Sector Background:
The Egyptian Leather industry has made progress in exporting over the last four years, moving from 546 million EGP in 2005 to 818 million EGP in 2006. It reached 884 million EGP by end of 2007 and 976 million EGP by end of 2008. However, the export growth comes mostly from the tanning, while the leather manufactured products still need more efforts on the consistency of the product quality and on the export promotions.
Opportunities and strengths of the leather industry:
Egypt’s current key success factors consist of the low cost of leather, flexible manufacturing and low labour rates, International trade agreements, and favourable currency exchange rates
Egypt has high quality raw material for leather - However, 30% of the sector only is achieving final stage of finished leather
Based on potential exports, Egypt could target the following products and markets:
Footwear
Finished leather: EU, particularly Italy and Spain with highest potential
Leather garments and goods require high quality standards – if standards are met, Europe is the target market
2008 Data:
Increase of export by 15% for both the Tanning and the Leather Industry
Establishing Leather section in Helwan University in co operation with ITC
Development of the sector technically by enhancing both the labour skills and the middle management skills
Export Development by focus on North Africa and the COMESA. And Europe countries
Sectoral Projects 2009:
Relocating 100 leather factory out of urban area in 10 of Ramadan & the designs had been finished
Relocating 1000 Leather work shop out of urban area
Designing and Manufacturing Leather machine locally
Researching and Developing the chemicals used in a new method of leather dehairing
