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Boost for Eastern Cape clothing exports
Posted on: Friday, 23 August 2002. Article source: Eastern Cape Business News
EAST LONDON clothing manufacturer Rural Development Technology (RDT) has won a R30 million contract to export its products to Italy. The deal is expected to create an extra 200 jobs for the economically depressed Border-Kei region. Managing director Bruno Iacone told the Dispatch newspaper that the company would export 400 000 jeans, shirts, T-shirts and waistcoats over a period of six months. The first consignment of manufactured goods would reach Italy by November destined for the European markets. He said the contract - a first for his company - was proof that South Africa could match international standards in terms of manufacturing quality clothing. Iacone also announced a further expansion by RDT - the opening of a printing and embroidery floor which he said would create 160 jobs. Textile and other exports from the Eastern Cape are also benefiting from the US Africa Growth and Opportunity Act (Agoa). US ambassador to SA, Cameron Hume, says that duty-free incentives created by Agoa generated an additional R10-billion for South Africa in 2001, accounting for 20 per cent of the country's R50-billion exports to the US. This amount was expected to increase to R14-billion in 2002. The figures were part of a new report on the macroeconomic effect of Agoa on SA. The Act provides for duty-free access to certain products under strict rules of origin from some African countries to the US. Hume said that SA about 20 000 people were directly employed in industries exporting to the US under Agoa. About 20 000 indirect jobs were "supported" by Agoa. The report also noted the induced effect it said that 24 000 jobs had been affected by the higher disposable income of workers affected by Agoa. "Some would say this is not enough, but it is up to SA companies to use the opportunity they now have to grow trade," Hume said. More opportunities have been created for potential investors in the Eastern Cape. Hume expects good growth in Agoa-related exports, because of the enhancements to the act signed into law in the US. The amendments expanded on the type of products that could be exported to the US duty-free. The Act now includes knit-to-shape garments, and Merino wool sweaters. SA clothing manufacturers in particular benefited from Agoa. But the act also included products from the agriculture and mining sectors, as well as various manufactured products and equipment such as basic metals products and transport equipment. SA motor manufacturers exported vehicles worth $120-million to the US in 2002.
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