The Role of Foreign Investment in Ethiopia’s Leather Value Chain: Lessons for Ghana

Abstract

In this policy brief, we report on work by Brautigam, McMillan and Tang (2012) who study the impact of foreign investment on Ethiopia’s leather value chain. The goal is to draw policy lessons for Ghana and other African countries. While it is true that Ghana is comparatively more developed than Ethiopia, it is also true that like Ethiopia, Ghana’s manufacturing sector is underdeveloped. And in both countries (as in much of Africa), there is significant potential for developing agribusiness through foreign investment