Ethiopia: STTA - Leather Sector Consultants

BACKGROUND

DAI Europe, together with consortium partners First Consult; Enclude; and ITAD, is managing the UKaid-funded Enterprise Partners (EP) which aim to support and transform the private sector and Ethiopia’s continued economic growth over seven years with a £15m grant fund.

EP is utilizing the Making Markets Work for the Poor approach (M4P) and has two main pillars to achieve the goal of integrating the poor, and especially women, in sustainable economic enterprises that create jobs and improve incomes. The planned impact is to create 45,000 jobs (75% of which will be held by women) and increase the incomes of 65,000 households by at least 20%.

The EP pillars are:

• The Finance Group aims to achieve the outcome of increasing investment levels in the Ethiopian economy, particularly for growth-oriented small and medium enterprise. This will include funding of green technologies where appropriate and develop funding for green growth investment. It also includes technical assistance facility to participating financial institutions for two WB-led initiatives, aiming to improve access to finance to SMEs with particular focus on SMEs engaged in manufacturing/agro processing/tour/construction sector and SMEs whole or partly owned by women [1].
• The Agro-Industrial Group is expected to achieve the outcome of increasing returns on investment (productivity) and investment levels in the identified sectors of cotton/textiles, livestock/leather and horticulture, in order to achieve the impact of creating jobs and raising household incomes. Additionally this pillar will incorporate the promotion of climate change awareness and addressing women’s economic empowerment.

Background specific to this assignment

Joining the global production network and increasing exports is one of the most effective ways of growing the manufacturing sector quantitatively and qualitatively, thereby creating new employment opportunities and generating foreign exchange. Attracting brand-name buyers (anchors or leads) & FDI and create a working linkage with domestic producers can help drive this process of export-led growth and structural transformation.

The leather and leather goods value chain has already attracted few foreign investors and buyers, and should serve as a launch pad for the development of higher value added manufacturing with greater technological content.

The development of a sector specific investment promotion strategy will help the GoE focus and prioritize these interventions towards achieving the most out of the sector by attracting proper domestic and foreign investment.

PURPOSE

This assignment is seeking to conduct a comprehensive supply and value chain analysis of the leather and leather goods sector as a priority manufacturing industry in Ethiopia.

The study will:

1. provide a good understanding of the structure, opportunities and constraints in the leather and leather goods value chain, as well as provide information on possible interventions for supply chain optimization,
2. analyze other successful supply chain models in other countries for possible synergies,
3. identify potential policy and incentive schemes to be developed and recommend actionable activities and timetable for implementation of recommendations

SPECIFIC TASKS

• Analysis of current global trends in leather and leather products investment and trade as well as drivers of change in global production networks
• Identification of the product categories, buyers and manufacturers that Ethiopia should prioritize for manufacturing, investment and trade, and strategy to secure them
• Analysis of export or import substitution potential of the industry to understand attractiveness of the market for potential investors
• Gap analysis of local manufacturers through direct surveys to understand and address obstacles in the sector in addition to ascertaining that FDI does not deter the local investors’ growth
• Regulatory frame work analysis and benchmark other compatible countries to recommend any alterations in the regulations that Ethiopia should consider incorporating
• Recommendations to increase backward and forward linkages between FDIs and domestic companies, especially SMEs
• Recommendations to integrate environmental objectives and green jobs into the investment and trade strategy
• Analysis of the already existing domestic sector and it’s capacity both in quality and quantity
• Analysis of the current leather ecosystem in Ethiopia with Macro, Meso and Micro level actors, government and supporting institutions role with clear outline of ‘who does what’ and recommendation of additional institutional roles that will be critical for the success of the investment promotion
• Identification and analysis of endowments and resultant opportunities for Ethiopia to exploit those changes to capture a greater share of global leather market
• Analysis of the political economy, incentives and expectations in the leather sector
• Recommendation on realistic export target until 2025 and rationale behind
• Recommendations for upgrading the leather and leather goods value chain in Ethiopia to meet the set export targets
• Recommendations of policy & a package of measures necessary to increase the competitiveness of the leather and leather goods export market
• Recommendations on opportunities for SMEs to enter the export market
• Recommendation on necessary institutional arrangements needed to implement sector policy
• Identification and analysis of government incentives and resultant outcomes in leather and leather goods sector in comparison with benchmark countries such as India, China, and Vietnam
• Identification of available incentives and government support that can be leveraged, benchmark other countries and recommend any alterations/additions necessary for attracting investors considering their implications
• Identification and analysis of areas where FDIs should focus and where they should closely link with local manufacturers
• Identification of companies through key investment factors including Ethiopia’s competitive advantage and realities
• Assessment of requirements for integration of the sector into the Industrial Park (IP) development scheme considering the types of parks planned for construction in Ethiopia, the industry specific requirements and industry and IP correlation internationally
• Recommendation on attracting identified companies in consideration of current incentives and potentials available, and also make recommendations on possible refinements/additions
• Recommendation on required infrastructure and institutions for attracting FDIs
• Recommendation on key partner countries through a set selection criteria compatible with the sector with case studies
• Analysis and recommendations on required infrastructure and institutions for attracting FDIs
• Research, write, edit and coordinate the production of a report covering the points above and contributions from other consultants

Consultant is required to travel to Ethiopia as required for the purpose of research, consultations and presentations of the report.

CONSULTANT REQUIRED

• A minimum of seven to fifteen years of experience in the global leather value chain
• Experience in working with global brands is required
• Multi-country experience in working on manufacturing sector development; industrial parks experience is a plus
• Experience in providing advisory services to government and non-government stakeholders
• Responsible for supporting sector teams and management in designing strategies and interventions
• Relationships with brand leather product and accessories suppliers/manufacturers
• Understanding of the current and past international leather industry and investments worldwide

WORKING ARRANGEMENTS

The focal person with EP for this assignment is Wengel Tessema, whom the Consultants will be reporting to.

The Consultant shall work in close consultation with the Technical Directors and relevant stakeholders.

TIMEFRAME AND INPUTS

The assignment will take place from October 2017 to January 2018.

Last date for submission of applications is 27th September, 2017.

[1]The projects are (1) Women Entrepreneurs Development Project (WEDP, 2013 – 2018) and (2) Small and Medium Enterprise Finance Project (SMEFP, 2016 – 2022).

To apply please follow the link below:

https://chm.tbe.taleo.net/chm04/ats/careers/requisition.jsp?org=DAINC&cws=1&rid=3280