South Africa's CFTL sector concerned over debt downgrades

07 Sep '17

1 min read

South Africa’s clothing, textile, footwear and leather (CTFL) sector is concerned over the negative impact of the lower rating of the nation by global rating agencies as the debt downgrades will raise the cost of borrowing for workers, businesses and the government. It will reduce government spending on CTFL support measures and on investments by businesses.

The Southern African Clothing and Textile Workers Union (SACTWU), the National Union of Leather and Allied Workers (NULAW) and other employer associations are organizing a two-day conference in Durban on September 6-7 to understand the impact of the downgrades and develop measures to mitigate its impact.

As the country’s stagnant economy has already caused the CFTL sector to lose more jobs, CFTL associations are concerned that the downgrades could lead to increased factory closures and retrenchments, adding to the misery of South Africa’s poor and unemployed, according to a SACTWU press release.

Discussion papers commissioned from Wits University’s Corporate Strategic Industrial Development (CSID) research programme and the Industrial Development Corporation (IDC) will be presented at the conference. (DS)

Fibre2Fashion News Desk – India

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