South African retailers say they want to buy more locally made clothing, targeting the localisation of up to 80-million additional garments a year by 2030 — worth about R7.9bn in manufacturing sales.
If achieved, the shift could create as many as 34,000 formal factory jobs countrywide. But local manufacturers still struggle to match the prices of imported clothing.
This is according to a series of reports in the main retail-clothing, textile, footwear and leather (R-CTFL) localisation feasibility report conducted by consulting firm BMA and commissioned by the Localisation Support Fund (LSF).
According to the report, the price gap is now at the centre of a growing fight over the future of South Africa’s clothing industry, especially as Chinese online discounters rapidly expand in the local market.
The report finds that retailers are willing to source more products locally, especially basics such as T-shirts, denim and athleisure. Demand and capacity exist, but cost competitiveness is lacking.
Retailers have told the researchers that imported clothes are often 25%-40% cheaper than locally made versions. For simple products such as T-shirts, factories can meet quality and speed requirements, but they struggle to match the price.
“Apparel customers and retailers are ready to source more locally where price, quality and responsiveness meet market needs. The pathway outlined in this report provides a practical foundation to unlock investment, review policy inhibitors and grow regional manufacturing capability to deliver sustainable jobs across the CTFL value chain,” said Cape Clothing & Textile Cluster chairperson Graham Choice.
Success will require determined, co-ordinated action by all stakeholders to challenge the status quo and implement a new set of actions to drive sustainable growth.
This tension could determine whether the thousands of jobs at stake can be created or more are to be lost.
Chinese competition
The pressure has intensified with the rapid growth of Chinese discount retailers Shein and Temu.
Together, the two retailers generated more than R7bn in sales in 2024 in South Africa, said a report by the BMA and the LSF published last year.
About 8,000 local jobs had already been lost, with the researchers warning that 34,000 more jobs could be at risk by 2030 if offshore e-commerce continued to grow unchecked, Business Day previously reported.
At the time, Shein and Temu defended their business models, saying their success reflected strong consumer demand for affordability.
Shein told Business Day that millions of consumers, including a large, growing base in South Africa, chose the brand because of its focus on value and quality. Temu said it had expanded the range of quality products available to South African consumers, giving them greater choice.
For shoppers facing high living costs, cheaper clothing is hard to ignore. Industry bodies and unions have previously warned that the long-term cost could be far greater.
The Southern African Clothing & Textile Workers’ Union (Sactwu) described the boom in offshore e-commerce as “smash-and-grab economics” and is pushing for stronger localisation rules.
Why manufacturing matters
Clothing manufacturing is labour intensive, creating many jobs not just in factories but also in transport, warehousing and retail too. It also contributes to economic growth and export earnings.
It is a cornerstone of the government-backed R-CTFL masterplan, which aims to increase local sourcing to 65% by 2030. Currently, it sits at about 30%, with only modest growth expected in the next few years, according to the LSF report.
According to the report, local factories face high energy costs, compliance requirements and limited upstream capacity, such as local fabric production and specialised washing facilities for denim. Many also rely on imported raw materials, which raises costs further.
South African manufacturers are also largely excluded from the global digital supply chains that power fast-fashion platforms. The report says R6.2bn in local manufacturing sales could be lost if the country fails to respond effectively.
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