Apparel / Textiles & Accessories

As one of the most economically developed countries in Africa, South Africa's textile and garment industry is one of its very important industrial sectors. The textile industry chain is relatively complete and the industrial foundation is relatively good. At present, South Africa is the world's largest mohair producer and supplier, accounting for about 54% of the world's production. In addition, South Africa is also a major producer of man-made fibers such as nylon and polyester fibers.

South Africa is considered one of the most promising emerging markets in the world due to its extensive industrial base and fruitful economic development speed, as well as its outstanding advantages in geographical location, economic environment, trade policies, etc. trade and investment partners. As the second largest economy in Africa, South Africa has a complete hardware infrastructure and a stock exchange market, with diversified consumer demands. Africa's middle class of nearly 1.3 billion people is seen as the next big growth driver after China and India, and traders can also access other markets in sub-Saharan Africa through South Africa.

An overview of South Africa's textile industry

At present, the domestic textile and clothing production capacity in South Africa is insufficient, and about 56% of the textile and clothing are purchased from major international markets. Although South Africa's domestic wool raw material resources are abundant, the deep processing capacity is insufficient, the processing, printing and dyeing and finishing links of fabrics are relatively weak, and the development of the knitting and technical textile industries is also relatively slow. Huge industrial complementarity.

This textile complementarity and opportunity has made China-Africa textile trade grow in recent years. South Africa's main export markets for textiles and clothing are China, Africa and the European Union. According to South African customs statistics, in 2021, my country will be South Africa's largest export market for textiles and garments, with a textile export value of about 3.853 billion rand. From the perspective of export product categories, wool textiles are the most important export products of the South African textile industry. In 2021, South Africa's import value of textiles from my country is about 23.743 billion rand, and the import value of toys and sportswear is about 11.712 billion rand.

Multiple unfavorable factors affect the development of the textile industry in South Africa

The COVID-19 pandemic has had a significant negative impact on South Africa's economy and trade. In its recent Global Economic Outlook report, the International Monetary Fund (IMF) projected that the South African economy will grow by 1.9% and 1.4% in 2022 and 2023, respectively, with average inflation rates of 5.7% and 4.6%, respectively. However, Moody's, the international credit rating agency, predicted in a report in early May that South Africa's inflation rate would rise to 8% this year, amid the conflict between Russia and Ukraine and rising interest rates in the United States.

Recently, South Africa is entering the fifth wave of the new crown epidemic, coupled with frequent extreme weather and climate disasters, its business and investment environment has also deteriorated, causing a serious blow to South Africa's economic recovery. In addition, the current social security situation in South Africa is still unstable, labor-management relations continue to be tense, and strikes occur frequently, posing greater challenges to companies investing in South Africa. At the same time, the labor wage level and water and electricity prices in South Africa have been rising year by year, which directly affects the cost competitiveness of the South African manufacturing industry.

In the face of the current development pressure of the textile and garment industry, the latest industrial development plan released by the South African Ministry of Trade and Industry stated that it will increase the circulation of the domestic market, improve the demand and supply capacity of the domestic market, and propose that the proportion of domestic procurement of textiles and clothing should be increased. Increase from 44% to 65%, while reducing the proportion of overseas purchases to 35%. In the future, Chinese textile and apparel products will face a more intense competitive environment when entering the South African market.