Addis Ababa, April 14, 2025 (FMC) – A newly established leather testing and manufacturing facility in Modjo City is expected to ease access to services and inputs for Ethiopia’s leather producers, particularly micro, small, and medium enterprises (MSMEs), according to Ethiopia’s State Minister of Ministry of Industry Mr. Tarekegn Bululta.
A leather physical and chemical testing laboratory as well as a footwear and leather goods manufacturing facility aiming to serve as a production and training center for young people and women as a means for job creation has been inaugurated recently in Modjo City in attendance of high officials from Ethiopia’s Ministry of Industry (MoI), Oromia Regional State President Office, Modjo City Administration, and the United Nations Industrial Development Organization (UNIDO).
“The laboratory has brought the service closer to the tanneries, and the footwear and leather goods manufacturing micro enterprises will have easy access to the leather for making their products,” said State Minister Tarekegn at the inaugural event, emphasizing the facility’s practical impact on improving production efficiency and competitiveness in the sector.
The facility, situated in one of the country’s key leather hubs, combines a physical and chemical testing laboratory with a common manufacturing space for footwear and leather goods. It is designed to serve both as a production site and a training center, with a particular focus on supporting youth and women through skill-building and employment opportunities.
The project, known as the Leather Initiative for Sustainable Employment Creation (LISEC), was implemented by the United Nations Industrial Development Organization (UNIDO) with funding from the European Union.
In a press release sent to Fana Media Corporation (FMC), UNIDO Ethiopia Country Office stated that the initiative is part of broader efforts to enhance Ethiopia’s leather value chain and promote sustainable industrial development.
“Today marks not just the unveiling of facilities—but a celebration of partnership, vision, and a renewed commitment to the development of the leather industry,” said Aurelia Calabro, UNIDO’s Project Manager and Director of the Division of Gender Equality and Women Empowerment. She credited the progress to the cooperation of key national and local partners, including the Modjo City Administration, the Ministry of Industry (LLPIRDC), and Ethiopian Enterprises Development.
The facility’s location in Modjo reflects its strategic role in supporting the existing ecosystem. Modjo has long served as Ethiopia’s leather tanning center, and the proximity of the new services to local tanneries is expected to reduce logistical barriers for MSMEs in need of raw materials and testing services.
In addition to the Modjo facility, the project also supported five abattoirs located in Modjo, Adama, and Addis Ababa by equipping them with modern slaughtering and flaying machines. These upgrades aim to improve the quality of hides and strengthen the upstream segment of the value chain.
Modjo City Mayor Gazali Hashu welcomed the facility as a key tool for sustainable development. “This is our collective mission to empower leather industries, enhance skills, and create sustainable employment opportunities. This is not just about equipment and infrastructure; it is an investment in young people and the future,” he said.
The facility is fully equipped with modern machinery that supports quality production, technical training, and knowledge transfer. To date, over 800 individuals have received training through the LISEC project, including in areas such as occupational safety and sustainable production practices.
Stakeholders view the Modjo facility as an important step toward industrial transformation in the leather sector. While the infrastructure now exists, continued collaboration among government, development partners, and the private sector is seen as essential to unlocking the sector’s full potential for decent job creation and economic growth.