History of the CCTC
The Cape Clothing and Textile Cluster (CCTC) is a not-for-profit initiative jointly established by government and industry in 2005 to boost the competitiveness of the clothing, textile, footwear and leather (CTFL) manufacturing industry in the Western Cape. The Cluster comprises 25 leading firms, primarily manufacturers but also major retailers that are committed to supporting the development of the local manufacturing industry.
With the South African economy open to international competition, it is critical that local firms collaborate and pool their resources to meet the intense competitiveness challenges that have emerged. Clustering thus represents an important progression from operating in isolation to recognising that there are certain support activities that can be better performed in conjunction with other firms confronting similar challenges. The benefits of clustering as a model for competitiveness upgrading include:
- Generating a critical mass of resources
- The rapid identification and dissemination of best practices
- Reduced cost of upgrading initiatives
- Collective action and risk sharing
Create a vibrant, expanding and globally competitive Western Cape CTFL manufacturing industry.
Support domestic and export market growth by driving globally competitive, sustainable clothing and textiles value chains, with a strong focus on a Quick Response supply chain model.
Significant and sustained year-on-year increases in domestic manufacturing sales, value-add and employment amongst cluster members to 2020.
Why our objectives matter
Enhancing the overall performance of South Africa’s clothing and textile industries is a necessity in order to help grow employment opportunities in South Africa and reduce South Africa’s reliance on imported goods. Achieving our objectives means upgrading the skills of thousands of South Africans and instituting mechanisms that will drive competition in the sector.
Strategic focus areas
Our activities are primarily directed towards the development of World Class Manufacturing (WCM) and Quick Response capabilities. The former reflects critical supply requirements from the retail market, whilst the latter plays to the comparative advantage of domestic manufacturers over foreign competition in the domestic market due to their closer proximity to retailers.
Our founding principles
The founding constitutional principles of the CCTC are incorporated into its memorandum of incorporation under the New Companies Act and this governs the the activities of the CCTC. This specifies, among other things; objectives, membership requirements, decision-making processes and the process for appointing a facilitation service provider. In terms of governance, the CCTC’s operating model entails oversight from an Executive Committee comprising of industry, tertiary institutions, associations and local government representatives.
The CCTC’s operations are overseen by an Executive Committee comprising representatives of industry, government and tertiary education institutions. Cluster facilitation services are provided by an independent team from B&M Analysts appointed by the Executive Committee.
The CCTC is a verified Level 4 B-BBEE contributor under the Codes of Good Practice for Broad-Based Black Economic Empowerment (B-BBEE). The CCTC complies with requirements outlined in the Municipal Finance Management Act (MFMA) and Public Finance Management Act (PFMA).