First the collapse in exports. Now the stop to a new tannery. Duties imposed by the Zambian government on exports of exotic leathers are having disastrous effects. Last December, the Zambian Crocodile Farmers Association launched the first alarm. Now the costs of those choices are paid for by the development of a new factory for the processing of crocodile leather.
Collapse in exports
The Zambian Crocodile Farmers Association had criticised the introduction of a 10% tax on exports of crocodile leathers by the government. The measure led to a drastic drop in sales. And because of it, the farms have 1.3 million leathers crammed in the cold rooms. Fears were confirmed by data released by the Zambian Crocodile Farmers Association. In 2015, 66,000 pieces had been exported. In 2018 just over 31,600. In 2019 the number dropped to around 22,000.
Stop to the new tannery
Now the consequences of the tax also affect the development of the industry. And it is almost paradoxical. The duty introduced by the government was intended to strengthen the sector and increase the number of exotic tanneries. In fact, as the leaders of the Zambian Crocodile Farmers Association once again denounce, it would be delaying plans for the installation of a new tannery.