Strolling amidst the chaos of Qera, the persistent scent of freshly slaughtered livestock hung in the air. It was a scene where the commonplace hid the extraordinary—a product valued at over 400 billion dollars annually in the global industry.

An afterthought to most of the vendors in the area, sheepskin, goatskin and hides are either placed on the floor of the busy market or traded to middlemen who drive by each morning looking to sell to the 15 tanneries in Mojo town, Oromia Regional State, 64Km from the capital.

Being a sheep trader for most of his life, Abdulwahad Mohammed understood the ebb and flow of the market. He said the usually dormant market experiences sporadic surges in activity during holiday seasons, including a chance to deal hides. However, the quality of most pieces falls short of the standards required by discerning tanneries.

"It has a four Birr profit max," Abdulwahad told Fortune.

Ethiopia's livestock lives through the visible scars of a life marked by constant slashing, branding burns, and diseases bred amid poor hygiene. The traditional slaughtering techniques, coupled with a lack of post-slaughter preservation measures and transportation methods unsuitable for skin, contributed to the gradual deterioration of the final product.

Under the Addis Abeba Abattoirs Enterprise, around 2,427 oxen, 1,294 goats and sheep, and 15 cows were put to the knife for the Christmas holiday. It was a 19.1pc shortfall from the target where oxen fetched up to 200,000 Br while its hide was valued at around 200 Br. Sheep sold for an average of 15,000 Br garnered about 70 Br for skin while goatskin was valued at 10 Br despite the animal being sold for 20,000 Br.

The quality of hides and skins deteriorates by the day as tanneries seek a decent product to be competitive.

Colba Tannery, with its soaking capacity of 10,000 skins and 600 hides a day, once stood at the forefront of the industry. It had recorded sales close to 400 million Br during its peak years.

Despite its production prowess and a flourishing export market spanning 20 countries, the Company saw a steady decline in the supply chain. Employing a diverse set of methods to secure the 1.3 million sheep skins, over half a million goat skins, and 139,000 hides it needed annually, Colba maintained production amidst a shortage of chemicals, a lack of proper inputs, and the deteriorating quality of hides.

Kebede Amede is the chief technical advisor at Colba with experience spanning four decades and five tanneries. He attributed this decline to a lack of regulatory oversight and poor coordination between relevant government offices.

"Ethiopia's leather has no owners," he said.

Animal husbandry practices involving continuous beatings and branding with hot irons, coupled with subpar post-slaughter treatment, resulted in skins arriving at tanneries without any preservatives.

According to Kebede, skins arrive at tanneries multiple days after slaughter, without preservatives or salt used in between. He noted that the past decade marked the worst time for the industry, witnessing a decline in the quality of experts in public offices and a deprioritisation of the sector. He remarked on the government's role in enhancing the productivity of Ethiopia's leather industry, stating "All talk, little action."

As the industry lags, Ethiopia's merchandise exports in 2021/22 revealed a 9.1pc decline in leather and leather products, accounting for 0.8pc or around 32 million dollars of the 4.1 billion dollars in earnings.

A study 'Drivers of Quality Problems in the Leather Sector Value Chain in Ethiopia' identified low technology utilisation and low-quality, unreliable supply of raw hides and skins as major factors undercutting the industry.

Historical context reveals several regulatory organisations formed under different regimes to boost the leather industry. Emperor Haile Selassie's formation of the Livestock & Meat Board (LMB) in 1962 was followed by the National Leather & Shoe Corporation under the socialist regime which nationalised eight tanneries up until the Ethiopian People Revolutionary Democratic Front's (EPRDF) ratification of the hides marketing proclamation a decade ago. The current administration has also embarked on a new project spearheaded by the Ministry of Industry to unwind the supply, which is expected to serve as a major pillar in the import substitution aspiration.

The Ministry initiated the 'Ethiopia Tamirt' initiative to replace imports with domestically produced alternatives, crafting a leather industry strategy to address the issue.

Tilahun Abay, head of strategic affairs at the Ministry, is optimistic. He outlined plans for creating clusters to improve inputs, enhance foreign currency access, update customs procedures, and improve skills within the sector. According to Tilahun, some progress has been made, such as replacing leather shoes for the military and students with domestically produced ones.

"The country has not lived up to its potential," he said.

Value addition by each participant in the supply chain where an open and competitive market renders benefits across the board is suggested by officials as a long-term remedy.