With sound industrial development and policy support, an additional 81 million pieces of garments could be sourced by South African retailers every year from domestic manufacturers by 2030, according to a study commissioned by the Localisation Support Fund (LSF).

Achieving this could raise domestic sourcing by 20 per cent, add nearly R 8 billion ($502.36 million) in annual manufacturing output and create up to 34,000 jobs, it said.

South African retailers placed orders for about 250 million units of apparel and footwear with domestic manufacturers in 2019, and by 2024, this had risen to 389 million units, representing 34 per cent of total sourcing among signatories of the government’s Retail-Clothing, Textile, Footwear and Leather (R-CTFL) Masterplan.

With sound industrial development and policy support, an extra 81 million garments could be sourced by South African retailers every year from domestic manufacturers by 2030, a study said.
This could raise domestic sourcing by 20 per cent, add $502.36 million in annual manufacturing output and create up to 34,000 jobs.
However, it is significantly below the 65-per cent domestic sourcing target by 2030.

This level of sourcing has been significant and continues to support nearly 75,000 jobs in the formal manufacturing sector. However, it remains significantly below the Masterplan target of 65 per cent domestic sourcing by 2030, the study, conducted by industrial development consultancy BMA, revealed.

So there is considerable potential demand among South African retailers to source from domestic suppliers that could help bridge the supply gap, it noted.

Although demand was mapped across 32 product categories, around 50 per cent of the total opportunity is concentrated in T-shirts, denim and athleisure, suggesting that focused, category-specific strategies are more likely to deliver impact than broad-based interventions.

South Africa has established capability in key product categories, particularly in KwaZulu-Natal and the Western Cape. The alignment between this capability and the largest areas of mapped demand suggests an opportunity to concentrate support where scale and technical capability already exist, according to the study report.

There is a need for better industry and policy alignment to ensure that manufacturers can fully capitalise on the opportunity, it noted.

While retailers expressed a strong interest in local sourcing, price remains a key consideration. Though many manufacturers have made progress in building cost-competitive offerings, further work is needed, particularly in product categories like basic knits, to align pricing more closely with market requirements, it added.

A significant portion of the supply base operates on a small scale, and modelling shows that insufficient scale limits overhead recovery, constrains investment and weakens price competitiveness. The study also indicated that more adaptive shift models could materially improve competitiveness.

Fibre2Fashion News Desk (DS)

The International Monetary Fund has projected that China’s economy will grow by 4.5 per cent this year, marking an upward revision of 0.3 percentage points from its October forecast, as exports and fiscal stimulus help sustain momentum.

China’s economy expanded by 5 per cent in 2025, demonstrating resilience despite multiple external shocks and domestic pressures. However, the IMF cautioned that the world’s second-largest economy faces mounting structural challenges, including subdued domestic demand and deflationary pressures linked to a prolonged property sector downturn and a weak social safety net.

The Fund emphasised that China cannot rely indefinitely on exports to power durable growth and said pivoting toward consumption-led expansion should remain the top policy priority. Policymakers have already adopted a more expansionary fiscal stance in 2025, introduced targeted social subsidies and eased monetary policy.

The International Monetary Fund (IMF) has projected China’s economy will grow 4.5 per cent this year, up 0.3 percentage points from its October forecast, supported by exports and fiscal stimulus.
However, the IMF warned that weak domestic demand and property sector challenges persist, urging stronger social spending and reforms to shift growth toward consumption and reduce reliance on exports.

Looking ahead, China’s 15th Five-Year Plan for 2026-2030 prioritises boosting consumption. Reforms such as gradually raising the retirement age and easing household registration, or hukou, restrictions are expected to support labour force participation and domestic spending.

The IMF recommended a comprehensive macroeconomic package including additional fiscal stimulus, further monetary easing and greater exchange rate flexibility. It also urged stronger social protection spending, more progressive taxation and reduced reliance on industrial policies to rebalance growth toward domestic consumption.

With China contributing roughly 30 per cent to global growth, the IMF noted that a more balanced Chinese economy would strengthen global economic stability.

Fibre2Fashion News Desk (CG)

India’s denim fabric maker Nandan Denim Limited has reported revenue from operations of ₹49,952.72 lakh (~$55.11 million) in the third quarter (Q3) of fiscal 2026 (FY26) ended December 31, 2025, compared with ₹92,615.23 lakh in the corresponding quarter of last fiscal and ₹78,468.97 lakh in Q2 FY26.

Total income for the quarter stood at ₹50,097.36 lakh (~$55.27 million), while total expenses were ₹49,687.45 lakh, resulting in a profit before tax (PBT) of ₹409.91 lakh, against ₹863.20 lakh in Q3 FY25. There were no exceptional items during the period.

Nandan Denim has reported revenue of ₹49,952.72 lakh (~$55.11 million) in Q3 FY26, sharply lower year on year, with net profit at ₹297.29 lakh.
PBT fell to ₹409.91 lakh amid softer income, though finance costs declined.
For nine months, revenue stood at ₹2,33,189.43 lakh, while net profit edged up to ₹2,361.89 lakh.
EPS for the period remained ₹0.16 (not annualised).

After accounting for deferred tax of ₹112.62 lakh, net profit for the quarter came in at ₹297.29 lakh, compared with ₹658 lakh a year earlier. Total comprehensive income for Q3 FY26 stood at ₹295.86 lakh. Basic and diluted earnings per share (EPS), not annualised, were ₹0.02 each (face value ₹1), Nandan Denim said in a press release.

In Q3 FY26, cost of materials consumed was ₹41,120.56 lakh, while employee benefit expenses stood at ₹2,143.65 lakh. Finance costs declined to ₹673.95 lakh from ₹861.91 lakh in Q3 FY25, reflecting lower borrowing costs. Depreciation and amortisation expense was ₹1,165.09 lakh, and other expenses amounted to ₹4,058.27 lakh.

For the nine months (9M), revenue from operations was ₹2,33,189.43 lakh, down from ₹2,49,802.60 lakh in the corresponding period of the previous fiscal. Total income stood at ₹2,33,670.75 lakh, while total expenses were ₹2,30,947.40 lakh.

PBT for 9M period was ₹2,723.35 lakh, compared with ₹3,134.81 lakh in the year-ago period. Net profit for the nine-month period rose marginally to ₹2,361.89 lakh from ₹2,284.90 lakh in the corresponding period of FY25. Total comprehensive income stood at ₹2,374.66 lakh. EPS for the 9M was ₹0.16 per share (not annualised), unchanged from the previous fiscal.

The company’s paid-up equity share capital remained unchanged at ₹14,414.73 lakh.

Fibre2Fashion News Desk (SG)