He said the revenue collected is less than the target due to constraints related to search of new market niches, the financial crisis and incompetent management, among others.
Local leather tanneries could not hit their export target due to prime attention to supply the domestic market, he said.
The government have formulated a system to help provide comprehensive support to medium and higher manufacturing industries in view of helping them play significant role in the sector.
The Leather Industry Development Institute (LIDI) Corporate Communication Director, Birhanu Serjebo said efforts are underway to earn US$206 million from the sector at the end of this fiscal year.
As part of the efforts, he said, the institution is closely working with Indian institutions.
Ethiopia has plans to secure half a billion dollars in foreign earnings from the leather sub sector at the end of the governments Growth and Transformation Plan.
