The textile and clothing industry in South Africa is a relatively small sector within the country's economy. Indeed, in 2012 it accounted for only 3% of the output of South Africa's manufacturing industry as a whole, and its exports accounted for only 0.4% of the country's total merchandise exports. The textile and clothing industry has been shaped significantly by the African Growth and Opportunity Act (AGOA), which was implemented in October 2000. The agreement led to a significant influx of investment by overseas manufacturers into the region, particularly those based in China and Taiwan. However, the resulting level of trade failed to live up to expectations and therefore the attractiveness of South Africa as an investment location diminished. As a consequence, the number of companies and the number of employees in the industry have declined in recent years, and so have clothing exports. Textile exports have increased but these consist largely of raw materials in their least converted form—such as uncarded wool and raw cotton.
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