One industry that is still very much in its infant shoes in Africa is the leather industry and the related processing of high-quality leather goods. The opportunities in this sector are enormous and you should really dig into that.
Read my post: Leather Profits: Why You Should Not Overlook This Business Opportunity In Africa
Isn’t it a tragedy that Africa has the highest livestock density on this planet, yet it hardly produces any recognized leather product brands for the Pan-African or global market?
This is where you can come in and while you may be able to open a manufacturing business for leather products anywhere in Africa, the best locations are those where you have an increased emphasis and dynamic on livestock and leather production already, which means you can expect an enabling policy framework, enough supply of pre-processed leather, skilled artisans, and a level of quality that won’t let you down.
Let’s have a look and make this a bit easier for you: Great markets for your leather production business are (among others):
Ethiopia (without a doubt the leading market in this regard)
Kenya
Botswana
South Africa
Nigeria
The Success Story of An African Entrepreneur Who Has Made It!
Sometimes it is good to read about the successful start-up stories of other African entrepreneurs to get inspired and motivated to take the leap and start doing business in Africa. For those of us who are based in the Diaspora, stories of entrepreneurs who have returned to the continent to make it are particularly valuable. Today, I want to present the story of Abai Schulze, an Ethiopian-American handbag designer who has been featured across various media channels, including Forbes.
Abai Schulze is founder of the Afro-luxury brand ZAAF who create handcrafted luxury leather handbags and accessories produced by artisans in Ethiopia. Abai, born in a remote village in Ethiopia, has had a truly remarkable life journey. Her journey has taken her from an orphanage in Addis Ababa to the United States aged 11 where she was raised, and back to Ethiopia. Today, she passionately uses her background in economics and fine arts to create unique and practical expressions of beauty, and to open avenues of opportunity for talented artisans in Ethiopia and the rest of Africa. Her designs draw upon precious cultural relics and allow them renewed expression through fresh, uplifting and modern designs.
Abai Schulze moved to Addis Ababa in 2013 to start ZAAF – a company that specializes in handcrafted luxury leather handbags and accessories produced by Ethiopian artisans.
She Leads Africa interviewed Abai Schulze who said she simply decided to go for it. “I changed the timeline and decided to jump in,” she said. “I told myself, ‘If it fails, I am still young, I can start over.’” She then made the physical move to Ethiopia. “You can’t do this type of business from a distance,” she said. “I had to leave everything behind and focus on ZAAF.”
In trying to figure out how to brand and market ZAAF, Schulze kept in mind the different connotations that come with products made in Africa. “A lot of it has that NGO feeling,” she said. “The language used is often, ‘It is made by poor people. Buy it otherwise they won’t have a job.’” She wanted to reject this guilt-driven purchase angle. “I wanted to show that we are talented, we just need to invest in our own people and we can produce something beautiful,” said Schulze. “You are buying the product because you like the product, not because you are feeling guilty.” “Otherwise you are not going to have loyal customers who come back,” she added. “If they feel like they have done their good deed of the day, then they will move on to the next company.”
Today, the bags are sold online via the ZAAF website and in select stores in Austria, the UK and the US. Although mostly sold abroad, local consumers include Ethiopia’s rich and middle class, and the expat and diplomatic community in Addis Ababa.
Although she has encountered the typical challenges entrepreneurs face everywhere else, Schulze says doing business in Ethiopia comes with some unique hurdles such as accessing foreign currency – which is always in shortage – and adapting to the country’s different work ethic.
“Business here is very much relationship-based. You have to be genuine in ways you work with people and create win-win situations. The way you work with people is so important that if it isn’t good the whole thing will blow up. You have to prioritize whatever they value.
“In the early days it is best to meet people in the sector you are joining, because at that point anyone you meet is way better than you. You never know if they are useful or not, but you just go for it and learn as much as you can.”
It took Abai only one and a half years from moving back to Ethiopia to launching and showcasing her first luxury bag collection in Washington DC. It’s possible!
What about you ?
If you want to finally walk the talk and start doing business in Africa or strengthen your Africa business concept and action, you will now have the rare opportunity to do that with my hands-on support and guidance to cut down time, risk, and related cost for you.
Join our Africa Business Bootcamp 2016 – in #LondonUK #WashingtonDC #SilliconValleyCA so you can get started faster and more confidently. REGISTER NOW until seats last. Frankly, there is no other event like it anywhere out there. It will get intense, so you can finally deliver successfully !
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Nigeria could be an exporter of leather with policies that discourage consumption of the skin. They use tyres to burn the skin creating a health and environmental hazard. Policies can turn the skin into a cash generator.