Globalization has bought the world in one consensus that is export is vital for the economic well being of countries. Hence globalization has forced nations to participate in export activity of the world, Ethiopian also forced to export products to the global community. "One of the products to be exported to the global community is Leather shoes. "The Ethiopian government has also put export of shoe one of strategic issue of its growth and transformation plan (GTP) .There for this research work mainly helps to identify the key challenges & prospects of Ethiopian leather footwear industry to be competitive in world market and identify the root causes of the problem. The finding is also creating awareness to the sector, and provides appropriate recommendations.