The clothing and textile sector is experiencing a major shift as the Department of Trade, Industry and Competition (DTIC) pushes forward its ambitious master plan, focusing on job creation and replacing imports. This initiative aims to bring about national transformation in the sector, and Newcastle is already witnessing the benefits, with a local company thriving as a result of these developments.
According to the Department, since his appointment two months ago, Minister of Trade, Industry and Competition, Parks Tau, has been steadfast in his commitment to speeding up the implementation of the sector’s master plans.
As one of the key priorities of the 7th Administration, the department explains that “Tau has been reiterating the critical role of the master plans in increasing investment, boosting exports, creating jobs, promoting localisation, and facilitating transformation.” These master plans are seen as the backbone of the effort to revive the sector and enhance its contributions to the economy on a national scale.
As explained by the DTIC, the master plan, developed with the consensus of stakeholders across the industry, includes commitments from retailers to increase their procurement of locally manufactured Clothing, Textile, Footwear, and Leather (CTFL) products. Manufacturers, in turn, have pledged to ramp up investment in productive capacity and new technology, while fostering manufacturing ecosystems that promote transformation, inclusion, and worker empowerment.
In May 2024, the Department pointed out that workers in the sector were united in their dedication to strengthening the industry.
A key aspect of this dedication has been promoting the Buy South African campaign within local communities. Meanwhile, the department highlighted that the government has committed to reinforcing customs enforcement to curb illegal imports, introduced a competitiveness enhancement incentive programme, and implemented appropriate CTFL tariffs and rebates. These efforts have already led to a drop in the volume of imported goods and an increase in declared import values—news that spells positive outcomes for the industry and local job creation.
The DTIC also brought attention to a significant challenge that has plagued the sector: systematic import fraud through under-invoicing. This illegal practice allows garments to be imported at unfairly low prices, undercutting local manufacturers and depriving the national fiscus of crucial revenue that would otherwise fund essential services such as healthcare, education, and crime-prevention initiatives.
Moreover, as explained by the DTIC, since the plan’s launch, more than 20,000 jobs have been created nationwide. The Clothing Textile Footwear Leather Growth Programme (CTFLGP), a cornerstone of this plan, was introduced in 2022 with the key objectives of import substitution, job creation, transformation, and enhancing the sector’s competitiveness.
Dr Jaywant Irkhede, the Director of Clothing and Leather at the DTIC, recently revealed that by July 2024, the Department had approved over R1.87 billion for 154 businesses in the sector, creating jobs for almost 24,000 people. “R1.41 billion has already been disbursed to businesses across the industry,” Dr Irkhede explained.
Against this backdrop of policy change and enforcement, one Newcastle-based business has become a shining example of how the master plan is delivering tangible results. R and L Apparel, a woman-owned company operating in the clothing and textile industry, has benefited from the Retail–Clothing, Textile, Footwear, and Leather Master Plan.
The DTIC explained that the business received financial support from the DTIC, administered through the Industrial Development Corporation, to purchase new equipment and machinery, as well as to secure initial working capital. This funding was instrumental in expanding the company’s Cut, Make, Trim (CMT) manufacturing capacity.
Solis Benjie Dolores, Managing Director of R and L Apparel, explained the significant impact this support has had on the company. “The funding enabled us to increase our production capacity, improve product quality, create more jobs, and expand our customer base, which now includes The Foschini Group. We supply them through Celtico, one of the CMT suppliers within the Newcastle clothing industry,” said Dolores.
Dolores further highlighted that the financial support provided through the CTFLGP has helped the company achieve substantial growth.
“When we first applied for the programme, we were operating with just 17 workers. As of August 2024, we’ve managed to grow to a staff complement of 103 employees, 98 of whom are women. We are also working towards our goal of creating an additional 150 jobs. The CTFLGP has been a fantastic initiative for us, and without the funding, we likely would have remained stagnant at 17 workers, as our machinery and working capital were both extremely limited. We were essentially running a hand-to-mouth operation before the funding, and it was the hard work and dedication of our team that kept us going. Now, however, the business is on a positive growth path,” Dolores emphasised.
Looking to the future, Dolores revealed that R and L Apparel plans to invest in automated machinery to meet the demands of the market, as local retailers are increasingly sourcing Proudly South African products. “We’re excited to contribute to import substitution, grow the economy, and, most importantly, create jobs for local people, both skilled and unskilled, giving them an opportunity to earn a decent living,” she said.
Furthermore, Newcastle’s clothing and textile sector is clearly benefiting from the national master plan, and the DTIC has highlighted that this industry is a significant employer within KwaZulu-Natal’s manufacturing sector. With relatively low barriers to entry and a labour-intensive structure, the sector is strategically important for local economic development. The DTIC further noted that women form a large part of the workforce in this industry, adding to its social and economic significance.
The sector’s importance is also recognised by the KwaZulu-Natal government, which acknowledges the industry’s complexity, spanning informal micro-businesses to large factories.
Prior to the COVID-19 pandemic, small-to-medium factories in the sector were predominantly located in towns such as Newcastle, Ladysmith, Isithebe, Port Shepstone, and eThekwini.
Currently, the KwaZulu-Natal government, in partnership with the National Department of Trade & Industry, is actively involved in the development of a Clothing and Textile Special Economic Zone (SEZ) in the uThukela region. This SEZ is expected to serve as a key driver for corridor development within the sector, linking regions such as uMgungundlovu with industrial sites in eThekwini and beyond.
This corridor will undoubtedly have a positive impact on Northern KwaZulu-Natal, further enhancing its role in the sector and bringing additional opportunities for local businesses and workers alike.
To read more about the corridor, click here.
As Newcastle’s clothing and textile sector continues to grow, what are your thoughts on these developments?
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