However, this type of operation faces tough competition from countries in the Far East and elsewhere. The footwear and leather goods industries are well suited to small and medium scale industrial operations and have very labour-intensive manufacturing processes. Considerable potential for further development exists, based on a supply of raw materials and favourable labour costs. To boost industrial development in this sector, African countries need to attract foreign investment and to stimulate cooperation with most countries with more highly developed industries. Foreign investment is more likely to be attracted if the industrial skill levels are improved and if a stable political and industrial climate is offered to potential investors.
African countries face particular difficulties when attempting to enter world markets.
They have little reliable statistical data on finished leather and leather products, and find it difficult to collect, evaluate and disseminate market information. Suitable product ranges must be developed to meet the requirements regarding fashion, colours and textures in the different types of materials demanded by consumers. Importers generally require good quality, well preserved, and correctly graded raw hides and skins. In recent years exports of raw hides and skins from Africa have decreased, due in part to restrictive trade policies adopted by some countries which have reduced the export availability. While newly established domestic tanning industries may need support to become established, export restrictions have often resulted in declines in the quality of domestic raw stock due to the low prices paid by the local tanners.