Huajian of China and George Shoes of Taiwan.
“Today it is difficult for people to differentiate between genuine local leather shoes and those imported from China or elsewhere. In fact, some of us are now bold enough to label our products ‘Made in Ethiopia’ under our trademark,” said Megenas, who had worked in various factories as a shoe designer before he opened his own, seven years ago.
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Some say the art of shoe making was introduced to Ethiopians by the Italians in the mid-1920s. Others argue that it was the Armenians who introduced the leather industry to the country in response to the growing demand for leather shoes.
Whatever the case, today, the industry is big. Ethiopia has more than 30 tanneries and hundreds of factories that make shoes and leather garments.
The local industry has created jobs for millions of Ethiopians, while earnings from exports of leather products including gloves and garments was estimated has been growing. Last year for example, earnings stood at $132 million from $76 million five years ago. Out of this figure, around $30 million came from shoe exports. The figures are higher when you factor in foreign brands with factories in Ethiopia.
Duka Leather Products, a newcomer to the export market is currently selling its shoes in East Africa, but has plans to expand across the globe.
“For the first time this year, we exported 50,000 pairs of shoes to East African countries, and we plan to introduce our brand to the world soon,” said Megenas.
An export report shows that by last year, key destinations of Ethiopian leather products included the US, England, China, Italy, Germany, Kenya, Uganda and Tanzania.
But while exports have been growing, they remain below government’s targets, and many locally-made products or those made using raw material sourced from the country are selling under foreign brands. This means that Ethiopia’s share in world trade of leather and leather products is small compared with foreign brands.
Source: theeastafrican