Abstract:
The clothing and textile sector in South Africa has forever been a
contentious sector insofar as its historic labour augmenting capabilities are
concerned. The industry has developed a certain structure, in large part as a
result of years of government intervention (conduct). The performance of
the sector, given the conduct by government is the primary object of
investigation in the paper.
Finding that production and employment (as indicators of industry
performance), have been on a long run declining path, the secondary and
main object of investigation then turns to a behind-the-scenes look at the
workings of the government’s Duty Credit Certificate Scheme (DCCS).
The paper illustrates how the DCCS explains for much of the distortions
that altered industry conduct and a resulted in a dwindling production
performance.
