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South Africa approves R4.9bn in incentives for textile and clothing sector

YarnsandFibers News Bureau 2017-04-07 12:00:00 – Pretoria

The Department of Trade and Industry (DTI) of South Africa, to help boost the clothing and textile sector through the Production Incentives Programme (PIP) within the Clothing and Textiles Competitiveness Programme (CTCP), has approved R4.9 billion in incentives, with more thanR3.1 billion disbursed in the last financial year to create and save jobs in the sector, said Trade and Industry Minister Rob Davies.

Throughout the sector, a number of companies that qualified and drew from both programmes were able to save 81 252 jobs, while an additional 9 672 jobs were created.

Addressing delegates at the National Bargaining Council for the Clothing Manufacturing Industry-hosted Clothing Manufacturing Industry Sector summit, in Durban, this week, he noted that this was an indication that the clothing sector was a significant labour-absorbing sector and that government needed to create more opportunities to keep it sustainable.

The issue of rebates in the clothing and textile sector is still a burning issue within the industry and part of the government’s plan is still to tighten control of imports and the raising of tariffs to the maximum boundary, like they did in the beginning when they were revamping the whole industry. The whole value chain must still be involved in the sector going forward, he explained to delegates at what is the first of such summits for the industry.

He further stressed that localisation is a must for every sector of the economy.

Whatever is needed to be done to protect the industry, it must be done, but it should be in the interest of industry development and to improve the local supplier base. They want to see consequences for those who do not want to implement localisation and empowerment.

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