The Clothing and Textiles Competitiveness Programme (CTCP) had, to date, created more than 12 000 new permanent jobs in South Africa’s clothing, textiles, leather and footwear sectors, Department of Trade and Industry director-general Lionel October said on Monday.
Speaking at the Source Africa 2013 conference, in Cape Town, he indicated that the CTCP, which was launched in September 2010, had breathed new life into these sectors, with more than 400 companies having been assisted under the programme and R1.5-billion worth of applications having been approved.
“Local retailers are increasing procurement from local manufacturers and there is confidence starting to be shown by the new investment in the sectors,” October added.
He stated that other Southern African Customs Union countries have also incorporated the CTCP concept, while Swaziland was implementing the programme.
“Some less-developed countries have taken full advantage of international trade agreements like [the African Growth and Opportunity Act] 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 [some] of the biggest manufacturers on the continent both in fabric and garments,” October stated.
He further highlighted the importance of trade among African countries, as the industry had 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 makes business sense to beneficiate these raw materials instead of exporting jobs by selling these resources to countries outside Africa,” October put forward.
He pointed out that South Africa had opened its markets to Africa through the different protocols where rules of origin were respected and the manufacturing sectors of those countries were developed. However, he emphasised that South Africa did not support traders who specialised in trans-shipments and that destroyed the country's manufacturing base.