Remarks by the MEC for Economic Development, Tourism and Environmental Affairs, Mr Sihle Zikalala - Launch of a Black Industrialist Textile Firm, Verulam, KZN
Your Worship, Mayor of eThekwini Municipality, Cllr Zandile Gumede;
Senior Representatives of the Department of Trade and Industry;
The Managment of Africa Bespoke Apparel Pty Ltd;
The leadership of KZN Growth Fund;
Distinguished Guests;
Ladies and Gentlemen;
Thank you for joining us today as we officially launch Africa Bespoke Apparel.
This is the biggest, black-owned and black-managed, cut-make-&-trim (CMT) factory in the province.
This facility is a demonstration of concerted and continued efforts to supporting the local clothing and textile industry.
We know that in the recent past this industry succumbed to severe international pressure, leading to the decimation of the local manufacturing capacity and job losses.
We are pleased to report today that government in partnership with private sector stakeholders are working together to rebuild our manufacturing capacity in the clothing and textile industry.
Government continues to avail financial assistance and other support to to make the domestic clothing and textile industry more competitive.
The labour absorptive capacity of the clothing and textiles industry is one of the reasons for the identification of this sector as a priority.
Through such financial assistance, thousands of jobs have been retained while new decent jobs have also been created.
To further support the industry, punitive measures have been put in place to halt the influx of illegal clothing imports into the country.
The cultivation of strong partnerships amongst participants in the clothing and textile value chains has begun to produce meaningful impact on the economy and lives of the people.
As Government we are continually looking for opportunities where we can provide support for enterprises that will have a catalytic effect on a series of other businesses.
Such is the case with Africa Bespoke Apparel, which will be the link between fashion houses and the retail market.
Today, courtesy of catalytic roles played by KZN Growth Fund and Department of Trade and Industry (dti), Africa Bespoke Apparel stands as one of KwaZulu-Natal’s largest and most technologically advanced CMT factory.
It is playing a vital role by adding much-needed capacity in the province.
The company’s location in Verulam is more appropriate as the town used to be a clothing and textile hub in years gone by.
Africa Bespoke Apparel will certainly help grow and shape the North Coast Industrial Corridor, covering Umhlanga, Verulam, Tongaat, Ballito and Stanger.
It is pleasing to note that fashion houses and clothing retailers have greeted the commissioning of this factory with great enthusiasm.
This is shown by the clients who have already started utilizing the services of Africa Bespoke Apparel when it opened its doors.
We are most grateful to these companies and we applaud them. They include The Foschini Group, Mr Price, and the Edcon Group.
Africa Bespoke Apparel has also started receiving orders from government departments including the South Africa Police Services.
The factory, which has capacity to handle over 235 000 garments per month, is equipped with state-of-the-art technology which makes Africa Bespoke Apparel able to complete internationally.
As a country, South Africa’s top destination markets for clothing include the SADC region, United Kingdom, United States, United Arab Emirates, Nigeria and Kenya.
In order to remain economically resilient, KwaZulu-Natal needs to continuously leverage on its areas of strength, which have been pivotal in driving economic growth in the province.
Sectors such as agriculture, manufacturing, tourism, and logistics have propelled the growth of our province and therefore we need to continue investing in programmes and infrastructure that both enhances the ease of doing business and reduces costs for enterprises within these sectors.
As Government, we are committed to ushering in a change in the economic landscape of our country.
In addition to investing in infrastructure projects across the province, one of our goals is to drive inclusive industrial development and in doing so to promote Black Industrialists.
The Black Industrialist Programme is one of the critical measures that will ensure that people who were previously not represented in the mainstream economy in a meaningful way get opportunities to do so.
Therefore, it is in line with this transformation vison that my department, through the KZN Growth Fund, has taken the decision to strategically partner with the Department of Trade and Industry to support the establishment of Africa Bespoke Apparel under the auspices of the Black Industrialist Programme.
Currently, there are 5 (five) Black Industrialist firms that the KZN Growth Fund and dti have jointly supported since inception of the programme.
My department, through the KZN Growth Fund, is assessing additional projects for funding from qualifying black industrialists located in various parts of the province.
Experience shows us that strong partnerships amongst entrepreneurs are pivotal to the success of new ventures.
They help ensure that such ventures are well equipped to managing organized and profitable outfits that will contribute to employment and economic growth within the province.
We are glad to note that Africa Bespoke Apparel is one such venture - which is a collaboration of (4) four black entrepreneurs who sought to make an impact in an industry that is less transformed from an ownership perspective.
This factory, at full capacity, will create over 750 permanent jobs, drawing most of the employees from surrounding areas. The bulk of the employees will be previously disadvantaged women between the ages of 18 and 60 years.
Both the National Development Plan and Industrial Policy Action Plan have put industrial development at the centre of South Africa’s industrial development efforts.
Africa Bespoke Apparel is aligned to both. It aims to stimulate economic growth in the province, promote broad based black economic empowerment and create sustainable employment opportunities.
This factory will further assist in import substitution as well as make significant contribution to the fiscus via taxes.
As the government of KwaZulu-Natal, our aim is to tear down barriers that are faced by entrepreneurs.
We will continue to work tirelessly to creating a conducive environment for businesses to flourish.
In the near future we envisage to see KwaZulu Natal taking pole position as a clothing and textile hub in the country.
Entrepreneurs are encouraged to take advantage of industrial hubs like the Richards Bay Industrial Development Zone and Dube TradePort Special Economic Zone.
The said zones have proven to be ideal homes for businesses. They allow us to support qualifying enterprises with a comprehensive bouquet of incentives.
We are committed to working together with the private sector to removing bottlenecks faced by businesses in running their operations.
By simplifying all administrative procedures, along with other business approvals, permits and licenses, we will be facilitating greater investment in the province.
Today, Africa Bespoke Apparel stands as the biggest, black owned CMT factory in KwaZulu-Natal, thanks to collective efforts of the KZN Growth Fund, dti, the entrepreneurs involved and other stakeholders.
Such collaborative efforts are encouraged if South Africa is to become a force to be reckoned with.
Asisukume sakhe i- KwaZulu-Natal.
And Let’s Grow South Africa Together.
I thank you.
