Twenty years after its founding, the Cape Clothing and Textile Cluster (CCTC) continues to champion South Africa’s apparel sector — an industry that has survived post-apartheid liberalisation, Chinese competition, COVID-19 disruptions, and now faces new headwinds from ultra-fast fashion platforms such as Shein and Temu.
Employing between 60,000 and 80,000 people, the sector accounts for around 14% of South Africa’s total manufacturing employment. Yet, as global competition intensifies, local manufacturers stand at a critical crossroads.
From Labour Costs to Productivity
Courtney Grant, Principal Consultant at BMA and Chief Facilitator of both the Cape and KwaZulu-Natal Clothing and Textile Clusters, says the competitiveness debate has shifted.
“This is no longer a conversation of the old mentality that labour is too expensive,” Grant notes. “Our labour is not globally expensive. What we do have is a productivity issue.”
She stresses that productivity is hindered not just by workers but by systemic inefficiencies. “It’s hard to be productive when load shedding happens and your machines can’t work. It’s hard to be productive when your fabric doesn’t arrive on time because of port delays.”
The R-CTFL Master Plan
Signed in 2019, the Retail-Clothing, Textile, Footwear and Leather (R-CTFL) Master Plan sets a goal of growing local market share to 65% by 2030.
Grant, who manages the programme, calls it a “social compact between retail, government, labour, and manufacturing” to make the local value chain more competitive.
“We all ultimately want the same thing. We want growth, profitable factories, and to employ people in good, compliant jobs,” she adds.
The Challenge of Fast Fashion
Until late 2024, platforms like Shein and Temu were able to sell into South Africa while avoiding full 45% import duties, creating what Grant describes as an uneven playing field.
“I’m deeply concerned about the rise of offshore online retail,” she says. “They are taking significant market share and the playing field isn’t even.”
Although new rules have closed the duty loophole, local industry fears these global giants will continue to bypass domestic sourcing requirements, undermining South African factories.
Global Learning and Best Practices
Despite these challenges, the cluster remains focused on technological advancement and knowledge exchange. Initiatives range from factory visits to international study tours, including to Inditex headquarters in Spain and upcoming trips to China’s leading textile machinery exhibitions.
“We call it global best practice exploration,” Grant explains. “It’s a significant pillar of the work we do as a cluster.”
She highlights how lean methodologies from the automotive industry have been successfully adapted for local clothing manufacturing.
Sustainability vs. Affordability
While global consumers increasingly demand sustainable fashion, South Africa’s economic disparities complicate adoption.
“There is a niche that will make environmentally sustainable choices,” Grant says. “But until a green product is the same price as a non-green product, I don’t know if most people will pay more.”
Infrastructure and Policy Constraints
The sector’s growth is also limited by ports and logistics bottlenecks. “Our ports are a significant chokehold,” Grant observes, adding that delays in raw material imports weaken efficiency and exports.
The Western Cape’s stronger infrastructure, however, offers a competitive advantage. “We have a government here who gets the basics right. Our roads are good,” she notes.
A Bold Vision for Revival
Looking forward, Grant advocates for fundamental tax reform to incentivise investment in labour-intensive manufacturing.
“Could we not re-look at our tax incentives?” she asks. “If you are running a labour-intensive operation that creates jobs and adds value, your tax rate should be reduced.”
Such a shift, she argues, would reduce the reliance on grants and loans, while creating genuine long-term incentives for industrial growth.
Outlook
As South Africa’s clothing and textile sector navigates mounting global pressures, its resilience will hinge on collaborative strategies, systemic reforms, and global learning.
The CCTC’s 20-year journey demonstrates how collective action — linking manufacturers, labour, retailers, and policymakers — can offer a roadmap for industrial revival in an era of fast-changing global competition.
