To reactivate the sector, the government will buy footwear

From the Ministry of Production of Peru -PRODUCE- reported that in order to reactivate the footwear industry, 146 million soles (approx. US $ 5.5 million) have been allocated for the acquisition of footwear in different calls that will be launched until next July.

The actions are within the MYPerú Purchasing strategy that are made to national producers, whose footwear is distributed to state employees and deprived sectors, mainly children.

In the context of helping the industrial segments most affected by the pandemic, such as the footwear industry, ministry authorities announced that in the coming weeks the Business Support Program for Micro and Small Enterprises -PAE-Mype- will be launched, which has a fund of 2,000 million soles (approx. US $ 70 million), so that financial entities can grant cheap loans to productive units.

Also from the central government they indicated that recently the resumption of economic activities in the productive conglomerates was authorized behind closed doors, with protocols, and of the shopping centers through electronic commerce. However, it is estimated that the latter will resume their work in the coming days after the publication of the measures that regulate their operation.

According to the director of CITECCAL -Leather and Footwear Technology Center- of Trujillo, the expectations are that 30% of the industry in the area will restart their tasks with protocols in the next 30 days, while it is expected that in September this percentage will increase to 70%.

The manager added that throughout the country there are 8 thousand footwear companies operating formally, of which 80% are micro and small, which generate intensive labor.

Referring specifically to Trujillo, he said that a high percentage of informality is observed. To illustrate, he asserted that there are 2,900 formal units and 3,000 informal ones.

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