South Africa has been able to stop the decline of the clothing, textiles, leather and footwear sectors by implementing strategies which made the sectors to be globally competitive. This was said by the Director-General of the Department of Trade and Industry (the dti), Lionel October at the Source Africa 2013 event that is being held in Cape Town.
The event is supported by the USAID Southern Africa Trade Hub and is designed to highlight what Africa has to offer in textiles and apparel, giving the world a first-hand look at the quality, workmanship and sophistication available in the region.
October told delegates that the Clothing and Textiles Competitiveness Programme (CTCP) has breathed a new life into the sectors where new decent jobs are being created.
‘Local retailers are increasing procurement from local manufacturers and there is confidence starting to be shown by the new investment in the sectors. CTCP stopped the employment decline in these sectors and more than 12-thousand new permanent jobs have been created. Local retailers have committed to local procurement in support of manufacturing companies. Over 400 companies were assisted under the CTCP with R1.5 billion worth of applications approved’.
October stated that other SACU countries have embraced the Clothing and Textiles Competitiveness Programme (CTCP), concept and that Swaziland is the process of implementing the programme. He added that different African countries have experienced success in these sectors as they have used diverse strategies in developing their manufacturing bases.
‘Some Less Developed Countries have taken full advantage of International Trade Agreements like AGOA to build on their industries. Through these interventions countries like Lesotho have seen their textiles and clothing sectors growing to the extent that they are now one of the biggest manufacturers on the continent both in fabric and garments. Mauritius on the other hand has taken advantage of the AGOA and EU Trade Agreements but their focus on the African Markets through the SADC and COMESA Protocols has paid off well for their clothing sector especially their knitted garments. Their exports into SACU have grown substantially in the last five years whilst targeting South Africa as their main African destination’ added October.
He further highlighted that intra trade amongst African countries is also important as the industry has a growth potential.
‘These sectors are labour intensive and have the potential to create large employment especially in the garment manufacturing sector where the investment is low but the job creation is enormous. The industry has the biggest advantage that the raw materials like fibres, skins and hides are readily available in the African Countries and it make business sense to beneficiate these raw materials instead of exporting jobs by selling these resources to countries out of Africa’
October also said South Africa has opened its markets to Africa through the different protocols where Rules of Origin are respected and the manufacturing sectors of those countries are developed. However, he stressed that South Africa does not support traders who specialise in trans-shipments and destroying the countries' manufacturing base.
Enquiries:
Sidwell Medupe-Departmental Spokesperson
Tel: (012) 394 1650
Mobile: 079 492 1774
E-mail: MSMedupe@thedti.gov.za
