The benefits of localisation are shown by stellar results of the TFG group, owners of Foschini, which has become South Africa’s largest local apparel manufacturer as it boosts local production, local jobs and its own profitability.
The South African clothing and textile industry has been hammered by imports, but is recovering through a master plan that aims to increase local production and employment.
TFG is ramping up manufacturing capacity in five hubs across the country. The group has just announced that its results in November are expected to show a 50% increase in earnings per share, and a 100% increase in headline earnings per share.
In its latest annual report, TFG describes localisation as an “imperative”. It says the expansion will create about 5 000 new jobs by 2025. “TFG will provide most of these new employees with jobs and qualifications made up of learnerships, internships, skills programmes and graduate training in manufacturing,” it says.
They have also won the praise of the SA Clothing and Textile Workers’ Union. SACTWU’s national industrial policy officer Etienne Vlok who said import replacement would result in more jobs and upskilling for workers.
“TFG’s investment in local manufacturing confirms localisation is a viable strategy to fight unemployment,” he said.