The Ethiopian leather industry, once the second-largest export earner, is facing collapse due to regulations. The government is relocating production from Addis Ababa to Modjo. Tanneries are expected to move to the new Modjo Leather City once facilities are ready.
The leather sector in Ethiopia, previously a key contributor to exports, is now on the brink of collapse, as stated by industry officials. Regulations have prompted the federal government to shift production away from the capital, Addis Ababa. Currently, of the 11 operational tanneries, seven are located in Modjo, which is 75 km southeast of Addis Ababa, while three remain in the capital.
To address these challenges, the planned Modjo Leather City will span 174 hectares, an area comparable to 250 football fields. Nearly 86 million dollars has been allocated for its site development, including a common sewage system and treatment plant. Officials indicate that the closed tanneries in Addis Ababa are set to relocate to this new site upon completion of the facilities.
This relocation effort aims to consolidate the industry outside the capital, potentially stabilizing operations amid ongoing regulatory pressures.
