South Africa
Does the government really have a plan for South Africas clothing and textile industry sectors? Recent historical analysis reflectsthat government policies are full of contradictions leaving one to wonder if itis serious about finding equitable and sustainable solutions to "save theindustry."
On the 25th February 2008 textilemanufacturer, Frame Textiles requested government intervention "to savethe industry" which is a vital job creation sector. Walter Simeoni, the MDof Frame Textiles, a subsidiary of the Seardel group called for the"implementation of the Customised Sector Programme (CSP)."
It is understood that the Department of Trade andIndustry is "putting the finishing touches to an action plan" thatmay be ready at the end of March.
In March 2006, the DTI's Shareen Osman said that thegovernment was working on a strategic vision for the industry. Two years laterand ten months before the quotas end, they are still working on a plan.Furthermore, the industry needs to know now if the quotas are going to beextended or not. There is enough evidence that the quotas have not achievedwhat they were meant to do revive the industry. If this sector is soimportant to employment, why is there such procrastination in implementing anycollective restructuring plan?
In August 2007, Trade and Industry Minister MandisiMphahlwa said that the CSP had been finalised but in February 2008, the DTI isstill working on plans. What plans the CSP or some other plans? One of theaims of the CSP is the encouragement and facilitation for capital investmentand export growth. Eskom's darkness has contributed to a halt on many expansionprojects and with the vacillation of the government towards constructing,developing and implementing any reconstruction plans as well as the spatbetween manufacturers and retailers most manufacturers have been hesitant inexpanding their operations.
Six months after the Trade and Industry Minister madethe announcement about the CSP, South Africa has decided not to sign aneconomic partnership agreement (EPA) with the European Union (EU) dealing a"blow [for exports] to the local clothing and textile industry."This may result in manufacturers relocating to new geographical spaces such as Swaziland and Lesotho who have more relaxed rules of origin resulting in further loss of jobs in South Africa.
Statistics reflect a decline in employment in thetextile sector from nearly 71000 in 2003 to 50 000 in 2006 with importedclothing increasing from 139 million units in 2001 to 567 million units in2006. In March 2007, the Duty Credit Certificate Scheme expired with no plansto replace it creating further difficulty for exporters.
It is my hypothesis that government has no clearvision and it needs to be accountable for its inadequate implementation ofpolicies directed towards the recovery of the clothing and textile sectors.
Also Read: Cross Stitching: South Africa' Clothing Industry Lacks Direction
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