Newsletter No 14 / 23 April 2021
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South Africa Textile Market Report 2020: Significant expansion in e-Commerce and online shopping as a result of COVID-19
Source:- Research & Markets
Dublin, March 05, 2021 (GLOBE NEWSWIRE) — The “The Textile Industry in South Africa 2020” report has been added to ResearchAndMarkets.com’s offering.
This report examines the South African textile industry, from the manufacture and distribution of basic textiles, yarns, and fabrics, to the large retail market for finished textile products like towels and linen. It includes comprehensive information on the state and size of the sector, demand, sales trade and employment statistics, sector trends, corporate actions and major developments.
There are profiles of 23 companies including manufacturers such as Standerton Mills and Aranda Textile Mills, Associate Spinners and The Good Hope Textile Corporation (Da Gama).
The Textile Industry:
Retail trade sales of textiles have continued to expand although the country’s protracted struggle with low economic growth and falling incomes, recently exacerbated by the coronavirus outbreak and national lockdown, have restrained consumer spending. In the manufacturing sector, production and employment have stagnated and many producers are uncompetitive relative to the cheap Asian imports. The sector remains largely unable to compete with imports or to generate sustainable growth. Nevertheless, there have been some important recent successes, such as the revitalisation of the cotton sub-sector.
Due to their labour-intensive nature, textiles and apparel have long been identified as a strategic priority for South Africa’s industrial policy and support programmes. The industry master plan, released at the end of 2019, aims to buoy local textile procurement by working closely with retailers to combat the high levels of illegal imports, and incentivise new investment into domestic manufacturing capacity.
The performance of the textile industry has been mixed for a number of years, despite government support programmes and support including import duties, local procurement thresholds, subsidies, grants, and direct funding of manufacturers through the clothing and textiles competitiveness programme.
The pandemic and global economic lockdowns have had an immediate effect on textile production, sales, and trade. There has been a significant expansion in ecommerce and online shopping as a result of the lockdown. Clothing is a major and rapidly-growing product category for ecommerce, but textiles are a rather niche online segment.
Key Topics Covered:
2. Description of the Industry
3. Size of the Industry
4. State of the Industry
5. Influencing Factors
7. SWOT Analysis
9. Industry Associations
For more information about this report visit https://www.researchandmarkets.com/r/ilk6dm
Soda Bloc “Be you, Be youth” winter campaign
By Luke Ruiters
It’s time to get geared up for winter as Soda Bloc recently launched their exciting winter 2021 collection online and in-store. From everyday must-have sweaters to stylish puffers and everything in between, this range is for the awesome kids with big dreams in their hearts and big fun on the agenda.
This season the campaign message is “Be You. Be Youth”
This one’s for all the cool kids out there. The ones who make the world brighter, better, and way more fun. The ones who are not afraid to use their little-but-loud voices and ready to make a difference. The ones who have the future in their hands. The ones who make it all worth it.
Soda Bloc has teamed up with 4 remarkable children from across South Africa to tell their unique stories while being true to themselves. The selected kids all have one thing in common: they have big dreams and they are not scared to challenge themselves.
Soda Bloc has given these talented kids the platform and a contribution of R5000 towards their future endeavors, to tell their stories, and to reach and inspire more kids around South Africa with their messages of hope while chasing their dreams.
So no matter where the path may take you one winter after the next. Be You. Be Youth
Joint Ventures in tendering require correct application
In a recent news article, it was reported that joint venture-bid was disqualified from a tender process worth R1.7bn on the basis that one of the partners, which required an Affidavit, as per the B-BBEE regulations, compiled it on a certain date and had it commissioned on a different date.
However and bearing in mind, that only a “Consolidated Certificate” is required for purposes of an unincorporated joint venture and not the individual certificates or the Affidavits of the respective partners, per se.
The “Consolidated Certificate” will amalgamate the already verified compliance data of each party to the joint venture, as if the new entity was a single “Measured Entity” and weighs it, in accordance with the “structure of the joint venture agreement”.
By not including the correct B-BBEE Certificate for a joint venture in a tender, could potentially lead to such disqualification and bidders are advised to construct these type of arrangements very early, as soon as the tender had been published.
Also, to bear in mind, that a “Consolidated Certificate” for a joint venture is tender specific and only valid for a period of twelve months.
According to Gerrit Davids, Lead Advisory at TaranisCo Advisory, tendering agency, “It is important for bidders to understand, not only the legal requirements for a joint venture, but also the structure of the “Consolidated Certificate”, which is formulated around, the Black ownership and Black female ownership percentage held in the respective entities, as well as their contribution in executing the specific joint venture”.
Davids says, “The incorrect application of the requirements for a joint venture in tendering, is but one of the many “Disqualifiers”, which could potentially eliminate a bidder from a tender process.
“Other “Disqualifiers”, could include aspects like losing B-BBEE points for exceeding the allowed levels of subcontracting, not meeting the required thresholds for Local Production and Content as well as not complying with the rules on subcontracting after the award of tender and not also allocating such subcontracts to the correct “Designated Groups”, as a requirement within a specific tender”.
“Bidders are always advised to make sure that their compliance is of the highest levels and not just to have an attitude of, “We know best”.
Most bidders are not even aware that they’ve been disqualified and let alone; the reasons why they were. This is because they hardly exercise their Constitutional right to enquire as to the outcome of these tenders.”
Davids also advised that the recently launched Tendering Outlook Survey is still open for participation. To participate in the Survey, Click Here
Pick n Pay final results February 2021
Group turnover for the year increased by 4.3% to R93.1 billion (2020: R89.3 billion), trading profit fell 14.7% to R2 7 billion (2020: R3.2 billion), profit for the period after taxation lowered 19.1% to R967.1 million (2020: R1.2 billion), while headline earnings per share decreased 21.4% to 229.31 cents per share (2020: 291.90 cents per share).
An extraordinary year
The Board owes a significant debt of gratitude to Richard Brasher for his tremendous leadership over an eight-year tenure, and in particular for his extraordinary commitment this year, when he delayed his retirement to steer the business effectively through the Covid-19 crisis. The Board expresses its sincere thanks to Richard for his invaluable contribution and wishes him well for his retirement.
Truworths – CFO appointed
Further to the announcements of 30 November 2020 and 19 February 2021, the board of directors of the company announced, in compliance with paragraph 3.59 of the Listings Requirements of the JSE, the appointment of Mr Emanuel (Mannie) Cristaudo as the chief financial officer of the Truworths International Group and an executive director of the company with effect from 1 July 2021.
Mr Cristaudo was appointed as an independent non-executive director of the company, with effect from 1 January 2021, a position which he will relinquish on 30 June 2021.
Pepkor – committee appointment
The board of directors of the Company (“the Board”) advise that Ms W Y N Luhabe, the Chairman of Pepkor, has been appointed to the Audit and Risk Committee of the Company with effect from 15 April 2021.
The appointment is only for such time until the Company has appointed an independent non-executive director who can also be appointed to the Audit and Risk Committee so as to ensure compliance with the minimum membership in terms of Section 94(2) of the Companies Act.
Pepkor – fulfilment of conditions for acquisition
Shareholders and Noteholders of Pepkor are referred to the announcement released by the Company on SENS on 18 December 2020 (the “Announcement”) in terms of which Shareholders and Noteholders were advised that the Company and two of its wholly-owned subsidiaries, Ultimo Properties (Pty) Ltd. (“Ultimo”) and JD Consumer Electronics and Appliances (Pty) Ltd. (“CEA”) had entered into a Framework Agreement with Steinhoff Africa Holdings (Pty) Ltd. and the Steinhoff Subsidiaries in terms of which Ultimo and CEA agreed to acquire a portfolio of properties and take transfer of a lease for an aggregate consideration of R1 050 000 000 which would be settled by Pepkor issuing, in aggregate, 70 000 000 new Pepkor shares (“Pepkor Consideration Shares”) to the relevant Steinhoff subsidiaries (together, the “Transaction”).
Shareholders and Noteholders are hereby advised that all conditions precedent to the Transaction have now been fulfilled and accordingly the Framework Agreement is unconditional in all respects.
The Pepkor Consideration Shares will be issued to the relevant Steinhoff Subsidiaries in various tranches as and when the respective properties are transferred to the relevant purchaser.
Massmart – appointment of director
Shareholders are advised that Mr Peter John Suarez has been appointed as an alternate director to Ms Susan Wahu Muigai, a non-executive director, with effect from 6 April 2021. Ms Muigai has notified the Board of her intention to take leave of absence
Did you know……..
“Nearly 70 million barrels of oil are used each year to make the world’s polyester fiber, which is now the most commonly used fiber in our clothing. But it takes more than 200 years to decompose.” (Forbes, 2015)
Crude oil is incredibly damaging to the environment, and it goes into a huge amount of garments produced for fast fashion. The resulting polyester AKA plastic-based materials also introduce the increasingly worrying issue of microfibres …:
To Advertise….. Click here to see fact sheet with advertising rates.
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