Fears for South Africa’s factories
While South Africa’s economic development minister, Ebrahim Patel, recently boasted that the government had helped to save 21,000 jobs during the economic downturn, there are some concerns that the manufacturing sector is under serious pressure.
According to AllAfrica.com, the country’s factories are shutting down as quickly as they are being saved. It claims that while 71 clothing factories have been helped by a government scheme; however, around 400 clothing units who have not received any assistance are expected to close. Meanwhile, legal and legal clothing imports have soared.
Despite this, consumers appear to be returning to the high street as the country appears to emerge from the recession and on the back of the successful World Cup. In June, retail sales of textiles, clothing, footwear and leathergoods rose 13.1% compared with May, while household furniture, appliances and equipment grew 17.7%.
