SA’s manufacturing future at risk from illegal factories
The Department of Trade, Industry and Competition (DTIC) says South Africa’s manufacturing sector cannot grow on the back of unsafe and illegal operations.
The warning follows reports that allegedly non-compliant garment factories in Newcastle, KwaZulu-Natal, were operating under poor health and safety conditions, employing undocumented workers and producing clothing for major retailers without approval.
In a statement issued to the media, the department said such illegal operations distort competition, undermine compliant businesses and expose workers to unsafe conditions.
“South Africa cannot grow its manufacturing base on the back of unsafe and illegal operations. Factories that evade labour standards distort competition, undermine compliant businesses and expose vulnerable workers to unacceptable conditions,” the department said.
“The objectives of the Retail Clothing, Textiles, Footwear and Leather Masterplan are grounded in the principle that industrial growth must occur within a sound governance framework of decent work, lawful business activity and the formalisation of the value chain.”
The department added that enforcement alone cannot address these risks and called on retailers, manufacturers and regulators to work together to strengthen supply chain accountability.
“This incident underscores that enforcement alone cannot resolve systemic risks in fragmented supply chains. Demand-side actors, particularly large retailers and brand owners, carry a corresponding responsibility to exercise meaningful due diligence in their procurement and supplier management practices. Moreover, there is a need for improved interdepartmental coordination and improved data visibility across the sector.”
The department further stated: “The Deputy Minister of Trade, Industry and Competition, Ms Alexandra Abrahams, will engage the Retail Clothing, Textiles, Footwear and Leather Masterplan Executive Oversight Committee to discuss the implications of the Newcastle matter.
“Strengthening voluntary and policy-linked disclosure mechanisms is one of the essential steps to improving visibility across supply chains and preventing illicit or exploitative production from entering formal retail channels.
“The DTIC remains committed to promoting formalisation and compliance across the value chain and to creating an enabling environment for a competitive, inclusive and labour-absorbing clothing and textile industry.” – IOL
