R200m grant to kick-start textile manufacturing

The government’s latest moves to support the ailing local textile and apparel industry – battered by cutthroat pricing from cheaplabour and subsidised Asian producers – have met with support from the SA manufacturers. This help takes the form of a R200-million grant fund and a five-year plan for the establishment of a national cluster devised by the department of trade and industry (dti). This, according to minister Dr Rob Davies, is designed “to leapfrog local industry’s competitiveness capability in global, sustainable textile and apparel manufacturing”. The cluster initiative is funded through the competitiveness improvement programme (CIP) as part of the overall clothing and textiles competitiveness programme (CTCP). And the cluster concept has met with particular support from the industry, according to Brian Brink, CEO of the Textile Federation, who thought that it would achieve its objectives in certain focus areas. “The cluster concept tries to get companies to work together to solve particular issues,” he told FTW. And certain of these co-operative combines have already started to appear on the scene, he added. Under the overall body, the SA Sustainable Textile and Apparel Cluster – representing the entire industry value chain from fibre to end use product – two sub-clusters have been formed so far. One is the Cotton Cluster, a co-operative grouping of the various sectors in this particular product area – with input from the cotton growers to the spinners and weavers and apparel designers and manufacturers to the marketing segment. Another is a regional grouping, being the KwaZulu Natal Clothing and Textile Cluster. The overall intention of the cluster initiative, according to Davies, is to build and improve the capacity in the SA textile and apparel industry value chain. “It’s definitely a positive move,” said Brink, “with government putting money into various interventions.” And this funding will operate on the basis that, in year one, these will be 100% state-funded, he added. “In year two it will be 10% industry funded, until by year five it will be 100% industry-funded. But it will be profitable.” One such intervention was the launch of the compliance sector two weeks ago. “This,” Brink said, “will see the industry working together with the dti and customs to combat illegal imports and ensure that users don’t buy such import clothing. “Although at this early stage it has not yet started off.” Brink also noted that a lot of other interventions and initiatives were in the pipeline. INSERT Grant designed to leapfrog local industry’s competitiveness capability in global, sustainable textile and apparel manufacturing. – Dr Rob Davies