Gov’t to lift ban on export of raw hides and skins

Rwanda is considering to temporarily lift a ban on export of row hides and skins, the Ministry of Trade and Industry has said. In 2005 government banned exportation of raw hides and skins but coupled with the current global economic crisis, the move has wakened the leather sector. “Most dealers are not accessing the market due to the credit crunch but we are in the process of ‘freezing’ the ban, this will allow provisional export of unprocessed hides and skins,” Antoine Ruvebana, Permanent Secretary in the Ministry of Trade and Industry said in an interview. He said lifting the ban could possibly revive the falling export revenue from the leather sector. In 2008 government had targeted $4 million (Rwf2.216billion) of hides and skins export revenue but statistics from the Rwanda Development Board (RDB) show that by August only $1.21 million (Rwf671 million) had been generated. There has not been any export of unprocessed hides and skins for the last two years, causing a persistent heaping of the livestock products in the abattoir. Ruvebana said the rotting stock is a result of limited market and low prices. He said on the local market a kilogram of hides and skins has fallen to Rwf150 from Rwf500 in 2008. Local dealers cited high treatment costs as the major challenge to the industry. They said that establishing a ternary costs an estimated $2 million (Rwf1.1 billion), which is quite high. “We therefore suggest that government should venture into ternaries, for public usage at a fee,” Said Rugondo Mugabe, the proprietor of Satra Abattoir. The ministry says that government is in talks with a Kenyan company to buy and process the products. “An Italian company has also expressed interest in processing the hides and skins in Rwanda,” Ruvebana said. Government has also scheduled trainings to improve the quality and quantity of hides and skins. A hides and skins demonstration centre is expected next year in Kabuga to start checking for defects. Ends

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Gov’t to lift ban on export of raw hides and skins