Assessing the Main Priorities Area and Opportunities for Banks Financing in Leather Industry in Ethiopia

This assessment is to identify the main opportunities of Ethiopian Banks for financing in the leather sector. This can be done by analyzing data and drawing conclusions. The assessment also tries to identify the comparative advantage of financing in leather sectors on banking performance. Also identified a specific area of sub-sectors to play significant roles in generating income especially, exporting of the raw hides, skins, in the leather sector. Also found from the assessment that Ethiopia has a potential economy in the sectors because of the availability of such raw materials, and the high market supply of demand for leather from the excess resources. Raw Hide and skin, and leather and finished leather sector have 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 labour and excess raw material. Then found, gain from the contribution of this sector to the country’s economy, is highly significant and demanded in many international markets. The main export destination of Ethiopian leather and leather product is: China, Europe union’s countries (Italy, Germany, UK.), Japan, Hong Kong, United States of America, are the main source of foreign exchange earners each year