SACTWU welcomes textiles rebate announced by South African government

The Southern African Clothing & Textile Workers’ Union (SACTWU) welcomed the textile rebate recently announced by the deputy minister of finance on February 5.

“It represents one of the most significant positive developments for local procurement, jobs and domestic industrialisation promotion in many decades,” the union said in a press release.

This is an important concrete implementation component flowing from the signature of the Retail, Clothing, Textile, Footwear & Leather (R-CTFL) Masterplan, which was signed by the industry’s social partners on November 6, 2019, at the 2nd Presidential Investment Conference, SACTWU said.

The announcement followed a request by clothing industry employer organisations and major retailers.

The publication of the rebate was preceded by an intense four-month period of industry negotiations between SACTWU and other stakeholders.

The rebate provides for the woven fabric to be imported duty-free for the local manufacturing of garments, provided procurement commitments are made to local textile producers. Such imported fabric can only be used by companies that are signatories to the R-CTFL Masterplan and are compliant with minimum labour standards.