The South African clothing, textiles, footwear, and leather (CTFL) sector is vital to the national economy, generating an estimated R74 billion in Gross Value Added and accounting for 1.7% of domestic GDP. The industry currently supports approximately 210,000 jobs, making up 1.33% of total South African employment (Western Cape Government, n.d.). As one of the most labor-intensive segments within the nation’s manufacturing industry, the CTFL sector is home to around 4,500 manufacturers, contributing to 2.5% of South Africa’s manufacturing output (InvestSA, n.d.).
The CTFL sector can be divided into several subsectors, including footwear, leather goods, handbags and luggage, crocodile leather, ostrich leather, and taxidermy. These industries form a natural grouping due to their interrelated input materials and operations (InvestSA, n.d.). South Africa is also the world’s largest mohair producer and supplier, accounting for 54% of global production and generating about R1.5 billion in foreign currency annually.
Government support has beneficially impacted some areas, moderating the value chain’s decline in recent years. However, manufacturing has underperformed, with limited impact on gross value add (GVA). Formal employment in CTFL manufacturing has stabilized at around 90,000 since 2013, following a decrease in the previous decade. (Western Cape Government, n.d.).
The CTFL sector has experienced three primary phases since 1994. Sales contracted from the liberalization of the economy in 1994 until the early 2000s, grew until 2010, and then stagnated. This trend was driven by slow economic growth and increasing competition from foreign producers, particularly from China and other Southern African countries. As a result, imports as a percentage of household CTFL consumption rose from 17% in 1994 to 35% in 2019 (TIPS, 2021).
South African CTFL exports include raw materials (mainly wool and leather), intermediate inputs (synthetic fibers and fabrics), and finished products (clothing and other textile goods). Raw materials are primarily exported to Asia and Europe, while clothing exports are sent to Namibia, Botswana, and other Southern African countries (TIPS, 2021).
In 2017, South African industries consumed around 130,085 tonnes of fibre, with more than two-thirds being synthetic fibres. This highlights the potential for growth in the synthetic leather sector as an alternative to real leather.
It is forecasted that household spending on clothing and footwear will increase by about 25% to R125 billion by the year 2024. South Africa boasts world-class design talent and a strong talent pipeline that reflects the creativity and potential of the sector (InvestSA, n.d.). This, along with the industry’s potential for growth in synthetic leather and other subsectors, presents significant opportunities for the CTFL sector to contribute even more to South Africa’s manufacturing output and overall economy.
References: TIPS (2021). Manufacturing subsectors – Clothing, footwear and textiles. Trade & Industrial Policy Strategies. Retrieved from https://www.tips.org.za/images/Manufacturing_subsectors_-_Clothing_footwear_and_textiles_March_2021.pdf Western Cape Government. (n.d.). Clothing, textiles and leather. Retrieved from https://www.westerncape.gov.za/assets/departments/economic-development-tourism/clothing_textiles_and_leather.pdf InvestSA. (n.d.). Clothing, textiles, footwear and leather. Retrieved from http://www.investsa.gov.za/key-sectors/clothing-textiles-footwear-and-leather/ InvestSA. (n.d.). Fact sheet textiles 2021. Retrieved from http://www.invest sa.gov.za/wp-content/uploads/2021/03/FACT-SHEET_TEXTILES_2020.pdf