Ethiopia's traditional leather sector consumes less than 10pc of the available hides and skins (HS). The remaining 90pc is assumed to be used in the modern leather sector that yields only 97 million dollars in export earnings. This incident displays a loss resulting from underdevelopment.
 

History tells that many products are invented by accident or pure chance. Conversely, leather warrants suspicious observation in its peculiar development.

Traditionally, a number of wild-eggs are wrapped in a rawhide and heavily beaten with a stick. Then animal excrement is added to the content, and left for a period of days. Though the smell is unpleasant, the process achieves its objectives of strengthening the skin.
 

The modern process is applying Sodium Sulphide - a chemical famous for its ability to destroy hair and generate gas that smells like a rotten hen egg.
 

Though tanners are often labelled as a conservative bunch, slowly, many have accepted the modern ways and many tannery operations have popped up.
 

Though not gaining wide-usage until 1884 the discovery of Chromium around 1800 for tanning purposes was a breakthrough moment. The chemical shrinks the tanning production cycle from more than three months to just a day and produces a multi-purpose leather.
 

Despite the industry's modernisation, Ethiopia's sector is characterised by a mix of traditional and modern production. More efficient use of HS is lost in the traditional sector making bags, straps, heat blower, baby carrying cloak and sandals. Because of their weak chemistry, these products depreciate quickly.
 

A blacksmith who makes knives named Bedlu, 15, is using innovative means to substitute other materials to construct the devices traditionally made from leather. He lives in a makeshift shelter in one of the highly marginalised shanty districts in Addis Ababa, called 'Ketechene' and is one of many blacksmiths that uses rubber rather than leather heat blower.
 

This is just one way more of the raw materials can find their way into the modern sector.
 

About seven per cent of the country's 30 million-strong cattle population is slaughtered every year. This is much lower than the 35pc rate for goats and sheep.
 

These production inputs translate into two million hides and 18 million skins annually, though over two million skins go to the traditional sector.
 

Skins not reaching the value-adding technology processes do not fetch the foreign currency generated from the international prices reaching 10 times above the local. This opportunity cost is damaging in a poor country with vast potential.
 

Smuggling and damage due to lack of quality control also contribute to lower than desired revenues.
 

A visit to the traditional leather goods market of over 20 shops in Mercato shows a thriving trade that is even aggressively expanding in other towns such as Bahir Dar and Gonder. In some cases NGO's have lent their hand to promote the traditional sector.
 

Notwithstanding the ban of raw HS from export, the stand-off between HS traders and tanneries has deflated the local HS price far below the international price, relegating too much quality product to the traditional sector. This leather fails to fetch the international prices and decreases business development.
 

The government should create the incentive structures so that the comparative advantages in terms of leather inputs may be exploited and exports are boosted. The foreign currency and business development will surely aid the country's growth prospects.