Trade ministry reassures school uniform industry
Pauline Dikuelo | Tuesday December 20, 2022 06:00
In most instances, a record-high number of SMEs have been indicated to fail within their early years of conception.
Usually, SMEs require growth and expansion which can come if businesses have access to markets beyond their borders. Often at times, entities that can identify cross-border markets are those with a dedicated research department, however, due to cost requirements, SMEs do not have the finances to invest in a dedicated research department to prospect for markets.
The other major huddle is the lack of medium to long-term finance for startups and expansions which are inappropriate terms and conditions for short-term credit or trade finance, insufficient financing and other instruments to support the SME sector, low capitalisation and lack of collateral, and poor recordkeeping or financial management.
Speaking during the uniform manufacturers workshop and exhibition recently, Assistant Minister of Trade and Industry Beauty Manake said the workshop is an assurance that the school uniform industry can be developed to greater heights through stakeholder engagement.
She said local manufacturers have earlier approached the ministry raising concerns about accessing the local market and requesting to impose border restrictions which were approved on September 2021. “They were concerned that we imported textiles and footwear valued at an average of P1.5 billion while we exported only P160 million worth of textiles.
Hence the manufacturing sector only contributes an annual average of five percent to our GDP, a severe trade imbalance, and a concern that needs action,” she said. Manake said the instrument aims to support the local textile and clothing industry by ensuring the procurement of school uniforms from manufacturers adding that the school uniform was identified as one of the products to promote active citizen participation and sustainability SMMEs.
“My ministry has been inclusive and forthcoming in facilitating school uniform importers to ensure that their businesses are not disrupted. We have reached a point where we want to see concrete and symbiotic business relations with our local uniform manufacturers and retailers. Let me emphasise that we subscribe to an open market economy where consumers choose products to consume,” she said.