South Africa’s textile and clothing industry has faced sustained pressure from cheap, and in many cases illegally under-declared or counterfeit, imported goods that undercut local manufacturers on price in a way legitimate competition cannot easily match. Understanding the actual mechanism behind this pressure matters for any business operating in or supplying this sector.
This is a structural, ongoing challenge rather than a single past event.
How under-declared and counterfeit imports actually undercut local producers
Goods brought into the country with falsified values to avoid the correct import duty, or counterfeit goods avoiding compliance costs entirely, can be sold at prices a legitimately operating local manufacturer cannot profitably match, regardless of their own efficiency.
This is different from ordinary import competition, where a foreign manufacturer’s genuine cost advantage is a normal market dynamic. The concern here is specifically illegal under-declaration and counterfeiting distorting the market.
What industry and government response has looked like
Parliament and industry bodies have repeatedly raised the scale of the problem, and enforcement efforts, including customs verification and anti-counterfeiting operations, are ongoing responses, though the scale of the challenge means enforcement alone hasn’t resolved it.
Support for local manufacturers, including incentive schemes for competitiveness and accelerator programmes for the clothing, textile, footwear and leather sector, exists specifically to help legitimate local producers compete, administered through the Department of Trade, Industry and Competition.
What this means for a local textile or clothing business
Competing purely on price against goods that avoid duty and compliance costs entirely is usually not a winning strategy. Differentiation through quality, speed to market, local relationships and design that a low-cost import cannot easily replicate tends to be more sustainable.
Our guide to finding a reliable clothing manufacturer covers building a genuinely competitive local supply relationship, which is one practical response to this pressure.
Stay current rather than relying on a single snapshot
Import volumes, enforcement activity and support programme details shift over time, so confirm the current situation and available support directly with the department rather than a summary tied to a specific past period, including this one.
Industry associations specific to the textile and clothing sector track this closely and are a more current source than a general news search for the latest developments.
Frequently asked questions
Is all import competition a problem for South Africa’s textile industry?
No. Ordinary competition from a genuinely efficient foreign manufacturer is normal. The specific concern is illegal under-declaration and counterfeiting distorting the market.
How do under-declared imports undercut local manufacturers?
By avoiding the correct import duty through falsified values, allowing goods to be sold at prices a legitimate local producer cannot profitably match.
What is being done about it?
Customs verification, anti-counterfeiting enforcement, and government incentive and accelerator programmes supporting local manufacturers’ competitiveness.
Should a local textile business compete purely on price?
Usually not a winning strategy against goods avoiding duty and compliance costs. Differentiation through quality and service tends to be more sustainable.
Where can current information on this be found?
Directly from the Department of Trade, Industry and Competition and sector-specific industry associations, rather than a summary tied to one past period.
