Productivity SA Urges Export Duty on Raw Hides to Revive the Local Leather Sector:
3 June 2025 — Productivity SA has called on the South African government to introduce export duties on raw hides and semi-processed leather. The aim is to increase local availability and reduce costs for domestic leather manufacturers — a move that could boost productivity and competitiveness in the labour-intensive leather and footwear industries.
Speaking at the launch of two new research reports released by Productivity SA, Mr. Sipho Kunene, Economic Research Manager at Productivity SA, said: “Introducing export duties would strengthen downstream industries and protect local producers from being undercut by cheaper imports, particularly from the East.”
The first report, An Overview of the South African Leather and Footwear Industry, analyses the industry’s potential for job creation, export performance, and the role of government support through the Department of Trade, Industry and Competition (the dtic). Kunene highlighted that revitalising the sector requires decisive policy interventions to address structural constraints and market pressures.
Adding to the call for greater protection and support for local manufacturers, Mr. Ashley Benjamin, General Secretary of the National Union of Leather and Allied Workers (NULAW) and a guest speaker at the webinar, emphasised the labour implications of the current export climate. “NULAW has consistently advocated for policies that safeguard and create jobs in the local leather industry.” “We call on more support through better policing of ports of entry to curb the influx of illegal imports and more support from local retailers.”
In addition, Productivity SA’s Economic Research Manager, Ms. Motlatsi Gabaocwe, presented findings from a second report titled The Role of Energy Supply in Labour Growth. Among key recommendations, Gabaocwe called for: “A revised Integrated Resource Plan (IRP) to accelerate electricity procurement and remove red tape that hinders private sector investment in distributed energy solutions.” She added that energy security is central to unlocking job creation and long-term productivity growth.
“These reports reflect our commitment to evidence-based insights that address South Africa’s productivity barriers,” Gabaocwe said. “We urge all stakeholders to engage with the findings and contribute to building a competitive, inclusive economy.”
Acting Chairperson of the Productivity SA Board, Ms. Beverly Jack, stated: “By analysing productivity within the energy and leather sectors, we aim to identify practical strategies for sustainable growth and sector transformation.”
The full reports are available at www.productivitysa.co.za
The recorded webinar can be accessed via the Zoom link: https://us02web.zoom.us/webinar/register/WN_h9uNDBZVQ3K9K8F3DrAPeA
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Author: Maupi Monyemangene from Productivity SA on behalf of Productivity SA.
– MyPR
