38 of 2018

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Newsletter No. 38                                                                                                       5 October  2018

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SACTWU media statement on government economic stimulus package

The COSATU-affiliated Southern African Clothing and Textile Workers’ Union (SACTWU) has taken note of the economic stimulus and recovery plan announced by President Cyril Ramaphosa earlier today.

We welcome the specifics relating to the sectors in which we are organised and have members, specifically

the promised greater support for the clothing and textile sector, the most labour-intensive sector in the manufacturing industry;
the intended vigorous crackdown on illegal imports, which will provide a stimulant to local manufacturers as well as much needed job protection, especially for the clothing-, textiles- and footwear sectors, as well as improve much needed revenue collection. In particular, for example, we point out that R2.3bn was lost in customs revenue from Chinese clothing imports, in 2016 alone;
the increased support for the agriculture industry and
the reference to more procurement of hospital bed linen which we trust will be locally manufactured and thus not only address the challenges in the health sector but also create jobs in local textile factories.

We note the plan to increase procurement from co-operatives and call on government that this should not be done without tackling the scourge of bogus co-operatives, which is a destroyer of decent jobs.

On the extension of the Employment Tax Incentive (ETI), despite our concerns about replacement of older workers, we draw attention to the fact that SACTWU has some time ago submitted a proposal to National Treasury for the ETI to be extended industry-wide to the clothing and textile sector, a facility allowed by the ETI. This request has still not been addressed by National Treasury, without any explanation, despite us having formally submitted it as long ago as October 2014.

There are however also concerns such as the small overall size of the stimulus package and its fit with macro-economic policies like inflation targeting, which we leave to COSATU to address, following debate and decisions taken at its National Congress which concluded yesterday.

Issued by  Andre Kriel  SACTWU  General Secretary

For further comment, kindly contact SACTWU’s National Industrial Policy Officer, Mr Etienne Vlok, on cell number  082 448 0506


Maroc in Mode-Maroc Sourcing to highlight Moroccan textiles.

The Maroc in Mode-Maroc Sourcing 2018 trade fair, which will be held on October 11 and 12, 2018, in Marrakech, will accentuate the growing Moroccan textile industry. Around 200 exhibitors will participate in the segments of fast fashion, denim, knitting, tailoring, lingerie, workwear, leather good, shoes, and accessories of the leading textile trade show.

A project titled ‘Circular Textile Cluster’ will be presented at the show. It is a project for the development of sustainable production in which high sums are invested in Morocco. The companies Hallotex from Tangier, Textil Santanderina and Vich Industrial from Barcelona, and the Austrian Lenzing Group are involved in the project. The project involves the construction of a spinning mill that processes recycled fibres and a recycling plant in Tangier that is expected to recycle over one million kilograms of textile waste per year. The entire production chain is worked sustainably until the recycling of textile waste, according to a media statement.

The Moroccan Denim Cluster (MDC), also represented at the Maroc in Mode-Maroc Sourcing, together with its partners, will implement a support programme for denim companies, enabling them to make the necessary changes so that the Moroccan denim industry is recognised as a ‘sustainable industry’ and one to ensure a sustainable economy for future generations. Thirty exhibitors participating in the fair are members of the MDC.

As an international exhibitor at Maroc in Mode-Maroc Sourcing for the first time is Kilim Denim from Istanbul, a company that makes major investments in sustainable denim production and has developed, among other things, the Raw For The Oceans collection in collaboration with G-Star, for a new generation of denim and clothing recycled plastic waste from the sea is used in an innovative way. F2F

Growing need for agile super vendors in Africa’s apparel industry

African clothing manufacturers have to become super vendors to reduce lead times and cost better to handle more styles, cater to in-season change and improve the top line and bottom line of their businesses. This is the assertion of Anas Shakil, head of emerging geographies and senior partner at garment tech company ThreadSol.

ThreadSol participated in the Origin Africa 2018 event held in Kenya earlier this month, where it presented its software solutions intelloCut and intelloBuy, which promises to reduce planning time by almost 80%, and reduce fabric sourcing cost by acting on data and insights.

After marking its presence in 15 countries, the company is set to explore the African apparel industry with an aim to transform manufacturers to ‘super vendors’.

“The current global sourcing trends are based on 3 major things. Trend injection – the reactive approach of the brand to competition’s product range. Read and react – small SKUs to test market response. And in-season chase – revise manufacturing POs to focus on fast-selling goods,” says Suhrud Panigrahi, key account manager at ThreadSol.

“A super vendor is a manufacturer who can work upon these trends by not only controlling costs of manufacturing, but also innovate the products to take pressure off the brands. Another compelling characteristic of a super vendor is to postpone or disrupt the order bookings for reactive trend injections,” explains Panigrahi.

According to ThreadSol, since the requirements of high and fast sourcing models are on a rise, which aims at a smaller lead time and shorter order runs, it’s becoming difficult for countries like Bangladesh to keep up with these trends. The same can happen in Africa, the company says, if manufacturers do not act towards becoming a super vendor. Bizcommunity

ITC helps bolster Chinese investment in Ethiopian textiles

Major Chinese  textile firms are stepping up sourcing and investment plans in Ethiopia following a visit to Addis Ababa by a delegation from the China Chamber of Commerce for Textiles (CCCT). During their 26-28 August visit, the delegates met heads of Ethiopian textile firms, leaders of Ethiopian Textile and Garment Manufacturers Association and government officials.

The Chinese delegates finalised sourcing agreements and explored investment partnerships with Ethiopian partners, according to a report from the International Trade Centre (ITC), which organised the visit.

Established in 1964, ITC is a joint agency of the World Trade Organization and the United Nations. The visit was part of ITC’s Partnership for Investment and Growth in Africa (PIGA) project.
CCCT has over 12,000 Chinese textile companies as its members.

One Chinese firm agreed to source 1.5 million pieces of beach shorts from a textile factory located in the Bole Lemi Industrial Park, a specialized export zone on the outskirts of Addis Ababa.

A business-to-business event organized by the PIGA team for the delegation and local manufacturers generated six prospective investment partnerships for three local companies with values ranging between $1 million and $5 million.

Did you know……..

Michael Kors’ first project was his own mother’s wedding dress. He was a mere 5 years old at the time.

The “little black dress” was compared to the Ford car when it first came along in 1926, since it was practical and simple.

Many companies try to be an ethical and environmentally-friendly as possible, but Stella McCartney bags went a step further and are made out of corn.

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