Dr Brink, a Tralac Associate says, "Over the past five years, South African textile, clothing, footwear and leather industry has laid off over 76,000 jobs, i.e. more than 20 percent of the total workforce in that industry. Many of these jobs were shed in the poor rural areas of the country.
Speaking to Fibre2fashion, Dr. Brink said, "In spite of resources like cotton, manpower & other natural ones, South Africa lags behind in the textile trade as the country produces very little cotton and then only at relatively high prices."
Very little of South Africa is arable land. In addition, owing to amongst other stringent labour laws enforcing (by Asian standards) very high minimum wages, its productivity-to-cost ratio is significantly lower than that in most Asian ountries, including China, India, Pakistan and Bangladesh.
Referring to report, he also adds that Chinese textile imports affected the local interests adversely from 2002 onwards and the country has seen significant year on year growth as regards most clothing and textiles. Chinese clothing imports currently represent around 75 percent of all clothing imports into the country, but textile imports only around 20 percent.
Elaborating further, he states major clothing items affected are men's and ladies' underwear, men's and ladies' tracksuits, men's and ladies trousers, men's shirts, ladies blouses, men's suits.
However, Chinese investments in South Africa are being encouraged, particularly in the clothing and textiles sector as the country is keen on FDI. If Chinese investments will save the industry and create jobs, it is to be welcome, Brink comments.
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