S&V Weekly Newsletter Vol.9 No.22, May 29 2023

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Retailing

SA chains awaiting AfCFTA clothing and textile rules of origin decisions

Cape Town, W. Cape, SA - South Africa’s chain retailers are waiting – in some cases, apparently, impatiently – for the African Continental Free Trade Area (AfCFTA) to finalise its rules of origin for textiles and clothing ahead of the June deadline set by the AfCFTA Council of Ministers.
      “Onshoring is a very strong ambition for retailers for 2 simple reasons,” said National Clothing Retail Federation of SA (NCRF) executive director Michael Lawrence: “The cost of shipping, and quicker response times.
      Recently back from a CRALAC conference in Rwanda on the AfCFTA, where the NCRF was “keeping a watching brief”, he said onshoring “should be providing huge opportunities for value chains across the continent, and these are areas that are very good for everyone, but it’s a very technical process these days.”
      He said retailers “can’t speak on which rules of origin should be applied”.
      “It’s for the production side to tell us how they will operate, and then retail can make decisions, but until that happens, retail can’t make purchasing decisions, regardless of the developmental or commercial opportunities identified.”

Local manufacturing

‘Every South African has the power to help reduce unemployment and secure the future of young people’

Johannesburg, Gauteng, SA - In a press release today, the association Proudly South African – which advocates buying locally-made goods to encourage job creation – says South Africa currently “has one of the highest unemployment rates in the world…which is even worse when looking at youth unemployment”.
It said overall unemployment stood at 32.9 % in the first quarter (Q1) of 2023 according to the Quarterly Labour Force Survey (QLFS), and at 62.1% for job-seekers aged between 15 and 24 years old.
“The results of the survey also indicated that 179 000 jobs were lost between the fourth quarter of 2022 and the first quarter of 2023. The total number of persons unemployed was 7.9 million in Q1 2023.
      It said Proudly South African was “determined to be part of the solution”.
      It has started a new campaign, entitled ‘Second Half’, which focuses on 8 labour intensive industries which have government-encouraged sectoral masterplans: agro-processing, furniture, clothing – textile – footwear – leather (CTFL), steel & construction, manufacturing, aviation, automotive, and food & beverages.
“The new campaign is an analogy of a sports match. Proudly SA views the years leading up to the Covid-19 pandemic as the first half of the ‘game’ of job creation and poverty alleviation, showcased in their previous consumer campaign known as the ‘First Half’ narrated by South African actor, Dr John Kani. As the title suggests, ‘Second Half’ represents the time where the country needed to regroup, recover, revisit the game plan, rethink our loyalty to South African products and services as well as collectively push forward for a win in economic restoration for South Africa and its people.
“Every Rand spent on local products helps to rebuild the South African economy and contributes to retaining and creating jobs. Proudly South African’s message is clear: buying locally manufactured goods and services helps to create a demand for local jobs which has a direct impact on today’s youth and future generations. Many countries, such as China, are thriving because of the strength in localisation and export powers. This compels us as South Africans to be more intentional and robust about localising the goods that we consume or use.
      “Says Eustace Mashimbye, CEO of Proudly South African: ‘The current state of youth unemployment is alarming, and we have to act urgently to counteract the impact of job losses on the local economy. If we do not change the course of our country’s future through localisation, the consequences are likely to be dire. This is why it is crucial to restrategise and revise our own approaches to combatting this situation that affects us all. We must stop the culture of dependency and strive to be the protagonists in cultivating the change we want to see in our own lives. This is done, first and foremost, by having pride in our own goods and services, and stopping at nothing to see our country advance from the economic darkness that our current purchasing habits are leading us to.’”

Manufacturers ‘in a hole’ because of rising material prices

Durban, KZN, SA - The price of imported synthetic upper materials is influenced not just by the exchange rate between the SA Rand and the Chinese Yuan Renminbi, but also between the US dollar and the Chinese currency, said Garth Ribbink of materials importer A. Greenaways (Natal).
      “No-one is accepting price increases, because of pressure from retail,” he said, “but those increases are a reality. Mainly it’s because of the Rand’s depreciation against the Renminbi, but the Renminbi has also weakened against the Dollar since the beginning of last year.“
      “We are ALL falling into a hole, and no getting out.”
      In addition, he said there was little direction in fashion. “It’s too risky for component suppliers to bring in fashion materials because of the risk of cancellations cascading down from retailer to supplier.”

They Said It

"I was going to say that you need to contact the older people in the industry, but I suppose that is us these days!!! Sad, but true." - Clive Jackson-Moss, the (elderly) owner of the International School of Tanning Technology in Grahamstown, E. Cape, SA.

New subscribers last week

Lebogang Mokwele, Director, QS Safety (Pty) Ltd, Pretoria, South Africa
Zeke, Acc management, New balance, Cape Town, South Africa
Anton de Wet, Brand Manager, Intershu, Cape Town, South Africa

Directory entries updated last week

Julian Thom Outfitters & Sport cc, Phalaborwa, 1390, Limpopo, SA.
Julz Shoes [Julz Distribution (Pty) Ltd], Port Elizabeth, 6001, E. Cape, SA.

Got anything you'd like to share?

Do you have any suggestions, comments or experiences about the industry that you'd like to share with the industry? - tony@svmag.co.za

Birthdays this week

29/05/1964: Bevan Lamb, left the industry, formerly Waye Rubber, Palmer Rubber and Egoli Gumboots (all closed), Amanzimtoti, KZN, SA.
29/05/1966: Prakash Chapaner, KG Chapaner & Co, Gweru, Zimbabwe.
29/05/1980: Andrew Lang, Rolfes Chemicals, Germiston, Gauteng SA.
29/05/1987: Saahir Bhamjee, Sbzee Global Trading, Johannesburg, Gauteng, SA.
30/05/1940: Subramonia Balakrishnan, Malar Industries, Ndola, Zambia.
31/05/1951: James Stewart, Tokyo+Co, Cape Town, W. Cape, SA.
31/05/1959: Mike Ing, The Ing Thing, Howick, KZN, SA.
31/05/1963: Craig Davis, Spunlok, Pinetown, KZN, SA.
31/05/1972: Calay Grecia, Classic Components, Pinetown, KZN, SA.
01/06/1942: Chris Horne, The Little Slipper Company, Port Elizabeth, E. Cape, SA.
02/06/1946: Freddy Pillay, ?, formerly East Coast Shoes, Chatsworth [closed].
02/06/1947: Anver Carrim, Colam Trading cc t/a Yankees, Rustenburg, N.W. Province, SA.
02/06/1975: Shaun Ganesh, Nikkita Footwear, Durban, KZN, SA.
02/06/1983: Jana van Vuuren, Maraschino Shoes, Pretoria, Gauteng, SA.
03/06/1957: Ada 'Vymie' Vymetal, retired, formerly Rhodesian Bata Shoe Co., Eddels and SA Bureau of Standards, Pretoria, Gauteng, SA.
03/06/1958: Tom Bailey, Bolton Footwear, Great Brak River, W. Cape, SA.

In memoriam this week

01/06/1992: Harry Gassert, formerly Panther Shoe Co [closed], Cape Town, W. Cape, SA.
01/06/2021: Rajeev 'Rocky' Kumar (b. 03/08/1967), Vision Sports, Gaborone, Botswana.
03/06/2016: Joop de Voest (b. 21/01/1954), Marketing & Planning Consulting Services, De Rust, W. Cape, SA.

Have you let us know about your birthday, or the birthdays of your colleagues? Our readers love this section, so please become part of it. This also applies to the In Memoriam section. Help us remember former colleagues.

3. Malawian Kwacha (MWK)

Source: https://www.xe.com/currencyconverter/

4. Zambian Kwacha (ZMW)

Source: https://www.xe.com/currencyconverter/

5. Zimbabwean Dollar (ZWL$)

Source: https://www.xe.com/currencyconverter/

Note: For previous rates, see HERE

ABSA Agri Trends: Hides & skins prices

Johannesburg, Gauteng, SA (25 May 2023) - The current average hide price increased by 7.9% to R3.64/kg from R3.61/kg a week ago. The current price is 7.6% higher than the average price a month ago and 11.5% lower than the average price a year ago. The range of prices reported was as follows: Minimum price: R3.50 Maximum price: R4.50. Please note: Our methodology weighs the prices we collect according to the number of hides they sell in a month. This is done to make it more representative of the prevailing market price. NB* Hide prices are determined by the average of the RMAA (Red Meat Abattoir Association) and independent companies. - Marlene Louw, senior agricultural economist, and Nkhensani Mashimbyi, agricultural economist, and Zama Sangweni, agricultural economist, Absa group.

Note: For previous prices, see HERE

Have a look at these links

We invite businesses to send us links to websites, Facebook pages and the like which they feel would be of interest to others. The links below are from our database:
Julian Thom Outfitter & Sports, Phalaborwa, Limpopo, SA. Men’s clothing and footwear.
Julz Ladies High Fashion Shoes & Accessories, Port Elizabeth, E. Cape, SA. Footwear distributor and online retailer

Contact us

News & Classifieds: Tony Dickson, +27 (0)31 209 7505, tony@svmag.co.za

Next newsletter: June 5, 2023.

SAFLIA enquiries: Tel 0800SAFLIA * Email info@saflia.co.za * Website http://www.saflia.co.za

Our website www.svmag.co.za