info.afrindex.com
China-Africa Trade Information Service
info.afrindex.com
China-Africa Trade Information Service
Image from IOL.co.za
The Cape garment and textile industry was once a pillar industry in South Africa, and the provincial Department of Economic Development and Tourism will allocate R132 million to stimulate the industry and create new jobs.
South Africa's imports of clothing, textiles and leather goods have rocketed from just over R5billion in 2000 to almost R60bn now.
"This region used to be well known for its clothing and textile production and we want to rebuild this industry and use the skills we already have, while developing new ones," she said.
According to Wesgro, the manufacturing industry in the Western Cape accounts for about 15% of the province's economy and employs about 10% of the province's workforce.
"The manufacturing industry is far from dead and there are still opportunities. It is true that manufacturing growth has lagged services sectoral growth," said Cornelis van der Waal, Wesgro's head of research.
"Globally, there has been massive manufacturing consolidation as globalisation has spread, resulting in the demise of many manufacturing segments such as local textiles manufacturing. It has mostly been centralised in places such as Vietnam and increasingly East Africa - Ethiopia, in particular." Van der Waal said the province needed to boost exports of products they were able to manufacture.
"It is crucial that market opportunities with economies of scale are developed. In the Western Cape this includes the green revolution, electronics, specialised automotive components, health and beauty products and the agricultural sector. The province exports more than 45% of all agricultural-related exports in South Africa," he said.
