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From crisis to catwalk: Can South Africa follow Portugal’s footsteps to save its footwear industry?

Published: 26th Feb 2025
Author: By Nerisha Jairaj; executive director; SAFLEC

APICCAPS’ logo has become globally recognised…Could South Africa’s footwear and leather goods industries create similar awareness?

Not long ago, Portugal’s footwear industry was on the brink of collapse, drowning under a wave of cheap Chinese imports. Factories shut down, jobs disappeared, and the sector seemed doomed. But instead of fading away, Portugal fought back reinventing itself into one of the world’s most sought-after footwear producers.

South Africa now faces a similar crisis. Local manufacturers struggle against low-cost imports, while the “Made in South Africa” label remains underdeveloped. But if Portugal could turn things around, why can’t we?

A Blueprint for Reinvention
Portugal didn’t try to compete with China on price – it knew that was a losing battle. Instead, the industry shifted its focus to quality, design, and branding. Portuguese shoes became premium, stylish, and European chic. Smart investments in modern tooling and innovation helped improve efficiency, while a powerful national branding campaign – backed by government and industry – cemented Portugal’s position as a global footwear leader.

South Africa must take a similar approach, but it won’t happen without serious financial backing. Building a strong “Made in South Africa” sectoral not general identity requires more than just talk. A well-funded marketing strategy – leveraging influencers, social media, and global trade shows – is critical to shifting perceptions and creating demand. Without visibility, even the best products won’t sell.  SAFLEC has embarked on this strategy, but true marketing requires a greater financial contribution.

First, stabilize the supply chain
Before the industry can scale up and compete globally, it must first address a more pressing issue – the collapse of its supply chain. A footwear industry cannot thrive without a steady and reliable supply of materials, components, and skilled labour. Right now, the local supply chain is shrinking, making it nearly impossible for manufacturers to plan long-term investments.  We have seen support in clusters, but I still ask an important question.  When building a house, one starts with the foundation first. When addressing the industry’s problems, one would assume we would star with the foundation.  Enhance global technology competitiveness, strengthen supply chain.  First two steps backed up by not only basic but in-depth training of labour.  Are we teaching our labour business skills, ownership of their jobs, impact of their actions, or just how to sow.?  It called organisational culture.  If you don’t have this right, things can fall apart.

Without a stable supply chain, investing in high-quality production is futile. Government and private investors must step in to support things like tooling costs, helping factories diversify their production capabilities and meet evolving consumer trends. Incentives for local material production – such as alternative quality leathers or synthetic innovations – would reduce reliance on imports and strengthen the industry’s foundation. Without these critical interventions, South Africa will continue to struggle with inconsistent supply and rising costs, making it even harder to compete.

Bold action is needed – now
Low-cost footwear has its place in the market, but South Africa must look beyond short-term survival. The long-term strategy must focus on investment in quality, technology, and local capacity. Support for tooling costs to help manufacturers diversify production.
Financial backing for marketing and branding to reposition “Made in South Africa” as a premium label. Incentives for alternative, high-quality materials to reduce import reliance. Strengthening the supply chain to ensure stability before scaling up exports.
Portugal proved that transformation is possible. The question now is: Will South Africa take bold action, or will we watch another industry slip away?

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