CAPE TOWN, Sept 12 (NNN-SANEWS) — Due to their labour-absorbing character, the textile, clothing, footwear, leather and general goods sectors remain priority sectors for the South African government.
These sectors have always been supported by the Department of Trade, Industry and Competition (the dtic), with an objective to sustain and grow employment, grow output, and enhance their competitiveness.
This is according to the Director of Leather and Footwear at the dtic, Dr Jaywant Irkhede, who was delivering a keynote address at the opening of the AllFashion Sourcing Exhibition held at the Cape Town International Convention Centre.
A group of manufacturers supported by the dtic are showcasing their proudly South African products at the exhibition.
The department’s support of the local manufacturers to show off their wares at the exhibition is part of a continuous support to the industry to boost sustainable job creation and to increase exports of locally manufactured products.
The show which kicked off on Tuesday, also offers the dtic an ideal opportunity to engage with a select audience of textile, clothing, footwear, leather and fashion orientated exhibitors and visitors.
Irkhede highlighted the manufacturing sector’s tenacity, resilience and the know-how that enabled the sector to withstand various internal and external economic shocks.
One of the measures that government introduced in order to mitigate the negative impact of the external shocks on the clothing and textile industry was the introduction of two trade remedies, namely the imposition of import quota on clothing imports from January 2006 to December 2008 and an increase in tariffs from 40% to the World Trade Organisation bound rate of 45% on a number of clothing product lines.
These remedies provided some relief.
“The dtic also developed Customised Sector Programmes for Clothing and Textile and Footwear and Leather sectors in consultation with the industry for stabilisation and development of the CTFL (clothing, textile, footwear and leather) sectors. A suite of measures that were introduced as part of the sector programmes contributed immensely in stabilising the sectors and improving their competitiveness,” Irkhede explained.
He said the department was currently in the process of implementing the Retail–Clothing Textile Footwear Leather Masterplan (R-CTFL Masterplan 2030).
“The R-CTFL Masterplan is aimed at encouraging structural changes in the value chain to grow the domestic market, increase purchases from domestic suppliers, access and grow export markets and enhance value chain competitiveness.
“Its vision is to develop a competitive, sustainable and dynamic R-CTFL value chain that provides its customers with compelling products and that is invested in growing employment and advancing inclusion and transformation,” he explained.
The masterplan is aimed to grow employment to 330 000 R-CTFL jobs through growing local retail sales to R250 billion, to expand local retail procurement of local CTFL products from 45% to 65%, equalling an increase from R32 billion to R 66 billion in ten years, and to improve competitiveness, technology, skills and transformation.
Irkhede added that to support the Economic Reconstruction and Recovery Plan, the dtic announced a Clothing, Textiles, Footwear and Leather Growth Programme in 2022.
R2.28 billion was allocated and 154 entities were supported and these employ almost 24 000 people.
“The programme is well-subscribed, indicating the demand for capital to achieve growth, import substitution, new jobs and transformation,” said Irkhede. — NNN-SANEWS