The black economic empowerment (BEE) partner in a R65-million deal with clothing and retail giant Woolworths said on Wednesday the company will seek to use local suppliers ahead of controversial Chinese imports.
”Our standpoint is that we are a South African company … and we believe our suppliers must be South African,” said chairperson of the Makhubu Group and former secretary to Parliament Zingile Dingani.
The deal, announced on Wednesday, sees Makhubu acquiring a majority stake in Ellen Arthur, a Cape Town-based clothing company supplying Woolworths with ladies clothing for over 40 years.
”The deal is a business transaction that will have a real and meaningful impact on the continued growth of the clothing industry. We have here a situation where Woolworths strengthens its role in the BEE sector, while we help build the economy and keep jobs within the industry. The effects are far-reaching,” said Dingani in a statement.
The deal was welcomed by Woolworths, whose chief executive, Simon Susman said was ”deeply committed” to the country.
”We choose to buy from the local industry when it is competitive and deploys the technology and skills to remain competitive in an evolving world,” said Susman in a statement. — Sapa