As commodity‑reliant economies face growing demand for environmental and labour accountability, SMEs are combining traditional practices with adapted traceability solutions that fit local realities, helping them meet global trade rules, strengthen market access and protect livelihoods.
At a tannery in Addis Ababa, Ethiopian and Indian project researchers are testing enzyme-based methods to replace harmful chemicals and developing ways to turn tannery waste like hair and fleshings into useful products. About 5,000 kilometres away in Pakistan and Bangladesh, each hide’s pilot production journey will be logged digitally, helping producers meet strict buyer requirements whilst cutting waste and pollution.
This transformation is backed by the Sustainable Manufacturing and Environmental Pollution (SMEP) Programme, which supports home-grown and locally adapted innovation and affordable technology to help manufacturers reduce pollution, improve working conditions and compete globally.
Compliance as currency
In 2023, global leather exports totalled US$117 billion, with leather articles making up nearly 85% (US$87.23 billion) and raw hides and skins accounting for the remaining 15% (about US$16.1 billion) (UN Comtrade data in SMEP, 2025).
Across developing countries, the challenge is broader. According to UNCTAD, 66% of developing countries and 4 out of 5 least developed countries, still depend heavily on commodities for export earnings. But markets are shifting. As buyers demand proof of compliance, the hurdle is not the product but proving how it was made through traceability systems that meet standards.
Turning waste into value for all
The textile sector is also adapting. In Pakistan, where 1.7 million tonnes of post-industrial textile waste are generated each year, SMEP supports a project that digitally connects post-industrial textile waste with textile recyclers, making production more circular and helping exporters meet traceability requirements of high-value markets.
In Nigeria, women and youth use a customised mobile phone app at community-run hubs to collect, sort and manage plastic waste. The hubs provide income and safer work, while generating data that informs policy and ensures informal workers are recognised.
By turning waste into an economic resource through digital tools and innovation that fit local realities, these initiatives show how developing countries could use digital transparency to open doors to premium export markets and make supply chains more inclusive and equitable at home.
Reimagining trade and a broader path to development
From leather to textiles to plastics industries, SMEP pilots show how developing countries are competing not just on price, but proof of sustainability in markets where billions of revenues are at stake. By advancing circular and biodiversity-based economies, sustainable trade and environmental stewardship can go hand in hand, benefitting people, prosperity and the planet.
More discussions in this regard will take place at the upcoming 16th United Nations Conference on Trade and Development (UNCTAD16) set for 20-23 in Geneva, under the theme “Shaping the future: Driving economic transformation for equitable, inclusive and sustainable development”.
Maria Durleva
Programme Management Officer, SMEP-UNCTAD, with inputs from Elzette Henshilwood.