The leather industry in South Africa receives various forms of support, ranging from financial assistance to incentive programs, training initiatives, and value chain alignment efforts. These measures aim to enhance the industry’s competitiveness, promote growth, and create employment opportunities.
Financial support:
Various financial institutions and government agencies provide loans, grants, and funding to businesses in the leather industry. This support can come from organizations such as the Industrial Development Corporation (IDC), the National Empowerment Fund (NEF), and the Department of Trade, Industry, and Competition (DTIC). A New Growth Path (NGP) initiative by the Department of Trade, Industry, and Competition (DTIC) targeted the Clothing, Textiles, Footwear, and Leather (CTFL) sector to boost competitiveness and job creation. As part of this initiative, the Clothing and Textile Competitiveness Programme (CTCP) was introduced, which provided financial support to numerous leather companies for upgrading machinery, improving production processes, and developing new products.
Training support:
Various training initiatives are available to help develop the skills needed in the leather industry. The Sector Education and Training Authorities (SETAs) and the National Skills Fund (NSF) provide funding for skills development and training programs. In addition, industry associations such as the Southern African Footwear and Leather Industries Association (SAFLIA) offer training courses and workshops to improve the skills and knowledge of industry workers. The National Skills Fund (NSF) and the Fibre Processing and Manufacturing (FP&M) SETA have collaborated to support the South African leather industry through various training programs. For example, in 2019, the FP&M SETA partnered with the Nelson Mandela University to offer a training program in leather processing for unemployed youth in the Eastern Cape.
Incentive programs:
The South African government has implemented several incentive schemes to boost the leather industry. Examples include the Manufacturing Competitiveness Enhancement Programme (MCEP), the Clothing and Textiles Competitiveness Programme (CTCP), and the Export Marketing and Investment Assistance (EMIA) scheme. These programs offer financial assistance to businesses for upgrading machinery, improving production processes, and entering new markets. The South African Footwear and Leather Export Council (SAFLEC) actively promotes the export of South African leather products. One example is their participation in international trade fairs such as APLF Leather & Materials+ in Hong Kong, where South African companies showcase their products to international buyers.
The Small Enterprise Development Agency (SEDA) in collaboration with the Southern African Footwear and Leather Industries Association (SAFLIA) and the Ethekwini Municipality launched a Footwear and Leather Incubator in 2018. The incubator, located in Durban, KwaZulu-Natal, aims to support small businesses in the leather and footwear sectors by providing them with access to machinery, shared services, and mentorship.
In 2016, the South African government introduced the Special Economic Zones (SEZ) program to attract investment in targeted industries, including the leather sector. One example is the Tshwane Automotive SEZ in Gauteng, where leather companies can benefit from incentives such as reduced corporate tax rates, employment tax incentives, and customs-controlled areas for duty-free imports and exports.
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By providing support in these various forms, the South African government and industry organizations aim to strengthen the leather industry and ensure its long-term growth and sustainability.