Leather Industry Summary Report

March 2020 Overview of Leather Industry Summary ReportAn Overview of the South AfricanLeather Industry with Specific Reference to Footwear The Clothing, Textiles, Leather and Footwear (CTLF) sectors have been major areas of government focus due to the potential they have for economic development and the creation of decent and sustainable jobs. To sharpen the focus of state support to an industry under severe attack from cheap inputs, the dti introduced the market-neutral Clothing and Textiles Competitiveness Programme (CTCP) in 2009 as a replacement for the previously existing Duty Credit Certificate Scheme (DCCS). The CTCP programme - which is subdivided into the Production Incentive Programme (PIP) and the Competitive Improvement Programme (CIP) – achieved stability in the four sectors. As at 31 August 2016 a total of R4.2 billion had been approved under the PIP and R3.3 billion already disbursed to the industry. CIP had a total of R720 million in approvals, of which R416 million had been disbursed to the different clusters participating in the programme (IPAP 2017/18 – 2019/20). The leather and footwear industries having been subsectors in the agro-processing sector, were identified as key industries for economic growth, and creation of sustainable jobs and enterprises.