Pretoria - Trade and Industry Minister Rob Davies has launched a Clothing and Textile Competitiveness Porgramme (CTCP) which is expected to restructure the sector for long term sustainability and competitiveness.
The CTCP and the Production Incentive (PI) - which is the core funding mechanism - aims to assist the industry in upgrading processes, products and people as well as to reposition it to compete effectively, not only domestically but globally.
"The aim of the scheme is to provide support for the industry and to address challenges to upgrade productivity, product design, hardware and the capital equipment. In line with our approach to funding initiatives, the incentive will be measured to show their impact and future funding will be based on proven outcomes," said Minister Davies.
Both the CTCP and PI, together with five other core projects, form part of the Clothing and Textile Customised Sector Programme (CSP). The CTCP comprises three components - namely the Capital and Technology Upgrading Programme, the Competitiveness Improvement Programme as well as the Production Incentive.
To date, the minister said the CTCP desk had received over 80 applications to the value of R311.8 million. Applications to the value of R36 million have already been approved.
"The competitive challenges are becoming stronger and stronger and if the local industry is to survive it has to address a number of these issues. Ultimately, the challenge is that the industry is going to have to make adjustments and raise its competitiveness", said Davies.
