By Lehlohonolo Lehana.
@DwayneSenior.
The master plan for the clothing, textile, footwear and leather (CTFL) industry had turned around the industry’s fortunes and created jobs since the plan’s launch five years ago, trade, industry & competition minister Ebrahim Patel said.
More than 20,000 jobs had been created in the past five years and major retailers had sourced 371-million more units of clothing items from local manufacturers, a 51% increase on the baseline of units bought locally, Patel told an engagement with stakeholders in Cape Town.
Patel said, these figures were released at a meeting at the Prestige Clothing factory, owned and operated by South African retailer, TFG, as part of a report back to CEOs of large retailers and manufacturers, as well as leaders from labour and government.
“Over this period, we’ve been able to take an industry which had been decimated by imports and low investment, and stabilise it through the collaboration and partnership which the masterplan has provided,”Patel said.
These efforts have built a platform which has led, in just a short time, to increased local procurement; increased manufacturing employment; and better administration of imports at the country’s ports of entry,” Patel said.
The masterplan was developed with the consensus of stakeholders in the sector and included undertakings in place by retailers to increase their procurement of locally manufactured CTFL products.
In return, manufacturers in the sector committed to increasing investment in productive capacity and technology, while building manufacturing ecosystems to advance transformation and inclusion, and advance worker empowerment.
Workers in the sector committed to efforts to strengthen the industry and promote the Buy South African campaign in communities.
Government meanwhile committed to an upgrade of customs enforcement to stem illegal imports, a competitiveness enhancement incentive program and implementation of appropriate CTFL tariffs and rebates.
“The decrease in imported volumes, accompanied by increasing declared values is great news for the industry and jobs. It means that we are making progress to levels where imported clothing and footwear are being declared at their fair prices.
“The industry has faced systematic import fraud through under-invoicing of garments and their illegal import. This has the effect of unfairly pricing imports below their market value and depriving the fiscus of revenue for healthcare, education and crime-prevention.
“The support of the South African Revenue Service has been important and valuable,” the Minister said.
The department has provided R2.5 billion to the industry through the Clothing, Textiles, Footwear, and Leather Growth Program (CTFLGP) to improve its competitiveness and productivity.
In addition, R4.4 billion in loan capital has been provided by the Industrial Development Corporation to help increase productivity and meet increasing local demand.