Chapter 5: Identification of potential regional value chains in leather and
5.3 List I: Identified leather products for regional and global exports
AND GLOBAL EXPORTS
Using the above steps, table 5.1 reports the number of products identified for each country for regional and global exports. Annex list I gives the detailed information. There are 75 total leather and leather products identified for 16 counties, where countries in the region have competitive advantage based on CTB and POS and their global exports are higher than
$100,000. Of 75 products, regional demand exists for 65 leather products, as country’s global exports are lower than region’s global imports. In the period 2008–2010, average global exports of the countries in these products amounted to $672 million, while demand in the region stood at $2.9 billion. Out of
$672 million, only 15 per cent ($99 million) was exported to the region. Appendix list I reports country-wise identified products. The largest number of products is identified for Morocco. These include Footwear (HS 640192, 640192, 640212, 640291, 640319, 640320, 640359, 640391, 640399, 640411, 640420, 640510, 640520, 640590,); leather bags, suitcases (HS 420211, 420211, 420221, 420231, 420291), and articles of apparel and clothing accessories, of leather or of composition leather (HS 420329, 420329, 420330).
There are eight products identified for Kenya. These include leather bags and suitcases (HS 420211, 4220291) and footwear with outer soles (640192, 640220, 640291, 640419). Footwear has also been identified as a leather product for regional exports for Ethiopia. These include HS 640319, 640391, 640399, 640590 and 640610. These products differ from those identified for Kenya. Leather bags, suitcases and the like have also been identified for Madagascar, like Kenya, but the codes identified differ from those identified for Kenya. These are HS 420221, 420222,420229, 420291, 420500 and 650699. The detailed description of these codes is reported in appendix table 1. This shows that although these three countries have similar products identified for regional exports, these products are not identical and are differentiated products, giving an edge to the identified country in the region.
Along with footwear, the identified regional exports for Mauritius include articles of apparel, clothing accessories and other articles of fur skin. Four products are identified for South Africa.
Table 5.2 provides a list of 20 leather products which have been identified as unique leather products for regional exports for the countries.
Footwear has also been identified for potential
regional exports for Côte d’Ivoire. Two products
out of five (HS codes 640199, 640220) are unique
products identified for a country in the region. For
South Africa, the unique leather product identified
for regional exports is HS 420100 (saddlery and
harnesses for any animal, which includes traces,
leads, knee pads, muzzles, saddle cloths, saddle
bags, dog coats and the like, of any material). HS
420222 and 420229 have been identified as unique
products for Madagascar, while identified products
for regional exports for Zimbabwe include footwear
and seats (HS 940161).
Chapter 5: Identification of potential regional value chains in leather and leather products 3535
Table 5.1
List I: Number of potential finished leather products identified for regional and global exports of Africa Country Potential final
products for regional exports
Potential final products for global exports
Total nunber of final products
identified
Country’s global exports average (2008–2010)
(1000 $)
Region’s global import average
(2008–10) (1000 $)
Cabo Verde 1 1 2 606 19 512
Côte d’Ivoire 5 5 25 503 188 100
Egypt 3 3 8 617 30 508
Ethiopia 5 5 7 173 330 640
Ghana 1 1 391 24 573
Kenya 7 1 8 30 165 236 467
Madagascar 5 1 6 11 057 87 671
Mauritius 5 1 6 15 295 70 668
Morocco 19 4 23 387 890 866 563
Nigeria 1 1 2 154 750 369 853
Rwanda 1 1 1 184 117 290
Senegal 1 1 1 030 36 295
South Africa 4 2 6 17 188 19 896
Uganda 2 2 3 717 9 612
Zambia 1 1 1 575 36 102
Zimbabwe 4 4 4 289 410 486
Total 65 10 75 672 430 2 854 236
Table 5.2
Country-wise identified unique leather products for regional exports S.No HS 6 digit Country Description at the four-digit level
1 420100 South Africa Saddlery and harnesses for any animal (including traces, leads, knee pads, muzzles, saddle cloths, saddle bags, dog coats and the like), of any material
2 420211 Kenya Trunks, suitcases, vanity cases, executive cases, briefcases, school satchels, spectacle cases, binocular cases, camera cases, musical instrument cases, gun cases, holsters and similar containers; travelling bags, insulated food or beverages bags, toile
3 420212 Zimbabwe Trunks, suitcases, vanity cases, executive cases, briefcases, school satchels, spectacle cases, binocular cases, camera cases, musical instrument cases, gun cases, holsters and similar containers; travelling bags, insulated food or beverages bags, toile
4 420222 Madagascar Trunks, suitcases, vanity cases, executive cases, briefcases, school satchels, spectacle cases, binocular cases, camera cases, musical instrument cases, gun cases, holsters and similar containers; travelling bags, insulated food or beverages bags, toile
5 420229 Madagascar Trunks, suitcases, vanity cases, executive cases, briefcases, school satchels, spectacle cases, binocular cases, camera cases, musical instrument cases, gun cases, holsters and similar containers; travelling bags, insulated food or beverages bags, toile
6 420231 Mauritius Trunks, suitcases, vanity cases, executive cases, briefcases, school satchels, spectacle cases, binocular cases, camera cases, musical instrument cases, gun cases, holsters and similar containers; travelling bags, insulated food or beverages bags, toile
7 420292 Mauritius Trunks, suitcases, vanity cases, executive cases, briefcases, school satchels, spectacle cases, binocular cases, camera cases, musical instrument cases, gun cases, holsters and similar containers; travelling bags, insulated food or beverages bags, toile
8 420299 Ghana Trunks, suitcases, vanity cases, executive cases, briefcases, school satchels, spectacle cases, binocular cases, camera cases, musical instrument cases, gun cases, holsters and similar containers; travelling bags, insulated food or beverages bags, toile
9 420310 Mauritius Articles of apparel and clothing accessories, leather or composition leather 10 430390 South Africa Articles of apparel, clothing accessories and other articles of fur skin
11 640110 South Africa Waterproof footwear with outer soles and uppers of rubber or of plastics, the uppers of which are neither fixed to the sole nor assembled by stitching, riveting, nailing, screwing, plugging or similar processes
12 640199 Côte d’Ivoire Waterproof footwear with outer soles and uppers of rubber or of plastics, the uppers of which are neither fixed to the sole nor assembled by stitching, riveting, nailing, screwing, plugging or similar processes
13 640299 Nigeria Other footwear with outer soles and uppers of rubber or plastics 14 640319 Ethiopia (does not
include Eritrea) Footwear with outer soles of rubber, plastics, leather or composition leather and uppers of leather
15 640320 Uganda Footwear with outer soles of rubber, plastics, leather or composition leather and uppers of leather
16 640391 Ethiopia (does not
include Eritrea) Footwear with outer soles of rubber, plastics, leather or composition leather and uppers of leather
17 640590 Ethiopia (does not
include Eritrea) Other footwear
18 640620 Kenya Parts of footwear (including uppers, whether or not attached to soles other than outer soles);
removable insoles, heel cushions and similar articles; gaiters, leggings and similar articles, and parts thereof
19 650699 Madagascar Other headgear, whether or not lined or trimmed
20 940161 Zimbabwe Seats (other than those under heading 94.02), whether or not convertible into beds, and parts thereof
Regarding the 20 unique leather products identified above, a comparison was made between unit values of the top global importers and the top regional importers. It is found that the import unit value of regional importers for 10 products (table 5.3) was higher than that of the top global importers. Although a comparison of import unit values has its limitations,
mainly that the differences in the quality of the
products demanded and associated delivery services
provided may not be apparent in the unit costs, but
this is indicative that the region not only provides
demand for regional leather products but there is
evidence that this demand is also accompanied by
higher returns.
Chapter 5: Identification of potential regional value chains in leather and leather products 3737