Govt Plans To Extend Export Incentives For Leather Industry

Bangladesh's leather footwear exports reached $228.47 million during the July-October 2024 period, marking a five-year high and a 9% increase from $182.11 million in the same period of 2023, according to the Export Promotion Bureau. This growth is attributed to competitive labor costs and orders shifting from China due to its rising production costs.

Apex Tannery Limited has proposed a 5% cash dividend for FY24 for general shareholders despite facing increased losses. The company’s net loss grew to Tk12.66 crore, up from Tk12.44 crore in FY23, with earnings per share (EPS) worsening to Tk8.31 negative.

DC Industry (Bangladesh) Company Ltd has signed an agreement with the Bangladesh Export Processing Zones Authority (Bepza) to establish a bag and wallet manufacturing facility in the Bepza Economic Zone at Mirsharai, Chattogram. The $5.36 million investment is expected to produce 2.5 million handbags, 1.5 million backpacks, and 1 million wallets annually, creating nearly 3,000 jobs.

Due to recent violence and unrest related to the quota reform movement, Bangladesh's leather goods and footwear sector has suffered significant losses, estimated at $2.6 million or Tk 307 crore. This includes $6 million in leather products, $1.2 million in leather footwear, and $8 million in non-leather footwear exports.

Prime Bank has partnered with Affix Universe Limited, a leather goods manufacturer, to offer exclusive banking benefits to Affix's employees. The agreement includes preferential rates for accounts, credit cards, loans, and digital banking services. The partnership aims to improve the financial well-being and banking experience of Affix employees.

The Bangladesh Bank's Foreign Exchange Policy Department has issued a circular granting the Bangladesh Tanners Association (BTA) authority to issue export certificates for cash assistance applications. Previously, BTA and other associations could only issue certificates for exports under full or partial advance repatriation systems.