Clusters ‘very successful’, IDC says

Johannesburg, Gauteng, SA – In the past or based on the previous guidelines of CTCP, clusters were afforded a limited period (about 5 years) to implement approved interventions. In some cases, extensions were granted to allow clusters more time to complete the implementation of these interventions.

The Durban Cluster (Mr Price Footwear) is in the process of winding down as the cluster terminated its operation around December 2023. In a similar, way, the Foschini Eddels Fast Track Cluster in Pietermaritzburg is also winding up since its period has expired.
These Subnational Clusters interventions included technology demonstration as well as training of people, product development, process innovation and market development interventions.

Are they being replaced by new clusters?

The revised CTFLGP guidelines allowed for new clusters to be formed (see www.ctflgp.co.za for more details).
The new clusters are aimed at enhancing the goals and objectives of the sector’s government endorsed “Masterplan” so as to improve competitiveness of the sector and in the process creating jobs that will grow the market share of locally manufactured products.

How much did they cost the IDC, and how much will the IDC recoup from the sale of the equipment to the companies that took part?

We are bound by confidentiality commitments hence we can’t provide such details.
However, it is important to state that cluster members were initially invited to make reasonable offers for the technology demonstration assets against the independent valuation by reputable companies, failing which, other ways will be sought to liquidate the assets of clusters.

Which companies were involved with these clusters?

We are unable to provide you with names of these companies due to POPIA.

What measurable impact did the clusters have?

An audit report for one of our clients in the Footwear Cluster best sums up the impact that these clusters have had. “The investment in world-class automated machinery, training as well as the addition of footwear technologists, has assisted the lead manufactures produce styles of shoes they could not before on the ‘quick response’ model, efficiently and in the expected quality.”

From baseline figures in 2016 to 2019, the audit highlighted the following:
* Growth of 167% in import replacement units.
* The technology demonstration laser cutting machine resulted in a saving of R2,5 million and performed 45% of all cuttings.

From baseline figures another client’s report highlighted the following:
* A 98% growth in units and 92% growth in value produced.
* Creation of over 700 new jobs.
* Establishing a successful CAD/CAM design office with CNC cutting through technology demonstration.
* Creating a fully SETA approved CAD/CAM Design and Operator training facility.