September, 2015

Prepared by: LIDI Corporate

Communication Directorate
Design & Printed by: Central printing press p.l.c
 ETHIOPIA
at a Glance
OFFICIAL NAME:
Federal Democratic Republic of Ethiopia. The
Government of the Federal Democratic Republic of
Ethiopia (FDRE) is founded upon the Constitution that
was promulgated in 1995. The Constitution provides
for a federal system comprising nine autonomous
regional states and two chartered cities.
POLITICAL SYSTEM:
Federal with multi-party system. The FDRE has
bicameral parliament, which comprises the House of
the People’s Representatives, and the House of the
Federation.
PRINCIPAL GOVERNMENT OFFICIALS:
1. Head of State: President, H.E. Dr. Mulatu Teshome,
2. Head of Government: Prime Minister, H.E. Ato
Hailemariam Desalegn,
CAPITAL CITY:
Addis Ababa, which is also the seat of the African
Union (AU) and United Nations Economic
Commission for Africa (ECA).
RELIGION:
Major religions in the country are Christianity and
Islam. But there are a number of traditional religions
as well. One prominent feature of Ethiopia is religious
tolerance that exists among different groups.

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LLANGUAGE
ANGUAGE::
Ethiopia
Ethiopia isis aa multi
multi ethnic
ethnic estate
estate with
with aa great
great variety
variety of
of
languages
languages spoken;
spoken; out
out of
of which
which 83
83 have
have over
over 200
200
dialects.
dialects. Amharic
Amharic isis the
the working
working language
language of of the
the
Federal
Federal Government.
Government. Oromiffa
Oromiffa isis one
one ofof the
the major
major
languages
languages widely
widely spoken
spoken inin the
the country.
country. English
English isis aa
medium
medium of of instruction
instruction atat junior
junior and
and secondary
secondary
schools,
schools, and
and higher
higher educational
educational institutions;
institutions; andand
widely
widely spoken
spoken particularly
particularly business
business transactions.
transactions.
LLOCATION
OCATION::
Ethiopia
Ethiopia isis on
on the
the earlier
earlier civilizations
civilizations of
of our
our world
world
and
and endowed
endowed with with vast
vast historical
historical and and natural
natural
resources,
resources, isis located
located inin the the North-Eastern
North-Eastern part part of
of
Africa
Africa known
known as as the
the “Horn
“Horn of of Africa”.
Africa”. ItIt enjoys
enjoys aa
unique
unique location
location at at the
the crossroads
crossroads betweenbetween Africa,
Africa, the
the
Middle
Middle East
East and
and Asia.
Asia. ItIt isis bordered
bordered with
with Djibouti
Djibouti
and
and Somalia
Somalia to to the
the East
East and and South
South East,
East, with
with Eritrea
Eritrea
to
to the
the North,
North, with
with the
the Sudan
Sudan to to the
the West,
West, with
with South
South
Sudan
Sudan to to the
the South
South West,
West, and and with
with Kenya
Kenya to to the
the
South.
South.

REA:: 1.14
AAREA 1.14 million
million square
square kilometers.
kilometers.
AARABLE LAND:: 513,000
RABLE LAND 513,000 square
square kilometers
kilometers (45%)
(45%)
IIRRIGATED LAND:: 34,200
RRIGATED LAND 34,200 square
square kilometers
kilometers (3%)
(3%)
OPULATION:: More
PPOPULATION More than
than 90
90 million,
million, the
the second
second inin
Africa.
Africa.
PPOPULATION DENSITY:: 74.4
OPULATION DENSITY 74.4 per
per square
square kilometer
kilometer
(2012/13)
(2012/13)
TTOPOGRAPHY
OPOGRAPHY::
AA topography
topography featuring
featuring high
high and
and rugged
rugged mountains,
mountains,
flat-topped
flat-topped plateaus,
plateaus, deep
deep gorges,
gorges, valleys,
valleys, vast
vast
rolling
rolling plains
plains and
and low
low lands;
lands; its
its altitude
altitude ranges
ranges from
from
148
148 meters
meters below
below seasea level
level at
at the
the Dallol
Dallol Depression
Depression
inin the
the northeast,
northeast, to
to 4620
4620 meters
meters above
above seasea level
level at
at
Mount
Mount RasRas Dashen
Dashen –– the
the highest
highest peak
peak inin the
the

2
northwest of the country. The most famous Ethiopia
river is Blue Nile or Abbay, which flows a distance of
1,450 kilometers from its source to join the White
Nile at Khartoum. Ethiopia is also Endowed with
abundant natural resources /fauna &flora/.
CLIMATE:
Temperate in the highlands, ranging from 20°C to
30°C (68°F to 86°F) and hot in the lowlands, often
reaching 45°C (113°F). Rainfall ranges from 200
mm to 2000 mm.
RAINY SEASONS:
Abundant rain in June through August; mild rains in
February and March.
GDP PER CAPITA:
USD 632 (2014). Ethiopia is one of the fastest
growing non-oil economies in Africa. Ethiopia’s
economy continues to register strong and robust
growth. The real GDP grew by 10.3 percent in
2013/14. In 2013/14 the shares of services,
agriculture and industry stand at 46 percent, 40
percent and 14 percent, respectively. The annual
growth in the industry sector was quite significant
(21.2 percent) mainly driven by exuberant
performance in the construction sub- sector. Growth
rates of the agriculture and service sectors were
estimated to be 5.4 percent and 11.9 percent
respectively. Concerning the sectors contribution to
the 10.3 percent real GDP growth, 5.3 percentage
points (51.5 percent) is attributable to the service
sector, 2.7 percentage points (26.2 percent) to the
industry sector and 2.3 percentage points (22.3
percent) to the agriculture sector. The share of
manufacturing sector in total GDP remains low at
4.4 percent.

3
C
CURRENCY
URRENCY::
The
The currency
currency of of Ethiopia
Ethiopia isis based
based on on the
the decimal
decimal
system.
system. The
The units
units ofof currency
currency are
are the
the Birr
Birr and
and cents.
cents.
One
One Birr
Birr isis divided
divided into
into 100
100 cents.
cents.
W
WORKING HOURS::
ORKING HOURS
Ethiopia
Ethiopia isis GMT+3.
GMT+3. Government
Government office
office hours
hours are
are
8:30
8:30 am
am -- 12:30
12:30 pmpm and
and 1:30
1:30 pm
pm -- 5:30
5:30 pmpm from
from
Monday
Monday through
through Thursday;
Thursday; and
and 8:30
8:30 amam to
to 11:30
11:30
and
and 1:30
1:30 pm pm to
to 5:30
5:30 pm
pm on
on Fridays.
Fridays.
C
CALENDAR
ALENDAR::
Ethiopia
Ethiopia uses
uses the
the Julian
Julian calendar
calendar whichwhich divides
divides the
the
year
year into
into 12
12 months
months of of 30
30 days
days each.
each. The
The
remaining
remaining five
five or
or six
six days
days inin aa leap
leap year
year constitutes
constitutes
the
the short
short 13th
13th month
month of of “pagume”.
“pagume”. The The calendar
calendar isis
seven
seven years
years behind
behind thethe western
western or or Gregorian,
Gregorian, with
with
Ethiopian
Ethiopian |New
|New YearYear falling
falling inin the
the month
month ofof
September.
September.
W
WORKING
ORKING H
HOURS
OURS::
Ethiopia
Ethiopia isis inin the
the GMT+3
GMT+3 timetime zones.
zones. The
The
government
government office office hours
hours are
are 8:30am
8:30am toto 12:00
12:00 am
am
and
and 1:30
1:30 pm pm to to 5:30
5:30 pm
pm from
from Monday
Monday through
through

4
Thursday. Working hours on Fridays are 8:30 am to
11:30 pm 5:30 pm.

BACKGROUND OF THE LEATHER SECTOR

³ The Ethiopian leather industry is relatively and

older industry with more than 90 years of
involvement in processing leather and leather
products.
³ The first two tanneries were established and
vertically linked to two shoe factories: ASCO
Tannery & ASCO Shoe Factory (the present Addis
Ababa Tannery and Tikur Abbay shoe factory) and
Darmar Tannery & Shoe Factory (the present Awash
Tannery and Anbessa Shoe Factory).
LIVESTOCK:
Ethiopia possesses one of the world largest livestock
populations of which:
³ More than 54 million cattle population that
makes the country ranking 1st in Africa and 6th in
the world,
³ More than 25 million sheep population which
makes 3rd in Africa and 10th in the world and
³ More than 24 million Goat populations which
makes 3rd in Africa and 8th in the world.
OFF-TAKE RATE
· Cow hides 13.87%,
· Goat skins 27.34%, and
· Sheep skins 40.29%.
The hides and skins supplied to the tanneries are
reached 1.4 million cow hides, 6.7 million Goat
skins and 13.2 million sheep skins.

5
CURRENT STATUS OF THE LEATHER SECTOR

TANNING INDUSTRY:
there are 29 tanneries converting hides and skins
into different types of finished leather. The sector is
successfully moved to the production & export of
higher value-added (fully processed) finished
leather. There is a possibility of producing up to 500
million square feet of finished leather per year. This
industry relatively, having a better position due to
mature in its age and huge investment.
FOOTWEAR INDUSTRY:
It is a stage of development in the country in which
there were only two factories before 1991 but
currently there are 16 medium and large scale
footwear manufacturers. The production capacity of
these shoe factories rise up to 15 million pairs per
year. The shoe industry is emerging and promising
industries.
LEATHER GOODS AND GARMENT INDUSTRIES:
There are 15 garments and goods factories, three
gloves factories, garments, bags & different kinds of
leather articles. This industry is also an emerging
segment & appears to be more promising.

6
MICRO AND SMALL SCALE ENTERPRISES:
there are 398 Micro and small scale enterprises
producing leather products with small capital ranging
from 2000ETB to 220,000 ETB in different regions of
the country.

LEATHER INDUSTRY DEVELOPMENT INSTITUTE

The level of industrialization in the country is very low,

with the shares of the manufacturing sectors
accounting for less than five percent of Gross
Domestic product (GDP) in the past decades. In an
effort to turn this growth pattern and the vision of the
government for the manufacturing sector into a
reality, the government gives great attention and
priority for the leather sector and established LIDI
with the main objectives of leather sector
development and competitiveness of the sector in the
global arena by council of ministers regulation
No.181/2010.

7
 LIDI’S OBJECTIVES
According to regulation No. 181/2010 the
objective of the LEATHER INDUSTRY DEVELOPMENT
INSTITUTE (LIDI) is to facilitate the development and
transfer of leather and leather products industries
technologies, and to enable the industries become
competitive and beget rapid development.

LIDI’S POWERS AND DUTIES

Regulation No181/2010 establishes LIDI as an

autonomous federal government office having its
own legal personality and it is granted the
following powers and duties:
1. Formulate polices, strategies and programs that assist in
the facilitation of the development of leather products
industries, and implement the same upon approval;
2. Collect, analyze, organize and transfer to the sector’s
data center and disseminate to users, as may be
appropriate, Data necessary for the development of
leather and leather products industries
3. Prepare and disseminate project profile that may be
helpful expanding investments in the leather and
leather products industries; conduct feasibility studies
for those investors desiring to engage in the sector;
follow up project implementation and provide
remedies concerning problems encountered during
implementation.
4. Advise investors desiring to engage in the leather and
leather products industries sector on the section of
technology, negotiation construction, erection and
commissioning;
5. Prepare and conduct practical trainings on technology,
technical matters, marketing and management and
other tailor made trainings, that assist the development

8
 and competitiveness of the leather and leather products
industries sector; and issue certificates to trainees;
6. Conduct studies and researches to promote the
development of the leather and leather products
industries;
7. Provide support and consultancy services concerning
production process, production planning and quality
control;
8. Cooperate with government and private institutions with
similar objectives, locally and abroad; and encourage
similar co-operations between private institutions;
9. Undertake benchmarking studies that facilitate the
development and competitiveness of the leather and
leather products industries and assist those conducting
similar activity in the sector;
10. Deliver product-testing services to leather and leather
products industries;
11. Extend support in the creation of input and output
linkage;
12. Conduct market study for leather and leather products
industries products;
13. Indentify technologies that can be developed and
undertake product development activities;
14. Cooperate with universities on product development and
human resource development, conduct joint research
and assist in the strengthening of local research capacity
in sector;
15. Deliver its services to users at one stop shop;
16. Perform such other activities as are conducive to the
attainment of its objectives.
17. Own property, inter into contracts and sue and be sued
in its own name;
18. Perform such other activities as are conducive to the
attainment of its objectives.

9
LIDI’S VISION
To see the share of the Ethiopian leather industry
grows tenfold in 2023 in the global market.

LID’S MISSION
By expanding the Ethiopian leather industry
sustainably and fast, promoting investment, providing
the investor with production and marketing,
technologies, counseling and support services;
making Ethiopia gain the most out of its leather
resources.

LIDI’S CORE VALUES

• Customer oriented service
• Readiness for change

BEST AND FAIR SERVICE

• Effective team work
• Professional ethics
• Occupational safety and health
• Decent working environment

10
LIDI’S SERVICES
• Collecting, analyzing, sharing, and disseminating all
necessary up dated information as regards the
leather sector.
• Prepare & promote project profile for investment
opportunity, and provide feasibility study services.
• Provide consultancy services in technology
selections, in dealing with technology, machinery

11
 installationand
installation andinincommissioning
commissioningto tothose
thoseinvolve
involveininthe
the
sector.
sector.
••Supervise
Superviseandandprovide
providetechnical
technicalservices
servicesfor
forthe
theprojects
projects
inin pre-implementation,
pre-implementation, during-implementation
during-implementation and and
post-implementation for
post-implementation for the
the investors
investors who
who engaged
engaged inin
leathersectors
leather sectors
•• Providing
Providing maintenances,
maintenances, spare spare parts,
parts, production
production
planning && controlling
planning controlling and
and consultancy
consultancy services
services to
to the
the
leathersector
leather sector

SSERVICES IN PPRODUCTION
ERVICES IN RODUCTION PPHASE
HASE

•• Providing
Providing different
different trainings
trainings which
which made
made the the sector
sector
completive
completive inin productivity
productivity and and quality
quality inin the
the world
world
market.
market.
•• Providing
Providing research
research andand development
development service
service which
which solve
solve
the
thebottle
bottleneck
neckof ofthe
thesector.
sector.
•• Provide
Provide benchmarking
benchmarking services
services inin collecting,
collecting, analyzing
analyzing
and
and disseminating
disseminating the the information
information to to facilitate
facilitate the
the
development
development of of leather
leather sector
sector toto the
the world
world index.
index.
Monitoring,
Monitoring,evaluating
evaluatingand andtake
takemeasure
measureaction
actionto toall
allthe
the

12
 services rendered.

GENERAL INFORMATION:
INVESTMENT CLIMATE AND ADVANTAGES IN LEATHER SECTOR.
ADVANTAGES OF INVESTING IN LEATHER SECTORS.
COMMITMENT OF THE GOVERNMENT FOR THE LEATHER SECTOR.

Legislative and procedural reforms Establishment

of one-stop shop service Revision of the investment
law to suit dynamic change
Improvement of investment climate Market
oriented economic policy Direction towards export
of finished leather Capacity building of the sector
through twinning programs.

Integrated to regional and international arena

Member of COMESA Common market for

providing product standardization and testing to
the leather industry.

SERVICES IN MARKETING PHASE

Providing market researching, market support in

product value chain, collations and disseminating
of market information.
Easter and southern Africa) with 19 member
countries
Access to AGO (African Growth and Opportunity
Acts) market
Access to EBA (Everything But Arms) of European
Union.
General Special preferences (GSP) Privileges with
different countries
Bilateral Investment Treaties with more than 24

13
countries
In process of joining world Trade Organization
(WTO)
Double taxation avoidance agreement with more
than 14 countries

COMPARATIVE ADVANTAGES:
• Geographical location of the country (at a cross-road of
Africa, Middle East and Asia)
• Large resource base in hides and skins,
• An internationally recognized high quality Hides and
skins,
• Strong government incentives
• Availability of skilled and easily trainable labor force
• Political, Social and Macro-Economic Stability
• Ever growing economy
• Wide domestic, regional and international
• Market opportunities

14
• Competitive investment incentive packages
• Welcoming attitude of the people
• Industries and Universities Linkage currently there is
one university offering first degree program in leather
technology, Leather Industry Development Institute is
offering formal education on leather manufacturing
technology, footwear manufacturing technology,
leather garment and leather goods manufacturing
technologies from I - IV levels. Other 16 Technical
and Vocational Colleges are also offering on
footwear and leather goods manufacturing
technology training at various levels.

15
 COMPETITIVE ADVANTAGES:

Internationally known skins with the brand name of

Red Hair Ethiopian sheep skins and Bati and Selale
genuine of the Goat skins one of the most Politically
Stable Country in the Region Socio-Economic and
Financial Stability The establishment of industrial
zones in all regions High Security (Low Crime Rate)
Low Labor costs compared to neighboring countries

16
Liberal
Liberal Laws
Laws and
and Regulations
Regulations creating
creating favorable
favorable
business
business and
and investment
investment environments
environments Access
Access to
to
long-term
long-term credit
credit with
with low
low interest
interest rate
rate

INVESTMENT
INVESTMENTOPPORTUNITIES
OPPORTUNITIESIN
INLEATHER
LEATHERSECTOR
SECTOR

Footwear
Footwearmanufacturing
manufacturing
Shoe
Shoeaccessories
accessoriesand
andcomponents
componentsmanufacturing
manufacturing
Leather
Leathergoods
goodsand
andgarment
garmentmanufacturing
manufacturing
Glove
Glovemanufacturing
manufacturing
Cowhide
Cowhideprocessing
processing
Leather
Leatherchemical
chemicalmanufacturing
manufacturing
Leather
Leathersector
sectorspare
sparepart
partand
andmachinery
machinerymanufacturing
manufacturing

EGULATORYA
RREGULATORY AUTHORITIES INLLEATHER
UTHORITIESIN EATHERSSECTOR
ECTOR

Guarantee
Guaranteeagainst
againstexpropriation
expropriationor ornationalization
nationalization
The
The right
right to
to employ
employ expatriate
expatriate experts
experts and
and management
management
staff
staff
Double
Doubletaxation
taxationavoidance
avoidancetreaties
treaties
Repatriation
Repatriationof ofcapital
capitaland
andprofits
profits
Ethiopia
Ethiopiaisisaamember
memberof ofthe
theworld
worldBank-affiliated
Bank-affiliated
Multilateral
Multilateralinvestment
investmentGuarantee
GuaranteeAgency
Agency(MIGA)
(MIGA)

G ENERALC
GENERAL CUSTOMS
USTOMS,,TTAX
AXSSYSTEM ANDFFISCAL
YSTEMAND ISCALINCENTIVES
INCENTIVES;;

Customs
Customs duty
duty exemption
exemption on on imported
imported capital
capital goods,
goods,
construction
constructionmaterials,
materials,and
andspare
spareparts
partsworth
worthup uptoto15%
15%ofof
the
thevalue
valueofofimported
importedcapital
capitalgoods
goods
Income
Income tax
tax exemption
exemption (2-5
(2-5 years).
years). (( IfIf the
the industry
industry isis
established
established outside
outside of
of Addis
Addis Ababa
Ababa andand Special
Special zone
zone of
of
Oromia,
Oromia,taxtaxexemption
exemptionwill
willbe
befor
for66years)
years)
Improving
Improving service
service delivery
delivery (shortening
(shortening period
period of of license,
license,
renewal
renewalofofpermits…etc);
permits…etc);

17
 Exemption of
Exemption of imported
imported inputs
inputs for
for export
export purposes
purposes from
from
indirecttaxes;
indirect taxes;
Credit guarantee
Credit guarantee scheme
scheme to to avoid
avoid problems
problems of of working
working
capitalfor
capital forexporters;
exporters;
Allotmentof
Allotment offinance
financefor
forloan
loanfor
forthose
thoseengaged
engagedininexport
export
activities;
activities;
Provisionof
Provision ofaccess
accesstotoinfrastructure
infrastructurefor forthose
thoseengaged
engagedinin
export.
export.
Creatinglinkages
Creating linkageswith
withforeign
foreigninvestors
investorsininmarketing
marketingandand
production; and
production; and improving
improving the the transport
transport and
and transit
transit
services.
services.

18
REPORTING ON INVESTMENT ACTIVITIES

Any investor is expected to report the progress on

implementation of its project to appropriate organ every
three months
The investor also cooperates and provides information with
regard to its implementation when ever required by
appropriate organs.

19
 LIDI’S STRUCTURE
Directorates Responsible
To the General Directorate Office

General

Plan and Information

Audit and Inspection Directorate
Human Resource Management Directorate

Corporate communication Directorate

Finance, Procurement and Material Management Directorate

Product and Productivity

sub sector
Technical Support Sub Sector

Production and
product Technical Marketing
Development Support Directorate
Leather
Technology Engineering
Directorate Directorate
Footwear Technology Environmental
Directorate Technology Directorate
Goods and Garments Research and Testing
Manufacturing Tech Education and Laboratory Directorate
Training
20
 No Name Position Telephone
1 Mr wondu Legess General Director 251114- 39 14 92
2 Mr Berhanu Negus Baraki Sector coordinator, product & productivity coordination sector 251114-39 48 46
3 Berhanu Serjabo Wolde Director, Corporate Communication Directorate 251911 30 31 89
4 Tsegab Bekele Lakew Director, Research & Testing Directorate 251911 – 42 17 76
5 Wondimu Kumera Director, Human Resource Management Directorate 251114- 39 22 58
6 Mohammedzein Siraj Director, Finance Purchase & property Administration Directorate 251114 39 48 40
7 Tesfaye Birhanu Director, Planning & information Directorate
8 Fitsum Semu A/Director, Engineering Service Directorate 251114- 39 10 47
9 Zulfikar Abajihad Ababushen Director, Footwear Technology Directorate 251911 53 67 37
10 Abate Argaw Director, Leather Garment & Goods Technology Directorate 251911 – 45 73 09
11 Taye Tibebu Yeshita Director, Leather Technology Directorate 251911- 37 77 76
12 Birkinesh Gonfa Directorate, Marketing Directorate 251114 39 66 44
13 Desta Gurmu Director-Audit & Inspection Directorate 251114- 39 17 00
14 Zerfie Mersha Degefu Director Environmental Technology Directorate 251911- 48 80 44
15 Tsegaye Tefera Director Education and Training Directorate 251114 39 48 45

Leather Industry Development Institute

Number of Researchers in different directorates
S.No. Job description sex Total
Male Female
1 Leather Technology Directorate 5 5
2 Senior leather production Technologies Researcher 5 1 6
3 Leather production Technologies Researcher 15 3 18
4 Assistant leather production Technologies Researcher 2 1 3
Junior leather production Technologies Researcher
Sub total 27 5 32
5 Shoe Technology Directorate 2 2
6 Senior leather production Researcher 6 1 7
7 Leather production Technologies Researcher 12 6 18
8 Assistant leather production Technologies Researcher 4 4
Junior leather production Technologies Researcher
Sub total 24 7 31
9 Leather Goods and Garment Technology - - -
10 Senior leather production Technologies Researcher 5 1 6
11 Leather production Technologies Researcher 12 7 19
12 Assistant leather production Technologies Researcher 2 - 2
Junior leather production Technologies Researcher
Sub total 19 8 27
13 Research and Laboratory Directorate 1 1 2
14 Senior chemical instrumentation laboratory chemist Researcher 1 3 4
15 Chemical instrumentation laboratory chemist Researcher 2 1 3
16 Assistant chemical instrumentation laboratory chemist Researcher - 2 2
Junior chemical instrumentation laboratory chemist Researcher
Sub total 4 7 11
17 Environmental Technology Directorate 4 - 4
18 Senior Environmental Engineer Researcher 2 1 3
Environmental Engineer Researcher
Sub total
Total
6
80
1
28 21
7
108
 LIDI Engineering tomorrow

Address
Tel: +251-11-4-39 17 00
+251-11-4-39 16 82
+251-11-4-39 66 44
Fax: +251-11-4-39 22 59
P.O.Box: 24692 Code 1000 Addis Ababa
Web: www.elidi.org
e-mail contact@elidi.org
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