Rwanda Strategy October 2015

8/17/2019 Rwanda Strategy October 2015

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RWANDA LEATHER VALUE CHAINCOMPREHENSIVE STRATEGIC FRAMEWORK

2015 to 2024VISION

“To be G!ob !!" Co#$et%t%&e Le t'e( V !)e C' %*+

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ACKNOWLEDGEMENT

It would be impossible to address and acknowledge all individuals who in one way or another contributed towards the realization of this Co#$(e'e*,%&e Le t'e( V !)eC' %* St( te-%. F( #e/o( because of their multitude.

The Common Market for astern and !outhern "frica#$eather and $eather %roductsInstitute &C'M !"($$%I) would like to e*press its profound appreciation to theMinistry of Trade and Industry of the +epublic of +wanda for its collaboration andassistance for the successful completion of this study.

Indeed this study could not have attained this par e*cellence had it not been for theeagerness of all key stakeholders, who shared their knowledge and e*perienceduring the consultations process.

-o fewer thanks go to Mr. -icholas Mudungwe, Cluster evelopment *pert, r.Tadesse /.Mamo, Training, Consultancy and *tension *pert and %rofessor "lemuMekonen, 0alue Chain *pert who tirelessly devoted their time in the preparation of this study and other colleagues of C'M !"($$%I for administrative and technicalsupport rendered during the assignment period of the !tudy Team.

-eedless to say but still, it would remain the responsibility of the C'M !"($$%I for any erroneous, if any but none, message of the paper.

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STATEMENT THE HONOURA LE MINISTER OF MINICOM 3 to be inserted by theMinistry of Industry and Commerce)


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Co*te*t,

$ist of Tables ............................................................................................................ 8

$I!T ' I45+ ! ..................................................................................................10

$I!T ' "C+'-6M! ..............................................................................................11

7 C5TI0 !5MM"+6 .......................................................................................... 12

C/"%T + I8 C'-T 7T ! TTI-4 ............................................................................13

9. Introduction .................................................................................................. 13

9.9. Country Conte*t .........................................................................................13

9.2. !tructure of the conomy and !ector %erformance .........................................13

9.3. The +elationship between the $eather 0alue Chain !trategy 'ther %olicies and!trategies of +wanda ........................................................................................... 13

9.3.9. -ational 0ision and "spirations .................................................................14

9.3.2. -ational Industrial %olicy ..........................................................................14

9.3.3. -ational *port !trategy ...........................................................................15

9.3.1. +wanda Trade %olicy ............................................................................... 15

9.3. . !mall and Medium nterprises &!M s) evelopment %olicy &2:9:) ................16

9.1. Importance of the $eather 0alue Chain ..........................................................16

9.1.9. 4lobal $evel ........................................................................................... 16

9.1.2. C'M !" !ituation ..................................................................................17

9.1.3. Market !ize of ootwear in the C'M !" +egion .........................................18

9.1.1. +wanda !ituation ....................................................................................19

9. . Conclusion ................................................................................................ 19

C/"%T + II8 !IT5"TI'-"$ "-"$6!I! ' T/ 0"$5 C/"I- ...................................20

2. Introduction .................................................................................................. 20

2.9. Industry !tructure and 0alue Chain Map ........................................................20

2.2. Income istribution in the Marketing of ;ovine /ides .......................................21

2.1 The %otential of the +wandese $eather 0alue Chain ............................................22


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2. The Tanning !ubsector ....................................................................................23

The =et ;lue %roduction Cost !tructure and the Implication of /ides and !kins >uality 23

2.3. *isting Incubation, Training and %roduction acilities .....................................25

2.3.9. The Community %rocessing Centre &C%C) ..................................................25

2.3.9.9. !='T "nalysis of the C%C ...................................................................27

2.3.2. Masaka Incubation Centre ....................................................................28

2.1. Trade "nalysis ........................................................................................... 29

2.1.9. *ports of "rticles of /armonized !ystem &Chapter 19) ................................29

2.1.2. Imports of inished $eather and ootwear ..................................................30

2. . ootwear %roduction !ubsector ....................................................................31

2. .9. ootwear !upply Chain and the 4aps in the +wandese 0alue Chain ..............31

2. .2. 4ross Margins of !M s per %air of ootwear ..............................................32

2. .3. +anking of Constraints by !M s ...............................................................33

2. .1. Technical !kills "c?uisition .......................................................................34

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9.3.1. /ides and !kins Collection and Marketing ..................................................41

9.3. . Tanning .................................................................................................. 42

9.3.uality and Collection of /ides and !kins ...............46

1.1.2. 'bAective 28 Improve the %erformance of !M s who are currently involved in the%roduction of ootwear and $eather 4oods through the C%C Methodology ..................52

1.1.3. 'bAective 38 evelop an Industrial %ark for the $eather Industry .....................58

1.1.1. 'bAective 18 Improve Institutional, %olicy, inancial !upport and MarketIntelligence ......................................................................................................... 60

1. . Implementation Methodology of the !trategy ..................................................62

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9.3.2. -ational Industrial %olicy ..........................................................................13

9.3.3. -ational *port !trategy ...........................................................................14

9.3.1. +wanda Trade %olicy ............................................................................... 14

9.3. . !mall and Medium nterprises &!M s) evelopment %olicy &2:9:) ................15

9.1. Importance of the $eather 0alue Chain ..........................................................15

9.1.9. 4lobal $evel ........................................................................................... 15

9.1.2. C'M !" !ituation ..................................................................................16

9.1.3. Market !ize of ootwear in the C'M !" +egion .........................................17

9.1.1. +wanda !ituation ....................................................................................18

9. . Conclusion ................................................................................................ 18

C/"%T + II8 !IT5"TI'-"$ "-"$6!I! ' T/ 0"$5 C/"I- ...................................19

2. Introduction .................................................................................................. 19

2.9. Industry !tructure and 0alue Chain Map ........................................................19

2.2. Income istribution in the Marketing of ;ovine /ides .......................................20

2.1 The %otential of the +wandese $eather 0alue Chain ............................................21

2.3. *isting Incubation, Training and %roduction acilities .....................................21

2.3.9. The Community %rocessing Centre &C%C) ..................................................21

2.3.2. Masaka Incubation Centre ....................................................................22

2.1. Trade "nalysis ........................................................................................... 24

2.1.9. *ports of "rticles of /armonized !ystem &Chapter 19) ................................24

2.1.2. Imports of inished $eather and ootwear ..................................................25

2. . ootwear %roduction !ubsector ....................................................................25

2. .9. ootwear !upply Chain and the 4aps in the +wandese 0alue Chain ..............25

2. .2. 4ross Margins of !M s per %air of ootwear ..............................................27

2. .3. +anking of Constraints by !M s ...............................................................27

2. .1. Technical !kills "c?uisition .......................................................................28

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2.uality and Collection of /ides and !kins ...............40

1.1.2. 'bAective 28 Improve the %erformance of !M s who are currently involved in the%roduction of ootwear and $eather 4oods through the C%C Methodology ..................46

1.1.3. 'bAective 38 evelop an Industrial %ark for the $eather Industry .....................52

1.1.1. 'bAective 18 Improve Institutional, %olicy, inancial !upport and MarketIntelligence ......................................................................................................... 54

1. . Implementation Methodology of the !trategy ..................................................56

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L%,t o T b!e,

Table 98 +wanda8 4 % and ;road !ectors Contribution ................................................13

Table 28 The !trategy +elationship with 0ision 2:2: .....................................................14Table 38 The !trategy +elationship with -ational Industrial %olicy ...................................15

Table 18 The !trategy +elationship with the -ational *port !trategy ..............................15

Table 8 The !trategy +elationship with the Trade %olicy ..............................................15

Table


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Table 2@8 $ivestock %roduction !ystems in +wanda .....................................................40

Table 2B8 %re#!laughter Issues Identified uring the =orkshop .....................................40

Table 2 8 %eri and %ost !laughter Issues ....................................................................41

Table 3:8 /ides and !kins Marketing Issues ...............................................................42

Table 398 Tanning Issues ..........................................................................................42

Table 328 ootwear and $eather 4oods %roduction Issues ............................................42

Table 338 Target Markets ..........................................................................................44

Table 318 4rowth !trategic Targets ............................................................................44

Table 3 8 The +ationale for the !elected 'bAectives .....................................................45

Table 3


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Table 9


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LIST OF FIGURES

igure 98 4lobal Importance of the $eather 0alue Chain ...............................................17

,i-ure 2: I#*ortance o+ t e C'M S( /e-ion b) eat er alue C ain Se-#ent ...18

igure 38 C'M !" Imports of ootwear from China and the =orld ................................19

igure 18 +wanda /ides and !kins !upply .................................................................21

igure


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LIST OF ACRON MS

C'M !"($$%I Common Market for astern and !outhern "frica, $eather and$eather %roducts Institute

C'M !" Common Market for astern and !outhern "frica"C ast "frican Community%+! conomic evelopment and %overty +eduction !trategy

.'.; ree 'n ;oard4 % 4ross omestic %roduct/! /armonized !ystem$$ C $and#$ocked $east eveloped Country$$%I $eather and $eather %roducts InstituteMI-C'M Ministry of Trade and Industry%" %er "nnum+C" +evealed Comparative "dvantage

!M s !mall and Medium nterprises

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E ECUTIVE SUMMAR

+wanda has made tremendous strides in improving the performance of its economy and theliving standards of its people. Its global ranking as a competitive economy has improvedsignificantly over the past ten years. espite the rapid improvement, the contribution of the

Manufacturing !ector is still very small, the !ervice and "griculture !ectors are the twoleading contributors to 4 %. The development of the $eather 0alue Chain presents anopportunity for her to improve the performance of its Industrial !ector by supportingactivities, which are aimed at improving value addition. In 2:92, +wanda e*ported raw hidesand skins, valued at 5!F92 million. The conversion of these raw hides and skins intofinished leather products can generate appro*imately 5!F93: million as direct earnings.This would definitely stimulate economic activity in the service sector and in the productionof accessories, which are needed in the production of leather products.

The current situation obtaining in +wanda is of a leather value chain, whose entry into theglobal value chain is at the primary stage of e*porting raw hides and skins, thus potentialearnings, which could have been raised through value addition, amounting to 5!F99B

million, are forgone. It is important to note that the e*port of raw hides and skins is veryimportant to the +wandese economy, as its income earnings is among the top ten.urthermore the e*port of raw hides and skins are in the top ten for +wanda with regard to

competitiveness and specialization indices such as the $afay and the +evealed Comparative "dvantage respectively.

It was observed that although the ?uality of raw hides and skins are good, the absence of anoperational tannery has created a gap, which has forced the !M s involved in theproduction of footwear to depend on imports of finished leather, conse?uently raising their costs of production. ;eyond unstable supplies of finished leather and other accessories, the!M s face a plethora of challenges, ranging from8 operating in poor environment and lack of technical and entrepreneurial skills, among others.

The current strategyGs 0ision, Mission and 'bAective are8

T'e V%,%o*6“To be globally competitive leather value chain”

T'e M%,,%o*6 “T( *, o(# t'e R/ *7e,e !e t'e( & !)e .' %* (o# e8$o(t o ( / '%7e,*7 , %*, to $(o7).t%o* *7 e8$o(t o & !)e 77e7 $(o7).t,+

T'e ob9e.t%&e, (e6

• Improve the ?uality and collection of hides and skinsH• !upport the development and growth of !M s who are involved in the production

leather footwear and goodsH• !et up an Industrial %ark for the leather sectorH and• Improve institutional, policy and financial support and market intelligence.

The above 0ision, Mission and 'bAectives are galvanized by measurable Market and 4rowthtargets, which are measurable. This is imperative, as it gives a guideline to measure theimpact of a cocktail of interventions and activities, which are proposed under each specificobAective.

The implementation methodology of this strategy is holistic, whereby the Ministry of Industryof and Industry plays a central role in spearheading its implementation in collaboration with ahost of !takeholders, which are listed under each obAective and sub obAective.

The future of the +wanda $eather 0alue Chain looks bright

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CHAPTER I6 CONTE T SETTING

1: I*t(o7).t%o*

This Chapter presents the conte*t in which the +wanda leather value chain operates. Itsummarizes the economic situation in +wandaH the global and regional importance of theleather value chainH the strategic fit of the proposed strategy in line with +wandaGs overalldevelopment goals and other relevant policies, such as industry and trade policies.

1:1: Co)*t(" Co*te8t

+wanda is classified as a J$and#$ocked $east eveloped CountryG &$$ C) with a per capita4 % of around F 19 &2:: ) and a total estimated population of 9:.3 million &2:9:).+wandaGs /uman evelopment Inde* ranks it 9 2 out of a total of 9< countries &2:9:). Thecountry has one of the highest population densities on the "frican Continent.

+wanda has a clearly defined set of national development goals and targets. 5nder the0ision 2:2:Gs umbrella, the 4overnmentGs medium#term plan is stated in the countryGsconomic evelopment and %overty +eduction !trategy & %+!) 2::B#2:92 with a strong

emphasis on private sector developmentH agribusinessH energy and other infrastructureHscience and technologyH as well as the environment. espite strong performance ineconomic growth, the countryGs share of manufacturing remains unchanged at around 93. Eof 4 %. Thus the crafting and implementing of policies, which promote value addition, arefundamental in unlocking the value inherent in the +wandese economy. The $eather 0alueChain of +wanda is currently underdeveloped, with raw hides and skins as the main e*portproduct. Thus, the development of a comprehensive leather value chain strategy is a directresponse to this.

1:2: St().t)(e o t'e E.o*o#" *7 Se.to( Pe( o(# *.e

The service and agriculture sectors contribute 1@E and 32E to the 4 % of +wandarespectively. The industry sector contributes 93. EH this reflects the importance of promotingvalue addition in the leather value chain, as this would boost its contribution to +wandaGs4 %. !ee details in the Table below.

T b!e 16 R/ *7 6 GDP *7 (o 7 Se.to(, Co*t(%b)t%o*

200; 200< 2010 2011 2012 201= $(o9: A&e( -eCo*t(: 3>?4 % 39@: 33


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T b!e =6 T'e St( te-" Re! t%o*,'%$ /%t' N t%o* ! I*7),t(% ! Po!%."N t%o* ! I*7),t(% ! Po!%." Ob9e.t%&e, T'e Re! t%o*,'%$ bet/ee* N t%o* ! I*7),t(% !Po!%." *7 t'e Le t'e( St( te-"

Ob9e.t%&eO*e

Ob9e.t%&eT/o

Ob9e.t%&eT'(ee

Ob9e.t%&eFo)(

Increase domestic production for local consumption 7 7Improve +wandaGs e*port competitiveness 7 7 7Create an enabling environment for +wandaGs industrialization 7 7

1:=:=: N t%o* ! E8$o(t St( te-"

The vision of the -ational *port !trategy is to transform +wanda into a globally competitivee*port economy. The $eather 0alue Chain !trategyGs overall goal has a strong relationshipwith the vision of the -ational *port !trategy, as it seeks to transform the leather valuechain into globally competitive leather value chain, producing and e*porting value addedproducts. Table 1 below shows the linkages between the -ational *port !trategy %illars andthe $eather 0alue Chain strategyGs obAectives

T b!e 46 T'e St( te-" Re! t%o*,'%$ /%t' t'e N t%o* ! E8$o(t St( te-"N t%o* ! E8$o(t St( te-" G)%7%*- P(%*.%$!e, T'e Re! t%o*,'%$ bet/ee* N t%o* ! E8$o(tSt( te-" *7 t'e Le t'e( St( te-"

Ob9e.t%&eO*e

Ob9e.t%&eT/o

Ob9e.t%&eT'(ee

Ob9e.t%&eFo)(

Increase e*port revenues through ?uantity and value addition, as well ase*port diversification.

7 7

Create a favourable business environment that encourages the formalizationof e*port related industries and increases the number of e*port firms.

7 7

Improve the understanding of international standards, re?uirements, andopportunities.

7 7 7

ncourage institutional and public # private coordination around key market #led e*port initiatives, while maintaining a fle*ible e*port strategy, based oncontinued monitoring and evaluation.

7 7 7

Increase the e*port#related number of Aobs, particularly with high living

standards.

7 7

Improve and leverage human capital, innovation, and technologyinvestments, including the development of competitive mindsets across keye*port sectors.

7

!upport broader areas of social development such as gender e?uality, youthdevelopment, environmental sustainability, and inclusion of vulnerablegroups

7 7

1:=:4: R/ *7 T( 7e Po!%."

The 0ision of +wandaGs Trade %olicy is8 Trading for evelopment, growing sustainable anddiversified ?uality products and services for trading locally, regionally and internationally withthe aim of creating Aobs, increasing incomes and improving the living standards of

+wandans : The $eather 0alue Chain !trategyGs 0ision has a strong strategic fit with theTrade %olicy, as it supports the transformation of the leather value chain into a globallycompetitive industry producing diversified value added leather products, which meetnational, regional and international standards. Table below shows the linkages betweenthe Trade %olicy 'bAectives and the $eather 0alue Chain !trategy 'bAectives.

T b!e 56 T'e St( te-" Re! t%o*,'%$ /%t' t'e T( 7e Po!%."V%,%o* 2020 Ob9e.t%&e, T'e Re! t%o*,'%$ bet/ee* R/ *7 T( 7ePo!%." *7 t'e Le t'e( St( te-"

Ob9e.t%&eO*e

Ob9e.t%&eT/o

Ob9e.t%&eT'(ee

Ob9e.t%&eFo)(

Increased productivity, competitiveness and diversified sustainable productivecapacities for trading nationally, sub# regionally, regionally and internationally

7 7 7

nhanced participation of importers and e*porters of goods and services in

regional and international trade taking advantage of trade opportunities. !pecialattention would be paid to supporting women farmers and entrepreneurs as wellas rural#based e*porters.

7

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Increasing investment, including foreign direct investment, into production of competitive goods and services for the e*port market.

7

Increased human resources skills in trade and development through trainingand retraining in private and public institutions.

7 7

!trengthened science, technology and innovation policies, strategies andinstitutions including intellectual property laws, in support of industrialdevelopment and creative knowledge#based industries.

7 7

1:=:5: S# !! *7 Me7%)# E*te($(%,e, 3SME,? De&e!o$#e*t Po!%." 32010?

The 0ision of the !M s %olicy is to create a critical mass of viable and dynamic !M ssignificantly contributing to the national economic developmentH and its Mission is tostimulate growth of sustainable !M s through enhanced business support service provision,access to finance and the creation of an appropriate legal and institutional framework. The$eather 0alue Chain !trategy targets the transformation of !M s into vibrant manufacturersof leather products for both domestic and international markets. Table < below shows thelinkages between the !M s %olicy 'bAectives and the $eather 0alue Chain !trategyGs'bAectives.

T b!e @6 T'e St( te-" Re! t%o*,'%$ /%t' t'e SME, Po!%."SME Po!%." 2020 Ob9e.t%&e,

T'e Re! t%o*,'%$ bet/ee* S# !! *7 Me7%)#3SME,? E*te($(%,e De&e!o$#e*t Po!%." *7 t'e

Le t'e( St( te-"Ob9e.t%&e

O*eOb9e.t%&e

T/oOb9e.t%&e

T'(eeOb9e.t%&e

Fo)( %romote a culture of entrepreneurship among +wandans 7

acilitate !M access to development services including8• Business development services• Access to local, regional and international markets and market

information• Promote innovation and technological capacity of SMEs for

competitiveness

7 7 7 7

%ut in place mechanisms for !M s to access appropriate businessfinancing

7 7

!implify the fiscal and regulatory framework for !M growth 7evelop an appropriate institutional framework for !M development 7 7

1:4: I#$o(t *.e o t'e Le t'e( V !)e C' %*

1:4:1: G!ob ! Le&e!

The leather value chain globally is estimated at 5!F9:: billion. 9 " comparison of this valuechain with other commodities reveals that its trade is greater than the combined trade of meat, sugar, coffee and teaH see igure 9 below. espite this immense importance, thesector has not received much attention especially in many developing countries, whencompared with other commodities, whose production and marketing are championed by

institutional support, for e*ample Meat Commission, Tea or Coffee ;oards etc.

9 The 5!F9:: billion e*cludes leather blended products, e.g. sports shoes and fashionable bags.

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F%-)(e 16 G!ob ! I#$o(t *.e o t'e Le t'e( V !)e C' %*

!ource8 Computed withn C'M !"($$%I reports and "' 2:92

The global trade in the leather supply chain grew over the period 9 3 to 2:99H the growthpatterns for each product category are summarized in Table @, below. There is a clear indication that growth in trade rose, with the level of value addition. It is an indication that theC'M !" region is focus in the trade in value added products.

T b!e 6 G!ob ! D"* #%., %* t'e T( 7e o t'e Le t'e( V !)e C' %*A&e( -e USB b%!!%o*,? G(o/t' R te 3>?

P(o7).t C te-o(" 1


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!ource8 C'M !"($$%I Computation based on "' ata &2:92)

The limited importance of C'M !" in producing value added products, has a significantopportunity cost with regard to incomes and employment creation in the region. Thus it isimperative that drastic measures should be taken to transform this industry in the C'M !"regionH already there are noticeable improvements in the past 9: years in thiopia.

1:4:=: M ( et S% e o Foot/e ( %* t'e COMESA Re-%o*

The C'M !" regionGs market size of footwear is estimated at 3< million pairs 3of shoes per annum, based on the estimated footwear per capita of :.B . "ssuming all these pairs of shoes are produced in the C'M !" region, appro*imately 3< ,::: shop level Aobs would becreated, which would trigger demand in the finished leather, soles, glue and other accessories conse?uently creating more indirect Aobs. Total output of leather footwear in theC'M !" region was estimated 1 at B:.< and 2.3 million pairs in 2::9 and 2:99respectively. /owever these figures are based on data collected from establishedenterprises.

In 2:92, 5!F


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F%-)(e =6 COMESA I#$o(t, o Foot/e ( (o# C'%* *7 t'e Wo(!7!ource8 C'M !"($$%I Computation based on "' ata &2:92)

1:4:4: R/ *7 S%t) t%o*

The hides and skins and leather industry in +wanda play some significant role in foreigne*change earnings &more than 92 million 5!F in 2:92 @. +wandaGs livestock population is putat 9.9 million cattle, B:: thousand sheep, and 2.@ million goats B.'ff#take &kill) rates areestimated as B.3E for cattle, 3: E for sheep, and 33E for goats The potential number of hides and skins available for marketing can be estimated at :.9: million cattle hides, :.9million sheep skins and :. million goat skins. "ppro*imately :.:B million hides, :.: B millionsheep skins and :.32 million goat skins &a total average of more than


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CHAPTER II6 SITUATIONAL ANAL SIS OF THE VALUE CHAIN

2: I*t(o7).t%o*

This Chapter presents the situation currently obtaining in the +wandese leather value chain.

It elaborates the following issues8 industry structure and value chain mapH potential of theleather value chainH opportunities forgone due to the e*porting of raw hides and skinsHincome distribution in the marketing of bovine hidesH trade performanceH situational analysisof !M s in the footwear manufacturing subsector and a regional competitive comparativeanalysis. This analysis builds a firm base, which is complimented by the issues andproposed interventions, which were identified and prioritized during a two#days stakeholdersmeeting that was held in Qigali, +wanda, in March 2:91.

2:1: I*7),t(" St().t)(e *7 V !)e C' %* M $

"ccording to Qaplinsky and Morris &2:::), mapping the range of activities in a value chainprovides the capacity to decompose total value chain earnings into the rewards which areachieved by different parties in the chain. The +wandese leather value is made up of livestock farming, livestock traders, butcheries, slaughter facilities owners, hides and skinstraders and e*porters and artisanal footwear and leather goods manufacturing. Thus there isa missing link between production of hides and skins and production of leather goods, asthere are no tanneries, which are operational. The schematic presentation of the leather value chain in +wanda is illustrated in the igure below8

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;ased on the hides and skins e*port of 2:91, the +wandese leather value chain has thepotential of reaching a value of 5!F9 million, losses incurred at each stage are shown inTable below. The leather value chain has the potential of e*ceeding the e*ports of tea andcoffee.

T b!e


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T b!e 106 E,t%# te7 Lo,,e, D)e to t'e E8$o(t o R / H%7e, *7 S %*,5!F:::Ds 2001 2002 200= 2004 2005 200@ 200 200; 200< 2011 2012

+est of the =orld @B

32,33@

3,2 3,399

1,@11

9,B@

3,B

3,:@3

2,:3

@, 99,B

Pote*t% ! V !)e77%t%o* t St -e,

=et blue 9, <

<1,<@1


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F%-)(e 56T'e Re! t%o*,'%$ bet/ee* H%7e, S %*,G( 7e, *7 %e!7

F%-)(e @6 T'e Re! t%o*,'%$ bet/ee* T **%*- Co,t*7 H%7e, *7 S %*, G( 7 e

It was reported that more than


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St e'o!7e(, St e I*&e,t#e* t 3t'e%* o(# t%o* ,'o)!7 be$(o&%7e7 b" t'eM%*%,t("?

I*te(e,t Co##e*t

;oard of irectors• The absence of abusiness plan has

made it difficult for the ;o to have areference point tosupport themanagement of theC%CH

• It was also reportedthat the ;o wasweak and ineffective,because of overridingstakeholders interest

• There is aneed to comeup with anagreement onthe wayforward, whichshould besigned by allthestakeholders.This wouldempower themanagementof the C%C tofocus onattaining theagreed targets.

MI-IC'M • Capacity building of !M s

• %urchase inputssuch as finishedleather for onwardselling to !M s

; =ants the C%C to focuson footwear production,in order to optimize onprofitability

-ationalmployment

%rograme& - %)

=ants the centre tocreate more Aobs,despite its limitedcapacity and resources

"ssociation of "rtisans

• !kills training• Clarify the

shareholding issueH• C%C import leather

and other accessories and sellto them at cost plusa small margin

*pert • /is interest was notclearly articulated,however it was feltthat he was alsocausing a bit of discord in theoperation of the

C%C.

32


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2:=:1:1: SWOT A* !",%, o t'e CPC

uring the validation meeting C'M !"($$%I was re?uested to evaluate the C%C and sharetheir insights on how the C%C can be improved. The discussions, which ensured led to the

following !='T analysis8able !&: 'at$ibo C(C S)O Analy$i$

St(e*-t', We *e,,e,

• /igh level political support

• Technical support from Italy andRIC"

• %referential funding base through

the 4overnment inancingagency

• "bsence of a business planimpacting negatively on theoverall operation of the C%C

• 0aried and divergent views on thefocus of the C%C among the keystakeholdersH

• 5nderdeveloped productionsystemH

• 5nderdeveloped procurementand marketing systemH

• Inade?uate supplies of leather and other accessories in the localmarket

'pportunities Threats

• +ising demand of off footwear inthe domestic and regionalmarketsH

• !trategic linkages with $$%I canfacilitate the procurement of leather from thiopiaH

• %otential to penetrate thegovernment market

• Competing interests may hamper the growth of the enterpriseH

• Increased imports of new andsecond hand cheaper importsH

rom the above !='T analysis, it is clear that the C%C has strong political and governmentsupportH however there are more weaknesses and threats that need to be addressed. Thiscan be accomplished by designing a business plan, which will be signed by all the keystakeholders. This would empower the management to focus on clearly defined goals andtarget.

2:=:2: Ma$a"a Incubation Centre

33


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M"!"Q" 8 5-I ' and + ; &+wanda evelopment ;oard) started the proAect of the new!ervice center in Masaka at the end of 2::B.

The table below summaries the comparison between the centre in Masaka, +wanda and amodel !ervice centre. In addition it lists the machines which are needed to improve thestatus of this place into a service centre, which would aid its service delivery to the !M s.

able !*: 'ap Analy$i$ for Ma$a"a Incubation Centre

Ke" tt(%b)te, o Mo7e! Se(&%.eCe*t(e

E8%,t%*-S%t) t%o* I7e*t% %e7 G $, Co,t%*-

PERSONNELCenter irector

Technical Manager, as theCentre has administrative andmarketing support from +wanda

evelopment "gency. Morepersonnel will be recruited as thecentre gains sustainability

1,:::.::Marketing Manager 'ver 3 years,

as it isassumed byyear 1 thecentre will beable to carrythis budget line.

!ervice Manager Training Manager

"dministrator 4eneral !taff

E UIPMENT

CUTTING AND STITCHINGE UIPMENTCutting %ress S9 1 9 :.::Cutting esksS2 5 9 :.::!plitting MachineS9 1 9 :.::!kiving machineS9 1 9 :.::

olding machineS9 olding machineS9 B, ::.::ig#zag machineS9 1 B :,::lat bed machines 9 needleS3 2 9 :.::

%ost bed machines 9 needleS3 2 9 :.::

Two needles post bedS9 Two needles post bedS9 1 5 5:00=orking tables @:*92: h.S3 4 0:00!mall trolleysS99 !mall trolleysS99 = 520:00

!helves for materials and components !helves for materials andcomponents 1000:00

MAKING AND LASTING E UIPMENT

Toe top application machine &2 placesS9 Toe top application machine &2placesS9 2


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Ke" tt(%b)te, o Mo7e! Se(&%.eCe*t(e

E8%,t%*-S%t) t%o* I7e*t% %e7 G $, Co,t%*-

Tables for pattern making(designS92 5 :.::

ToolsS92 S) %.%e*t*(: :.::

Teacher deskS9 Teacher deskS9 2 :,::ChairS9 ChairS9 2::,::Manual pantographS9 1 :.::!helves for last and componentsS< S) %.%e*t :.::Metal horse for leatherS9 1 :.::shank board palletsS2 / (e'o),e 9, ::.::;lackboardS9 ;lackboardS9 ::,::CLASS ROOM E UIPMENTTablesS9: 10 :.::ChairsS2: ChairsS2: 2:::,::Teacher eskS9 1 2 :.::ChairS9 ChairS9 2::,::Closed Cabinet &front glass)S2 Closed Cabinet &front glass)S2 1::.::

!creen for videosS9 "e, :.::0ideo proAectorS9 "e, :.::$aptop with 0 playerS9 0 $aptop with 0 playerS9 9, ::,::

*ternal loudspeakerS9 0 *ternal loudspeakerS9 ::,::SPACECutting and stitching +oom

In kindcontribution byhost Institutions

Making and $asting +oomesign and Training +oom

Class +oomirectorGs office

ManagersG officesS3Meeting +oomOt'e( T'e M , ,e(&%.e .e*te( %, )%te *e/ 3/ , %* )-)( te7 %* 2011? *7 t'e e8%,t%*-e )%$#e*t, (e & %! b!e !,o o( !e t'e( -oo7,: So#e ,'%o* b!e # te(% !, *7.o#$o*e*t, to-et'e( /%t' ,)%t b!e too!, /e(e 7e!%&e(e7 7%(e.t!" (o# It !",$e.% %. !!" o( t/o t( %*%*- .o)(,e, o( ! 7%e, , *7 !, 310 t( %*ee, e .'? o( /'o# I/ , t'e t( %*e( 3.o$" o too!, *7 # te(% !, !%,t %, e*.!o,e7?:

E&e* % e*.!o,e7 %* t'e o(%-%* ! $(o9e.t t'e b . $ (t ! ,t%*- # .'%*e %, *ot t'e(e:D)(%*- t'e t( *,$o(t t%o* (o# ,)$$!%e(, .o)*t(%e, ,o#e $(ob!e#, o..)((e7 to,o#e o t'e # .'%*e, t' t (e *ot "et ,o!&e7 t'e ! . o e8$e(t #e.' *%., o( ,'oe# .'%*e(%e, %*J .t %, o*e o t'e b%--e,t $(ob!e# *ot o*!" %* R/ *7 /e .o)!7 %*7o*!" !o. ! te.'*%.% * e8$e(t o( t'e e!e.t(%. ! $ (t o t'e # .'%*e, /'o / , b!eto (e$ %( ,o#e o t'e $(ob!e#,:

2:4: T( 7e A* !",%,

2:4:1: E8$o(t, o A(t%.!e, o H (#o*% e7 S",te# 3C' $te( 41?

Chapter 19 of the /armonized !ystem is made up of raw hides and skins, semi processedand finished leather. +wandaGs e*ports value of products of Chapter 19 was on an upwardtrend since 2::9, however, itGs difficult to e*plain the steep growth after 2:: , when thetanning sector was underperforming and was approaching closure. =et blue, which is partlyprocessed hides and skins, on average fetches threefold the price of raw hides and skinsHthus it would have been e*pected that +wanda should have earned more from e*portsduring the pre#closure of tanneries.

3


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+wandaGs e*ports of raw hides and skins into the region grew fast post 2:: . This is apositive development in line with the regional integration agenda under C'M !" and "Cof promoting intra trade. *ports rose from 5!F:.2 million in 2::B to 5!FB, < million in 2:92Hthis could be e*plained by the growth in tanning capacity in Qenya and 5ganda. or instancethe number of tanneries has grown from two to seven in 5ganda after the imposition of ane*port ta*. In Qenya the e*port value of chapters 19 has grown from 5!F9:.< million in 2::3to 5!F99< million after the imposition on an e*port ta* of raw hides and skins. !ee igure below, illustrating hides and skins e*port trend.

Figure +: ,i#e$ an# S"in$ E-port

3


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F%-)(e ;6 R/ *7 , E8$o(t, o R / H%7e, *7 S %*,

The relative importance of e*ports of articles of Chapter 19 was at its peak in 2::3, as itreached


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important inputs which cumulatively contribute @: to @ E of the cost in footwear manufacturing are not produced in +wanda and !M s depend on middle men and informalimports. The supply chain of these inputs should be stable in order to allow the !M s toproduce, without stoppages. Thus a mechanism should be found in the short term to ensureconsistent supply of leather and soles of good ?uality. The challenges associated with thesupply of inputs in the manufacture of footwear, has resulted in +wandese !M s producinga pair of back to school at two fold the cost it is produced in Qenya. In Qenya it costs 5!F@.:B to make a back to school shoe.

T b!e 1@6 Co,t o P(o7).t%o* o Foot/e (

T"$e o S'oe,

Le t'e( .o,t $e( $ %( o ,'oe %*USB A..e,,o(%e, .o,t $e( $ %( o ,'oe %* USB Tot !

.o,t3BUS?

Le t'e( $e( $ %( 3%* , t?

P(%.e$e( , t

Le t'e( Co,t So!e I*,o!e S ' * , G!)e Ot'e(,

MenGs!hoes 3 2.99 ?

+wandaMen !hoe 93.23 1 39.@@ 21:.91!chool shoe 93.:3!andals B. 9 92.: 3.1 19.:9

C'M !"($$$%I !M !urvey &2:91)

2:5:=: R * %*- o Co*,t( %*t, b" SME,

!hortage of raw materials and shortage of machinery are ranked as the two maAor constraints by +wandese !M sH almost 9::E of their inputs are imported throughmiddlemen or informally by !M s themselves. The third prominent constraint is theshortage of accessories and lastsH this is a matter that has already been alluded to before.Import ta* is also viewed as a factor that is raising the cost of productionH this mainly relatesto inputs, which emanate from non C'M !" T" countries. Technical support whichincludes production skills, selection of materials and market awareness are essentialservices that should be rendered by 4overnment. " number of !M s have an inferioritycomple* and are not ready to visit 4overnment offices, therefore 4overnment officials mustbe proactive and visit these !M s in their premises and provide technical support. !ee

3


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summary rating of the constraints impacting on the performance of !M s in +wanda. Most!M s operate in backyards and markets, which undermines their visibility and professionalstatus.T b!e 1;6 R * %*- o Co*,t( %*t, b" SME,

No: V (% b!e R/ *73>?

9 inancial problem &=orking capital) 1.22 Market access problem 1.2

3 Inade?uate(absence of machineries 2:.B

1 Import ta* B.3

!hoe last and other accessories 9? Tot !

+wanda [email protected] 3


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This section analyses the competiveness of the +wanda leather value chain through the useof a battery of indicators, which are normally used to gauge trade competiveness of a valuechain. In addition to this the main trade policy instrument that is the tariff is assessed withregard to Most avoured -ations &M -), C'M !" and the ast "frican Community. Inorder to present a comprehensive picture +wandaGs situation is compared with the situationin ;urundi, gypt, thiopia, Qenya, 5ganda, ambia and +wanda. The rationale of thecomparative analysis would assist +wanda in drawing practical lessons from countries,whose leather value chains are growing rapidly.

2:@:1: Co#$et%&e*e,, A* !",%,

E8$o(t, , S' (e o Tot ! E8$o(t, 3>?6 this inde* refers to the share of an industryGse*ports in relation to a countryGs total e*portsH hence it shows the importance of this industryin the national e*port portfolio. +wandaGs inde* for Chapter 19 and PA )8 This inde*, based on the least s?uares method, shows

the average annual percentage growth of e*port values over the most recent #years period.Industry with rapid e*port growth in value terms suggest that the country is competitive onthe world markets, while stagnant or declining growth rates indicate the reverse. verythingelse e?ual, fast growing e*ports, even in small absolute numbers, point at product groups for which the country has a particular e*port potential. +wanda ratios display rapid growth,which is above the regional averageH this, therefore, reflects that the value chain holds greatpotential for +wanda. !ee details in Table 9 @< below

T b!e 216 S)## (" o Co#$et%t%&e*e,, I*7%. to(, o R/ *7 *7 ot'e( COMESAMe#be( St te,

Co)*t("Co*t(%b)t%o*

To tot ! E8$o(t3>?

Co*t(%b)t%o*To tot ! Wo(!7

E8$o(t 3>?

N t%o* !G(o/t'R te 3>?

Re&e !e7Co#$ ( t%&

eA7& *t -e

I*7e8 3RCA?

L "I*7e8

C' $te(, %* H (#o*% e7 S",te# 41 @4 41 @4 41 @4 41 @4 41 @4

;urundi :.3B :.:3 : : #19 91: 2.2 : : :gypt :.3@ :.:3 :.3< :.:9 21 3 2.2 : : :thiopia 3.B1 :.@@ :.22 :.:9 #@ B 22.< 9.2 9 :

Qenya 9.BB :.3@ :.2 :.:9 92 #29 99.9 :.< 9 :+wanda 2.1 9.3< :.:1 :.:9 1:


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S$e.% !%, t%o* 3 ! ,, I*7e8 RCA I*7e8?6 This inde*, known by the descriptionK+evealed Comparative "dvantageL &+C"), tries to identify product groups where thetargeted country has an obvious advantage in international competition. This is of specialimportance in order to promote trade of products that are more likely to be competitive./owever, for trade analysis, it is more appropriate to consider +C" simply as an Inde* of !pecialisation &I!). If it takes a value of less than 9, this implies that the country is notspecialized in e*porting the product. !imilarly, if the inde* e*ceeds 9, this implies that thecountry is specialized in e*porting the item. Chapter 19 e*ports stands at 93.2, which reflectsthat +wanda is specializing in the e*port of the given commodity, and its performance isabove the regional average, which stands at .

L " I*7e86 This inde* tries to reveal comparative advantage by comparing, in 5!Fthousands, the balance of trade of a country for a selected industry with a theoreticalbalance corresponding to the absence of specialization. !ince it takes into account bothe*ports and imports, it is therefore more suitable for a country with intra#industry trade. Thisindicator is e*tremely useful in identifying strong and weak points &positive and negative

values of the inde*) of a specific country and comparing them with its competitor. +wandaGsinde* is above the region inde* for chapter 19, reflective that it has a comparativeadvantage. =ith regard to footwear the whole region in global terms is still lagging behind.

2:@:2: T'e I#$o(t *.e o H%7e, *7 S %*, E8$o(t, %* R/ *7

The e*port of raw hides is very important domestically and is very competitive on the e*portmarket with regard to all the above indicators. or e*ample when all e*port are ranked it is inthe top ten of the @ Chapters of /!. The hides and skins e*ports position in +wandaGse*port basket with regard to the various indicators are shown in Table 299@ below8

T b!e 226 T'e I#$o(t *.e o t'e Le t'e( V !)e C' %* %* t'e To$ Te* R/ *7e,e E8$o(t,

I*7%. to( Po,%t%o* %* * t%o* ! ( * %*- 31 to< .' $te(,?!hare to total *ports <-et Trade 2+C" <$afay <!ource8 ITC Competitiveness ata ;ase

2:@:=: T( 7e Po!%." A* !",%,

+wandaGs Trade %olicy, as reflected by the main trade instruments M - and preferentialtariffs are not significantly different from some of the selected comparators listed in Table 9Bbelow. /owever this policy fails to take into consideration the fact that +wanda is notproducing finished whereas all other countries listed in the table produce finished leather.The import duty set raises the cost of imported leather.

T b!e 2=6 T( 7e Po!%." Co#$ (%,o*Co)*t(%e, MFN 3>? Et'%o$% 3>? COMESA FTA 3>? EAC SADC 3>?

H (#o*% e7 S",te# C' $te(, 41 @4 41 @4 41 @4 41 @4;urundi 9: 2 22. : : : :

gypt : 3 : : 39.thiopia : 3 : : 39.

Qenya 9: 92 9 2. : : : :+wanda 9: 2 22. : : : :5ganda 9: 2 22. 2 : :

ambia 9 2 93. 22. : : : :imbabwe 9


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2:@:4: T( 7e Po!%." o* H%7e, *7 S %*,

Trade policies on hides and skins e*port currently obtaining in selected regional countries,and the actual impact, which have been registered in the past years are summarized in

Table 239 below. The e*port restriction policies based on e*port ta* has generallycontributed to the growth of the tanning sector in the three countries, as reflected by thenumber of new tanneries which were established and also the e*port values.

T b!e 246 S)## (" o t'e Po!%.%e, *7 I#$ .tCo)*t(" N t)(e o Po!%." Re.o(7e7 I#$ .t Ge*e( ! Co##e*t

thiopia/igh e*port ta* onraw hidesG up tocrust leather.

The sector has grown significantly, withappro*imately 2B tanneries operating and asizeable number of footwear makingfactories and thousands of !M !

The implementation of such apolicy should be supported bycompetent institutions andcomplimented with othersupport measures. In some ofthe countries, which haveimplemented this kind of policythere has been reports of hidesand skins being e*portedthrough second party countries&smuggling)

Qenya *port ta* on rawhides and skins

The industry is showing great recovery fromthe effects of conomic !tructuraladAustment, and e*ports from the sector hasgrown from 5!F9:.< million in 2::9 to5!F9


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CHAPTER III6 PARTICIPATOR ANAL SIS OF THE VALUE CHAIN

1: I*t(o7).t%o*

The crafting of the !trategy blended the collection of both ?ualitative and ?uantitative datafrom primary and secondary sources. The primary sources included one to one meetingswith !M s during the baseline survey of !M s, which was taken in ebruary 2:91H this wasfollowed with meetings and site visits to slaughter houses and hides and skins traders. "participatory workshop was organized in Qigali, which drew participants from the varioussegments of the value chain, from Qigali and other districts of +wanda. This workshopassisted in generating, moderating, collating and prioritizing of important issues. !ee belowpictures, which were taken during the !takeholders %articipatory !takeholders Meeting thatwas held in Qigali, +wanda in March 2:91.

F%-)(e 106 P (t%.%$ to(" Wo( ,'o$

1:1: D%,t(%b)t%o* o Wo( ,'o$ P (t%.%$ *t,

The workshop participants were drawn from the various segments of the leather value chain,relevant 4overnment ministries and epartments from Qigali and other parts of +wanda.The main obAective of drawing from across the value chain and the country was aimed atgenerating a national and balanced view of the issues currently impacting the performanceof the leather value chain. !trategic formulation processes, which are participatory, usuallyaddress the key issues that need to be addressed for the sector to develop. In addition, itassists in enhancing the buy#in and commitment by stakeholders in their implementation.

!ee the distribution of participants by value chain segment below8

T b!e 256 D%,t(%b)t%o* o St e'o!7e( Co*,)!t t%o* Wo( ,'o$ P (t%.%$ *t,P (t%.%$ *t, b" Se-#e*t o t'e & !)e .' %* P (t%.%$ *t,

Ab,o!)te Pe(.e*t -earmers < [email protected]

;utcheries : :.::!laughterhouse 9 2.B<$ocal /ides and skins Collectors : :.::/ides and !kins *porters 3 B. @$eather goods manufacturers !M s @ 2:.::

ootwear Manufacturers !M s B 22.B<Importers of leather and other accessories 2 .@9

4overnment epartments 1 99.13'ther !takeholders 1 99.13Tot ! 100:00

11


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!.2. T'e I#$o(t *.e o t'e Le t'e( Se.to(

The participants during the !takeholders meeting rated the importance of the leather valuechain, with regard to the attributes listed in Table 2 9 below. The maAority of the participantsrated the leather value chain as important in employment creation, by e*port revenue

generation and contribution to the 4overnment revenue. !tatistics in Table 9@ in chapter II of this strategy shows that, the leather value chain is also very important in foreign currencygeneration, as illustrated in the previous Chapter, where it contributes 2.1E to total foreigncurrency earnings, and is among the top e*ports of +wanda, despite the fact that e*ports aremainly dominated with raw hides. This is a reflection of the potential, which the value chainholds.T b!e 2@6 R t%*- o t'e I#$o(t *.e o t'e Le t'e( Se.to(

Att(%b)te o I#$o(t *.e R t%*- b" P (t%.%$ *t,Ab,o!)te Pe(.e*t -e

mployment 1 1:*port revenue B @

4ross omestic growth 39 2Contribution to 4overnment +evenue <

Improvement in livelihoods 2B 23Tot ! 122 100

!takeholders were also given an opportunity to assess the importance of the leather valuechain with regard to employment creation. /ides and skins marketing were rated as the first,followed by footwear and leather goods manufacturing. This is the reflection of the status?uo. It was reported during the meeting that the number of hides and skins e*portingcompanies were growing. !ee the details in Table 2


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;eing a natural raw material, hides and skins are bound to have a number of defects, thecause for which varies widely. They are classified into three main groups, namely8 %re#, %eri#and %ost# slaughter efects.

1:=:2: P(eJS! )-'te( De e.t,

P(eJ,! )-'te( 7e e.t, o( A*t%J#o(te# De e.t, originating while the animals are alive.These are caused by different factors like poor management, generic make#up &inherentcharacteristics), diseases, nutrition etc. The prevalence of the factors, which inflict damageon the skins of live animals, is influenced by the livestock production system.

"ccording to stakeholders who participated during the consultation workshop, the +wandeselivestock production system is dominated by subsistence zero grazing, followed bysubsistence free ranching. In addition they also rated that @B percent of raw hides and skins,with a high incidence of pre# slaughter defects, were sourced from subsistence freeranching, followed by subsistence zero grazing. Their assessment was thus consistent withtheory and empirical evidence. !ee the summary of their rating in Table 2 @3 below.

T b!e 2;6 L%&e,to. P(o7).t%o* S",te#, %* R/ *7S",te# S",te# .o*t(%b)t%o* 3>?

H%-' F(e )e*." o De e.t,3>?

!ubsistence free ranching 2 @B!ubsistence zero grazing @: 9@Commercial zero grazing 9Total 9:: 9::

It is also fundamental to note that there was a general consensus, which was shared inparticular by e*porters of hides and skins that the ?uality of hides and skins in +wanda wasof good ?uality in comparison to hides and skins from neighboring countriesH this wasattributed to emerging importance of zero grazing and also to effective livestock e*tensionsupport. espite this, stakeholders identified the following as issues that need to beaddressed in order to minimize the pre#slaughter defects8

T b!e 2


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skilled manpower, improper ripping, flaying on rough floor, inade?uate bleeding during theslaughter of animals, fouling with blood and dung, insufficient slaughter and flayinge?uipment, rubbed or drugged grain, bruises, etc.

MaAor %ost#slaughter defects, as cited by various stakeholders during field visits(assessmentand workshop in +wanda are classified into two8 flaying defects, preservation and storagedefects. F! "%*- De e.t,6 " large number of hides and skins contain defects due toinsufficient use of flaying knives &improper pointed knives) and carelessnessH such as scoreproduced through faulty flaying, cuts, holes improper ripping line, dirt and poor pattern inhides, putrefaction etc.

P(e,e(& t%o* *7 Sto( -e De e.t,6 !ome of the preservation and storage defects cited byvarious stakeholders are taint and hair slip, red heat, improper salting, folds, rubbing duringtransport, moulds due to prolonged duration in damp conditions, insects and rodentsdamage while dried hides(skins are stored before sending to tanneries etc. It was alsoobserved that the preservation housing was not constructed for the specific purpose.

The basic idea of preservation is to keep the hides and skins in good condition withoutputrefaction until they are processed in tanneries. The identified issues, which should beaddressed, as summarized in Table 2 1 below8

T b!e =06 Pe(% *7 Po,t S! )-'te( I,,)e,I7e*t% %e7 I,,)e, C ),e, Le&e! T/o C ),e, Le&e! O*e

• /igh fre?uency of flaycuts

• Incorrect hides and skinsshape

• 0einoses &veinesses)

• %oor slaughtering practices8unskilled labour force, inappropriatetechnology

• %oor or inade?uate slaughteringinfrastructure in villages and upcountry business centres

• Inade?uate or lack of training offlayersH

• Inade?uate or lack of appreciationof the value of hides and skinsH

• +ushed flaying to increase the dailyearnings

E.o*o#%. I,,)e, 8•

layers are paid per number ofanimals flayed• -o mechanism is put in place to

penalize the production of poor?uality hidesH

• Inade?uate ?uality control inslaughter houses

• %rices of hides and skins not relatedto the ?uality of hides and skinsH

• $ack or inade?uate skills in hidesand skins grading

• "bsence of hides and skinsgrading standards

• $ack of knowledge and awareness of the importance of hides and skins

• Inade?uate or lack of e*tensionsupport to hides and skinsimprovement.

/igh incident of putrifiedhides and skins in the edges

• %oor storage and preservationtechni?ues and infrastructureH

• +euse of saltH• %oor salting or application of

inade?uate amountsH• !alting hides and skins before

washing them

• Inade?uate or lack of e*tensionsupport to hides and skinsimprovement

• $ack or inade?uate skills in hidesand skins preservation

1:=:4: H%7e, *7 S %*, Co!!e.t%o* *7 M ( et%*-

The participants(economic agents in the marketing of hides and skins are not organized andcoordinated as is with the case with armers "ssociation, ootwear and $eather goods!M s. To enhance the performance of the given segment of the leather value chain, withregard to efficiency in the collection of hides and skins, dealing with peri and post slaughter

1@


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issues, it is important that these economic agents be organized into an association. Thepotential revenue earnings to the fiscus &Treasury) from the hides and skins marketing canalso be enhanced once these players are known and well organized. The entry of new hidesand skins e*porters, whilst it is a positive development, it can also cause problems to thesector. or instance, the hides and skins produced in +wanda are of very good ?ualitybecause of zero grazing and also effective e*tension system conse?uently hides and skinsoriginating from +wanda, are receiving a premium price as reported by some of thee*porters. /owever the absence of collaboration of the agents to put checks and balances,as it was reported that some of the e*porters are mi*ing hides and skins from +wanda withothers from other neighboring countries of lower ?uality. This development may in themedium to long term impact negatively on the brand of the +wandese hides and skins. !eedetails in Table 3:2 below.

T b!e =16 H%7e, *7 S %*, M ( et%*- I,,)e,I7e*t% %e7 I,,)e, C ),e, Le&e! T/o C ),e, Le&e! O*e

$ack of collaboration among the hides and skins traders ear of competition $ack or inade?uateinstitutional support-o organized marketing of hides and skins

%oor facilities for hides and skins collection andpreservation

1:=:5: T **%*-

The discussion under this section was not comprehensive enough as there is no operationaltannery in +wanda, and this segment was no represented, however the stakeholders whoparticipated in the workshop identified the following issues summarized in the table below.

T b!e =26 T **%*- I,,)e,I7e*t% %e7 I,,)e, C ),e, Le&e! T/o C ),e, Le&e! O*e

-o serviced Industrial one for Tanneries

-o suitable serviced industrialstand for setting up a tannery

/igh minimum environmentalre?uirement standard

T/o t **e(%e, .!o,e7 Increased the cost of production of tanneries, which were operating

• /igh prices of hides and skins• Competition from hides and

skins e*porters5nsuitable location, which violatedenvironmental regulations

1:=:@: Foot/e ( *7 Le t'e( Goo7, P(o7).t%o*

ootwear production is dominated by !M s or artisans, which operate in markets andbackyards across +wanda. This is one segment in the leather value chain, which isorganized, and demonstrating some collaboration amongst its membership and also creatingan interface with 4overnment. The issues, which were identified during the !takeholders

=orkshop, are summarized in Table 2@ 32below.

T b!e ==6 Foot/e ( *7 Le t'e( Goo7, P(o7).t%o* I,,)e,I7e*t% %e7 I,,)e, C ),e, Le&e! T/o C ),e, Le&e! O*e

!low growth rate of !M s• Inade?uate entrepreneurial skillsH• $imited technical supportH• $imited access to finance

• -o specific or clear policy tosupport the development of !M sin the subsectorH

• "bsence of robust incubation andservice centre facilities

• $ow productivity• $ow ?uality of products

Inade?uate technical skills

• 'ne training centre, which haslimited or no ?ualified trainersH

• Trade#off between training andproduction

Inade?uate e?uipment P machinery•

$imited access to finance• $imited culture of ploughing back

profits

1B


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I7e*t% %e7 I,,)e, C ),e, Le&e! T/o C ),e, Le&e! O*e

$ow competitiveness ofproducts

• MaAority of !M s are producingbelow breakeven levelH

• Inade?uate availability of leatherand other accessoriesH

• "bsence of a leather productiontanneryH

• /igh import tariff and 0"TH•

$ack of coordination andcollaboration by !M s

$imited access to finance

Inade?uate collateral baseH • =eak assets base among most of

the !M s

$imited ability to develop bankablebusiness plans

• $ack of business developmentskills among !M sH

• "bsence of robust incubation andservice centresH

• Inade?uate support from businessand technical support institutions

$ack of information onbusiness intelligence andpolicy matters

Inade?uate collaboration among !M sH

!.*. Co*.!),%o* *7 E#e(-%*- P(%o(%t" I*te(&e*t%o* A(e ,

The priority interventions, which were identified by the stakeholders, were as follows8

• Improve the ?uality of hides and skins in order to optimize on the current earnings,and also to lay a solid base for opening a tanning facility in +wandaH

• !upport the development of the !M s, who are currently involved in the productionof footwear, as a mechanism of boosting employment and also increase the demandfor finished leather. The increased demand of leather is critical, as a mechanism of

inducing a market pull in attracting the production for finished leather in +wanda.• evelop a $eather Industrial %ark with re?uisite infrastructure, which meets the

minimum environmental re?uirements, as set by the +wanda "gency for nvironment Management.

• Improve institutional support and resources to develop the leather value chain, givenits potential to generate foreign currency, employment and 4 % growth.

The above issues anchor the formulation of strategic obAectives, which are presented in thene*t Chapter. The attainment of the given strategic obAectives would generate outcomes thatwould transform the +wandese leather value chain to be globally competitive, as measuredby growth in the production and e*ports of value added products, such as footwear, leather garments and other leather products. Conse?uently this would improve the leather valuechainGs contribution to 4 %, employment creation, foreign currency earnings, and wouldhave a multiplier effect, generated by its linkages with other subsectors such as transportand logistics, chemical, te*tile and other service providers.

It is however imperative to point out that so long as there is no operational tannery in+wanda, it is prudent to continue e*porting raw hides and skins without restriction. /owever once a tannery is set up, it is recommended that an e*port ta* be imposed in line with all

"C countries, which have managed to grow their leather sectors at the back of e*portta*es. ;urundi is now producing finished leather and a secondary tannery is beingconstructed. In 5ganda the number of tanneries has increased from 2 to @, since an e*portta* was imposed in 2::2. Qenya e*ports have grown from 5!F19 million to 5!F9


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CHAPTER IV6 STRATEG

4: I*t(o7).t%o*

This Chapter presents the !trategyGs response to issues, which were identified in the

previous chapters. The overall obAective of the !trategy is to transform +wanda leather valuechain from the production and e*port of raw materials and partly processed products to theproduction and e*port of value added products such as finished leather, footwear and leather garments.

4:1:V%,%o* *7 M%,,%o*

T'e V%,%o* o t'e R/ *7e,e !e t'e( & !)e .' %* %,6 “To be globally competitive leather value chain”

T'e M%,,%o* o t'%, ,t( te-" %, to6 T( *, o(# t'e R/ *7e,e !e t'e( & !)e .' %* (o#e8$o(t o ( / '%7e, *7 , %*, to $(o7).t%o* *7 e8$o(t o & !)e 77e7 $(o7).t,: Thiswill be accomplished by8

• Improving the ?uality and collection of hides and skinsH• !upport the development and growth of !M s who are involved in the production of

leather footwear and goodsH• !et up an Industrial %ark for the leather sectorH and• Improve institutional, policy and financial support and market intelligence.

4:2: St( te-%. M ( et *7 G(o/t' Go !,

In accordance with the vision and mission of the strategy, the private sector has identifiedspecific target markets for selected products. These are shown in Ttable 2B 33 below. Theoverall market direction shifts the focus of the leather industry to increasing the production of value#added leather products, such as wet blue, finished leather, footwear and leather goods, for the domestic and e*port markets. The ultimate obAective is to foster the productionand e*port of value added products so as to promote Aob creation, income and foreigne*change generation and economic growth.

T b!e =46 T (-et M ( et,Wet !)e F%*%,'e7 Le t'e( Le t'e( Goo7,

omestic "fter 3 years• *pand production in yr 9 and 2 based on

imported leather • 6ear 3 depend on locally produced leather

*port "fter 3 years In year < In year B onwards

In order to improve accountability it is important to introduce ?uantifiable indicators, whichwould be used as benchmarks in assessing the impact of implementing the !trategy. Thegrowth targets, which were discussed during the !takeholders Consultation =orkshop, aresummarized below and the growth targets for each product category are set.

T b!e =56 G(o/t' St( te-%. T (-et,P(o7).t De,.(%$t%o* G(o/t' T (-et,

2014J201 201;J2021 2022J202@

+aw /ides and !kins # :E based on 2:91e*ports

#9::E cumulative basedon the reduction in the2:91#9@ period

-o e*port of raw hidesand skins

=et blue :E of what is currentlye*ported in raw state is

9::E of hides and skinsproduced in +wanda are

:


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processed into wet blue converted into wet blue

Crust leather :E of the total hides andskins e*ported as crust

@ E of the total hides andskins e*ported as crust oncumulative basis

inished leather 2 E of total convertedinto finished leather fordomestic production

:E of total convertedinto finished leather fordomestic production

ootwear Increase output by::,::: pairsIncrease by 2 E basedon the 2:91#9@

Increase by 2 E basedon 2:9B#29 figures.

4:=:St( te-" Ob9e.t%&e, *7 S)bJOb9e.t%&e, o( t'e V !)e C' %*De&e!o$#e*t

The specific obAectives and interventions sections listed articulate the proposed mechanismsof addressing the issues identified by stakeholders and also drawn from the ?uantitativeanalysis at each level of the value chain. !ub# obAectives and activities are listed under eachspecific obAective. The implementation of such interventions would contribute towards theattainment of the main thrust of this !trategy, which is to promote the production and e*portof value added products, such as finished leather, footwear and leather goods.

The !trategyGs obAectives and the rationale of selecting the given obAectives are summarizedin Table 3 : below. The prioritization targets low hanging fruits, as a mechanism of mobilizing support, however the implementation can be done simultaneously.

T b!e =@6 T'e R t%o* !e o( t'e Se!e.te7 Ob9e.t%&e,P(%o(%t" Ob9e.t%&e, R t%o* !e9 nhance the ?uality and

collection of hides and skinsThis will boost foreign currency earnings in the short#run, and also build a firmbase of attracting investors to set up tanneries as ?uality and ade?uate materialwould be available. This is a ?uick win, which would assist in enhancing theimportance of the sector vis#a#vis other commodities such as coffee and tea.This would attract the attention of policy and decision makers, conse?uentlymaking it easier to mobilize resources to support the sector.

2 Improve the performance of !M s who are currentlyinvolved in the production of footwear and leather goodsthrough the C%C Methodology.

This would increase the demand of finished leather in +wandaH thereby act as amarket pull for tanneries, once set to produce finished leather. !econdly thesupport of these !M s would create employment and promote the consumptionof domestically produced footwear, thereby contribute to the improvement of thebalance of payment, as imports of footwear stood at 5!F9: million in 2:92.+wanda through MI-IC'M is already supporting the development of !M !involved in the production of footwear through setting up of C%C. The C%Cconcepts would act as a nucleus for developing the footwear and leather goodsenterprises in +wanda.

3 evelop an Industrial %ark for the $eather Industry

"ttract investors to set up a new tannery, as they would be guaranteed of meeting the minimum environmental standards. In addition a common industrypark with a common effluent plant, would enhance the competitiveness of theproduced leather, as it has been observed that common effluent plant reducesoverheads of tanning facilities significantly. The development of the Industrial%ark could be phased starting with the Common ffluent %lant and thene*tended to include other facilities. /owever the phases of the various phases

should be informed by a feasibility study. The steps are detailed in the actionplan matri*.1 Improve institutional, policy

support, financial and marketintelligence

The industrialization process, Aust as agriculture re?uires e*tension support,however in most "frican countries such support is absent. *tension support to!M s in all aspects of business namely production, procurement, marketing andfinancial management is important in reducing their transaction costs,conse?uently boosting their competitiveness. In addition, market intelligenceabout the performance of the sector and market opportunities is critical for decision making by current and potential investors and customers.

-ote the budget estimate given in the ne*t section is subAect to review in consultation withthe Ministry of Industry and Commerce.

9


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4:4: S)bJOb9e.t%&e, A.t%&%t%e, *7 Me ,)( b!e O)t$)t,

In this !ection specific sub obAectives, activities and e*pected output indicators under eachof the prioritized obAectives are presented. The assumption is that the implementation of these activities would generate outputs that would create outcomes which would contribute

to the attainment of this !trategyGs vision, and this will be manifested through measurableindicators specified under strategic market and growth goals.

4:4:1: Ob9e.t%&e 16 E*' *.e t'e ) !%t" *7 Co!!e.t%o* o H%7e, *7 S %*,

uring site visits and also the deliberations, which were shared during the !takeholderGsConsultation =orkshop revealed that the ?uality of hides and skins in +wanda is better thanin most regional countries. This was reflected by e*port average price of raw hides andskins, which was reported at 5!F9. : .'.;, Mombasa and the total e*port revenue, whichstood at 5!F92 million in 2:92. espite this, the site visits revealed that there were stillnoticeable issues relating to flaying and preservation. In addition to this, the absence of hides and skins grading standards, has acted as a ?uality improvement disincentive, as all

hides and skins irrespective of ?uality, were pegged at the same price. "ddressing theseissues, that improving flaying skills, preservation, introducing grading standards, and trainingin hides and skins grading, and enforcement of these standards through inspection wouldinstantaneously raise the ?uality of hides and skins conse?uently earnings for the chainplayers and also for the country.

It was also observed that there were governance issues in the marketing chain of hides andskins, whereby the powerful chain players were restricting the entry of locally ownedenterprises into the hides and skins e*port market. This is in line with what Qaplinsky +, andMorris M &2:::) stated, when they argued Kthe power which any party may have in the chainmay parado*ically be reflected in two seemingly contradictory attributesH first is obvious andarises from the power to force other parties to take particular actions, for e*ample to limitthemselves to assembly rather than to involve themselves in designL &p.


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• Come up with information collection system to generate a hides and skins pricinginde*

The activities, which should be implemented in order to attain the sub#obAectives listedabove, are summarized in Table below. In addition to measurable outputs, the budget

estimate for the activities and the collaborating stakeholders are also included for easier reference and implementation.

3


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T b!e = 6 Ob9e.t%&e o*e6 E*' *.e t'e ) !%t" *7 Co!!e.t%o* o H%7e, *7 S %*,Ob9e.t%&e 16 E*' *.e t'e ) !%t" *7 Co!!e.t%o* o H%7e, *7 S %*,

S)bJob9e.t%&e, *7 A.t%&%t%e, E8$e.te7 O)t$)t St e'o!7e(,)7-et E,t%# te

3USB? o( 10 e (,

R %,e / (e*e,, o* t'e %#$o(t *.e o '%7e, *7 , %*, #o*- t'e & !)e .' %* $! "e(,A.t%&%t%e,6

• Design posters and distribute acrossthe country

Posters printed and distributed • Ministry of Agriculture;• Ministry of inance• Ministry of !nformation• !nternational "rgani#ations e$g$ A", %&!D";• Media houses• 'elevant &("s )orking on livestock related

business

*++,+++$++

• 'adio and - talk sho) program onthe importance of the leather valuechain;

• !nvite influential people to participatein the talk sho)s

'adio and - sho)s aired on radio and - programs once per month in the first year, thenonce per .uarter

• Ministry of Agriculture;• Ministry of !nformation• !nternational "rgani#ations e$g$ A", %&!D";• Media houses

/++,+++$++

T( %* S! )-'te( 'o),e o(e#e* ,)$e(&%,o(, o( e* o(.%*- tot ! ) !%t" # * -e#e*t %* t'e ! "%*- $(o.e,,A.t%&%t%e,

• Design the curriculum 0urriculum designed • 0"MESA122P! • Ministry of Agriculture;• Ministry of inance• !nternational "rgani#ations e$g$ A", %&!D";

! AD•

'elevant &("s )orking on livestock related business

3+,+++$++ • E4ecute the training he number of foremen trained 3++,+++$++ • Monitor and Evaluate the impact of

the training M 5 E report produced 6+,+++$++

• 7old refresher courses, in response

to the outcome of the M 5 E

he findings of the evaluation implemented *+,+++$++

T( %* ! "e(, o* $(o$e( ! "%*- te.'*% )e,A.t%&%t%e,

• Design the curriculum 0urriculum designed • 0"MESA122P! • Ministry of Agriculture;• Ministry of inance• !nternational "rgani#ations e$g$ A", %&!D";

! AD

9:,:::.::• E4ecute the training he number of flayer 9 :,:::.::• Monitor and Evaluate the impact of

the training M 5 E report produced 1:,:::.::

• 7old refresher courses, in response he findings of the evaluation implemented :,:::.::1


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Ob9e.t%&e 16 E*' *.e t'e ) !%t" *7 Co!!e.t%o* o H%7e, *7 S %*,


3USB? o( 10 e (,

to the outcome of the M 5 E • 'elevant &("s )orking on livestock related business

T( %* .o!!e.to(, *7 ,! )-'te( 'o),e o/*e(, *7 /o( e(, o* $(o$e( $(e,e(& t%o* te.'*% )e,A.t%&%t%e,

• Design the curriculum 0urriculum designed • 0"MESA122P! • Ministry of Agriculture;• Ministry of inance• !nternational "rgani#ations e$g$ A",

%&!D"; ! AD• 'elevant &("s )orking on livestock related

business

9:,:::.::• E4ecute the training he number of slaughter house and foreman

trained 9 :,:::.::

• Monitor and Evaluate the impact of the training

M 5 E report produced 1:,:::.::

• 7old refresher courses, in responseto the outcome of the M 5 E

he findings of the evaluation implemented :,:::.::

De,%-* *7 !e-%,! t%o* o( t'e ,$e.% %. t%o*, o ,)%t b!e '%7e, *7 , %*, ,to( -e .%!%t"A.t%&%t%e,

• Design and come up )ith dra)ings,)hich meet the minimumenvironmental standards

Design and dra)ings completed • 0"MESA122P!, Ministry of Agriculture,%&!D", &ational 8orks and Environment

Agency

9+,+++$++

• Share the dra)ings )ith the relevant stakeholders

Design shared and endorsed )ith the relevant stakeholders

3+,+++$++

• Submit for approval from the relevant authorities

Design and dra)ing submitted and approved • &ational 8orks or Surveyor (eneral *,+++$++

• Draft the relevant instrument for legislation

'elevant instrument designed • 2egislation Drafting Department of Ministry 3,+++$++

• Enact or ga#ette the relevant instrument

he instrument submitted and enacted1ga#ette 3,+++$++

• Set the period for all hides and skinscollectors to implement the legislation

he timeline set and published • Ministry of Agriculture and Environmental Agency

• Enforce the implementation of thelegislation

Enforcement report completed monthly • Ministry of Agriculture and Environmental Agency

3++,+++$++

D( t *7 !e-%,! te '%7e, *7 , %*, -( 7%*- ,t *7 (7,A.t%&%t%e,

• Draft the hides and skins grading standards

Draft completed • 0"MESA122P!, Bureau of Standards,Ministry of Agriculture, Environment Agency,

/+,+++$++


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3USB? o( 10 e (,

%&!D", A" and 0hain Players• Share the draft )ith chain playersand relevant stakeholders for endorsement

Draft shared and endorsed 3+,+++$++

• Draft the relevant instrument for legislation

he legal instrument drafted and submitted torelevant authorities

3,+++$++

• Enact or ga#ette the relevant instrument

he instrument enacted1ga#etted 3,+++$++

• Monitor and enforce the adherence of the agreed standards

Monitoring and enforcement +$+++$+ 36

Set )$ U*%t to )*7e(t e '%7e, *7 , %*, %*,$e.t%o* o( /%7e* t'e ,.o$e o #e t %*,$e.to(, to %*.!)7e '%7e, *7 , %*, %*,$e.t%o*A.t%&%t%e,

• Design the scope and mandate of the%nit

Scope and mandate designed and submitted to relevant authorities

0"MESA122P!, Bureau of Standards, Ministry of Agriculture, Environment Agency, %&!D", A" and 0hain Players, Ministry of inance

3+,+++$++

• Design the structure of the %nit he structure designed and submitted torelevant authorities

0"MESA122P!, Bureau of Standards, Ministry of Agriculture, Environment Agency, %&!D", A" and 0hain Players

/+,+++$++

• Design :ob descriptions and minimum.ualifications

ob descriptions designed and minimum.ualifications set and submitted to the relevant authorities

0"MESA122P!, Bureau of Standards, Ministry of Agriculture, Environment Agency, %&!D", A" and 0hain Players

/,+++$++

• Estimate resource re.uirements 'esource for start up and annual operationestimated and submitted to the relevant authorities

Ministry of inance, Ministry of Agriculture

• Bid for resources from the Ministry of

inance

Budget re.uest submitted to the Ministry of inance

Ministry of inance

• 'ecruit staff and start operation "perations resumed 2ine Ministry designated to house this ne) unit /


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3USB? o( 10 e (,

Collect the profiles of the chain players %rofiles collected Cooperative society :,:::.::5pload the database atabase uploaded and operationalised Cooperative society 3:,:::,::!hare the database online and also publish inprint media

atabase shared Cooperative society 2:,:::.::

Co#e )$ /%t' %* o(# t%o* .o!!e.t%o* to -e*e( te '%7e, *7 , %*, $(%.%*- %*7e8A.t%&%t%e,Based on the database above, design a

protocol for chain players to submit averagemonthly prices per grade

Protocol designed and data collected monthly

through electronic media

0hain agents and the 7ides and Skins supervision

agent

*,+++$++

Analy#e the average price and construct a price inde4

Data analy#ed and the price inde4 constructed Designated Ministry

Publish the inde4 in print, - and radio and on the Ministry=s )ebsite

he inde4 published Designated Ministry /+,+++,++

S)b tot ! 2 1 4 000

@


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4:4:2: Ob9e.t%&e 26 I#$(o&e t'e Pe( o(# *.e o SME, /'o (e .)((e*t!"%*&o!&e7 %* t'e P(o7).t%o* o Foot/e ( *7 Le t'e( Goo7, t'(o)-' t'eCPC Met'o7o!o-"

The future of the leather value chain with regard to value addition, that is in the production of footwear and leather garments, is set to be championed by !M s who are currentlyoperating in backyards and markets with no or limited institutional and technical support fromprivate, ?uasi and government institutions. These !M s hold a lot of potentialH however their work is plagued with a plethora of challenges ranging from unstable supply of finishedleather and accessories, inade?uate machinery and tools, inade?uate technical skills andentrepreneurship and unsuitable operating premises and also lack of visibility. In summarythey face all facets of business problems, that is supply, production, demand sidechallenges, conse?uently they face high transaction costs, which have constrained them tooperate below breakeven point, thus forcing them to overprice to remain in business. Theoverpricing has reduced the demand of their products, as they are not able to compete withforeign suppliers, in formal markets and government procurement.

The second obAectiveGs aim is to implement activities that would improve the performance of !M s with regard to productivity, standards and ?uality, volume of output, profitability,national and regional market penetration. To stimulate the improvement(growth of theseaspects, interventions should address the identified constraints.

The identified !ub#obAectives are to improve the8

• Technical(production skills of !M sH• %roductivity of !M s• >uality and standards of the !M s products• !M s access to working CapitalH•

!upply of leather and other accessoriesH• 0isibility of !M sH• !M s access to 4overnment procurement and• evelop !M s Clusters

The activities, which should be implemented in order to attain the sub obAectives listedabove, are summarized Table 3 @2 below. In addition measurable outputs, the budgetestimate for the activities and the collaborating stakeholders are also included for easier reference and implementation.

B


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T b!e =;6 Ob9e.t%&e T/o6 I#$(o&e t'e Pe( o(# *.e o SME, / 'o (e .)((e*t!" %*&o!&e7 %* t'e P(o7).t%o* o Foot/e ( *7 Le t'e(Goo7, t'(o)-' t'e CPC Met'o7o!o-"

Ob9e.t%&e 26 I#$(o&e t'e Pe( o(# *.e o SME, /'o (e .)((e*t!" %*&o!&e7 %* t'e P(o7).t%o* o Foot/e ( *7 Le t'e( Goo7,S)bJob9e.t%&e, *7 A.t%&%t%e, E8$e.te7 O)t$)t St e'o!7e(, )7-et E,t%# te

De&e!o$ SME, C!),te(, t'(o)-' t'e CPC Met'o7o!o-"A.t%&%t%e,0reate an inventory of SMEs, by their geographical location !nventory created SMEs, ')anda Development

Board, 2ocal Authorities or technical colleges$

/+,+++$++

0luster SMEs based on geographical pro4imity • he number of SMEs clustered he number of 0luster established

SMEs, ')anda Development Board, 2ocal Authorities or technical colleges$

*,+++$++

Provide common premises and shared machines to other districts, as the case in (atsibo 0P0

• he number of cluster groupsallocated )ith common operational

premises; Area space allocated to clusters

SMEs, ')anda Development Board, 2ocal Authorities or technical colleges$

3,*++,+++$++

!mplement the cluster management e4cellence circle &umber of cluster groups trained incluster management e4cellence circle

0"MESA122P!, SMEs, ')andaDevelopment Board, 2ocal

Authorities or technical colleges$

100 000:00

"rgani#e :oint procurement, production and market of common products

he volume or value of businesstransacted

0"MESA122P!, SMEs, ')andaDevelopment Board, 2ocal

Authorities or technical colleges

I#$(o&e t'e te.'*%. ! $(o7).t%o* , %!!, o SME,A.t%&%t%e,

• Design basic, certificate and diploma foot)ear1leather goods production curriculum

0urriculum designed and approved )ithrelevant government institute

0"MESA122P!, Ministry of Education and -ocational1 echnical 0olleges

35, !

• rain *++ SMEs in basic foot)ear1leather goods production course

&umber of people trained 0"MESA122P!, Ministry of Education and -ocational1 echnical 0olleges

", , !

• rain 3++ supervisors and o)ners1managers of SMEs incertificate and diploma level courses

&umber of people trained 0"MESA122P!, Ministry of Education and -ocational1 echnical 0olleges

", , !

I#$(o&e t'e $(o7).t%&%t" o SME,A.t%&%t%e,

• Asses the productivity of SMEs Assessment undertaken and report 0"MESA122P!, Ministry of 20 000:00


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Ob9e.t%&e 26 I#$(o&e t'e Pe( o(# *.e o SME, /'o (e .)((e*t!" %*&o!&e7 %* t'e P(o7).t%o* o Foot/e ( *7 Le t'e( Goo7,S)bJob9e.t%&e, *7 A.t%&%t%e, E8$e.te7 O)t$)

Documents

Rwanda Strategy October 2015