South Africa must up competitiveness
7 July 2015
The government and the manufacturing sector should raise South Africa's
competitiveness, says Trade and Industry Minister Rob Davies.
Speaking at the opening of the permanent exhibition site of the South Africa
Technical Textile Cluster (SATTC) in Irene, Pretoria, yesterday, Davies said he was
glad that the government supported the clothing and textile industry.
The SATTC focuses on the military, police, fire fighting, navy, and camping sectors.
The site showcases the impact that government support has on the cluster
programme. The cluster comprises five groups, namely: Canvas and Tent,
Parachute Systems, Stepahead Military Headwear, Gelvenor Textiles, and Fields
Wear.
Davies said that his department had established this cluster and others to ensure
that members worked together in order to promote the sectors.
The government and manufacturers needed to raise South Africa's competitiveness
and to appreciate the
role that government support programmes could play in
encouraging the manufacturing sectors to embark on a journey to becoming more
export competitive.
The previous incentive programmes based on the duty credit certificates were not
working, he added, hence the department had adopted a different strategy with the
Competitiveness Improvement Programme.
According to Davies, the SATTC could benefit from the government in different
ways.
"First of all we have this tool of localisation which is called designation. All clothing
and textile products which are procured by public entities in South Africa should
come from local manufacturers using local raw materials. There also is a need for a
deeper conversation with the [Department of Trade and Industry] on market access
opportunities with some of the countries on the continent.
"We do have foreign economic representatives on the continent that would be of
great assistance with regards to
market penetration," Davies said.
Barend Pretorius of Parachute Systems said that the cluster had helped his company
with co-ordination and marketing its products.
"Working on the cluster configuration is so much easier to move out into the world
marketing not only our product but also other members' products. We have agreed
that we will market the products of other sector members when we go out of the
country," said Pretorius.
The SATTC has also enhanced employment in the sector, thanks to the
government's interventions.
Other than the SATTC, there are three other clusters in the textile and clothing
sector on which the government is also spending money to promote and enhance
the competitiveness of the sector. These clusters are: National Fashion Council,
Mohair Cluster, and the South African Sustainable Textiles and Apparel Cluster.
Source: SAnews.gov
The factory floor of Hip Hop, a successful fashion label based in the Cape Town city centre (Photo: Rodger Bosch, MediaClubSouthAfrica)
