ENFORCEMENT authorities are investigating alleged non-compliant garment manufacturing operations in Newcastle, the Deputy Minister of Trade, Industry and Competition (DTIC), Alexandra Abrahams said yesterday.
She made the comments following DTIC’s concern about media reports alleging non-compliant operations in Newcastle and the possible presence of goods linked to major retailers within those facilities.
“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,” Abrahams said in a statement.
She emphasised that 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,” she said.
“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,” she said.
Abrahams highlighted that the 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,” she said.
Abrahams plans to 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.
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.
“Strengthening voluntary and policy-linked disclosure mechanisms is just one of the essential mechanisms to improve visibility across supply chains and prevent 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,” Abrahams said.
