Highly taxed raw materials used in tanneries make local made leather products uncompetitive in the market.
This was said in Dar es Salaam yesterday by Ital Show Factory Manager Mr Novat Kaijage at the Industry Expo taking place at the Julius Nyerere Trade Fair Ground along Kilwa Road. He said for example footwear made locally are of high quality but its price is higher compared to imported shoes thus rendering them uncompetitive.
“High taxes in some chemicals used in the tanneries remain to be a challenge that affects directly the end prices of the footwear in the local market,” he said. He said it was high time for the government to intervene and reduce taxes on the raw materials to make the prices for leather products affordable particularly for low income earners.
He said local manufacturers were capable of meeting the demand for footwear in the country but continued imports of cheap footwear hold back their efforts to grow. He said currently the leather industry’s contributions to the economy is still minimal due to low investments and uncompetitive business environment that has been favouring cheap imports.
Should conducive business environment be created, Tanzania has huge potentials to become a giant exporter of leather products and ultimately boost the sector’s contributions to the national economy.
Tanzania is second in Africa after Ethiopia with highest livestock population of more than 22 million cattle, 16 million goats and seven million sheep as per 2015 statistics.