Clothing sector pulls up its socks with exports
Trade and Industry Minister Rob Davies told the Wear SA industry imbizo in Cape Town on Tuesday that the footwear and leather sub-sectors, in particular, were contributing almost R5bn in annual export revenue.
"I commend a significant growth in the exports of leather and leather goods, and its contribution to the reduction of the annual trade deficit," Davies said.
The clothing, textile, footwear and leather sector has been under pressure, with thousands of jobs being lost. Government interventions such as the clothing and textile competitiveness programme, which was introduced in 2010, have sought to stabilise the sector.
The industrial policy action plan has identified the textile, clothing, leather and footwear sector as "high priority" because of its labour-intensive character.
Davies said support measures by the government had resulted in the capacity expansions by manufacturers, the establishment of 28 new companies, creation of 2,200 sustainable jobs, growth in exports mainly through the leather industry and reduction of trade deficit by R1.5bn from 2013 to 2015.
Davies said that, while his department was committed to increasing its support, local manufacturers had to work harder to become more attractive so that retailers could source more products locally.
A more carefully targeted industrial financing and incentive support including stronger export credit and export credit insurance, would be crucial in improving the performance of manufacturing in general, he said.
Southern African Clothing and Textile Workers’ Union general secretary Andre Kriel said the support measures had boosted the clothing, textile, footwear and leather sector. "What is required now is aggressive lift-off and that is why we are focusing on improving exports. The footwear and leather sector is doing well, but clothing and textile exports are still small, so we have to do a lot more."