The Cluster's Chairperson, Jean D'amour Kamayirese, told IGIHE that the earnings mark a significant recovery in the sector, crediting government reforms for restoring the value of hides and skins.
Leather exports had declined sharply following a 2015 East African Community (EAC) directive that restricted the export of raw hides and skins outside the region. Exporters who wished to sell beyond the EAC were required to pay a USD 0.52 levy per kilogram, a policy that discouraged trade and reduced prices locally.
Before the directive, a kilogram of hides sold for about Frw 1,500, but the price later dropped to between Frw 100 and 200.
To revive the sector, the Ministry of Trade and Industry (MINICOM) and the Rwanda Development Board (RDB) established the Kigali Leather Cluster in May 2023 to coordinate value chain development and support plans for a leather processing plant in Bugesera District.
Although the cluster initially focused on Kigali-based processors, a broader platform, the Rwanda Value Chain Alliance (RVCA), was later formed to include members from across the country.
Kamayirese said the 2015 restriction had discouraged investors, leading to wastage of raw hides.
'We found that many traders had left the business because of heavy losses,' he said. 'We began engaging producers and traders across provinces to assure them that the government was working on a solution.'
He noted that following sustained advocacy by the cluster and its partners, the government reviewed and lifted the export restriction in October 2024, allowing trade beyond the EAC without the previous high levy.
'Since the directive was lifted, we have seen a return of investors from different countries,' Kamayirese said. 'Prices have since increased from Frw 100â€"200 per kilogram to about Frw 750.'
Before 2014, Rwanda earned more than Frw 4 billion annually from leather exports. However, between 2016 and 2019, export revenues dropped to just Frw 63 million due to the trade restrictions.
Since 2024, Rwanda has exported 459,000 cattle hides, earning about Frw 6.8 billion, and 3.2 million goat skins, generating Frw 4.8 billion, bringing total earnings to over Frw 11 billion.
Leather remains one of the world's most versatile raw materials, widely used in footwear, fashion accessories, furniture, automotive interiors, and sports gear.
IGIHE
