To encourage the clothing and textile sector via Production Incentives Program within the Clothing and Textiles Competitiveness Program (CTCP), the Department of Trade and Industry has approved R4.9 billion in incentives with above 3.1 billion SAR disbursed in the last financial year to create and save jobs in the sector? The information is given by Rob Davies, the Trade and Industry Minister.
A number of companies in the textile sector qualified and drew from both programs and were able to save 81252 jobs, while an additional 9672 jobs were created. Addressing delegates at the National Bargaining Council for the Clothing Manufacturing Industry-hosted Clothing Manufacturing Industry Sector summit, in Durban, this week, he noted that this was an indication that the clothing sector was a significant labor-absorbing sector and that government needed to create more opportunities to keep it viable.
Rebates in textile and clothing is also a burning issue and a part of a government plan is still to grip the imports and the rise of the tariff to it are extreme, the way they did in the beginning when they were revamping the entire industry. It was also said that an entirely new value chain must be involved in moving the sector ahead. While on the other hand, he stressed that the localization is a must economic aspect for every sector. However, everything should be done to protect the industry and should be planned in a way that it supports the interest of the development of industry and the enhance the local supplier base.
