Authorities Probe Alleged Illegal Garment Factories in Newcastle

Deputy Minister of Trade, Industry and Competition Alexandra Abrahams says relevant enforcement authorities are investigating alleged non-compliant garment manufacturing operations in Newcastle, KwaZulu-Natal.

Her remarks follow media reports alleging unlawful factory operations in the area and the possible presence of goods linked to major retailers within those facilities.

Investigations Underway

In a statement issued Tuesday, Abrahams said the matter is being handled by the appropriate enforcement bodies and that due process must be allowed to run its course.

"It is appropriate that these processes be allowed to proceed without interference," she said.

She noted that the issue raises broader systemic concerns about:

• Supply-chain accountability

• Responsible sourcing practices

• The integrity of South Africa's clothing and textile value chain

'Manufacturing Growth Cannot Be Built on Illegality'

Abrahams stressed that South Africa cannot expand its manufacturing base through unsafe or illegal operations.

"Factories that evade labour standards distort competition, undermine compliant businesses, and expose vulnerable workers to unacceptable conditions," she said.

While the Department of Trade, Industry and Competition (the dtic) is not a frontline enforcement authority for labour, immigration or occupational health and safety legislation, it has a policy interest in safeguarding the formal manufacturing sector from unfair and unlawful competition.

Retailers and Brands Must Strengthen Due Diligence

The Deputy Minister said enforcement alone is insufficient to address 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," she said.

She called for improved:

• Inter-departmental coordination

• Data visibility across the clothing and textile sector

• Collaboration between government and enforcement agencies

The dtic supports closer cooperation to prevent industrial zones from becoming hubs for informal or illegal manufacturing activity.

Masterplan Oversight Committee to Review Matter

Abrahams confirmed that she will engage the Retail Clothing, Textile, Footwear and Leather (R-CTFL) Masterplan Executive Oversight Committee to assess the implications of the Newcastle allegations.

The engagement will focus on:

• Strengthening supply-chain accountability

• Enhancing cooperative enforcement mechanisms

• Improving disclosure and traceability systems

The R-CTFL Masterplan is grounded in principles of lawful business conduct, decent work and value chain formalisation.

Strengthening Transparency Across the Value Chain

Abrahams emphasised the importance of stronger voluntary and policy-linked disclosure mechanisms to improve supply-chain transparency 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," she said.

She added that sustainable industrial growth requires collaboration between:

• Government

• Retailers

• Manufacturers

• Labour

• Regulators

The Newcastle investigation has spotlighted the urgent need for tighter oversight and shared accountability to protect workers, ensure fair competition and preserve the integrity of South Africa's clothing and textile sector.