Jinja leather factories face closure
According to local media, four leather factories in Jinja City, Uganda have closed down, leaving hundreds of workers unemployed due to the shortage of raw materials.
The insufficient supply of hides and skin has affected the factories' ability to meet the demand, leading to the closure of SWT Leather Industries, Mehaka Leather Exim Smc Limited, Uganda Leather and Tannery Industries, and Loyal Small Scale Industries.
The drop in export volumes has caused the price of hides and skins to fall, and the market for wet-blue leather is no longer available. The government's ban on exporting raw hide and skin, high taxation, and breaching the memorandum of understanding signed with other countries have been cited as some of the factors that have contributed to the situation.
