Home / Knowledge / News / Textiles / Policy decision pulls rug from under feet of textile sector
Policy decision pulls rug from under feet of textile sector
Apr '09
South Africa is contemplating announcing a comprehensive revival package for the benefit of the textile and clothing industry. However, in the interim it has let the most crucial incentive in its most important textile development programme policy to lapse.

This programme which offers sops and incentives for exports from the textile and apparel sector could also severely hurt the economy of its neighbour; Lesotho which has a thriving garment manufacturing base and is closely entwined with the economy of South Africa.

Under the key incentive, which stands withdrawn, exporters could import clothing against their exports for which they were issued rebate certificates, which could again be sold off to a apparel retailer or importer if the exporter was not interested in importing apparels.

This clause in the policy found many takers, who did not wish to import clothing. But now withdrawal of this benefit to the exporters from the textile sector has turned the whole textile developmental programme in to a toothless tiger.

Lesotho which exports 90 percent of its clothing output is expected to face the maximum impact of this policy change decision, as many companies are solely dependant on this scheme to run their export operations profitably ever since the scheme was announced.

Experts have derided this decision of the government and called it arbitrary and akin to pulling the rug from under the exporter's feet and said that the government should have kept this incentive scheme operational, till its new textile policy is framed.

They also fear that withdrawal of this key incentive will have far reaching consequences on the textile and garment industry in South Africa and neighbours like Lesotho, Swaziland etc and fear that it will make operations unviable and lead to mass unemployment in the sector.

Fibre2fashion News Desk - India

Must ReadView All

(L-R) Mr Shao Bojin, Chairman of Jihua Group and Mr Rohit Aggarwal, President of Huntsman Textile

Textiles | On 28th Oct 2016

Huntsman gets into strategic partnership with Jihua Group

Huntsman Textile Effects, the leading provider of high quality dyes...

Marzoli FT6D roving frames in Sintex’s Unit 2. Coutresy: Marzoli

Textiles | On 28th Oct 2016

Marzoli roving frames erected at Sintex textile division

A total of 48 Marzoli roving frames were erected in units I, II and...

Courtesy: Polartec

Textiles | On 28th Oct 2016

Polartec innovates most breathable waterproof fabric

Polartec, the premium provider of innovative textile solutions, has...

Interviews View All

Rahuul Jashnani

‘Online economy has changed the whole dynamics of buying habits.’

Frank Gossmann
Rotorcraft AG

‘RT3 motto is: Do not check millimetres, check colours.’

Dinaz Madhukar
DLF Emporio and DLF Promenade

‘Each event and promotion is planned out keeping in mind the business of...

Kevin Nelson

Kevin Nelson, Chief Scientific Officer, TissueGen discusses the growing...

Giorgio Mantovani
Corman S.p.A

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

Ashok Desai
Bombay Textile Research Association

Bombay Textile Research Association (BTRA) is a leading name in textile...

Robert Brunner

Golfwear and menswear brand Devereux is set for greener pastures. Robert...

Bani Batra

Bani Batra’s couture wedding collection is inspired by traditional Indian...

Prathyusha Garimella
Prathyusha Garimella

Hyderabad-based designer Prathyusha Garimella is known for blending...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


Letter To Editor

(Max. 8000 char.)

Search Companies

October 2016

October 2016

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


Browse Our Archives


Advanced Search