Incentives for clothing and textile sector

15 September 2010

The Department of Trade and Industry’s Clothing and Textile Competitiveness Programme aims to help South Africa’s industry upgrade its processes, products and people, as well as reposition it to compete effectively both domestically and globally.

Trade and Industry Minister Rob Davies officially launched the Clothing and Textile Competitiveness Programme (CTCP) in Pretoria this week. The programme aims to help the sector restructure itself for long-term sustainability and competitiveness.

The CTCP comprises the Capital and Technology Upgrading Programme, the Preferential Financing Scheme, the Competitiveness Improvement Programme, and the core funding mechanism, the Production Incentive.

“The aim of the scheme is to provide support for the industry and to address challenges to upgrade productivity, product design, hardware and the capital equipment,” Davies said. “In line with our approach to funding initiatives, the incentive will be measured to show its impact, and future funding will be based on proven outcomes.”

Technology, competitiveness, incentives

According to i-Net Bridge, the CTCP, together with five other core projects of the Clothing and Textile Customised Sector Programme (CSP), represent a fundamental shift in the government’s approach to this sector.

Other elements of the CSP include a skills development plan, broad-based black economic empowerment, a technology and innovation plan, the review of import tariffs on raw material, and combating customs fraud, i-Net Bridge said.

The Industrial Development Corporation established a CTCP desk in April 2009 to administer the programme on behalf of the department.

To date, Davies said the CTCP desk had received over 80 applications to the value of R311.8-million, with applications to the value of R36-million having already been approved.

“The competitive challenges are becoming stronger and stronger, and if the local industry is to survive, it has to address a number of these issues,” Davies said. “Ultimately, the challenge is that the industry is going to have to make adjustments and raise its competitiveness.”

SAinfo reporter and BuaNews

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