The South African clothing and textiles industry is highly diverse and mature. South Africa’s clothing industry is dominated by a small number of large retailers. In 2004, the Clothing, Textiles, Leather and Footwear (CTFL) SETA undertook a skills audit to which a sample of 338 clothing companies and 341 textiles firms responded which provides interesting insights into the profile of the textiles and clothing sectors.
However, it is important to note that the majority of the informal enterprises, predominantly in the clothing sector, were unlikely to be represented in the survey. Of the companies that participated in the survey only a small proportion were public companies: 3% in the clothing industry and 5% in the textiles industry. Half of the clothing industry firms were registered as close corporations (51%), with 43% of textile firms classified as such. In the clothing industry 30% are private companies, 10% are sole proprietors and 3% are partnerships. In the textiles industry 41% are private companies, 7% are sole proprietors and 2% are partnerships.
The remaining firms were recorded under the category ‘other’. According to the CTFL SETA audit, 59% of clothing firms reported an annual turnover of less than five million Rand, followed by 16% of firms who reported a turnover of more than R25 million, 11% who reported a turnover of between R11 and R25 million and 7% who reported a turnover of R6 million to R10 million. 7% of firms did not answer the question.
Of the textiles respondents, half of the firms reported an annual turnover of less than R5 million, 11% reported a turnover of between R6 and R10 million, 10% reported a turnover of between R11 and R25 million, 21% reported a turnover of more than R25 million and 7% did not answer the question. The skills gap within this sector remains a challenge. Our business model is geared towards skills development and capacity building within the sector.