WATCH: Weak rand: help or hindrance for SA’s textile industry?
PRECIOUS Moloi-Motsepe, founder and executive chairperson of African Fashion International, tells Business Day TV that the weak rand can be both a help and a hindrance for the local textile and fashion industry.The rand is 18% weaker against the dollar than it was at the beginning of 2015 and has lost more value over the last five years.Moloi-Motsepe says the weak rand puts most designers and manufacturers in a position to export their goods and improve their income.The industry also experiences what is known as the lipstick effect, whereby consumers shun big-ticket items such as cars but rather opt for luxury fashion and make-up. She says in the short term, consumers look for cheaper items but in the long term, producers and retailers are looking at exporting their goods.The weak rand has, however, also been a hindrance particularly for designers, whose highest input costs are fabrics — 55% of which are imported. This, in turn, makes it difficult for designers to pass the saving on...
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