Africa’s Prosperity and Potential of its Untapped Resources

By Olamide Akinolugbade

Just some 30 to 40 years ago, many African countries had similar GDP as Asian countries after they were devastated by wars and exploited by colonialists. However, Asia developed vigorously while Africa was left far behind, as it is today. To date, many African countries, especially those in the sub-Saharan region, remain at the bottom of the poverty line despite it having more than 30% of the world’s resources.

For a continent extremely rich in natural resources, Africa should be way ahead by now and with Nigeria setting the pace.

the conversation has been ongoing on all levels for a while, with efforts from so many respected figures spread across the public and private sectors for possible solutions or strategies on how to move the continent forward, and one Prominent subject matter that continuously reoccurs during these discussions is the need to explore, cultivate, and groom many of the untapped resources abundant within Africa. A key African resource with boundless potential not to be overlooked is Leather.

Exploring the potential riches of leather in Africa.

According to a report by Business Wire, Africa’s leather sector is part of a global industry expected to be worth $30bn by 2027. Bringing it closer to home, Nigeria is one of the highest producers of leather and finished leather products in Africa; a study carried out by the Nigerian Economic Summit Group (NESG) projected that the Nigerian leather industry has the potential to generate over 1 billion dollars by 2025.

The industry currently employs over 750,000 workers with about 500,000 workers in the finished leather goods sector. According to Osinbajo, there is enormous potential for greater job opportunities and much higher export proceeds. He further indicated that the NESG projection also projected that the Nigerian leather industry had the potential to increase its earnings by 70% by 2025.

Beyond the projections, the current statistics and realities of the sector are encouraging, especially when considering the little attention currently paid to the industry. Raw materials are exported from the heart of Kano to leading leather brands on the global front, creating more opportunities for Nigeria to play in the export market. Sometime in 2021, Winston Udeagha, founder of Nigerian-based leather and fashion accessories brand, Winston Leather, said “Goat skin from Kano and sheep skin from Sokoto is the best in the world. For the last 500 years, traders have bought leather from Nigeria and used it by some of the biggest fashion houses in the world”

Despite this great potential and apparent market opportunity even on the global front, the leather sector in Nigeria and Africa remains untapped. Data according to an African business report shows that African countries have 25% of the world’s sheep and goats but produce less than 10% of the global output of hides and skin.

Stakeholders are not relenting till the Leather Sector is cultivated

Just recently, Lagos state – the center of economic activities in Africa – witnessed the massive gathering of over two thousand key stakeholders spread across Sub-Saharan Africa (SSA), at the Lagos Leather Fair, to discuss the road map to the future of the leather Industry.

Put together by Femi Olayebi, creative director of FemiHandbags, the 2-day event reiterated the potential economic impact of the leather sector on the Nigerian economy and created opportunities for leading industry players to not only showcase their products but also collaborate with other players within the ecosystem.

At the event, the Minister of Industry, Trade and Investment, Mr. Adeniyi Adebayo pledged his commitment to the growth of the sector. He said “We are proud of the good works of Lagos Leather Fair over the past 5 years, they have created a solid platform where everyone within the leather ecosystem can meet up and hold conversations on how to move the industry forward. The result of this has become very visible with the growing attention gained by the industry and increased collaboration amongst players. For us as a ministry, we will continuously drive support till the potential of the leather industry is fully harnessed in Nigeria”. 

Also to pull key stakeholders together whilst also ensuring the sector reaches its maturity,  Femi Olayebi – Founder of Lagos Leather Fair recently launched the Guild of Leather Designers (GOLD) – a non for profit members-only body that will operate independently and help to strengthen the professional development of leather designers, promote best practices, help facilitate access to business development tools, serve as mitigating force to IP issues, and serve as a bridge between leather designers and various stakeholders to create a holistic, effective and sustainable ecosystem.

The Guild will partner with industry experts who will bring together their collective knowledge and experience to help leather designers operate their businesses more effectively and help them gain valuable insights that will help them develop strategies for growth.

Opportunities and platforms like this are welcome initiatives to cultivate the industry and stakeholders must continue to invest their resources and manpower to cultivate the industry. Femi Olayebi opined whilst speaking at the Lagos Leather Fair, recently She said, “As we round up year five with much excitement and optimism, the work continues — we are determined to continue to seek out ways to pull all the necessary thought leaders, policymakers, and key players together to keep changing the narrative and advancing the necessary conversations.”

The leather industry is huge, and its potential can only be imagined. Well over five decades have passed since the end of colonial times, and African governments often still appear clueless when it comes to lifting their people out of extreme poverty. However, change is possible. Africa’s riches and prosperity lie within; taking its place on the global front requires an inward look into its many untapped resources, with leather taking a front row.

Olamide Akinolugbade is a PR Consultant