Home / Knowledge / News / Apparel/Garments / South African textile sector faces several challenges
South African textile sector faces several challenges
15
Mar '13
South African textile and apparel industry is facing several challenges, including macroeconomic influences of Asian imports and the domestic labor challenges, and hence the performance of the industry may reamin stable in the coming years, according to the analysis of Coface, a French company which offers credit insurance and credit management services worldwide.
 
Mr. Roger Peixinho, commercial analyst of Coface-South Africa, told fibre2fashion, “South African textile and clothing manufacturers are operating under extreme pressure against low-cost imports, especially from India and China.”
 
“Since 1994, about US$1500 million has been spent on modernizing and upgrading the South African textile and apparel industry, making it efficient, internationally competitive and ready to become a major force in the world market,” he informs.
 
According to him, Chinese production incentives prevent local textile and clothing manufacturers from being price competitive. “Some of the other challenges faced by the country include stringent domestic labor laws, increasing workers wage, unionized labor force, poor operational efficiencies, rising input cost including electricity, excess competition in the small and medium enterprises and cheap Asian imports flooding the local market,” he explains.
 
“South African textile and apparel sector also lags in technology and industrial skills,” he adds.
 
Talking about the revival of South African textile and garment industry, he says, “Though, the country has seen the industry grow slightly over the last ten years with intervention and assistance of the Federal Government in regard of grants, issues such as striking workers, stronger rand value, technological advancements and global competition have hampered growth within the textile and clothing sector,” he mentions. 
 
“The performance of the industry is set to remain stable over the coming years with not much growth projected,” he concludes.
 

Fibre2fashion News Desk - India

Must ReadView All

Textiles | On 27th Sep 2016

SASEC countries plan greater economic cooperation

The six member countries of the South Asia Sub-regional Economic...

Textiles | On 27th Sep 2016

CBEC unveils draft rules for registration under GST

The Central Board of Excise and Customs (CBEC) has unveiled draft...

Textiles | On 27th Sep 2016

Pak spinner Sajjad Textile halts operation

In a filing with the stock exchange, Pakistan yarn spinner Sajjad...

Interviews View All

Frank Gossmann
Rotorcraft AG

Amit Jain
Shingora Textiles Ltd

Riddhika Shah
SS Homme

Giorgio Mantovani
Corman S.p.A

Giorgio Mantovani, MD of Corman, with a presence in both Milano and New...

Eamonn Tighe
Nature Works LLC

Eamonn Tighe, Fibres and Nonwovens - Business Development Manager of...

Eric Scholler
Groz-Beckert

The Indian market has huge potential in technical textiles, and by far,...

Pranav Mishra
Huemn

Designers Pranav Mishra and Shyma Shetty’s Huemn is known for its...

Wendell Rodricks
Wendell Rodricks

"We should not compare India and the West. There are things we do that...

Silvia Venturini Fendi
Fendi s.r.l

"Yes, my confidence and positive attitude are my strengths and should be...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH
September 2016

September 2016

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

SUBSCRIBE


Browse Our Archives

GO


Advanced Search