THE African Leather and Leather Products Institute has called for stronger collaboration in Zimbabwe’s leather sector to address challenges faced by stakeholders.
The industry is grappling with several constraints, including poor product quality, low capacity utilisation and growing concern over financing, gender inclusion and weak value chain coordination.
The call was made during a panel discussion held in Bulawayo recently, which focused on innovative financing and value chain development in the leather industry.
Stakeholders from government, financial institutions and development finance institutions participated in the discussions aimed at strengthening the sector.
Deliberations centred on financing models, retooling, equipment leasing, and market access, with participants stressing that funding alone is not enough to transform the industry.
Women Affairs, Community, Small and Medium Enterprises Development ministry chief director Francis Gondo said financing must extend beyond manufacturers to grassroots actors within the leather value chain, including cattle rearers and hide collectors.
“Empowerment funds of about
US$3 000 are already supporting small-scale players and the loans are almost interest-free with flexible repayment terms,” he said.
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Gondo encouraged the use of internal savings and lending schemes, as well as savings and credit co-operatives, for communities that cannot access formal banking services.
“Are we even thinking of financing the people who are at the grassroots, who are looking after the cattle, who are collecting the hides? How are we financing those people?
These loans are almost interest-free because they are empowerment funds, and the repayment terms are very flexible.
Another innovative and very effective approach is internal savings and lending schemes as well as savings and credit co-operatives.”
Forbes Kanogwere from the Mutapa Investment Fund acknowledged financial challenges bedevilling the leather industry, noting that traditional bank lending has not been sufficient to drive sector growth.
He called for more inclusive and structured financing approaches that support the entire value chain.
US-Africa Trade Commission regional director Pauline Chiripanyanga said discussions must move beyond dialogue and translate to practical solutions that improve the sector.
“There is a need for collaboration that unlocks equipment leasing, strengthens production capacity and improves access to premium markets,” she said.
Chiripanyanga also stressed the importance of inclusive financing models that deliberately support women and other marginalised groups, who play a key role in the leather value chain.
Participants agreed that Zimbabwe’s leather industry requires more than access to finance, calling for coordinated action across all levels of the value chain.
They said without practical collaboration and inclusive investment models, the sector continued to face challenges despite ongoing discussions and policy efforts.
