Clothing and Textiles Competitiveness Programme (CTCP)

The clothing and textiles industries (“The Sector”) are amongst the most labour-intensive industries in South Africa. The Sector has been under intense pressure since the mid 1990’s and the dti is making efforts aimed at addressing its decline. the dti is developing a set of support instruments for the Sector to stabilise employment and to facilitate the restructuring of the domestic manufacturing industries to increase their competitiveness.

The IDC and the dti agreed to establish the Clothing and Textile Competitiveness Programme (CTCP), managed by Mr. Joy Balepile. The programme comprises the following elements:

The Capital and Technology Upgrading Programme

Part of the Enterprise Investment Programme (EIP) in support of the manufacturing sector
The Enterprise Investment Programme (EIP) launched during July 2008 replaces the Small Medium Enterprise Development Programme (SMEDP). The programme has a special dispensation for the Clothing and Textiles sector and encourages enterprise-level upgrading of capital equipment in order to improve competitiveness. Guidelines are available on the dti website at www.thedti.gov.za

The Preferential Financing Scheme

Provided directly by the IDC and managed by the Textile and Clothing Strategic Business Unit (SBU)
For capital upgrading aimed at competitiveness improvement at prime less 5%. Working capital loans are also available at an interest rate to be determined per applicant.

The Clothing and Textile Competitiveness Improvement Programme (CTCIP)

Administered by the Clothing & Textile Competitiveness Programme (CTCP) Desk at the IDC.
The CTCIP was initiated and designed to stimulate the competitiveness of the South African clothing and textile manufacturing sector.
The CTCIP encourages interventions aimed at improving a company’s people, processes and products.

The Production Incentive Programme

The final architecture of this Programme must still be completed. As soon as the structure of the incentive has been approved, stakeholders will be notified of the final architecture. The aim is to implement the programme by 1 May 2010.

The main objective of the CTCIP is to:

Create a group of globally competitive clothing and textile companies
Ensure a sustainable environment that will retain and grow employment levels.

Two levels of support are proposed under the CTCIP:

Activities of support for regional clothing and textile clusters in all the major producing regions and
Company-level intervention for larger companies or companies where there is no cost or operational benefit to operating in a collective structure.

Cluster level intervention, cost sharing grant

75:25 cost sharing grants: 75% from the CTCP grant and the rest from the cluster
Project costs up to a maximum of R 25 000 000 over the five year period of the programme implementation

Commenced on 01 April 2009, for a period of five (5) years, ending in 2014.

Firm level intervention, cost sharing grant

65:35 cost sharing grants: 65% from the CTCP grant and 35% from the firm
Project costs up to a maximum of R 2 500 000 over the five year period of the programme implementation

Commenced on 01 April 2009, for a period of five (5) years, ending in 2014.

The IDC has established a desk (CTCP Desk) to administer the CTCIP on behalf of the dti.

Contact details for the CTCP Desk:

Clothing and Textile Competitiveness Programmes Ms. Eukeria Chiwara

Tel: +2711 269 3424
+2711 269 3000
Fax: +2711 269 3126
Email: eukeriac@idc.co.za