1. Product: Bare human feet are protected from hazardous stone and dust by wearing man-made shoe. Leather footwear is one of kind of shoe that protects the feet.
2. Rationale: Leather footwear is increasing popularity with rising income and increasing in awareness of its superiority over plastic, rubber and canvas shoes. Leather shoe are produced mainly in Addis Ababa and other towns and imported to the region. Basically leather footwear are produced by small-scale private enterprises although substantial numbers of small-scale private producers of footwear are currently operating in other parks of Ethiopia, only few in number are located in the region. It is very essential to establish small-scale leather shoe manufacturing enterprises in the region, which can employee many persons.
3. Market Situation: There is a huge potential and existing demand for footwear in general and leather shoe in particular for the large number of the population in the region due to the rise in income and increase of population in urban towns. There is unsatisfied huge demand for leather shoe. The manufacturing enterprises that produce durable footwear can capture this huge demand.
4. Source of Raw Material: The main raw material is leather, which is available from local tanneries. Other inputs like insole, eyelet and threads are also available in the domestic market.
5. Production Process and Technology (a) Production Process
Leather shoe production involves (clicking) uppers of leather, sewing together the inner and outer layers of the uppers, lasting (shaping) the upper and heels, and attaching to soles. All operation can be performed manually or mechanically, depending on the materials in use.
a) Machinery and Equipment
The main items of equipment required are as follows:
- Hydraulic clicking press
- Skiving machine
- Lasting machine
- Sole cutting and sole splitting machine
- Finishing machine
- Heat sealing machine
- Pneumatic sole attaching machine
- Stamping machine
- Compressor
6. Estimated Investment: The total investment outlay that includes machinery and equipment and working capital in estimated to be from Birr 350,000 to Birr 500,000.
7. Location: The location of leather footwear manufacturing plant should be in the major towns region, like Bahrdar, Gondor and Kombolcha.