Our Deputy President is urging business to make use of the textile quotas that have been introduced. However, reading this report on M&G, I can't help asking a few questions.
Deputy President Phumzile Mlambo-Ngcuka warned that the government may be forced to ask the Chinese to increase the quota of clothes and textiles they export to South Africa if local manufacturers fail to meet demands, the Dispatch Online reported on Tuesday.

And should local businesses fail to make the most of the quota agreement that government had entered into with China, it would expire, she warned.

Addressing businesspeople in Queenstown in the Eastern Cape at the weekend, Mlambo-Ngcuka said the government had identified textiles as one of the industries to revive economic growth and job creation.

Retailers were still pessimistic about the ability of local producers to produce enough clothes and textiles, especially ahead of the festive season, she said.

"We are asking ourselves: Where are our people to fill the gap? We are unable to sleep because we are worried that shelves will be empty and people will not produce to the required capacity. We will be forced to go to the Chinese with our tails between our legs and ask the Chinese to come back. Can you imagine that?"

The recent decision of the Department of Trade and Industry to limit imports from China angered retailers, who argued that it would drive clothing prices sky high.

But the government got the thumbs-up from labour unions, who said the move would curb job losses in the clothing and textile sector.

Mlambo-Ngcuka said government found itself faced with a dilemma as "we need to grow the manufacturing capacity of clothes and textiles that are made in South Africa".
  1. Was it government initiative or labour lobbying that brought about the introduction of the quotas?
  2. Where are our people to fill the gap?
  3. How thorough was the planning for this initiative?
  4. Does our DP even understand the clothing industry?
Just for starters, if the quotas were introduced with immediate effect, to the point that it affects stocks on shelves this summer, there was never any chance of local industry "filling the gap" by the festive season anyway. Ramping up production is not an overnight affair at the best of times, but in the textile industry lead time is quite possibly longer than in other lines of manufacture.

Right now the retailers' buyers will be looking at their next Winter lines. Decisions on what to put on the shelves this summer were probably made 6 months ago.