The Role of Foreign Investment in Ethiopia’s Leather Value Chain

Abstract: 
A census of formal firms in the Ethiopian leather industry reveals that the change in government policy was successful in attracting foreign direct investment in the processing of raw hides and in the manufacturing of leather products. This has led to some degree of technology transfer, albeit limited so far. Policies to encourage value‐added local processing have been more successful with the large foreign tanneries than the smaller Ethiopian ones.