In support of South Africa’s industrialisation agenda and the objectives of the Retail–Clothing, Textile, Footwear and Leather (R-CTFL) Masterplan, the Localisation Support Fund (LSF) commissioned a comprehensive feasibility study to assess the potential for expanding local garment manufacturing and identify the practical steps required to unlock further localisation in the industry.
The study, undertaken by industrial development consultancy BMA, provides the most detailed assessment to date of both retailer demand for locally manufactured garments and the capability and capacity of South Africa’s garment manufacturing base. It combines demand mapping across major South African retail groups with a nationwide survey of nearly 200 manufacturers, alongside commercial modelling to understand the conditions under which localisation can be both competitive and scalable.
The findings reveal substantial latent demand. South African retailers indicated a willingness to source up to 81 million additional garments per year locally by 2030, representing approximately R7.9 billion in annual manufacturing output. If realised, this could increase local sourcing by around 20% and support up to 34,000 additional jobs in formal manufacturing, with further upstream and community-level multiplier effects.
Demand is concentrated in a defined set of product categories. Roughly half of the opportunity lies in t-shirts, denim, and athleisure, with further significant opportunities in woven fashion categories such as dresses, blouses, tailored garments, and men’s shirts. These patterns suggest that focused, category-specific strategies are more likely to deliver measurable localisation gains than broad, undifferentiated interventions.
Importantly, the study shows that the local supply base has real depth. Established clusters in KwaZulu-Natal and the Western Cape already serve major retail value chains, and many firms report latent capacity that could be activated under the right commercial conditions. However, the research also highlights systemic constraints that currently limit competitiveness and scale. These include persistent price gaps in basic categories, the cost and complexity of maintaining full compliance in a distorted market, skills shortages in production management and industrial engineering, and upstream capability gaps in areas such as fabric conversion, washing, finishing, and technical inputs—particularly relevant for denim and athleisure.
The study concludes that localisation at scale is both commercially and industrially feasible, but only where demand commitments, firm-level improvements, and policy tools are aligned. In categories such as basic knits, improving scale, productivity, and labour flexibility within compliant frameworks is central to narrowing price gaps. In more structurally complex categories, targeted investment in upstream capabilities and technical expertise will be required to enable full programme localisation.
Recommended areas of action include:
Strengthening productivity and technical capability at firm level, particularly in production management and industrial engineering.
Supporting compliant manufacturers to compete more effectively through targeted incentives, financing for modernisation, and improved enforcement against non-compliant operators.
Expanding and refining the use of policy tools such as duty rebates and procurement levers to support commercially viable localisation pathways.
Facilitating coordinated investment in upstream processes—such as fabric processing, washing, and finishing—to unlock higher-value product categories.
Deepening collaboration between retailers, manufacturers, labour, and development finance institutions to align demand visibility with investment decisions.
This work aligns with the R-CTFL Masterplan’s vision to raise local sourcing, strengthen domestic manufacturing capability, and create sustainable industrial employment. Through research, technical expertise, and stakeholder convening, the LSF continues to support practical, evidence-based pathways to localisation in sectors where South Africa has a strong right to win.