S&V Weekly Newsletter Vol.11 No.13, March 31 2025
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Wednesday may reveal fate of SA exports to the US
Wednesday is expected to be some sort of deadline for higher US tariffs on a variety of imported goods from a range of countries. That’s ahead of the renewal/non-renewal at the end of September of the Africa Growth & Opportunity Act (AGOA) which allows duty-free imports into the US of a range of African products from eligible sub-Saharan African countries.
The United States isn’t a major market for South Africa’s overall leather, footwear and leather goods manufacturing industries, although it’s very important to the handful of companies that do business there.
The products they sell are relatively high value. All SA ostrich leather exporters target cowboy boot makers in the US and Mexico as 1 of the 3 pillars of their global trade (along with handbag manufacturers in the Far East and high fashion brands in Europe).
High end SA exotic leather (ostrich and crocodile) handbag manufacturers supply some US brands, retailers, and direct-to-consumer (DTC) markets.
A few SA stitchdown footwear manufacturers have niche retail and DTC markets there.
A local belt manufacturer does the seemingly impossible and supplies the world’s biggest retailer with a mass market replenishment product.
The only figures I have to hand are for ostrich leather, worth around R300 million per year, and footwear, where SA last year exported 56 259 pairs, worth R62 170 753, to the US – about 1.8% of total footwear exports by pairs.
Of course, higher tariffs don’t automatically mean the end of export business. As Cape Karoo International explains below, the extra costs could be divided between exporters and customers.
They will presumably affect what approach the SA Footwear & Leather Export Council (SAFLEC) takes to promoting SA goods in the US this year. SAFLEC has for years led delegations to the MAGIC show in Las Vegas and FFANY Market Weeks in New York.
Said SAFLEC executive director Nerisha Jairaj: “We’re still defining the strategy going forward.”
Equator: AGOA is almost a non-issue – there are many other factors to consider
New Germany, KZN, SA – Equator Accessories supplies Walmart with belts.
“We have a long-term replenishment programme with them,” said MD Leon Buhr, “and we’ve had it for a long time. The numbers are significant, but it’s by no means our biggest programme, and we’re not dependent on it.”
“AGOA hasn’t been an important factor, because import duties for belts into the US from SA are low. Our customer wasn’t even aware of AGOA in relation to our business to begin with, so for them, it was just an extra small margin. AGOA was always due for reconsideration this year, and South Africa only just got it renewed last time because we’re more developed than the countries it’s aimed at, so it’s not been part of our planning. It is much more significant for vehicle and agricultural exports.
“What worries the Americans far more is the possibility that Trump might impose high punitive duties on all or a broad range of products from South Africa, and that would kill this programme. However, I think it’s a complicated decision for them to make, because they rely on SA for some minerals, and for the Cape sea route. Geopolitics are complicated.
“Quite aside from all this, we – Equator – have been pondering whether it’s a programme we should continue because of other factors affecting its profitability.
“Some of the countries we compete with, like India, Cambodia and Bangladesh, are 2 or 3 days further away from the US in terms of shipping, and that’s significant to the Americans. Factors impacting our competitiveness are multiple; we pay 11% for working capital, whereas our competitors are paying 5% at most. We pay very high rates for our factory, where they don’t because their countries are encouraging industrialisation, or it is much, much lower. Tax rates are higher than any of those countries (India is 15% for manufacturing) The list of those sorts of costs goes on and on.
“The costs of noncompliance when exporting to American retailers – for example, errors with ticketing on the belts – are very high.
“The Americans plan long in advance. The current uncertainty is affecting that in multiple ways – AGOA is just one factor.”
Ostrich leather: Wait and see
Francois de Wet, MD, Cape Karoo International
Mossel Bay, W. Cape, SA - If it’s only AGOA that falls away, it will not affect us that badly. It would be at the most only a 4% duty and that we can absorb or split the difference with our customers.
Our bigger problem is if Trump decides to handle South Africa in the same way as he is handling Canada or Mexico or some other countries, or if he targets some products imported from here and puts a 20% or 25% duty on those, then that would really affect us.
In terms of a strategy to handle that, at the moment it’s wait and see. To have a strategy, you have to have specific actions, and you can’t do that until you know what you’re facing.
Our customers similarly don’t yet have strategies.
Maybe we’ll know on the 2nd of April when he discusses quite a lot. Then we will have to discuss with our customers if there is a way to absorb the extra costs among the role players, who are the manufacturers, the importers, and the raw material suppliers, of which we are one.
In the meantime, to a certain extent, it is business as usual.
Handbag and footwear manufacturers: It would likely be a reduction, not the end
Cape Town-based exotic leather handbag manufacturers Cape Cobra and Chimpel consistently export to the US.
“Most of our exports are to the USA,” wrote Cape Cobra marketing director Justine Schäfer. “We’ve always been aware of the sensitivity of AGOA falling away, so I believe it has served as a benefit to us and allowed us the exist within the market with ease.
“The impact would definitely impact the ease as well as opportunities which exist and would obviously come with a price increase which would make us less competitive towards our competitors. I am sure there would be a loss of business, however due to our speciality in our category the clients are usually willing to pay a little more for our products.”
“The majority of my exports are to the USA,” wrote Chimpel director Majda Rabin. “I think it will affect my exports, but I’m not sure to what extent. My clients might just reduce quantities to compensate for the increase in taxes.”
Gareth Crouch, director of Jim Green Footwear, which exports stitchdown outdoor and safety footwear to the US, said he would “prefer not to comment so not open to providing any feedback”.
Other news
Annual Arsutoria workshops in May
Durban, KZN, SA – The annual Arsutoria Trends Workshops will take place in May.
The Durban workshop, aimed at footwear designers, will be from 05-09 May. The Cape Town workshop, for handbag and leather goods designers, will be on 12 and 13 May.
The workshops are sponsored by the eThekwini Footwear and Leather Cluster and the International Labour Organisation (ILO), and organised by the SA Footwear & Leather Export Council (SAFLEC).
Participants are limited to 20 per workshop.
People interested in attending should email Sarah Govender at sarah@saflec.co.za.
Bottomstock manufacturer closed
Pietermaritzburg, KZN, SA – Bottomstock manufacturer KNL Tool & Die ceased operations in August last year following a fire, according to director Sagran Naicker. “The partnership has since dissolved and KNL will not be re-opened.”
Retirement
Benoni, Gauteng, SA – Jannie Vermeulen, manager of school wear specialist retailer Ekspa, will retire on 16 May after 43 years. His place will be taken by Graham Butler, who has worked for the business for 15 years.
Death Notice
Durban, KZN, SA – Dennis Manning, formerly of Kronies Footwear and Trenzado Footwear, died in the UK on 18 March, 11 days before his 70th birthday, of cancer. An obituary will follow in the April edition of S&V Footwear & Leather Goods.
In case you missed it!
The latest issue of S&V Protect Magazine
S&V PROTECT MAGAZINE VOL19 NO1 FIRST QUARTER 2025
IN THIS ISSUE:
03 Upfront
- SGS to host ‘Discovering PPE softlines solutions’ on 27 March.
- Consumer Protection Act marking – ‘beware faulty inspections’ warns importer who is R250 000 poorer.
- Lengthy detentions: That’s just the way it is, says NCC.
- Mine deaths in SA ‘lowest ever’ in 2024.
05 OHS in Focus
- Understanding respirator PPE – a presentation by Leighton Bennett, Benrisk Consulting, Johannesburg, Gauteng, SA.
08 Safety Footwear
- Switch to updated standard: Footwear suppliers given time limit to run out old stock.
09 Training
- SA’s first safety escape room for hands-on health and safety training.
- Beier Group, Department of Higher Education and SETA ‘better together’.
13 Coping With Water
- 7 strategies to create more resilient mine dewatering.
15 Disease Control
- WHO targets 15 countries for elimination of sleeping sickness by 2030.
16 Standards
- The recipe for success and safety – the strategic value of ISO 22000 certification in the food industry, by Robert Erasmus of Sanitech.
- New standard for PFAS assessment for consumer products ‘is useful for manufacturers, consumers, laboratories, and regulators’, says ASTM International.
18 Disabilities
- A guide for SA employers in understanding the COIDA Act and Reintegration Policy, by Lucinda Alfonica of Workforce Staffing.
- A partnership for inclusion: Circular Energy and Bradshaw LeRoux join forces for disability inclusion.
20 Buyers' Guide
- What's on offer.
Advertisers in this Issue
Claw Boot (02, 04, 08), Hi-Tec Sports Distributors/Magnum (OFC), Kaliber (06), Palm Footwear/Terrapod (10), Rainbow Group (14), Rebel SafetyGear (12), S&V Calendar (01), S&V Directory (17), SAFLEC (15).
They Said It
"It seems cash has become anathema to banks." - My sole link with reality at Standard Bank, after the bank deducted R60 from a R550 cash deposit..
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
New subscribers last week
Dean, Procurement, Vellie Boutique, Boksburg, South Africa
Thuvashnie Govender , Finance, RNT, South Africa
Peter, Tanner, CKI, Oudtshoorn, South Africa
Birthdays this week
31/03/1950: Herbert Schier, African Leather, Swakopmund, Namibia.
31/03/1960: Gill Barnett, Urban Angel Accessories, Boksburg, Gauteng, SA.
31/03/1966: Lars Torpus, ?, formerly Nakara, Windhoek, Namibia.
31/03/1975: Imraam Essop, Baby Luv, Springs, Gauteng, SA.
01/04/1960: Steve Hildebrand, (?) formerly agent, Pinetown, KZN, SA.
01/04/1969: Jenny Hopkins, agent, Port Elizabeth, E. Cape, SA.
01/04/1973: Rennie Thambiran, Borage Trading, Pinetown, KZN, SA.
02/04/1969: Chris Govender, Evané, Pietermaritzburg, KZN, SA.
02/04/1970: Gerhard Rossouw, CG Distributors, Paarl, W. Cape, SA.
02/04/1974: Shaheen Hoosen, Kana’s Wholesalers, Pretoria, Gauteng, SA.
02/04/1984: Lloyd Naidoo, Best Shoes, Pietermaritzburg, KZN, SA.
03/04/1959: Grant Harris, emigrated, formerly Shoe Strip Services [closed], Pinetown, KZN, SA.
03/04/1963: Bruce Wilson, Hotter SA, Cape Town, W. Cape, SA.
03/04/1973: Brent Maron, Bolton Footwear, Cape Town, W. Cape, SA.
03/04/1974: Kate Horne, Little Slipper Co., Port Elizabeth, E. Cape, SA.
03/04/1973: Mahomed A Osman, Foam & Upholstery Centre, Pretoria, Gauteng, SA.
04/04/1938: Colin Kemp, Chamberlain Phipps, Pinetown, KZN, SA.
04/04/1962: Tammy Pillay, (?) formerly Edcon, Durban, KZN, SA.
05/04/1952: Rajesh Shah, United Footwear Ltd., Nairobi, Kenya.
05/04/1955: Bruce McKenzie, BJM Agencies, Midrand, SA.
05/04/1963: Lourenco Mendes, Shuler Enterprises, Harare, Zimbabwe.
05/04/1964: Alastair Dean, emigrated, formerly Amber Footwear [closed], Pietermaritzburg, KZN, SA.
06/04/1979: Hetesh Daya, Daya & Sons, Durban, KZN, SA.

In memoriam this week
31/03/2016: Peter Edmeades (b. 19/07/1950), Rebel Safety Gear, Germiston, Gauteng, SA.
01/04/2001: John Rider, Colin D Bailey/BU Shoe Machinery (closed), Pinetown, KZN, SA.
01/04/2002: Paul Moeller (b. 20/07/1931), PMC Group, Cape Town, W. Cape, SA.
03/04/2020: Malcolm Hill (b. 14/06/1931), formerly Bata SA/Beier Footwear, Pinetown, KZN, SA.
04/04/2005: Graham Michel (b. 09/02/1958), agent, Cape Town, W. Cape, SA.
06/04/1979: George Cowie, GW Cowie & Co, Durban, KZN, SA.
06/04/2021: Marco di Lembo (b. 30/07/1973), Villani Shoes, Johannesburg, Gauteng, 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.
Directory entries updated last week
Bidvest Afcom (Pty) Ltd, Johannesburg, Gauteng, SA.
BLP Rubber & Plastic Supplies (Pty) Ltd, Cato Ridge, KZN, SA.
Elite Components cc, Pinetown, KZN, SA.
Fergom SA cc, Southport, KZN, SA.
Fred Footwear cc, Port Elizabeth, E. Cape, SA.
FST Manufacturers [FQ Manufacturers (Pty) Ltd], Durban, KZN, SA
FST Manufacturers [FQ Manufacturers (Pty) Ltd], Gauteng, SA.
FST Manufacturers [FQ Manufacturers (Pty) Ltd], W. Cape, SA.
G.O. Plastics cc, Durban, KZN, SA.
Hansen Agencies (Pty) Ltd, Durban, KZN, SA.
Inno Textiles (Pty) ltd, Hammarsdale, KZN, SA.
iSync Solutions (Pty) Ltd, Durban, KZN, SA.
KMA SA Marketing (Pty) Ltd, Roodepoort, Gauteng, SA.
Leather Link cc, Cape Town, W. Cape, SA.
Leather Systems SA cc, Port Elizabeth, E. Cape, SA.
Logomotif Manufacturing cc, Cape Town, W. Cape, SA.
National Bargaining Council of the Leather Industry of SA, head office and KZN District Committee, Durban, KZN, SA.
National Bargaining Council of the Leather Industry of SA, E. Cape District Committee and Leather Industry Sick Fund, Port Elizabeth, E. Cape, SA.
National Bargaining Council of the Leather Industry of SA, Northern District Committee, Johannesburg, Gauteng, SA.
National Bargaining Council of the Leather Industry of SA, W. Cape District Committee, Cape Town, W. Cape, SA.
Fairs & events updated last week
08-10 April 2025: The Health & Safety Event, Birmingham, UK.
02-06 June 2025: FFANY, New York, USA.
03-05 June 2025: A-OSH, Midrand, Gauteng, SA.
04-05 June 2025: Blossom Première Vision, Paris, France.
14-17 June 2025: Expo Riva Schuh, Riva del Garda, Italy.
08-10 July 2025: Allfashion Sourcing, Cape Town, W. Cape, SA.
15-17 July 2025: Aflex, Durban, KZN, SA.
Exchange rates
Note: For previous rates, see HERE
1. SA Rand (ZAR)/Lesotho Loti (LSL)/Namibian Dollar (NAD)/Swazi Lilangeni (SZL)
Source: http://www.x-rates.com/calculator/
|
Euro € |
GBP £ |
US $ |
CNY ¥ |
04/01/2025 |
R19.31 |
R23.26 |
R18.72 |
R2.55 |
11/01/2025 |
R19.57 |
R23.32 |
R19.10 |
R2.60 |
18/01/2025 |
R19.25 |
R22.81 |
R18.73 |
R2.55 |
25/01/2025 |
R19.30 |
R22.95 |
R18.39 |
R2.53 |
01/02/2025 |
R19.35 |
R23.13 |
R18.67 |
R 2.57 |
08/02/2025 |
R19.01 |
R22.83 |
R18.40 |
R 2.52 |
15/02/2025 |
R19.25 |
R22.09 |
R18.35 |
R 2.52 |
22/02/2025 |
R19.20 |
R23.19 |
R18.35 |
R 2.53 |
01/03/2025 |
R19.38 |
R23.50 |
R18.68 |
R 2.56 |
08/03/2025 |
R19.73 |
R23.53 |
R18.22 |
R 2.52 |
15/03/2025 |
R19.78 |
R23.49 |
R18.16 |
R 2.51 |
22/03/2025 |
R19.71 |
R23.54 |
R18.22 |
R 2.51 |
29/03/2025 |
R19.88 |
R23.77 |
R18.34 |
R 2.52 |
2. Botswana Pula
Source: http://www.x-rates.com/calculator/
|
Euro € |
GBP £ |
US $ |
CNY ¥ |
04/01/2025 |
14.39 |
17.33 |
13.95 |
1.90 |
11/01/2025 |
14.25 |
16.98 |
13.91 |
1.89 |
18/01/2025 |
14.39 |
17.05 |
14.00 |
1.91 |
25/01/2025 |
14.50 |
17.24 |
13.82 |
1.90 |
01/02/2025 |
14.41 |
17.23 |
13.90 |
1.91 |
08/02/2025 |
14.50 |
17.42 |
14.04 |
1.92 |
15/02/2025 |
14.51 |
17.41 |
13.83 |
1.90 |
22/02/2025 |
14.40 |
17.40 |
13.77 |
1.89 |
01/03/2025 |
14.29 |
17.32 |
13.77 |
1.89 |
08/03/2025 |
14.78 |
17.63 |
13.65 |
1.88 |
15/03/2025 |
14.83 |
17.62 |
13.62 |
1.88 |
22/03/2025 |
14.74 |
17.60 |
13.62 |
1.87 |
29/03/2025 |
14.71 |
17.57 |
13.58 |
1.87 |
3. Malawian Kwacha (MWK) (buying)
Source: https://www.rbm.mw/
|
Euro € |
GBP £ |
US $ |
ZAR |
04/01/2025 |
1816.63 |
2191.92 |
1717.02 |
94.59 |
11/01/2025 |
1819.29 |
2171.58 |
1717.02 |
93.34 |
18/01/2025 |
1820.17 |
2159.73 |
1717.02 |
94.18 |
25/01/2025 |
1848.47 |
2193.86 |
1717.02 |
96.09 |
01/02/2025 |
1837.33 |
2196.51 |
1717.02 |
95.29 |
08/02/2025 |
1835.03 |
2197.40 |
1717.02 |
95.78 |
15/02/2025 |
1848.82 |
2119.86 |
1717.02 |
95.70 |
22/02/2025 |
1854.83 |
2238.78 |
1717.02 |
96.30 |
01/03/2025 |
1836.44 |
2224.46 |
1717.02 |
95.68 |
08/03/2025 |
1912.31 |
2278.93 |
1717.02 |
97.50 |
15/03/2025 |
1917.62 |
2286.82 |
1717.02 |
96.82 |
22/03/2025 |
1916.03 |
2286.89 |
1717.02 |
97.27 |
29/03/2025 |
1907.36 |
2287.95 |
1717.02 |
97.04 |
4. Zambian Kwacha (ZMW) (buying)
Source: https://www.boz.zm/
|
Euro € |
GBP £ |
US $ |
ZAR |
04/01/2025 |
28.75 |
34.65 |
27.93 |
1.48 |
11/01/2025 |
28.66 |
34.25 |
27.81 |
1.46 |
18/01/2025 |
28.64 |
33.90 |
27.82 |
1.48 |
25/01/2025 |
29.15 |
34.54 |
27.84 |
1.51 |
01/02/2025 |
29.09 |
34.80 |
28.01 |
1.30 |
08/02/2025 |
29.13 |
34.94 |
28.07 |
1.52 |
15/02/2025 |
29.47 |
35.42 |
28.13 |
1.53 |
22/02/2025 |
29.58 |
35.73 |
28.26 |
1.53 |
01/03/2025 |
29.67 |
35.91 |
28.51 |
1.54 |
08/03/2025 |
31.07 |
36.95 |
28.59 |
1.57 |
15/03/2025 |
31.17 |
37.02 |
28.61 |
1.57 |
22/03/2025 |
31.21 |
37.25 |
28.82 |
1.58 |
29/03/2025 |
30.80 |
36.95 |
28.55 |
1.57 |
5. Zimbabwe Gold (ZiG)
Source: Source: https://www.rbz.co.zw/
|
Euro € |
GBP £ |
US$ |
ZAR |
04/01/2025 |
ZIG 26.52 |
ZIG 32.01 |
ZIG 25.82 |
ZIG 0.72 |
11/01/2025 |
ZIG 26.83 |
ZIG 32.03 |
ZIG 26.05 |
ZIG 0.72 |
18/01/2025 |
ZIG 27.03 |
ZIG 32.09 |
ZIG 26.26 |
ZIG 0.71 |
25/01/2025 |
ZIG 27.47 |
ZIG 32.58 |
ZIG 26.30 |
ZIG 0.70 |
01/02/2025 |
ZIG 27.38 |
ZIG 32.74 |
ZIG 26.36 |
ZIG 0.70 |
08/02/2025 |
ZIG 27.40 |
ZIG 32.81 |
ZIG 26.40 |
ZIG 0.69 |
15/02/2025 |
ZIG 27.62 |
ZIG 33.18 |
ZIG 26.43 |
ZIG 0.69 |
22/02/2025 |
ZIG 27.60 |
ZIG 33.33 |
ZIG 26.46 |
ZIG 0.69 |
01/03/2025 |
ZIG 27.59 |
ZIG 33.42 |
ZIG 26.56 |
ZIG 0.69 |
08/03/2025 |
ZIG 28.79 |
ZIG 34.32 |
ZIG 26.64 |
ZIG 0.68 |
15/03/2025 |
ZIG 28.91 |
ZIG 34.51 |
ZIG 26.66 |
ZIG 0.68 |
22/03/2025 |
ZIG 28.90 |
ZIG 34.52 |
ZIG 26.70 |
ZIG 0.68 |
29/03/2025 |
ZIG 28.85 |
ZIG 34.60 |
ZIG 26.74 |
ZIG 0.68 |
Note: For previous rates, see HERE
ABSA Agri Trends: Hides & skins prices
Johannesburg, Gauteng, SA (27 March 2024) – The current average hide price decreased by 0.43% to R2.785/kg from R2.797/kg a week ago. The current price is 0.38% lower than the average price a month ago and was 19.7% lower than the average price a year ago. The range of prices reported was as follows: Minimum price: R2.75 eMaximum price: R3.00. 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, 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:
Groundswell Surf Shop, Ballito, KZN, SA. Surf wear retailer.
Gurmuki, Strand, W. Cape, SA. Men’s and women’s footwear manufacturer.
THIS WEEK LAST YEAR!
Trading conditions
Trading conditions over long weekends – mixed picture
Competition Tribunal approves co-op merger
TFG appoints CFO
In case you missed it! : The March issue of S&V African Leather Magazine
READ IT HERE - S&V Weekly Newsletter Vol.10 No.14, April 2 2024
THIS WEEK FIVE YEARS AGO!!
Covid-19: DTIC notifications to manufacturers
Stock Exchange News Service (SENS) : Mr Price - Covid-19 update
Trade Fair updates
Closing : Men's outfitter Academy Outfitters
And now the good news...(there's always some)
READ IT HERE - S&V Weekly Newsletter Vol.6 No.13, March 30, 2020
Contact us
News & Classifieds: Tony Dickson, +27 (0)31 209 7505, tony@svmag.co.za
Next newsletter: Monday 07 April, 2025. Ad and editorial deadline Friday 04 April.
SAFLIA enquiries: Tel 0800SAFLIA * Email info@saflia.co.za * Website http://www.saflia.co.za
Our website www.svmag.co.za
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