INVESTING IN SOUTH AFRICA'S CLOTHING, TEXTILE, FOOTWEAR AND LEATHER SECTOR - SOUTH AFRICA - INVESTSA
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South Africa Factsheet 2020 Investing in South Africa’s Clothing, Textile, Footwear and Leather Sector
Clothing, Textile, Footwear Composition of CTFL manufacturing, 2018
and Leather in South Africa 10%
5%
Wearing apparel
32%
Other textile products
> The South African Clothing, Textile, Footwear Leather & leather products
13%
and Leather (CTFL) manufacturing industry is Textiles
well developed and ranges from the production Footwear
of synthetic and natural inputs to final clothing 13%
Knitted, crocheted articles
and shoes.
29%
> The CTFL sector accounts for about 2.5%
South Africa’s apparel and
of South Africa’s manufacturing output.
non-apparel manufacturing
> In 2018, wearing apparel accounted for about market value, 2017-2022f
one-third of the industry’s manufacturing
4 500
output. 23.0 23.2 24.0 24.8
22.4 22.7
> According to SARS, there are approximately
4 500 tax-paying CTFL manufacturers in South CTFL
Africa, with the majority of the firms being manufacturers
Rbn
micro enterprises.
> According to StatsSA, the 20 largest companies 2017 2018 2019f 2020f 2021f 2022f
control about 85% of the wider CTFL market.
> In 2017, South African industries consumed
CFTL’s contribution to South
approximately 130 085 tonnes of fibre, of which
more than two-thirds were synthetic fibres.
2.5% Africa’s manufacturing output
Why Large supply Robust
invest? of quality leather
Over 2 million cattle and 4 million
market growth
It is forecasted that household
sheep are slaughtered per year in spending on clothing and
South Africa. At least 65% of bovine footwear will increase by
hides are suitable to be used in about 25% to R125bn
World-class the automotive industry. in the next three
design talent years.
South Africa has world-class
design talent and a strong +2m R25bn
talent pipeline that reflects cattle increase in
the creativity and potential slaughtered next 3 years
of the sector. per year
Potential for
14 Top producer
of natural fibres
import substitution
In 2017, South Africa imported
tertiary institutions
South Africa is the world’s largest textiles, garments and footwear
offering fashion-
mohair producer and supplier, worth US$4bn. Given duties of
related degrees
accounting for about 54% of global up to 40% on imported fabrics and
production. The mohair sector clothing, localisation of production
generates about R1.5bn presents an attractive
in foreign currency alternative to imports.
annually.
#1
Mohair
60-70%
of CTFL products
producer in sold in SA are
the world importedWhere to invest?
> The South African CTFL manufacturing industry is mainly concentrated in the two coastal
regions of KwaZulu-Natal and the Western Cape, as well as in Gauteng.
> The Eastern Cape is an emerging hub in the CTFL sector. Thanks to its world leading mohair
production, the province holds potential for value addition and manufacturing.
> A Czech-owned state-of-the-art manufacturing facility for non-woven products
based in Atlantis (Western Cape) began operations in 2019.
Gauteng
> The recent launch of a multi-million-rand factory in Verulam, KwaZulu-Natal
further contributes towards South Africa’s CTFL manufacturing capacity. • General clothing
manufacturing
• Corporate/work
wear manufacturing
KEY:
Major city
Special Economic
Zone with CTFL LIMPOPO
focus
Recent CTFL
manufacturing
investments
MPUMALANGA
Johannesburg
GAUTENG
NORTH WEST
KWAZULU
-NATAL
FREE STATE
Verulam Dube Trade Port
Durban
NORTHERN CAPE
EASTERN CAPE
KwaZulu-Natal
• Mass market apparel
• Cut, make and trim
WESTERN CAPE
Atlantis • Textile manufacturing
Cape Town Port Elizabeth
• Dying
• Finishing
EASTERN
CAPE
• Emerging
WESTERN CAPE mohair hub
• Higher value-added
garment manufacturing
• High fashionWhat support exists?
> South Africa has committed to creating a competitive environment in the CTFL sector.
Government support has been focused on programmes that encourage employment
opportunities and competition in the industry.
> The South African government and industry stakeholders continuously support the
CTFL industry through several incentive programmes.
The Clothing Strong tariff Skills Development Value Chain
& Textiles protection Support Alignment (VCA)
Competitiveness Stronger tariff protection • Funding for The VCA programme,
Programme (CTCP) for the domestic industry entrepreneurs in the driven by the clothing
Managed by the Industrial within the rules of the industry industry clusters, aims
Development Corporation World Trade Organisation • Fibre Processing and at developing synergies
(IDC), the CTCP includes: provide a buffer against Manufacturing (FP&M) between clothing and
dumping. Sector Education & textile suppliers and
• The Competitiveness
Training Authority the retailers.
Improvement Programme
(SETA) Programme.
• The Production Incentive
Programme.
What are the opportunities?
In 2019: Cuban
> Preferential public sector procurement provides significant
o r M a r k
st impetus for supplier development in the CTLF sector, aiming
US inve e rs inves
ted at 100% local procurement.
p a r t n
and his f a c turing o
fa
a n u
in the m ican
u e ly S outh Afr Investment opportunities include:
uniq n,
s h o e , V eldskoe
leather
• Spinning, weaving and finishing of textiles
l.
t h e s h oe globa
taking • Knitted and crocheted fabrics and articles
• Manufacturing of wearing apparel
• Dressing and dying of fur
• Leather skins and hides benefication
• Leather seat cover manufacturing for the automotive
Since industry
A num 2014: • Manufacturing of protective clothing for hazardous
Africa ber of Sout industrial environments, including for the mining and
n h
showc designers h chemical industries
ased ave
at the their d
acclai e
med N signs
• Manufacturing of school uniforms
Fashio ew Yo • Manufacturing of uniforms for military and law
n Wee rk
k. enforcement
• Manufactuing of work-wearHow to invest?
Opportunity Go Investment Investment
identification ahead preparation execution
Conduct • Decide on geographic • Acquire/lease site,
1 feasibility location most suitable rent office space
study for investment • Apply for municipal
for your • Consult property services (e.g. water,
product or Location specialists, real estate electricity)
identification agents to identify
service
suitable offices for
operations
Evaluate
2 outcome of
• Conduct site visits
of suitable locations
feasibility
study • Consult with HR/ • Conduct interviews,
recruitment hire staff
Take agencies about staff • Apply for work permits
3 investment requirements for expatriate staff
decision Resourcing • Determine immigration • Open a bank account
requirements requirements
• Apply for finance
Decide on (HR, capital, • Determine funding
4 investment finance, IT)
model (e.g. self-
• Set-up IT
infrastructure/systems
funding, debt, equity)
strategy
• Consult with IT systems
in order
providers
to best
align to • Determine corporate • Register company
the market structure • Apply for licenses
opportunity • Determine licensing and and permits
permit requirements • Apply for National
Compliance • Consult with labour Level Incentives
lawyers Schemes, Skills
and legal affairs
• Consult with InvestSA and Other Support
to identify eligibility for Programmes
incentives, skills and
other support initiatives
InvestSA ready to assistKey contacts for more information
InvestSA
+27 861 843 384
Investsa@thedti.gov.za
http://www.investsa.gov.za/
the dti
contactus@thedti.gov.za
http://www.thedti.gov.za/
Rashmee Ragaven
Director: Advanced Manufacturing
Invest South Africa
Department of Trade and Industry
+27 (0)12 394 5929
RRagaven@thedti.gov.za
Information sources
Cape Clothing & Textile Cluster, 2019; Cotton SA, 2018; Department of Agriculture,
Forestry and Fishery, 2016; Invest SA 2018; KwaZulu-Natal Clothing & Textile Cluster, 2019;
MarketLine, 2018; Mohair South Africa, 2019; National Treasury and SARS, 2019; SAQA,
2019; Statista, various years; StatsSA, various years; Who Owns Whom, various years. Research partner |You can also read
