Govt Prioritizes Job Creation and Competitiveness in SA’s Textile, Clothing, Footwear, and Leather Sectors

Dr. Irkhede also emphasized the importance of the department's Customised Sector Programmes for the clothing, textile, footwear, and leather (CTFL) sectors.


Devdiscourse News Desk | Pretoria | Updated: 11-09-2024 20:06 IST | Created: 11-09-2024 20:06 IST
Govt Prioritizes Job Creation and Competitiveness in SA’s Textile, Clothing, Footwear, and Leather Sectors
In line with the government’s Economic Reconstruction and Recovery Plan, the dtic introduced the Clothing, Textiles, Footwear, and Leather Growth Programme in 2022. Image Credit:
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  • South Africa

The South African government continues to prioritize the textile, clothing, footwear, leather, and general goods sectors due to their labor-absorbing potential, with a strong focus on sustaining employment and boosting competitiveness. According to Dr. Jaywant Irkhede, Director of Leather and Footwear at the Department of Trade, Industry and Competition (the dtic), these sectors are critical for job creation and economic growth. Speaking at the opening of the AllFashion Sourcing Exhibition in Cape Town, Dr. Irkhede highlighted the government's ongoing support for local manufacturers, particularly in promoting South African-made products.

The exhibition, hosted at the Cape Town International Convention Centre, provides a platform for local manufacturers to showcase their products, helping to foster sustainable job creation and increase exports. The dtic's backing of the exhibition is part of a broader strategy to bolster the competitiveness and resilience of these key industries, which have successfully navigated both internal and external economic challenges.

To mitigate the impact of global economic shocks, the government has introduced several trade remedies over the years. This includes imposing import quotas on clothing from 2006 to 2008 and raising tariffs on clothing product lines to the World Trade Organisation bound rate of 45%. These measures provided crucial relief to the industry.

Dr. Irkhede also emphasized the importance of the department's Customised Sector Programmes for the clothing, textile, footwear, and leather (CTFL) sectors. These programs have significantly contributed to stabilizing the sectors and enhancing their global competitiveness.

One of the key initiatives in place is the Retail–Clothing, Textile, Footwear, and Leather Masterplan 2030 (R-CTFL Masterplan 2030), aimed at driving structural changes in the value chain. Its objectives include growing the domestic market, increasing local procurement, expanding export markets, and improving value chain competitiveness. The plan aims to create 330,000 jobs and increase local retail procurement from 45% to 65% over the next decade, with the potential to double local retail sales.

In line with the government’s Economic Reconstruction and Recovery Plan, the dtic introduced the Clothing, Textiles, Footwear, and Leather Growth Programme in 2022. With an allocation of R2.28 billion, 154 entities employing nearly 24,000 people have already benefited from the program, which aims to support capital growth, import substitution, job creation, and transformation in these vital sectors.  

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