Trade, Industry and Competition on alleged non-compliant garment manufacturing in Newcastle

The Department of Trade, Industry and Competition (the dtic) notes with concern recent media reports regarding alleged non-compliant garment manufacturing operations in Newcastle, KwaZulu-Natal, and the possible presence of goods linked to major retailers within those facilities. Investigations by the relevant enforcement authorities are ongoing, and it is appropriate that these processes be allowed to proceed without interference.

The matter raises broader systemic questions about supply-chain accountability, responsible sourcing, and the integrity of South Africa’s clothing and textile value chain. It has also served as a reminder that economic growth driven through sustainable industrial development requires lawful conduct and shared responsibility across the entire production and procurement ecosystem. South Africa cannot grow its manufacturing base on the back of unsafe and illegal operations. Factories that evade labour standards distort competition, undermine compliant businesses, and expose vulnerable workers to unacceptable conditions.

The objectives of the Retail Clothing, Textiles, Footwear and Leather Masterplan are grounded in the principle that industrial growth must occur within a sound governance framework of decent work, lawful business activity, and formalisation of the value chain. While the dtic is not a frontline enforcement authority for labour, immigration, or occupational health and safety legislation, it has a clear policy interest in ensuring that the domestic manufacturing base is not undermined by illegal or non-compliant operations that distort competition and erode worker protections.

This incident underscores that enforcement alone cannot resolve systemic risks in fragmented supply chains. Demand-side actors, particularly large retailers and brand owners, carry a corresponding responsibility to exercise meaningful due diligence in their procurement and supplier management practices. Moreover, there is a need for improved inter-departmental coordination and data visibility across the sector. The Department supports closer collaboration with enforcement agencies to ensure that industrial areas do not become havens for informal or illegal manufacturing activity.

The Deputy Minister of Trade, Industry and Competition, Ms Alexandra Abrahams will engage the Retail Clothing, Textile, Footwear, and Leather Masterplan Executive Oversight Committee to discuss the implications of the Newcastle matter and to identify practical steps to strengthen supply-chain accountability and cooperative enforcement across the industry. Strengthening voluntary and policy-linked disclosure mechanisms is just one of the essential mechanisms to improving visibility across supply chains and preventing illicit or exploitative production from entering formal retail channels.

the dtic remains committed to promoting formalisation and compliance across the value chain and creating an enabling environment for a competitive, inclusive, and labour-absorbing clothing and textile industry. This requires collaboration between government, retailers, manufacturers, labour, and regulators to promote formalisation and compliance across the value chain.

Enquiries:
Director: Media Relations
Bongani Lukhele
Cell: 079 5083 457
E-mail: BLukhele@thedtic.gov.za

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