Dealers in hides and skins in Rwanda have said that more than one hundred tons in stores across the country are rotting following markets and tariff barriers.
In a-two day meeting bringing together local investors and organised by the East African Business Council, the former said that the market options in front of them are becoming cumbersome.
“First of all, the regional market from East African Community is small. And secondly, the market beyond the region does not offer competitive advantage,” said Jean d’Amour Kamayirese, the representative of Kigali Leader Cluster which include hides and skins dealers.
First of all, the regional market goes shrinking where a kilogram was selling at a price between Rwf 1,500 and Rwf 3000 in 2015, but today, has declined to Rwf 500-600 due to market saturation.
Kamayirese laments that the country does not have a leather factory that would add value to their products, thus, they have no choice, but to give the hides and skins at giveaway price, but even then, they do not have enough buyers.
The remaining option for the local dealers, is the overseas market, which is also challenging.
“Shipping hides and skins requires a-80% tax per kilogram which is quite challenging, yet demand is huge in China, Nigeria and Italy,” said Kamayirese who currently, has nearly 30 tons of hides and skins that are idle in the stores.
The Kigali Leader Cluster only expects some relief from the outcomes of recent meeting with Ministry of Trade and Industry where they requested to have the instruction on 80% tax beyond EAC revisited.
The vice chairman of East Africa Business Council Karera Denys told the media yesterday, that the sector is suffering poor networking, connection and collaboration.
“We have established that the country requires 600,000 pairs of shoes every month. Those shoes are made from where if hides and skins are rotting in the stores? We are lacking working together. Some have hides and skins, others needs shoes and there is a shoe factory…we are just lacking the component of working together,” Karera said.
Karera advises African small enterprises which constitute 80% of the trade industry to know the advantages of the Africa Continental Free Trade Area, to make sure that they trade with each other.
Africa, he said, should also own its big online markets of the caliber of Amazon.
