The sector is one of Ethiopia’s leading manufacturing sectors. Ethiopia has a comparative advantage in the leather industry, producing 5 million tons of hides, 8.1 million tons of sheepskins, and 7.5 million tons of goatskins annually. There are numerous investment opportunities in tanning, as well as finishing and manufacturing of luggage, handbags, saddlery and harness items, footwear, garments, and other leather goods.