INVESTING IN TEXTILE & CLOTHING

By Samantha Du Chenne
The textiles and clothing industry in South Africa is facing some challenging times. Major industry players have been forced to close doors, thousands of people have lost their jobs, customs corruption is rife and the market is forced to compete against cheap imports from the East.
Brian Brink, Executive Director at the Textiles Federation warns entrepreneurs wanting to break into the industry to do so with their eyes wide open. “Chinese imports and fraud aside, we are in the midst of an economic downturn, and those within the retail sector have been hit hard,” he warns.
However, as many will agree, now may be just the time to gather resources and find a niche in the market, so as to be ready and waiting when the inevitable upswing takes place.
An important first step is to approach people currently working within the industry for advice and guidance. Brink believes that a background within the textiles and clothing industry is advisable. “It helps to have a qualification or even to have some working experience in the market,” he opines.
Brink maintains that while the industry has had to weather more than its fair share of storms, things are looking up and there are opportunities out there for the entrepreneur. “One of the benefits is that South Africa has preferential entry into the American and European markets, as well as those in Southern Africa. In addition, there are a number of opportunities to purchase existing operations and remodel them,” he says.
Still a tough market
However, the harsh reality remains that the market is a tough one. “Those looking to gain entry into the business of exporting textiles need to know how difficult it is out there,” Brink admits. Whilst preferential trade agreements are in place, a number of other barriers exist. The fluctuating value of the Rand, stiff competition from other markets and a recession which has left the export business stagnant are all issues to consider.
Further advice and funding is available through various organisations that are affiliated to the industry. Government lending institutions, as well as banks are one way to apply for funding. Interestingly, the Minster of Economic Development, Ebrahim Patel, himself comes from a textiles industry background and is promoting the industry to the IDC and other government institutions.
Other useful contacts can be made at the Textile Federation, which is the official association for the textiles industry, as well as the textile, clothing and footwear desk at the DTI.
















