SAFLEC AGM – ‘recovery after the storm’

Sponsored by the SA Footwear & Leather Export Council (SAFLEC). 

Durban, KZN, SA – This year’s SA Footwear & Leather Export Council (SAFLEC) AGM – the 22nd – was a much smaller occasion than in previous years, an acknowledgement of a reduced budget. It was, however, quite upbeat.
              Exports to non-African destinations grew 6% by volume (to 3 584 000 pairs) and 23% by value (to R682 000 000), but exports to SA’s biggest market – its fellow Southern African Customs Union (SACU) members, Botswana, Eswatini, Lesotho and Namibia – dropped by 42% in value (to R1 308 000 000), and 2.3% in volume (to 11 332 000 pairs), which SAFLEC attributed to those countries largely sharing the same depressed economy as SA.
              The rest of Africa, however, will remain the main focus of SAFLEC’s export efforts.

Nerisha Jairaj and Tavonga Gonyora

“The financial year 2023 brought more headwinds than tailwinds with a constrained consumer landscape, higher inflation both on the domestic and export market, persistent load shedding and some infrastructure failures such as water and port maintenance,” said chairman Tavonga Gonyora.
He said manufacturers were adapting in a highly competitive environment. “We had some great success stories with the articles of leather category emerging as the star performer and gaining further increased export market share having come from a negative growth position in the previous financial period. While focus is on footwear this category is growing and it is an important enabler of growing South African leather exports.”
He said the Tech Fund 12-month contribution holiday, which came into effect at the start of 2024, “created some uncertainty in our ability to meet our matching grant requirements which we require to meet our various deliverables. We have our members to thank for diligently paying their memberships and enabling our business model.”
He said sustainability was “a business imperative”, and that “we will continue to make responsible choices in how we encourage our members to source their various raw materials. Through partnerships with SEDEX we have been able to roll out limited certification initiatives to successful members who applied, and it is our hope funding allows we can look at onboarding more members for this ethical initiative.”
“Looking forward, we acknowledge that our growth will come from export initiatives focused on Africa.”

eThekwini Footwear & Leather Cluster (EFLC) programme manager Nelisiwe ‘Nelly’ Magubane received awards for the EFLC’s ongoing support for SAFLEC.

Africa as a whole still remains SAFLEC’s focus, but SA exporters aren’t taking their opportunities, she said: “This year, we’ve offered outward selling mission opportunities to 19 destinations in Africa, including setting up business meetings for exhibitors, but we’re only getting 3 or 4 applicants in each case.

Former vice chairman Stuart Hopwood, who retires from Bolton Footwear at the end of August, received an award for his services to SAFLEC.

Benjamin Ross, director of auditor Marwick & Co.