Leather Initiative for Sustainable Employment Creation (LISEC) in Ethiopia

Creating economic and employment opportunities through the development of the Ethiopian leather industry and the Modjo leather industrial park

Towards a Solution

This project by the United Nations Industrial Development Organization (UNIDO) will follow an integrated approach all across the leather industry value chain, that aiming to increase vertical integration of the value chain, creation of value addition, new job opportunities in the leather, footwear and leather products sectors and an increased attention to the environment and water resources.

The project will ensure and follow participatory methods, which will accommodate all stakeholders and seek close partnership with relevant government institutions at local, woreda, regional and federal levels. Target beneficiary communities and direct programme clients- women and youth- will drive their own development agenda guided by the program’s implementing partners. The foreseen overall project duration is 4 years.

LISEC has been structured following a comprehensive approach with three main components aiming at:

1. Advancing economic competitiveness by strengthening the leather value chain;
2. Protecting the environment by facilitating financial investments towards the establishment of an eco-friendly leather industrial park in Modjo; and 
3. Strengthening social cohesion by supporting local economic and social development initiatives, especially for women and youth living in Modjo area; and enhancing industrial and labor relations in the MLC.

Financially supported by the European Union and the Government of China, the present proposal is inserted within the EU Action Fiche “Leather Initiative for Sustainable Employment Creation (LISEC) in Ethiopia”. UNIDO in close collaboration with the Ministry of Industry (MoI) and the Leather and Leather Products Industry Research and Development Centre (LLPIR&DC) will implement component 1. UNIDO has been selected to implement this component due to its large experience in supporting the Ethiopian leather and leather products industry, its knowledge of national and regional leather institutions and its successful results in the sector. UNIDO will facilitate the involvement of relevant local Institutional counterparts in the project, in order to ensure project effectiveness and sustainability. Federal and regional institutions will be requested to provide relevant inputs and to participate in the project’s activities to ensure an effective project implementation.

The present project capitalizes on previous UNIDO leather sector initiatives/programmes developed and implemented in the country. In particular, UNIDO has also contributed to create the leather sector National Strategy and supported LLPIR&DC in becoming a lead leather institution in Ethiopia along with the development of a vast number of Micro, Small and Medium Enterprises (MSMEs) active in leather and leather products. The Leather Initiative for Sustainable Employment Creation (LISEC) will also benefit of some specific interventions that have been already performed by UNIDO in the recent years such as the Modjo Leather City feasibility study, the Environmental and Social Impact Assessment (ESIA) study conducted by LLPIR&DC, the linkages established with relevant financing institutions and development partners, the Public-Private Partnerships (PPP) linkages established in Addis Ababa for supporting the clustering of MSMEs operating in the leather and footwear sector.