The document discusses the textile and apparel cluster in South Africa. It provides background on the development of the cluster from the 1920s to present day. It analyzes the current condition of the cluster, noting declining employment and inability to capture domestic demand growth due to high costs. It describes firm strategies like price competition, exporting high-end products, and product diversification. Finally, it maps the geographic concentration of the cluster and links between the textile and apparel industries.
Economic History of Israel (1948 - Present)Gua Tabidze
An advanced, resilient, innovation-driven and knowledge-based economy. Israel is known for its unique entrepreneurial and innovative spirit.
You can follow me if you want to grab other great resources, articles : http://twitter.com/gtabidze
The Israeli economy, despite all the challenges – is in good shape. There are four Israeli economic relative advantages, and three revolutions in the making. All these, when getting their full effect, will expectedly help Israel's economy to reach even greater success
Economic History of Israel (1948 - Present)Gua Tabidze
An advanced, resilient, innovation-driven and knowledge-based economy. Israel is known for its unique entrepreneurial and innovative spirit.
You can follow me if you want to grab other great resources, articles : http://twitter.com/gtabidze
The Israeli economy, despite all the challenges – is in good shape. There are four Israeli economic relative advantages, and three revolutions in the making. All these, when getting their full effect, will expectedly help Israel's economy to reach even greater success
Over the last twenty years the centre of the global economy has shifted. Investors are targeting higher rates of return in developing economies while emerging markets have also become increasingly attractive to occupiers suffering the stagnation of more mature locations.
Rapid growth in the economies of China, Brazil and India has led to substantial migration of capital and business activities to other less mature environments. However a number of global shocks occurred during the latter half of 2014 and 2015, suggesting that frailties could be escalating to crisis point.
MARKET TREND OR MARKET BLIP?
Emerging market economies have certainly felt some significant headwinds over the past 12 months. This is posing threats to future economic growth prospects. not only for developing economies but also the developed world.
At present China is witnessing a significant economic slowdown, Russia is suffering from falls in oil prices and Brazil is being hit by both falling commodity prices and political dysfunction. A vicious cycle of secular stagnation appears to be developing. Slowing growth in industrial countries is now directly impacting emerging economies, which are exporting capital and thereby slowing growth in more developed locations.
KEY GLOBAL TRENDS
– Lower commodity prices
– Weakening global trade
– Financial turbulence in advanced markets
– Policy bottlenecks
– Structural downgrade in China
Following a brief period where focus was on nothing but a return to a global recovery following the downturn of 2008, GDP forecasts in 2015 are now being sharply revised downwards by the IMF. This underlines the significance of current global troubles and the impact they could have on the health of both developed and developing world economies. It is yet to be seen whether this is a trend to stay or a market blip, nevertheless growing uncertainty is certainly starting to be reflected in investor and business sentiment.
The African Economic Research Consortium (AERC) in collaboration with the African Development Bank (AfDB) will host the nineteenth Senior Policy Seminar (SPS XIX) on March 13 – 14, 2017 in Abidjan, Cote d’Ivoire.
India vs China: Trade is an Engine of GrowthAritra Ganguly
India and China are two major players in International Trade with potential to grow. This presentation takes a look at the history between these two great nations, how trade has flourished and helped economies to grow in terms of Trade Balances, how it can contribute to GDP growth, barriers to trade and how each country can maximise their potential in this regard.
There is an urgent need for policy makers to adopt a cautious perspective when dealing with the recent revival of protectionism. The changing policy context of global competition requires that emphasis be placed on facilitating broad-based innovation. This is in sharp contrast to the current and past industrial policies that were based on import substitution and sector-picking. This paper briefly outlines Pakistan’s experience with industrial policy over the past 6 decades, and shows how protectionist industrial and trade policy regimes are ineffective with respect to equipping Pakistan to compete globally. The paper also outlines global best practices with reference to designing an enabling industrial policy and suggests policy reforms that are appropriate in the political and global context of Pakistan. There also exist contrary views about the scope and composition of industrial policy even within the government functionaries. There is a dire need for a shared vision and deeper consensus building. Thus this paper aims to highlight the radical contrast in perspectives that exists between the current policy of the ministry of industries and a policy conducive to a prosperous Pakistan.
Keynote: Growth, Structural Transformation and DevelopmentUNU-WIDER
Keynote at The Third Voice of Social Sciences Conference (VSS) on Industrialization and Social Transformation University of Dar es Salaam, Tanzania, 24-25 November 2016
16-18 April 2019. Marrakech, Morocco The Fifth (2019) session of the Africa Regional Forum on Sustainable Development (ARFSD 5).
Presentation by Linus Mofor - Senior Environmental Affairs Officer (Energy, Infrastructure and Climate Change), ECA
Over the last twenty years the centre of the global economy has shifted. Investors are targeting higher rates of return in developing economies while emerging markets have also become increasingly attractive to occupiers suffering the stagnation of more mature locations.
Rapid growth in the economies of China, Brazil and India has led to substantial migration of capital and business activities to other less mature environments. However a number of global shocks occurred during the latter half of 2014 and 2015, suggesting that frailties could be escalating to crisis point.
MARKET TREND OR MARKET BLIP?
Emerging market economies have certainly felt some significant headwinds over the past 12 months. This is posing threats to future economic growth prospects. not only for developing economies but also the developed world.
At present China is witnessing a significant economic slowdown, Russia is suffering from falls in oil prices and Brazil is being hit by both falling commodity prices and political dysfunction. A vicious cycle of secular stagnation appears to be developing. Slowing growth in industrial countries is now directly impacting emerging economies, which are exporting capital and thereby slowing growth in more developed locations.
KEY GLOBAL TRENDS
– Lower commodity prices
– Weakening global trade
– Financial turbulence in advanced markets
– Policy bottlenecks
– Structural downgrade in China
Following a brief period where focus was on nothing but a return to a global recovery following the downturn of 2008, GDP forecasts in 2015 are now being sharply revised downwards by the IMF. This underlines the significance of current global troubles and the impact they could have on the health of both developed and developing world economies. It is yet to be seen whether this is a trend to stay or a market blip, nevertheless growing uncertainty is certainly starting to be reflected in investor and business sentiment.
The African Economic Research Consortium (AERC) in collaboration with the African Development Bank (AfDB) will host the nineteenth Senior Policy Seminar (SPS XIX) on March 13 – 14, 2017 in Abidjan, Cote d’Ivoire.
India vs China: Trade is an Engine of GrowthAritra Ganguly
India and China are two major players in International Trade with potential to grow. This presentation takes a look at the history between these two great nations, how trade has flourished and helped economies to grow in terms of Trade Balances, how it can contribute to GDP growth, barriers to trade and how each country can maximise their potential in this regard.
There is an urgent need for policy makers to adopt a cautious perspective when dealing with the recent revival of protectionism. The changing policy context of global competition requires that emphasis be placed on facilitating broad-based innovation. This is in sharp contrast to the current and past industrial policies that were based on import substitution and sector-picking. This paper briefly outlines Pakistan’s experience with industrial policy over the past 6 decades, and shows how protectionist industrial and trade policy regimes are ineffective with respect to equipping Pakistan to compete globally. The paper also outlines global best practices with reference to designing an enabling industrial policy and suggests policy reforms that are appropriate in the political and global context of Pakistan. There also exist contrary views about the scope and composition of industrial policy even within the government functionaries. There is a dire need for a shared vision and deeper consensus building. Thus this paper aims to highlight the radical contrast in perspectives that exists between the current policy of the ministry of industries and a policy conducive to a prosperous Pakistan.
Keynote: Growth, Structural Transformation and DevelopmentUNU-WIDER
Keynote at The Third Voice of Social Sciences Conference (VSS) on Industrialization and Social Transformation University of Dar es Salaam, Tanzania, 24-25 November 2016
16-18 April 2019. Marrakech, Morocco The Fifth (2019) session of the Africa Regional Forum on Sustainable Development (ARFSD 5).
Presentation by Linus Mofor - Senior Environmental Affairs Officer (Energy, Infrastructure and Climate Change), ECA
The economy of South Africa has faced numerous challenges since the global recession in 2008, and now faces the choice of how to proceed in reducing the amount of its government debt.
Evaluating Benefits and Costs of Globalisationtutor2u
This is a streamed version of a colour coded answer to a past exam question on the economics of globalisation. Each colour in the answer refers to a specific exam skill - knowledge, application, analysis and evaluation. I hope this approach might be interesting to students who want to configure their answer to get high marks in the A level exam. The crucial point is that contextual examples can make a huge different to the quality of your answer.
A quick summary or a general outlook on international business management of South Korea. The outline is written below:
Introduction to South Korea
Economic Transition & Business-Industrialization Stage
Political Admin, Public Policy, Society & Culture
Geopolitics to Geo-economics
Emergence of Chaebol Industry
Foreign Investment Climate
Business Culture & Etiquette
Emerging Market Study – Top 3 for business in South America. This presentation gives a brief information about the top 3 emerging markets in South America.
Africa is home to some of the fast growing countries in the world, a wealth continent full of minerals, abundant human resources and opportunities. At the same time, poverty, underdevelopment, insecurity, infrastructure and talent gaps are high. With 54 independent States and a population of over 1.1 billion inhabitants, Africa economic growth is a paradox story. From the desert in the North through the rich mineral belts of the coastal lines and tourism savannah in Kenya to the dense equatorial forests of Congo basin, Africa’s old dilemma stays the same. The question remains, how can a continent gifted and endowed with the World’s most envied, high in demand and profitable natural resources, abundant and cheap labour market, vast arable land, tourism opportunities and favourable climate said to be the poorest?
« SUB-SAHARAN AFRICA: CURRENT ECONOMIC ENVIRONMENT, THE MAJOR DRIVERS OF ECONOMIC GROWTH AND THE ROLE GOVERNMENTS ARE PLAYING IN PROMOTING SOCIOECONOMIC DEVELOPMENT ON THE CONTINENT »
Presented by:
H.E. Abdourahmane CISSE,
Minister to the Prime Minister in charge of the Budget
COTE D'IVOIRE
Launch of Growth and Poverty in Sub-Saharan Africa BookUNU-WIDER
On 22 April 2016 UNU-WIDER visits the Swedish International Development Cooperation Agency to launch the new open access book Growth and Poverty in Sub-Saharan Africa. Resulting from UNU-WIDER’s project on ’Reconciling Africa’s growth, poverty and inequality trends: growth and poverty’— the book provides a comprehensive re-examination of Africa’s growth, poverty and inequality trends. While the economic growth renaissance in sub-Saharan Africa is widely recognized, much less is known about progress in living conditions. This book comprehensively evaluates trends in living conditions in 16 major sub-Saharan African countries, corresponding to nearly 75% of the total population.
• Consumer expenditure in SSA
equaled nearly $600 billion in
2010, accounting for almost eight
percent of all emerging-market
spending, and is expected to reach
nearly $1 trillion by 2020.
• Consumer spending in South
Africa and Nigeria accounts for 51
percent of SSA's total expenditure.
• Poverty in SSA is decreasing
rapidly—from 40 percent in 1980 to
less than 30 percent in 2008—and is
expected to fall to 20 percent by 2020.
• By 2050, almost 60 percent of
people in SSA will live in cities,
compared with 40 percent in 2010.
This means 800 million more people
will live in urban environments.
• By 2012, over 50 percent of all
Africans—or more than 500 million
people—will own a mobile phone.
By 2014, this portion is expected to
increase to 56 percent (more than 600
million people), giving Africa one of
the world’s highest mobile usage rates.
Africa is a continent endowed with many resources but lags behind in development compared to other
continents. The development of rural sector (agricultural sector) and raise more people from absolute poverty is
a one of the first goals of most countries. Another goal is to change the countries from being agricultural led
economy to be industrial led economies
Jean-Michel Severino, president of the impact investing group "Investisseurs & Partenaires" explores the current and future opportunities arising in African countries.
Embracing GenAI - A Strategic ImperativePeter Windle
Artificial Intelligence (AI) technologies such as Generative AI, Image Generators and Large Language Models have had a dramatic impact on teaching, learning and assessment over the past 18 months. The most immediate threat AI posed was to Academic Integrity with Higher Education Institutes (HEIs) focusing their efforts on combating the use of GenAI in assessment. Guidelines were developed for staff and students, policies put in place too. Innovative educators have forged paths in the use of Generative AI for teaching, learning and assessments leading to pockets of transformation springing up across HEIs, often with little or no top-down guidance, support or direction.
This Gasta posits a strategic approach to integrating AI into HEIs to prepare staff, students and the curriculum for an evolving world and workplace. We will highlight the advantages of working with these technologies beyond the realm of teaching, learning and assessment by considering prompt engineering skills, industry impact, curriculum changes, and the need for staff upskilling. In contrast, not engaging strategically with Generative AI poses risks, including falling behind peers, missed opportunities and failing to ensure our graduates remain employable. The rapid evolution of AI technologies necessitates a proactive and strategic approach if we are to remain relevant.
Operation “Blue Star” is the only event in the history of Independent India where the state went into war with its own people. Even after about 40 years it is not clear if it was culmination of states anger over people of the region, a political game of power or start of dictatorial chapter in the democratic setup.
The people of Punjab felt alienated from main stream due to denial of their just demands during a long democratic struggle since independence. As it happen all over the word, it led to militant struggle with great loss of lives of military, police and civilian personnel. Killing of Indira Gandhi and massacre of innocent Sikhs in Delhi and other India cities was also associated with this movement.
A Strategic Approach: GenAI in EducationPeter Windle
Artificial Intelligence (AI) technologies such as Generative AI, Image Generators and Large Language Models have had a dramatic impact on teaching, learning and assessment over the past 18 months. The most immediate threat AI posed was to Academic Integrity with Higher Education Institutes (HEIs) focusing their efforts on combating the use of GenAI in assessment. Guidelines were developed for staff and students, policies put in place too. Innovative educators have forged paths in the use of Generative AI for teaching, learning and assessments leading to pockets of transformation springing up across HEIs, often with little or no top-down guidance, support or direction.
This Gasta posits a strategic approach to integrating AI into HEIs to prepare staff, students and the curriculum for an evolving world and workplace. We will highlight the advantages of working with these technologies beyond the realm of teaching, learning and assessment by considering prompt engineering skills, industry impact, curriculum changes, and the need for staff upskilling. In contrast, not engaging strategically with Generative AI poses risks, including falling behind peers, missed opportunities and failing to ensure our graduates remain employable. The rapid evolution of AI technologies necessitates a proactive and strategic approach if we are to remain relevant.
Palestine last event orientationfvgnh .pptxRaedMohamed3
An EFL lesson about the current events in Palestine. It is intended to be for intermediate students who wish to increase their listening skills through a short lesson in power point.
The Roman Empire A Historical Colossus.pdfkaushalkr1407
The Roman Empire, a vast and enduring power, stands as one of history's most remarkable civilizations, leaving an indelible imprint on the world. It emerged from the Roman Republic, transitioning into an imperial powerhouse under the leadership of Augustus Caesar in 27 BCE. This transformation marked the beginning of an era defined by unprecedented territorial expansion, architectural marvels, and profound cultural influence.
The empire's roots lie in the city of Rome, founded, according to legend, by Romulus in 753 BCE. Over centuries, Rome evolved from a small settlement to a formidable republic, characterized by a complex political system with elected officials and checks on power. However, internal strife, class conflicts, and military ambitions paved the way for the end of the Republic. Julius Caesar’s dictatorship and subsequent assassination in 44 BCE created a power vacuum, leading to a civil war. Octavian, later Augustus, emerged victorious, heralding the Roman Empire’s birth.
Under Augustus, the empire experienced the Pax Romana, a 200-year period of relative peace and stability. Augustus reformed the military, established efficient administrative systems, and initiated grand construction projects. The empire's borders expanded, encompassing territories from Britain to Egypt and from Spain to the Euphrates. Roman legions, renowned for their discipline and engineering prowess, secured and maintained these vast territories, building roads, fortifications, and cities that facilitated control and integration.
The Roman Empire’s society was hierarchical, with a rigid class system. At the top were the patricians, wealthy elites who held significant political power. Below them were the plebeians, free citizens with limited political influence, and the vast numbers of slaves who formed the backbone of the economy. The family unit was central, governed by the paterfamilias, the male head who held absolute authority.
Culturally, the Romans were eclectic, absorbing and adapting elements from the civilizations they encountered, particularly the Greeks. Roman art, literature, and philosophy reflected this synthesis, creating a rich cultural tapestry. Latin, the Roman language, became the lingua franca of the Western world, influencing numerous modern languages.
Roman architecture and engineering achievements were monumental. They perfected the arch, vault, and dome, constructing enduring structures like the Colosseum, Pantheon, and aqueducts. These engineering marvels not only showcased Roman ingenuity but also served practical purposes, from public entertainment to water supply.
Introduction to AI for Nonprofits with Tapp NetworkTechSoup
Dive into the world of AI! Experts Jon Hill and Tareq Monaur will guide you through AI's role in enhancing nonprofit websites and basic marketing strategies, making it easy to understand and apply.
2024.06.01 Introducing a competency framework for languag learning materials ...Sandy Millin
http://sandymillin.wordpress.com/iateflwebinar2024
Published classroom materials form the basis of syllabuses, drive teacher professional development, and have a potentially huge influence on learners, teachers and education systems. All teachers also create their own materials, whether a few sentences on a blackboard, a highly-structured fully-realised online course, or anything in between. Despite this, the knowledge and skills needed to create effective language learning materials are rarely part of teacher training, and are mostly learnt by trial and error.
Knowledge and skills frameworks, generally called competency frameworks, for ELT teachers, trainers and managers have existed for a few years now. However, until I created one for my MA dissertation, there wasn’t one drawing together what we need to know and do to be able to effectively produce language learning materials.
This webinar will introduce you to my framework, highlighting the key competencies I identified from my research. It will also show how anybody involved in language teaching (any language, not just English!), teacher training, managing schools or developing language learning materials can benefit from using the framework.
Model Attribute Check Company Auto PropertyCeline George
In Odoo, the multi-company feature allows you to manage multiple companies within a single Odoo database instance. Each company can have its own configurations while still sharing common resources such as products, customers, and suppliers.
Instructions for Submissions thorugh G- Classroom.pptxJheel Barad
This presentation provides a briefing on how to upload submissions and documents in Google Classroom. It was prepared as part of an orientation for new Sainik School in-service teacher trainees. As a training officer, my goal is to ensure that you are comfortable and proficient with this essential tool for managing assignments and fostering student engagement.
"Protectable subject matters, Protection in biotechnology, Protection of othe...
Microeconomics and Competitiveness
1. GROUP # 1:
– JORGE CARRION
– EDUARDO GARCIA
– DIEGO SIBRIAN
2. AGENDA
• ABOUT SOUTH AFRICA (Geography, Society,
Politics)
• NATIONAL ECONOMICS PERFORMANCE
I.- COUNTRY
• ANALYSIS OF NATIONAL COMPETITIVENESS
ANALYSIS
• GLOBAL TEXTILES AND APPAREL INDUSTRY
• TEXTILE AND APPAREL CLUSTER IN SOUTH
AFRICA
II.-CLUSTER
• CLUSTER COMPETITIVENESS DIAMOND ANALYSIS
ANALYSIS
4. COUNTRY ANALYSIS: HISTORY
In 1652, Dutch settlers
established an outpost of
the Dutch East India
Company at the Cape of
Good Hope—an important
stopover along the trade
routes to the East
5. COUNTRY ANALYSIS: HISTORY
The ports Cape Town and
With the are the main of
Durban, construction 2
entry points for incoming
the Suez Canal in
1869, however, traffic
shipments to the
between Europe and Asia
Southern Africa
region, but needed to
no longer are very far
navigate around southern
from major markets in
Europe and North
Africa.
America.
6. COUNTRY ANALYSIS: HISTORY
The discovery of
diamonds in 1867 and
Natural resources include
gold in 1886 stimulated
coal, iron ore, phosphates,
rapid economic growth in
the 19th century, although
and copper
the economy has since
become more diverse.
10. COUNTRY ANALYSIS: SOCIETY
Population: 49 Million people
Median age: 24.4 years (AIDS - 18% adult prevalence rate)
Urban population: 60%
Human Development
Index: 125th
GDP per capita: 79th
Racial categories: - African (80%) - Ethnic groups => Zulu, Xhosa, and Sotho
- White (9%)
- “Coloured” (9%)
- Indian (2%)
South Africa has a long history of racial segregation, which was
institutionalized as the official state policy of apartheid
from 1948 to 1994.
11. COUNTRY ANALYSIS: POLITICS
1994:- First free election.
- All residents were permitted to vote regardless of their race.
- Nelson Mandela was elected President.
1999:-Thabo Mbeki succeeded Mandela.
2008:-Thabo Mbeki was ousted in internal party disputes.
-Macroeconomic policy orientation had not improved opportunities for
disadvantaged groups.
2009: -African National Congress (ANC) elected Jacob Zuma.
-There is disappointment among poor Africans about the slow pace of change in
their position since 1994.
-But the ruling ANC is in a long-running alliance with the Congress of South African
Trade Unions (COSATU) and the South African Communist Party (SACP), so there is
not a threat.
- Domestically, the government will continue to confront the ongoing HIV/AIDS
pandemic and persistent economic inequality.
12. NATIONAL ECONOMIC PERFORMANCE:
GDP AND GROWTH
GDP per capita: - $12,450 (in 2006 at PPP). (Exhibit 1 and 2)
Real GDP: - $455.2 billion (PPP at 2005 prices).
- Accounted for 65.6 % of the combined GDP of all
economies in the Southern Africa region.
1994 to 2004: - Real GDP grew at a compound annual growth rate of
3.1 percent.
- The average annual growth rate in labor productivity was
5.5%
- Decline of labor force in 0.6 million workers (-3.7%)
2004 to 2008: - Economic growth has since accelerated to 4.6 percent
- The average annual growth rate in labor productivity was
2.2%
- Expansion of labor force in 1.7 million workers (+10.7%)
The post-2004 acceleration in growth has been driven mainly
by domestic demand and has been financed through a
rising current account deficit
13. NATIONAL ECONOMIC PERFORMANCE:
ECONOMIC PROFILE
South Africa Export Portfolio
GDP CONTRIBUTION
Service Sector Industry
Agriculture Others
2.50% 0.50%
30.00%
67.00%
The largest clusters in terms of value are metal
- South Africa was leader in producer of
mining and manufacturing , followed by jewelry
platinum, gold, and chromium.
and precious metals, hospitality and tourism, and
- But retail sales had decreased by 4.4 %
automotive, which have all been declining in world
and manufacturing had dropped by 4.0%
market share. The clusters with the greatest
(by the end of 2008)
increases in world market share have been coal and
financial services
14. NATIONAL ECONOMIC PERFORMANCE:
ECONOMIC PROFILE
• Workers have entered the formal labor force at a faster
The problems of rate than jobs have been created.
high • Unemployment is concentrated among low-skilled
unemployment workers and is linked to historical racial inequality:
and entrenched • Overall unemployment 25%: African 32% vs.
inequality have Whites 5% (Exhibit 5 and 6)
persisted. • Industries employ workers with low skill levels
have been in steady decline.
The overall • One of the most unequal countries in the world: Gini
poverty rate was coefficient is ranked lower than Namibia, Bolivia, Haiti and
57 percent in 2001 Paraguay (2001). (Exhibit 3)
15. NATIONAL ECONOMIC PERFORMANCE:
CONSTRAINTS TO CONTINUED AND
SHARED GROWTH
The government has
pursued the • To raise the annual growth rate to 6 percent and reduce
Accelerated and poverty and unemployment by half by 2014.
Shared Growth • Improved competitiveness, and equality through the
Initiative for South creation of opportunities for the previously
Africa (ASGISA) since disadvantaged black population.
2005
• The robust domestic demand has been met by imports:
persistent current account deficit. (Exhibit 8)
Weaknesses • The current condition of its transportation and energy
infrastructure limits its ability to expand exports. (no
investment)
16. NATIONAL ECONOMIC PERFORMANCE:
ANALYSIS OF NATIONAL
COMPETITIVENESS
- Global Competitiveness Index : # 36 of 74 countries (2008)
- World Bank data:
- Government effectiveness: 75%
- Regulatory quality: 70%
- Control of corruption: 67%
(Exhibit 9 – 16)
South Africa benefits from sophisticated financial markets, but lags in
primary education, national savings, quality of infrastructure, and the
incidence of serious disease, including tuberculosis and HIV/AIDS
17. Factor Conditions
• Three important factors negatively impact South
Africa’s competitiveness and constrain business: an
inadequately educated workforce, crime and
theft, and inadequate infrastructure
• The efficiency of financial markets is one of South
Africa’s greatest strengths, among factor conditions.
The World Economic Forum gives South Africa high
scores for ease of accessing loans, availability of
venture capital and the sophistication of the financial
sector
18. Context for Firm Strategy and
Rivalry
• The labor market is characterized by a low
level of flexibility in the labor market.
According to an assessment by the World
Bank, South Africa’s score on an index of labor
rigidity is (42/100)
• There are considerable constraints on hiring
and firing employees, wage determination is
rigid, and employer-worker relations are
considered to be weak
19. Context for firm Strategy and
Rivalry
• South Africa does have a number of strengths
in facilitating competition in domestic
markets. In an assessment of competitiveness
across countries, South Africa ranked high on
efficacy of corporate boards (14); efficacy of
legal framework (16); protection of minority
shareholders’ interest (11); effectiveness of
anti-monopoly policy (10) and intellectual
property protection (19).
20. Country Related and Supporting
Industries
• The availability of research and training services
and the quality of collaboration between
universities and industry research contribute to
the South Africa’s capacity for innovation, which
the WEF ranks at 28 across countries
• . The quality of domestic Information and
Communication Technologies suppliers is
generally high, but they have limited capacity to
meet market demand
21. Demand Conditions
• The domestic market benefits from an
increasing black middle class but also faces
the limitations of a extremely high inequality
and the persistence of a dual economy with
the black majority relying on work and even
consumption in the informal sector
22. Strategic Issues
• Macroeconomic stability: Its real exchange rate has been volatile in the
past decade and its current account deficit continues to increase as a
share of GDP.
• Regional opportunities: The neighboring countries are poorer and have
much smaller economies.
• The economic impact of legacy of apartheid: Deeply rooted in
political, economic and social inequality, South Africa is confronting the
impact of apartheid on: the structure of the economy (informal/formal;
“one country, two economies”), the labor market (lack of skilled
workers, rigidity of employment and strong unions, productivity), social
indicators (poor public health and transmissible diseases; low level of
education), market size (large inequalities) and the business environment
(crime and violence associated in part with high levels of inequality).
• Infrastructure: South Africa has some important weaknesses in electricity
supply, ICT, ports, and logistical infrastructure.
26. Textile Value Chain
Finished
Fibers Yarn Fabric
Product
Natural Carding Weaving Clothing
Man-Made Combing Knitting Home Furnishings
Spinning Bleaching Industry
Dyeing Dyeing
Finishing
27. Trends in the Value Chain
• Geographical shifts. The shift of apparel manufacturing from developed to low-
cost countries has been pronounced over the past decade, with China leading the
way in winning market share.
• Transnational Corporations (TNCs). The emergence of large international retailers
has come to dominate the global textiles and apparel industry, influencing the
geographical locations of parts of the value chain and putting further downward
pressure on prices because of their immense bargaining power.
• “Lean retailing”. Retailers increasingly prefer not to undertake supply chain
activities and therefore transfer these onto its suppliers. This necessitates the
supplier to offer a “full package” service, which can include taking responsibility
for sourcing fabric and trim upstream and taking on logistics, transportation, and
delivery downstream.
• Speed-to-market. With the emergence of apparel retailers such as Zara and
H&M, new standards for fast turnover in styles and fashion trends have
emerged, necessitating ever shorter product life- spans. This puts considerable
demands on the apparel manufacturers to respond to a series of small, irregular
28. Development of the Cluster
• In the early 1920s, the South African clothing
sector was almost nonexistent. Clothing was
either imported or tailored
• The industry began with the manufacturing of
blankets by limited number of small companies in
Johannesburg and Cape Town in 1920s and 1930s
• During World War II, the industries provided
blankets, rugs and sheeting; employed 3,500
workers; and supplied 90 percent of domestic
need
29. Development of the Cluster
• After World War II, the cluster expanded into
furnishings, industrial textiles and clothing.
• In the 1960s, the cluster further expanded into
synthetic fibers and the sector almost doubled in
size
• Because apartheid limited the use of African
labor in urban areas, the clothing industry moved
to areas with concentrations of Indian and
Colored labor: Durban, Cape Town, and areas
bordering “Bantustans.”
30. Development of the Cluster
• Cape Town soon became the center of the
South African clothing industry, partly driven
by the large retail chains based there. In the
Western Cape, from 1935 to 1980 the number
of firms increased from 30 to 332, and the
number of employees increased from 3,500 to
53,421
31. Development of the Cluster
• Liberalization and the restructuring of the
industry resulted in large decreases in
employment, while productivity has increased
through cost-minimization and downsizing
rather than production growth.
• A total of 30,000 clothing and textile jobs
were lost between 1996 and 1999, as the
firms competed on cost-minimization and
downsizing
32. Current Cluster Condition
• In the past decade, domestic demand for clothing
and textile has been constantly increasing, but
the domestic industry has not captured the
growing demand
• Imports of textiles have grown rapidly to an all-
time high, while exports have stagnated
• Countries with cheaper labor force, including
China, have captured large share of sales volume
in the global market, which has pushed down the
international prices
33. Current Cluster Condition
• the labor cost in South Africa is much higher than
competitors, South African textile cluster is losing
in the price competition to cheaper exporters.
• The employment in clothing industry was
121,108 in 1990, but it decreased to 59,580 in
2001
• Employment in the textile industry has also
declined in recent years, decreasing from 70,500
in 2003 to approximately 50,500 in 2006 (Textile
Federation of South Africa, 2009).
34. Firm Strategies in the Cluster
Companies in the cluster have survived the tough competition in the domestic market, because
of the following strategies.
Price competition: These low-end firms compete mainly in cost-minimization. They import
cheap products in the domestic market by vertically integrating with modern container berth
and mobilizing modern equipment. E.g. SBH Cotton.
Exporting high-end product: These firms sell high-end products to retail outlets in international
markets in Europe. E.g. Monatic, which has been successful in selling a large volume of
fashionable men’s suits, but the proximity from the large international market limits their ability
to keep up with up-to-date fashions.
Diversify to value-added products: These companies diversified their products and dominate
niche segments of the market. They consolidate with related industries, including chemical and
medical industries. E.g. Gelvenor Textiles, which specializes in technical textiles and has 50
percent global market share in parachute fabrics.
35. Map of South African Textiles and
Apparel Cluster
O
I u
n t
p p
u u
t t
I I
n n
d d
u u
s s
t t
r r
i i
e e
s s
36. Cluster Competitiveness
South Africa’s textile and clothing industry is concentrated in three provinces: Western
Cape, Kwazulu-natal and Gauteng.
Clothing Firms
350 327
300
239
250 219
200
150
100
50
0
Western Cape Northern areas KwaZulu-Natal
37. South Africa – Textiles and
Apparel Development
Development of textile manufacturing Cluster expands
cluster in into Industrial
Cape Town and Johannesburg textiles and apparel
1920s 1945
38. Textile and Clothing Industries
• Textile and clothing industries are interdependent, as the fabric is the single most
significant input into the clothing sector ( half of the cost to produce a garment).
• Without an efficient and supportive textiles industry, clothing industry expansion is
constrained. On the other hand, clothing industry’s growth in export would have a
positive impact on the textile industry by creating higher demand.
• The clothing industry requires a significant amount of low-skilled labor; as much as 83
percent of employees in the Western Cape clothing industry was semi- and unskilled in
2004.
• Firms in the textile and clothing cluster vary from well-established large firms to small &
medium enterprises and home industries.
Number of Firms by Revenues
Unanswered 55
145
11-25 Million Rand 82
74 Number of Firms
Less than 5 Million Rand 429
0 50 100 150 200 250 300 350 400 450
39. Institutions for Collaboration
• The cluster has many potential Institutions for Collaboration (IFC), including
associations of employers, labor unions, and government initiatives. The problem
is their fragmentation and lack of coordination.
• Labor unions in South Africa played important role in fighting against apartheid
and have maintained strong political power.
• Cooperation between labor and employer is very low in South Africa in general
(GCI - ranked 65th ).
• Organizations that can play an important role:
Clothing Manufacturers Association
CMT Employers association
Bargaining Council for the Clothing Industry
Clothing Trade Council of South Africa
Industrial Development Corporation
Garment Manufacturers Association
Clothing Industry Export Council
South Africa Clothing and Textiles Workers Union (SACTWU)
• Some of these groups have undertaken activities to mobilize stakeholders in the
cluster. E.g. SACTWU has organized the Cape Town Fashion Festival with the theme
“Wear South African” since 2003.
40. Cluster Competitiveness Diamond
Analysis
The South African textile and apparel cluster shares some of the key
challenges and advantages identified in the country competitiveness
analysis.
• Efficient financial market is helpful in nurturing new enterprises in the
cluster.
• A growing black African middle-class is a driving force for the cluster to
shift to the high-end sophisticated market.
• High-income inequality limits the size of an emerging sophisticated
market.
• The high cost of labor, influenced by strong labor unions, rigidity of
employment and the restriction by the Black Economic Empowerment
policy, is a significant obstacle for the cluster development.
• Lack of high-skilled labor.
41. Factor Conditions
• High factor costs (especially labor cost) constraint the ability of the cluster to
compete with foreign companies in on price.
Country South Africa China Sri- India
Lanka
USD per hour 1.36 0.68-0.88 0.48 0.38
• The labor cost disadvantage is crucial, because the cluster is labor- intensive.
• The high labor cost is due in part to the rigidity of employment. Strong labor
unions and BEE limit the option of companies in hiring and firing.
• Regulations regarding overtime and shift pay, sick leave and pension contributions
pose an additional burden for firms
42. Factor Conditions
Raw Materials
• Limited access to raw materials is another important challenge to accessing the
high-end market.
• Domestically produced fabrics are limited in terms of their volume and variety.
Cotton produced in South Africa is relatively low, and the cluster cannot rely on
domestic cotton for high-quality products
• Other weaknesses in the cluster: long lead times, poor delivery reliability and
deteriorating quality performance
Distance from International Markets
• The long distance from EU and US limits the ability of South African firms in
updating the design in high-end fashion market
• As firms compete in lead time in the high-end fashion market, the distance from
these markets and the transportation time required by it will be a huge
disadvantage for South African companies
• Low quality of infrastructure in domestic logistics is an additional challenge. This
problem is more severe for the companies outside the Western Cape
43. Context for Firm Strategy and
Rivalry
• While the competition among domestic companies is competitive and well
regulated, South Africa has a problem in dealing with imported products.
Customs control can be very ineffective, many Chinese products are imported without
any duties or customs.
Illegal dumping of foreign products is also a threat to local producers.
• With the aim of reducing the impact of Chinese imported products, the
government introduced the China Restraint Arrangement in 2007. This scheme
introduced a quota for Chinese export to South Africa, but the effect was
questionable because of the loose customs control.
• Since that arrangement expired at the end of 2008, the government considered
the implementation of a “Rescue Plan” to provide subsidies to local textile and
clothing industries and help them compete in the domestic and international
markets.
44. Relating and Supporting
Industries
• The lack of trust and cooperation between clothing producers and textile
producers obstructs the ability of firms to compete effectively.
• Different segments in the cluster are fighting against each other to protect their
own profits rather than collaborating with each other to promote the
competitiveness of the cluster.
Opportunities
• Potential collaboration with growing design-related industries.
Benefit from the growing fashion, arts and film industries, if they can cooperate with
each other to create high end products and promote South African products in domestic
and international markets.
Design and fashion industry is growing but still weak, and it needs improvement in the
technical schools in design and fashion. Cape Town Fashion Week is a good trial to
market the design industry and clothing industry of South Africa to the international
market.
• Collaboration between retailers and manufacturers..
45. Demand Conditions
• The South African domestic market has a growing middle-class black population
that is increasingly sophisticated in its consumption decisions.
This is a segment in the domestic market that the textile cluster can compete
in quality and uniqueness of the products.
• The income disparity in the country limits the size of the sophisticated market.
The country needs to address the problem of inequality to create a significant
and sustainably large segment of the market that will support higher- end
products.
• International markets in the US and the European Union are another opportunity
for the cluster. AGOA and the FTA with the EU provide the companies with
valuable access to these markets.
If companies in the cluster increasingly develop unique products, they can
improve their ability to penetrate these markets.
47. Cluster - Challenges
1. Imports impact:
• Imports of Chinese clothing products increased by 335% from 2002 to 2004.
• China is the most important source of South Africa’s clothing imports
(74.3%), followed by India (5.4%).
• South Africa’s tariff on clothing products is 45%, the highest level allowed by WTO.
• The imported productions have dominated the local textile and clothing market
and thus seriously threaten the survive of the local manufactures.
• It is estimated that the volume of illegal imports is almost the same as that of legal
imports and therefore presents a significant challenge.
2. Exports decline:
• Textile exports kept increasing from 1995 to 2002, but begun declining since 2003.
South Africa Textile Exports (2001- 2006)
6
4 4.5 Exports
3.4 3.8
3.2 3.2 3.1
2
0
2001 2002 2003 2004 2005 2006
48. South Africa Textile
Cluster Challenges
3. Employment crisis:
• The employment of textile and clothing sector declined remarkably from about
190,000 (2000) to about 130,000 (2006).
• 55,000 textile workers struck for two weeks in September, 2009, requesting for
higher pay.
4. Economic crisis
• GDP declined in 2009
Quarter Q1 2009 Q2 2009
GDP rate -6.4% -3.0%
• Unemployment rate is now close to 30%
5. Workplace productivity:
• Low levels of productivity and management
• Lack of innovation and technology enhancement
• Lack of skilled workers and technicians
48
49. South Africa Textile
Cluster Challenges
6. Poor Infrastructure
• Value chains need to be strengthened (lack of raw material suppliers)
• Electric Supply quality deterioration; power outages (lack of sufficient
investment)
7. Health and welfare of the population:
• HIV/AIDS & Tuberculosis pandemic affecting workers abilities
• Excessive and widespread crime (ranked last among 74 countries)
• Equality through creation of opportunities for disadvantaged black population