**South Africa**: The CTFL sector witnesses a 58% rise in localisation efforts since 2019, as major retailers pivot towards domestic sourcing. The KZNCTC Accelerator supports small businesses in connecting with large retailers, aiming to create jobs and enhance local manufacturing. Applications open until April 2025.
Global supply chains are still grappling with the repercussions of the COVID-19 pandemic, a situation that has led to various industries across the globe facing numerous challenges including delays, shortages, and altered production dynamics. Amidst this backdrop, South Africa’s Clothing, Textile, Footwear and Leather (CTFL) sector has identified significant opportunities. As international supply chains become increasingly unpredictable, the focus on local production and onshoring is emerging from mere preference to a critical strategy aimed at fostering resilience and sustainability.
A recent analysis projected for 2024 indicates that these challenges have catalysed a shift among major South African retailers towards intensified domestic sourcing. This strategic pivot is coupled with increased investments in local manufacturing capabilities, signalling that localisation within the CTFL sector has moved beyond a philosophical stance to become a pragmatic business approach with tangible impacts.
Kyle Ballard, Head of SME Development for the KwaZulu-Natal Clothing & Textile Cluster (KZNCTC), highlighted the growing emphasis on localisation, stating that it has surged by an impressive 58% since 2019. “It’s not often you hear about Woolworths, Mr Price, TFG, and Pepkor Speciality in the same sentence,” Ballard noted. “But when it comes to driving transformation in South Africa’s CTFL economy, they’re united by a shared goal.”
These five major retail chains—Woolworths, Mr Price Group (Apparel and Sport), TFG, and Pepkor Speciality—have endorsed the Retail-Clothing, Textile, Footwear and Leather (R-CTFL) Master Plan. This national initiative is designed to rejuvenate the sector by creating jobs and constructing more robust and inclusive value chains. A key component of this strategy is the KZNCTC Accelerator, which is now in its third iteration. This small and medium enterprise (SME) Accelerator, backed by the eThekwini Municipality’s Economic Development Programmes Unit, serves as a dynamic platform assisting small manufacturers in gaining market access, upgrading production standards, and facilitating capital investment interventions to enhance scalability.
Participating SMEs within the Accelerator gain direct connections with leading retail entities that are actively searching for strategic suppliers to localise their supply chains. This initiative provides participating businesses with expert support to improve their capabilities, meet the requirements of larger customers, and tap into substantial commercial opportunities. Nelisiwe Magubane, Programme Manager for CTFL at the eThekwini Municipality, commented on the programme’s effectiveness: “The SME Accelerator is a great example of how public-private partnerships can drive impact on the ground. When government and industry work together, we create real opportunities for small businesses to participate meaningfully in the economy.”
Currently, applications for the 2025 KZNCTC Accelerator are open. Retailers participating in this year’s programme are particularly interested in suppliers that can provide products in several specific areas, including ladies’ and men’s outerwear, babywear, legwear and hosiery, leather goods and accessories, grass bags and accessory suppliers, technical sports shoes, and denim.
Small businesses in the CTFL sector that meet the following criteria are encouraged to apply: they must be South African-owned, have at least 51% Black ownership, an annual turnover of R50 million or less, be registered with the Companies and Intellectual Property Commission (CIPC), be tax compliant, and have been operational for at least two years. The Accelerator represents not just a chance for exposure but a pathway to establishing sustainable relationships that could significantly change the trajectory of participating businesses and contribute to the advancement of local clothing, textile, footwear, and leather manufacturing in South Africa. Applications are set to close on 14 April 2025.
Source: Noah Wire Services
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