Deputy Minister of the Department of Trade, Industry and Competition (dtic), Alexandra Abrahams, has confirmed that enforcement authorities will intensify investigations into non-compliant garment manufacturing operations in Newcastle, following a recent Parliamentary oversight visit and media reports exposing potential links between so-called sweatshops and major South African retailers.
The raids, which uncovered severe working and living conditions, have triggered nationwide concern over labour exploitation and supply-chain failures, prompting parliamentary oversight and legal action that could reshape accountability standards within South Africa’s clothing and textile sector.
Addressing the matter, Abrahams stated:
“It is appropriate that these processes be allowed to proceed without interference. The matter raises broader systemic questions about supply-chain accountability, responsible sourcing, and the integrity of South Africa’s clothing and textile value chain. It has also served as a reminder that economic growth driven through sustainable industrial development requires lawful conduct and shared responsibility across the entire production and procurement ecosystem.”
She warned that reliance on unlawful or unethical practices not only distorts fair competition but also threatens legitimate manufacturers and places vulnerable workers at risk.
“While the dtic is not a frontline enforcement authority for labour, immigration or occupational health and safety legislation, it has a clear policy interest in ensuring that the domestic manufacturing base is not undermined by illegal or non-compliant operations that distort competition and erode worker protections,” she added.
Shifting to the wider systemic implications, Abrahams indicated that isolated enforcement actions alone are insufficient to tackle entrenched vulnerabilities in fragmented supply chains.
“Demand-side actors, particularly large retailers and brand owners, carry a corresponding responsibility to exercise meaningful due diligence in their procurement and supplier management practices. Moreover, there is a need for improved inter-departmental coordination and data visibility across the sector. The department supports closer collaboration with enforcement agencies to ensure that industrial areas do not become havens for informal or illegal manufacturing activity,” the Deputy Minister said.
In a proactive step, Abrahams announced plans to engage with the Retail Clothing, Textile, Footwear and Leather Masterplan Executive Oversight Committee to assess the broader implications of the Newcastle incidents and develop targeted strategies aimed at strengthening accountability and coordinated enforcement.
At its core, the Retail Clothing, Textiles, Footwear and Leather Masterplan remains focused on industrial advancement grounded in legal compliance, fair labour practices and structured value-chain integration.
“Strengthening voluntary and policy-linked disclosure mechanisms is one of the essential mechanisms to improve visibility across supply chains and prevent illicit or exploitative production from entering formal retail channels,” she said. “The dtic remains committed to promoting formalisation and compliance across the value chain and creating an enabling environment for a competitive, inclusive and labour-absorbing clothing and textile industry.”
The intensified focus follows a Parliamentary Portfolio Committee oversight inspection conducted on 6 February 2026, during which several factories in Newcastle’s industrial areas were found operating under conditions officials described as resembling sweatshops.
During the operation, inspectors discovered serious violations at Qing Xiu Clothing, where two Chinese employers were arrested for violating immigration laws after authorities found 34 undocumented workers on site.
Officials described on-site accommodation as unhygienic and presenting severe fire hazards, prompting urgent evacuation orders. Inspectors also reported unsafe electrical installations, the absence of a valid steam generator certificate, and failures to comply with the Unemployment Insurance Act and the Compensation for Occupational Injuries and Diseases Act.
A prohibition notice was subsequently issued, halting all operations until compliance failures are addressed.
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Parliamentary Pressure and Retailer Scrutiny
The Parliamentary Portfolio Committee on Employment and Labour has since indicated plans to summon major retail clothing chains to account for supply-chain connections to non-compliant factories.
Further public scrutiny intensified after Juliet Basson, a member of the Parliamentary Portfolio Committee, shared video footage from oversight inspections in Newcastle’s Riverside Industrial Area. The footage, widely circulated on social media, allegedly showed boxed clothing bearing labels of major South African retailers, including The Foschini Group and Pick n Pay.
Watch Juliet Basson’s on the ground video: https://www.facebook.com/share/v/1AaLXiu8XC
Basson criticised conditions observed at some factories, claiming workers endured long hours for wages reportedly as low as R8 per hour and lived in inadequate accommodation with poor sanitation.
Adding to mounting pressure, the National Bargaining Council for the Clothing Manufacturing Industry has launched legal action against several KwaZulu-Natal facilities accused of paying below minimum wages and operating under unsafe conditions.
A Turning Point for the Industry
As investigations deepen and parliamentary summons loom, the Newcastle incidents are increasingly steering South Africa’s textile sector toward stronger transparency demands and tighter enforcement.
The unfolding situation has highlighted long-standing concerns regarding compliance and worker protection in sections of the country’s textile manufacturing chain — and may accelerate reforms requiring retailers to demonstrate stricter supplier vetting and accountability mechanisms.
Ultimately, the outcome could redefine how supply chains operate within South Africa’s clothing industry, placing worker welfare and legal compliance at the centre of future industrial growth.
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Fantastic reporting