Ethiopian government steps in to resolve dispute bet - leatherbiz: Lea Leatherbiz

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Ethiopian government steps in to resolve dispute between tanners and hide supplier

03/01/2014
A dispute between hide suppliers and tanners in Ethiopia has been resolved after the government in the African country intervened to reverse a court decision to freeze tanning companies’ bank accounts.

A local court decided in December to freeze accounts held in Ethiopia by Chinese-owned tanning company Friendship and the UK-owned Ethiopia Tannery Share Company (acquired by Pittards in 2009) following a complaint from a local hide trader over late payment. The judge said the accounts would be closed for two months.

However, within a few days, Ethiopia’s ministry of industry had intervened to reverse the court decision and to broker a payment deal between the two tanneries and their supplier.

Industry minister, Tadesse Haile, was quoted in local media as saying the government was shocked by the court’s decision. He said: “Working with credit is nothing new, but freezing company accounts is like halting the export performance of the country.”

The government has also taken steps to make it easier for tanners to take delivery of raw material directly from collectors, cutting out third-party agents. Tanners have accused hide traders of holding back stocks of hides and skins to push prices up.


Related stories:

Finished goods are key to growth, says Pittards 15/05/2014
Ethiopia falls short of leather export target 02/05/2014
Focus away from ‘commodity’ leather helps Pittards increase profit 20/03/2014
ETSC director retires after 40 years at Pittards 10/02/2014
Japanese leathergoods maker heads to Ethiopia 07/02/2014

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