A Growing Sector with a Strong Comparative Advantage
South Africa has a long-standing tradition in the clothing and textile industry, with Cape Town and KwaZulu-Natal serving as key hubs. In Cape Town, the sector holds a notable comparative advantage. Cape Town stands out as a major centre for clothing and textile production in South Africa, with the industry playing a key role in the city’s economy.
The city has a well-deserved reputation for its strong design aesthetic, and the clothing and textile industry embodies this creative spirit. The sector is a significant source of employment, providing jobs for over 23,800 people. This makes it the third-largest employer in Cape Town’s manufacturing sector. The industry’s labour-intensive nature also presents a compelling opportunity for investors to contribute to job creation and economic growth in Cape Town.
A Vertically Integrated Value Chain
Cape Town benefits from a high concentration of retail head offices, including major players like Woolworths, the Foschini Group, Truworths, PEP, and Cape Union Mart. This proximity of retailers to local designers and manufacturers creates a vertically integrated value chain that is highly responsive to fast-changing fashion trends.
The city’s growing fashion design industry further enhances this advantage, fostering a collaborative environment where creativity and innovation come together. Organisations like the , Clotex, and the Cape Town Fashion Council play a vital role in supporting the industry at different points in the value chain, sharing a common vision for growth and development. The , in particular, consists of over 140 retailers and clothing, textile, footwear and leather manufacturers working together to strengthen, grow and transform the Western Cape’s CTFL (clothing, textiles, footwear and leather) value chain.
Programmes provided by the CTCC include :
- Sustainability
- Value Chain Development
- Manufacturing Productivity Improvement
- Enterprise & Supplier Development
- Skills Development
- Shared Learning Network
Navigating Challenges, Embracing Opportunities
While the clothing and textile industry has faced competition from low-cost imports in recent years, the rise of fast fashion has created exciting new possibilities for local producers. Consumers are increasingly seeking trendy items with shorter lead times, which plays to the strengths of Cape Town’s agile and responsive manufacturing sector.
There is also a growing consumer awareness and preference for locally produced goods, driven by a desire to support local businesses and reduce environmental impact. This trend presents a significant opportunity for Cape Town’s clothing and textile industry, which is known for its quality craftsmanship and commitment to ethical production practices.
Key Indicators of Growth and Resilience
Despite challenges, the clothing and textile industry in Cape Town has shown signs of renewed growth and resilience. Performance indicators for a sample of manufacturers in the Western Cape, primarily from Cape Town, reveal positive trends in sales, employment, and process efficiency.
These improvements reflect a concerted effort by the private sector and government to enhance the industry’s competitiveness. The Department of Trade, Industry and Competition offers incentives and assistance through programmes like the Clothing and Textiles Competitiveness Programme and the Competitiveness Improvement Programme.
Key Industry Indicators (2022)
- Gross Value Added (GVA): R5.6 billion (1% of Cape Town’s GVA)
- Location Quotient: 1.63
- Ten-year Foreign Direct Investment (FDI) value: R1.15 billion
- Ten-year GVA Growth Contribution (2013–2022): -1.0%
- Employment: 23,829
- Export Value (textiles, clothing, and leather goods): R7.18 billion
Performance and Growth
*OTIF (on-time and in full) measures the efficiency and accuracy of delivery in the supply chain. The average number of employees at CCTC member firms.
A Prime Location for Textile and Clothing Investment
Cape Town offers a compelling combination of advantages for businesses in the clothing and textile industry:
- Vertically Integrated Value Chain: Close proximity to major retailers, designers, and manufacturers enables rapid response to market trends.
- Skilled Workforce: A strong tradition of Cut, Make, and Trim (CMT) skills, particularly seamstresses, provides a readily available talent pool.
- Logistical Advantages: Easy access to the Port of Cape Town reduces import costs for textile inputs.
- Supportive Ecosystem: Well-organised industry bodies and government-funded initiatives provide support and resources for businesses.
- Design Hub: Cape Town’s reputation as a design centre attracts top fashion designers, fostering innovation and creativity.
Cape Town’s clothing and textile industry is a dynamic sector, offering a compelling blend of tradition, innovation, and opportunity. The city’s unique advantages, combined with a supportive business environment, make it a prime location for investment and growth.
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