Tannery solid waste management and by-products can create employment for SMEs: Experts

Tannery solid waste management has significant potential to create employment opportunities for small and medium enterprises (SMEs) in Bangladesh, according to experts at the 9th SME Development Working Committee meeting. 

The meeting, jointly organised by the Ministry of Industries and the Business Initiative Leading Development (BUILD) on Wednesday (23 October), focused on leveraging tannery waste to foster SME growth.

Chaired by Zakia Sultana, senior secretary of the Industries ministry, the meeting featured presentations on two policy papers – "Tannery Solid Waste Management: Bi-Products Development and Opportunities for SMEs" and "Revisiting the Potentials of Logistics Sub-sectors in the Industrial Policy 2022". 

These papers were presented to gather feedback from stakeholders in both the public and private sectors.

Ferdaus Ara Begum, CEO of BUILD, said, "The relocation of tanneries to the Tannery Industrial Estate in Dhaka (TIED) without proper compliance, especially with regard to the Central Effluent Treatment Plant (CETP), has created significant challenges, leading to export losses and increasing unemployment."

She informed that Bangladesh Bank has introduced a refinancing scheme for environmentally friendly products, projects, and initiatives in fields such as light engineering, with the allocation increased from Tk400 crore to Tk1000 crore. 

Around 650 projects across 12 sectors, covering approximately 70 products, have been implemented under this scheme. These include developing by-products from tannery waste, such as gelatin, glue, shoe soles, and safety items, which could drive SME growth if integrated into national industrial and SME policies.

Md Golam Shahnewaz, managing director of Dhaka Tannery Industrial Waste Treatment Plant Company Limited, said 80% of tannery solid waste is non-chrome based and can be transformed into various by-products. These include fleshing, raw trimming, split leather, shavings, and buffing dust, which can be used in industries producing gelatin, biogas, animal feed, and leather goods. 

He said, "SMEs need to collaborate under a unified framework to fully capitalise on these opportunities. Foreign companies, particularly from China, are already tapping into the sector, producing items like glue, gelatin, and animal fat from tannery waste."

Representatives from The Asia Foundation mentioned that achieving Leather Working Group certification – a key to unlocking higher export value – requires a significant investment and a 2.5-year compliance period. However, the CETP and solid waste management remain significant barriers. 

As a solution, the foundation recommended the use of individual effluent treatment plants to improve compliance and certification prospects.

The meeting also touched on broader SME development, with discussions on the logistics sub-sectors under the Industrial Policy 2022. 

These discussions identified key policy gaps, such as the need for a temperature control policy, a truck fare policy, driver recruitment guidelines, and streamlined freight forwarding licensing rules.

In her concluding remarks, Sultana, the senior secretary said the government has approved individual ETPs for tanneries, which entrepreneurs can now take advantage of. 

She also announced that the second phase of plot allocations at TIED will prioritise SMEs that were overlooked in the first phase. 

Representatives from various industry bodies, including the Bangladesh Tanners Association, Dhaka Chamber of Commerce and Industry, and the SME Foundation, also contributed to the discussions, underscoring the importance of solid waste management in driving SME development and employment creation in the country.