Abstract
This assessment is to identify the main opportunities of Ethiopian Banks for financing in leather sector. This can be done by analyzing data and drawn conclusions. The assessment also tries to identify comparative advantage of financing on leather sectors on banking performance. Also identified specific area of sub sectors to play significant roles in generating income from especially, exporting of the raw hides, skins, in leather sector. Also found from the assessment that Ethiopia have potential economy in the sectors because of the availability of such raw material, and high market supply of demand of leather from excess resource. Raw Hide and skin, and leather and finished leather sector has huge potential to achieve foreign exchange for Ethiopia, it is identified as one of the potential sectors that could play a crucial role in achieving long run the foreign currency earning of the country, expanding employment opportunities and attracting foreign direct investment (FDI) due to abundant labor and excess raw material. Then found, gain from the contribution of this sector to the country’s economy, highly significant and demanded in many international markets. The main export destination of Ethiopian leather and leather product are: China, Europe union’s countries (Italy, Germany, UK.), Japan, Hong Kong, United States of America, the main source of foreign exchange earner in each year. Keywords: Leather, Leather product, Benefit, export DOI: 10.7176/RJFA/13-1-01 Publication date: January 31 st 2022
Highlights
1.1 Background of the Study Awash bank is one of the private commercial banks in Ethiopia that aggressively works on expanding its business throughout the country
This study is conducted to identify the viability of leather and leather product by assessing how the bank can interfere in the marketing of leather product and its production process to retain their stakeholders to provide banking services
Overview of Leather and Leather Products 2.1 Leather Product as Sector The leather sector can be classified in the following core sub-sectors: raw hides and skins production, collection and commercialization; tanning and leather finishing; leather products manufacture, manufacturing of footwear; manufacturing of other leather output products
Summary
1.1 Background of the Study Awash bank is one of the private commercial banks in Ethiopia that aggressively works on expanding its business throughout the country. This study is conducted to identify the viability of leather and leather product by assessing how the bank can interfere in the marketing of leather product and its production process to retain their stakeholders to provide banking services. Leather industry is a very old manufacturing sector producing a wide range of goods such as leather footwear, leather bags, leather garments, and so on. It is one from five highest exporting product, dominant product in Ethiopia. The raw material used in leather industry is derived from the of food industry, from meat processing. This product is converted into desirable and useful leather products. They are produced from renewable and readily available resource (LII, 2011)
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