Tshwane clothing and textile hub
Due to the positive trends emerging from the clothing and textile industry, the Tshwane Economic Development Agency (TEDA) propose to establish Tshwane clothing and textile hub at the location still to be confirmed but within the borders of the City of Tshwane. Tshwane Economic Development Agency (TEDA) in collaboration with Gauteng Department: Economic Development (GDED) and the National Department of Trade, Industry and Competition (the dtic), has partnered to develop Gauteng Clothing, Textiles, Footwear and Leather (CTFL) business hub that will first be piloted in Tshwane and will be called Tshwane clothing and textile hub project.
The South African CTFL sector is small, compared to similar industry globally. Nonetheless,
it is still regarded as a priority sector by the South African Government, as it is labour
intensive and is often used by developing countries as a platform for sustained economic growth
and job creation. The dtic established a Clothing and Textiles Competitiveness Programme, which
sets out targets for the sector in terms of job creation, growth, stability and global competitiveness.
The sector has been adversely affected by cheap and illegal imports.
In addition, this project seeks to contribute to the implementation of the Retail Masterplan – South African retail, clothing, textile, footwear and leather (R-CTFL) Value Chain Masterplan to 2030, November 2019. It is noted that commitments contained in the Master Plan will yield an increase in local manufacturing with local purchases expected to increase in real terms by R35 billion which could increase employment in the value chain by 121 016 (from 212 416 to 333 162) with manufacturing jobs expected to account for 73 549. The piloted Hub in Tshwane may lead to the development of similar Hubs in corridors in Gauteng Province, namely; northern, southern, central, eastern and western. Alternatively, the business hub in Tshwane may extend its services to these corridors. The initial focus of the hub is on clothing and textile manufacturing to expand to footwear and leather.
The facility will focus on the industrial processing of fibres outputs from Gauteng and surrounding areas,
to produce value added and manufactured products. The envisaged hub will also serve as a Business Integration
Support Centre with tentacles (Small Medium Micro Enterprise (SMME) in Township areas) located in various township
across Tshwane, like Atteridgeville, Ekangala, Garankuwa, Hammanskraal, Mamelodi, Refilwe, Soshanguve, Temba, Winterveldt,
Eersterust, Zithobeni, Rethabiseng, the list is not exhaustive. The inclusion of the township will seek to affirm township
economies in the sector wherein the expected activity is cut, make and trim (CMT), also known as sowing and finishing.
Considering the value chain activities, typical activities in the Centre will be; design and patterns, procurement (sourcing), distribution and logistics, marketing and exports, Contract management, incubation, research and development, Service and maintenance. The Centre will include some value-added service such as laboratory, training and offices.
The project is in planning phase as guided by TEDA – PPM Project Management Framework. The multi-disciplinary stakeholders comprising national, provincial and local departments is currently underway to formulate a delivery strategy. The project is estimated valued at R1.4 billion. The impact of the project is the gross value add (GVA) R142.1 million, with job creation of 1 363 (permanent).