Duty on machinery removed18 September 2001
The Leather Association of Zambia and the Zambian government have removed duty on tannery machinery and equipment to stimulate growth. The Zambian government has been co-operating to substantially improve the supply of hides to tanneries by encouraging exports of value added products. The Export Board of Zambia (EBZ) has recommended that the government and companies should formulate a policy to motivate cattle farmers to sell their raw hides to local tanneries. In addition, tanneries exporting only wet-blue hides should be given incentives to make finished leather for export. The EBZ also recommended that the Zambia Wildlife Authority and crocodile farmers should collaborate to develop a common strategy to increase and ensure a regular raw material supply. Most Zambian companies are seeking joint venture agreements with potential importers in South Africa, to allow them to increase their production and make use of South African expertise to meet market requirements. Zambia's tanning sector has expanded rapidly since 1974 when the first tannery was established by the Bata Corporation. This facility remains the largest tannery and the best equipped to produce finished leather, and includes a footwear plant. Other tanneries are owned by Kembe Estates, Malar Industries, SIDO Tannery and Leather, and Zamleather.