Raw exports

Uganda exports 88% of raw hides and skins and then buys them back processed, according to Amzad Ali, Leather Industries Uganda, one of the country's two tanners. He added: 'Ugandan exporters are cutting themselves out of the most lucrative part of the animal skin chain.' In 2002 nearly 13,000 tonnes of raw hides/skin were exported but only just over 400 tonnes of semi-processed wet-blue hides and skins. 'I am at a loss to understand why traders insist on exporting raw hides, except to make a quick profit. 'The current 15% export duty did not effectively deter the trade as exporters connive with customs officials to under-declare goods so they pay less duty.' James Serunjogi, Selethear Crafts, said the high export demand for hides and skins: 'Has pushed the price high for local tanners. Our leather is of excellent quality but prices are prohibitive, so it is necessary to go to Kenya for cheaper leather.' However, Paul Jakubec, Bata Shoe Company, commented that: 'It is pointless to cry for protection because we do not have the capacity to handle all leather production domestically. Uganda needs to focus on production of good quality finished and ultimately higher value-added leather products through the use of modern machinery and training of personnel but this takes time. Uganda's produces only a fraction of the leather needed for domestic shoe production.