TenEthiopian companies from the leather industry are in the country to foster trade ties with their Rwandan counterparts.

The visit comes days after the two countries signed partnership agreement to promote trade and economic relations.

The investors are currently exploring different investment opportunities and markets for leather products in Rwanda, Gerald Mukubu, the acting chief executive officer  Private Sector Federation (PSF), said.

"They will also meet with market players in Rwanda’s leather industry for business to business meeting and discuss mechanisms on how to share information, experience and how they can partner to promote trade between the two countries,” Mukubu said.

Abdissa Adulwa, the Ethiopian Leather Industries Association secretary general, said they are trying to strengthen trade linkages and promote exports in the sector between the two countries.

"We have been in Uganda and we expect to go to Tanzania for the same mission; we would however like to take advantage of the recently signed memorandum of understanding between the two countries to promote trade ties,” Adulwa told Business Times.

He encouraged Rwandan investors to take advantage of the Common Market for Eastern and Southern Africa (COMESA) and increase trade between partner states. We may also want to establish our companies here through joint partnerships if all goes according to plan, Adulwa revealed.

According to Hodari Ruremesha, the leather processing entrepreneur, there is need to boost capacity and skills for local investors in the leather industry.

"This is when we will be able to benefit from this partnership with our Ethiopian counterparts. They have advanced in leather tanning and processing, and for us to be able to play a catch up game, capacity building is a priority.”

Currently Rwanda and Ethiopia are trying to establish a framework for co-operation and the implementation of a sustainable strategy on a variety of areas of common interest including the leather business.

Geoffrey Kamanzi, PSF’s head of trade facilitation and negotiations, says this will help put in place mechanisms to foster trade and help address bottle necks that hinder business between the two countries.

Government last year launched a leather processing factory in Kabarore Sector, Gatsibo District, and Eastern Province.

Star Leather Products Company (SLPC) which manufactures shoes, belts, jackets and other leather products is the first of its kind in the country.