Minister Davies launched the clothing and textile competitiveness programme and production incentive

14 Sep 2010

Minister of Trade and Industry, Dr Rob Davies launched the Clothing and Textile Competitiveness Programme (CTCP) and its core funding mechanism, the Production Incentive (PI), at the Lord Charles Hotel, in Somerset West, Western Cape, today.

The CTCP and PI programmes- together with five other core projects of the Clothing and Textile Customised Sector Programme (CSP) – represent a fundamental shift in the dti’s strategic approach to restructuring this sector for long term sustainability and competitiveness. The main objective is to assist industry in upgrading processes, products and people, and to re-position it to compete effectively, domestically and globally.  

There are 6 core projects of the Customised Sector Programme:  

1. The Clothing and Textile Competitiveness Programme (CTCP) and Production Incentive (PI)
2. Skills Development Plan
4. Technology & Innovation Plan
5. Review of import tariffs on raw material
6. Combating Customs Fraud  

The three components of the CTCP comprise:  

  • A Capital and Technology Upgrading Programme, with two sub-components:
    • The Manufacturing Investment Programme (MIP),
    • Preferential Financing Scheme from the IDC  
  • The Competitiveness Improvement Programme (CTCIP) 
  • The Production Incentive (PI)

The CTCP Desk was established at the IDC in April 2009 to manage the CTCP.

Addressing the delegates at the launch, Davies indicated that the CTCP desk has received over 80 applications valued at R311.8 million, of which applications to the value of R36 million have already been approved.  

“The aim of the scheme is to provide support for the industry and to address challenges to upgrade productivity, product design, the hardware and the capital equipment. In line with our approach to funding initiatives, the incentive will be measured to show their impact and future funding will be based on proven outcomes”, added Davies.

He also stated that the industry needed shielding while the transition is underway, partly through raised tariffs. “The competitive challenges are becoming stronger and stronger and if the local industry is to survive it has to address a number of these issues. Ultimately the challenge is that the industry is going to have to make adjustments and raise its competitiveness”, concluded Davies.