allAfrica.com allafrica.com 26 Jan, 2021 12:15 am

Ethiopia: What State Visit of Ethiopian President to Tanzania Entails

TANZANIA on Monday hosted Ethiopian President Sahle-Work Zewde, who held talks with President John Magufuli in Chato, District, Geita Region.

Ethiopia has a well-developed leather industry, led by small and medium-scale entrepreneurs (SMEs), making it one of the leading manufacturing sectors for Ethiopia where it exports finished leather followed by growing shoe exports.It is a chance for our SMEs to take a leaf from their Ethiopian counterparts particularly on their vast experiences to establish a strong leather industry in the country.Tanzania's leather industry offers immense untapped opportunities for which SMEs can utilise to establish small industries that will contribute to job creation and economic growth.Although statistics favour Tanzania with more exports to Ethiopia, the trade balance registered in the reference period is still small and presents ample room for Tanzanian investors and traders to capitalise on the relations.

When African countries trade with themselves they exchange more manufactured and processed goods and services and have more knowledge transfer and create more value.Enhancing trade and investment relations between Tanzania and Ethiopia has come at the right time as African countries have just initiated the African Continental Free Trade Area Agreement (AfCFTA), which is set to address many important demand constraints to trade, particularly those linked to market size as well as provide solutions to supply constraints.

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