Textile: Serious Concerns

"Right now, we honor orders for the first three months of the year only. There is no visibility beyond. It is pessimistic in the second quarter, "said Ahmed Parkar, head of Star Knitwear. The investment is still very minimal. If last year, South Africa has allowed us to keep our heads above water this year the data may change as the rand depreciated.

"At the moment, countries where we sell our products are affected by the crisis. So South Africa is presented as a new market for us. With regard to the European market, there is always a doubt because we do not know what will be the magnitude of the crisis in Europe, "he adds.

"We're working on a three-month and one must wait until the end of the first quarter to see what will happen," said the director of Star Knitwear. Adding that "for the time being, the market is still stable. But the South African rand depreciated and our rupee has appreciated vis-à-vis the dollar, which is bad for the operators. Europe is still in crisis and we do not see improvement. Regarding the exchange rate as it sees no big change. It all depends on demand and supply. This is the sale of our products that will decide everything in the coming months. "

Textile uses the major part of the local workforce. This industry employs 55,000 people directly and 150,000 indirectly. If this sector is experiencing turmoil, many people are likely to be unemployed.