Annual Economic Review of the Agro-processing Industry in South Africa

Annual Economic Review of the Agro-processing Industry in South Africa DIRECTORATE: AGRO-PROCESSING SUPPORT agriculture, forestry & fisheries

TABLE OF CONTENTS TABLE OF CONTENTS... i LIST OF ACRONYMS... ii PREFACE... iii EXECUTIVE SUMMARY... iv 1. INTRODUCTION... 1 2. OVERVIEW OF THE GLOBAL ECONOMY... 1 3. THE STATE OF THE DOMESTIC ECONOMY... 2 4. THE AGRO-PROCESSING INDUSTRY... 3 4.1 FOOD PRODUCTS... 4 4.2 BEVERAGES... 9 4.3 TOBACCO... 14 4.4 TEXTILES... 18 4.5 WEARING APPAREL... 23 4.7 FOOTWEAR... 32 4.8 WOOD AND WOOD PRODUCTS... 37 4.9 PAPER AND PAPER PRODUCTS... 42 4.1 RUBBER PRODUCTS... 46 4.11 FURNITURE... 51 5. CONCLUSION... 55 REFERENCES... 56 i

LIST OF ACRONYMS CPI Consumer Price Index DAFF Department of Agriculture, Forestry and Fisheries EU European Union FAO Food and Agriculture Organization GDP Gross Domestic Product IPAP Industrial Policy Action Plan IMF International Monetary Fund NAFTA North American Free Trade Agreement NESOI Not Elsewhere Specified or Indicated PPI Producer Price Index SA South Africa SADC Southern African Development Community US United States ii

PREFACE The agro-processing industry is among the sectors identified by the Industrial Policy Action Plan of the New Growth Path and the National Development Plan for its potential to spur economic growth and create jobs because of its strong backward linkage with the primary agricultural sector. DAFF established a Directorate: Agro-processing Support in to complement the interventions undertaken by several governmental departments, notably, the Department of Trade and Industry. One of the main purposes of the directorate is to provide timely and updated economic information regarding agro-processing, in order to monitor the performance of the sector and provide an insight into the effects of economic policies and exogenous factors. To achieve this purpose, the directorate has started to publish a regular annual review of the agro-processing industry. This publication Annual Economic Review of the Agro-processing Industry in South Africa: is the fifth of its kind by the directorate and it evaluates the economic performance of the 11 divisions within agro-processing during. These divisions, which are in line with the Standard Industrial Classification, are food products, beverages, tobacco, textiles, wearing apparel, leather and leather products, footwear, wood and wood products, paper and paper products, rubber products and furniture. The main economic indicators reviewed are the changes in the real value added, real output values, real gross fixed domestic investment, trade balance, capacity utilisation and total employment. Any comments and suggestions on the content of the publication are most welcome. Mr Victor Mahlogedi Thindisa Director: Agro-processing Support Pretoria iii

EXECUTIVE SUMMARY Growth in the global economy remains moderate, with main regions and countries experiencing uneven growth prospects. The global growth in is estimated to be 3,1%. The emerging markets and developing economies outlook, however, moderated to 4,%. The outlook for advanced economies is also moderated as compared to the previous year. The South African economy grew by 1,3% in. The real value added of the agro-processing industry contracted by 2,7% in, following a 2,1% growth in 214. The divisions that showed growth in real value added were wood and wood products (6,%) and beverages (2,4%). However the following divisions showed a decline: wearing apparel (,7%), food (2,5%), paper and paper products(2,8%), furniture (6,8%), rubber (7,6%), tobacco (12,5%,), footwear (16,4%), textiles (18,8%) and leather and leather products (22,8%) in. Real output of the agro-processing industry decelerated by 2,6% during following a contraction of,4% in 214. The growth rate was driven by wearing apparel (1,2%) and beverages (,4%). However, real output dropped in the following divisions: furniture (,2%), food (1,3%), footwear (1,4%), leather and leather products (2,2%), wood and wood products (2,2%), tobacco (3,2%), textiles (5,7%) paper and paper products (7,2%) and rubber (1,9%). Real gross fixed investment in the agro-processing industry decelerated by 1,8% in, following a 14,1% contraction in 214. Among the divisions that showed a decrease in investment were tobacco (1,9%), wearing apparel (2,7%), food (5,2%), furniture (6,6%), paper and paper products (9,7%), textiles (14,) and beverages (18,4%). Conversely, divisions that showed an increase in growth were: leather and leather products (32,5), footwear (5,4%), rubber (2,8%), and wood and wood products(,7%). Real export of aggregate agro-processing products contracted by 1,2% in, following a growth rate of 7,1% in 214. Among agro-processing products with increasing exports were wood and wood products (12,1%), paper and paper products (5,7%), wearing apparel (3,8%) and rubber (,6%). However, real export dropped in the following divisions: furniture (13%), textiles (9,6%) leather and leather products (8,%), beverages (6,7%), food (2,6), footwear (1,9%) and tobacco (1,8%). Real import of aggregated agro-processing products rebounded by 7,8% in, following a contraction of 8,2% 214. Among agro-processing products with increasing import were: tobacco (24,2%), food (11,2%), rubber products (1,7%), furniture (1,6%), wood and wood products (7,7%), textiles (7,1%) wearing apparel (6,3%), footwear (5,6%), paper and paper iv

products (5,2%). However, real import for beverages and leather and leather products decreased by 5,4% and,8% respectively. As a result of the lower growth rate in imports relative to exports the trade surplus of the agroprocessing industry narrowed from R13 415 million in 214 to R5 653 million in. The divisions that maintained a trade surplus were beverages (R7 472 million), paper and paper products (R6 765 million), wood and wood products (R4 135 million), Food (R2 876 million), tobacco (R1 748 million) rubber products (R1 632 million) and leather and leather products (R49 million). However, wearing apparel (R9 621 million), textiles (R5 681 million), footwear (R2 86 million) and furniture (R1 357 million) divisions declined in. Despite deceleration in agro-processing output by 2,6% in as compared to,4% contraction recorded in the previous year, total employment in the sector rebounded by 2,9% in following a 1,3% contraction in 214. The sector created 15 515 jobs in compared to 7 325 jobs shed in 214. However, formal employment recorded an improved positive growth of 1,3% as compared to a,3% negative growth registered previously, meaning that the formal sector of agro-processing created 6 252 jobs as compared to 1 36 lost in the previous year. The divisions that shed jobs were paper and paper products (2 29), wood and wood products (66), furniture (234) and footwear (48). However, food products (6 177), beverages (1 129), textiles (816), wearing apparel (713), leather and leather products (297) rubber (252), tobacco (1) created jobs in. v

1. INTRODUCTION The global economic growth remained subdued in, with modest growth recovery in advanced economies, while growth in developing economies continued to decline as compared to the previous year. In South Africa, the economic growth in remained sluggish. This was due to, among other factors, the effects of power shortages, drought, rising interest rates and a slowdown in China. Furthermore, South Africa experienced a decline and rise in agricultural output (-8.4) and mining output (3.), respectively. This annual review examines the economic performance of the agro-processing industry, which is the main sub-sector in manufacturing, amid subdued global economic growth and sluggish domestic economic growth registered in (Reserve Bank, 216). The annual review is organised as follows: the following section presents the overview of the global economy as it shed light on the prospects for domestic export growth. Section three provides a succinct summary of the state of the domestic economy to provide an insight into the growth in domestic demand, which is largely determined by a firm growth of the economy, employment and inflation. Section four gives a comprehensive but brief effect of the global and domestic economic situation on the 11 divisions of the agro-processing industry. The section reviews how the global and domestic economy in affected the real value added, real output, gross fixed domestic investment, trade balance, capacity utilisation and employment level of each division. The conclusion of the review is provided in section five. 2. OVERVIEW OF THE GLOBAL ECONOMY The global economic growth slightly moderated from 3.4 percent in 214 to 3, 1 percent in. Despite a slight acceleration in economic growth in advanced economies, the slowdown in economic growth in emerging and developing economies was a key factor in global growth slowdown. Additionally, emerging and developing economies accounted for over 7 percent of global growth in (IMF, 216). Growth in advance economies accelerated from 1, 8 percent in 214 to 1.9 percent in, while growth in emerging and developing economies moderated by 4. percent in. In advanced economies, the economic growth in the US remained unchanged at about 2,4 percent, while the Euro area registered growth improvements of approximately 1,7 percent. The emerging markets, Brazil and Russia contracted by 3.7 percent and 3.8 percent, respectively (IMF, 216).. 1

2.1 Overview of the world economic growth (percentage change). Countries/ area 214 216 Estimates Projections World output 3,4 3,1 3,4 Advanced economies 1,8 1,9 1,9 US 2,4 2,4 2,4 Euro area,9 1,6 1,5 Japan -,,5,5 Emerging markets and developing economies 4,6 4, 4,1 China 7,3 6,9 6,5 India 7,2 7,3 7,5 Russia,7-3,7-1,8 Brazil,1-3,8-3,8 Sub-Saharan Africa 5,1 3,4 3, South Africa 1,5 1,3,6 Source: IMF (216) 3. THE STATE OF THE DOMESTIC ECONOMY South Africa s economic growth slowed down from 1,5% in 214 to 1,3% in, which is mainly as a result of the contraction in agricultural output, though growth in the mining sector rebounded. Moreover, the secondary sector, tertiary sector and non-primary sector grew at a slower pace as compared to the previous year. 2

Table 3.1: South African economic growth rate (percentage change at seasonally adjusted annualised rates) Sector 214 % % Year Q1 Q2 Q3 Q4 Year Primary sector, 2,9-9,5-1,4-2,,2 Agriculture 5,6-18, 19,7 12,6-14, -8,4 Mining -1,6 1,2 6,4-9,8 1,5 3, Secondary sector,6-1, -5,1 3,3-1,5,3 Manufacturing, -2,4-6,3 6,2-2,6,1 Tertiary sector 2,1 1,7 1, 1,9 1,5 1,7 Non-primary sector 1,8 1,1 -,4 2,2,8 1,4 Total 1,5 1,4-1,3,7,6 1,3 Source: Reserve Bank (216) The contraction in the agricultural sector was mainly a result of drought, which led to an annual decline of about 8,4 percent in. The growth of the secondary sector moderated from,6% in 214 to,3% in. The slower growth rate resulted from a marginal growth rate of the manufacturing sector, which slightly accelerated from,% in 214 to to,1 in (Reserve bank, 216). 4. THE AGRO-PROCESSING INDUSTRY The FAO (1997) defines agro-processing as: A subset of manufacturing that processes raw materials and intermediate products derived from the agricultural sector. Therefore, the agro-processing industry basically transforms products originating from agriculture, forestry and fisheries. According to the Standard Industrial Classification, the agro-processing industry comprises of the following 11 divisions: food products, beverages, tobacco, textiles, wearing apparel, leather and leather products, footwear, paper and paper products, wood and wood products, rubber and furniture. 3

25 214 R million (25 prices) In, the real value added share of the agro-processing industry in the manufacturing sector and the economy was about 32,5% and 4,4%, respectively. Its contribution to the real output of the manufacturing sector and the economy was 3,% and 7,7%, respectively. Its share of real domestic fixed investment in the manufacturing sector and the economy was 13,1% and 1,7%, respectively, during the year under review. In addition, 19,5% and 1,7% of the total export by the manufacturing sector and the economy, originated from agroprocessing. The agro-processing industry accounted for 4,4% jobs created in the manufacturing sector and 3,5% contribution in the economy. This section reviews the economic performance of each division in the agro-processing industry during. 4.1 FOOD PRODUCTS 25 Figure 4.1: Real output and value added: food 2 15 1 5 Real value added Real output Real value added for the food division contracted by 2,5% in, following a growth of 2,3% in 214 (see figure 4.1). Real output, on the other hand, decelerated by 1,3% in following a contraction of,5% in the previous year. The output price of food moderated by 7,1% following a growth of 7,5% in 214, while the intermediate input price also moderated by 5,7% following a growth of 6,1% in the preceding year. 4

25 214 R million (25 prices) 12 Figure 4.2: Real gross domestic fixed investment: food 1 8 6 4 2 The real gross domestic fixed investment in the food division contracted by 5,2% in, following a 13,% growth recorded in the previous year (see Figure 4.2). The gross fixed capital formation shows that the investment increased in buildings and construction works by 2,1%, while for transport equipment and machinery and other equipment declined by 26,% and 5,5%, respectively, in (see Table 4.1). Table 4.1: Gross fixed capital formation by type of asset: food products (R million) Asset type 214 % Change 214- Total 8 257.1 9 331.5 8 845.2-5.2 Machinery and other equipment 7 377.7 8 519. 8 5.4-5.5 Buildings and construction works 786.2 688.5 73. 2.1 Transport equipment 93.2 124. 91.8-26. 5

25 214 R million (25 prices) Figure 4.3: Trade balance of food 45 4 35 3 25 2 15 1 5 Export Import The real food export value growth contracted by 2,6% in, following a growth of 8,4% recorded in the previous year. However, the real food import values rebounded by 11,2% in, following a contraction of 1,2% in 214 (see Figure 4.3). As a result, of the relative decrease in export compared to import, the trade surplus narrowed from R7 359 million in 214 to R2 876 million in. In addition, export-to-output ratio moderated marginally by 15,8% in following a 15,9% growth in 214. However, the import-to-domestic demand ratio increased modestly by 17,2% in from a growth of 16,8 % in 214. Table 4.2: The top five exported food products in Product Description HS code R million % Share in % Share in 214 % Share in Fruit juice 3 762,5 7, 7, 8,1 4,2 Food preparations 216 2 514,3 4,6 5,4 Fruit, nuts 2 434,8 5,5 5, 5,2 Cane or beet sugar 171 1 985,8 9,3 8,9 4,3 Grapes 86 1 411,1 2,31 2,3 3, The top five exported food products during are presented in Table 4.2. Fruit juice (8,1%) is the main exported product; followed by food preparations (5,4%); fruit, nuts (5,2%) and 6

grapes (3,%). The main destination for exports is SADC, which accounted for the highest share (61,4%), followed by the EU (1,4%), Eastern Asia (5,7%), Western Asia (4,3%), Northern Africa (2,8%), NAFTA (2,4%) and South Asia (2,2%) Table 4.3: The top five imported food products in Product Description HS code R million % share in % share in 214 % share in Rice 16 5 544,9 13,8 1,1 1,8 Meat & edible offal of poultry 27 4 653,7 8,1 9,1 9,1 Cane or beet sugar 171 3 446,2 4,3 2,2 6,7 Palm oil 1511 3 181,3 6,61 8,5 6,2 Soybean oilcake 234 2 397,9 6,1 6,2 4,7 Among the top imported food products in, rice accounted the highest share (1.8%), followed by meat and edible offal of poultry (9,1%), Cane or beet sugar (6,7%), palm oil (6,2%) and soya-bean oil (4,7%) (see Table 4.3). The main source of imports during were the EU (3,3%), South Asia (26,5%), Americas Rest (14,9%), SADC (13,4%) Eastern Asia (6,3%) and NAFTA (4,%). Table 4.4: Utilisation and reasons for underutilisation of production capacity by large enterprises: food products (percentage) Period Utilisation Reasons for underutilisation Total underutilisation Raw materials Shortage of Skilled Labour Semi and unskilled Insufficient demand Other 82,4 17,6 2,3 2,,2 9,8 3,9 214 81,8 18,2 2,4 2,3,2 1,7 3,5 82,1 17,9 2, 1,8,2 11, 3,5 Source: Statistics SA (216) 7

25 214 The utilisation of production capacity by large enterprises in the food division shows a marginal increase of,3% in. Insufficient demand is the main reason for underutilisation followed by other reasons such as downtime owing to maintenance and shortage of raw materials (see Table 4.4). 25 Figure 4.4: Number of employment: food 2 15 1 5 Informal Formal Total Owing to a significant growth in output and export, jobs were created in the food division during. Total employment (formal and informal) increased modestly by 4,% following a growth of 2,1% in the previous year. Similarly formal employment alone also increased modestly by 3,5% from a 2,4% growth in 214 (see Figure 4.4). Table 4.5 shows that mid-level and semi-skilled and unskilled constituted 42,4% and 42,2% share, respectively, followed by informal (7,9%) and high level (7,5%,) to the total employment in food products division. Table 4.5: The skill level of employees: food products Skill level % Share High level 14 65 7,5 Mid-level 82 941 42,4 Semi-skilled and unskilled 82 659 42,2 8

25 214 R million (25 prices) Informal 15 418 7,9 Total 195 669 1, 4.2 BEVERAGES 25 Figure 4.5: Real output and value added: beverages 2 15 1 5 Real value added Real output Real value added of the beverages division rebounded by 2,4% following a contraction of 1,3% in 214. However, the real output of the beverages moderated by,4% following a 1,8% growth recorded in the previous year (see Figure 4.1). The output price of beverages increased modestly by 6,9% following a growth of 4,9% in 214. Similarly the intermediate input price increased modestly by 4,1% following a 2,6% growth in the preceding year. 9

25 214 R million (25 prices) Figure 4.6: Real gross domestic fixed investment: beverages 7 6 5 4 3 2 1 Source: Quantec EasyData () The growth of the real gross domestic fixed investment in the beverages division decelerated by 18,4% in following a contraction of 2,1% in 214 (see Figure 4.6). The value of gross fixed capital formation by asset in the beverages division is presented in Table 4.6. The total gross fixed capital formation declined by 18,4%, which was mainly driven by declines in machinery and other equipment (-23.6%) and transport equipment(-16,). Buildings and construction works recorded a high positive improvement of about 14,5%. Table 4.6: Gross fixed capital formation by type of asset: beverages (R million) % change Asset type 214 214- Total 5 425.5 4 295. 3 52.9-18.4 Machinery and other equipment 5 248.6 4 83.2 3 118.6-23.6 Buildings and construction works 146.1 171.2 35.1 14.5 Transport equipment 3.8 4.7 34.2-16. Source: Quantec EasyData () 1

25 214 R million (25 prices) Figure 4.7: Trade balance of beverages 14 12 1 8 6 4 2 Export Import Real exports of beverages products contracted by 6,7% in, following a growth of 8,% in 214. However, imports decelerated by 5,4% following a 16,8% contraction recorded in 214 (see Figure 4.7). As a result, of the relative decrease in exports compared to imports, the trade surplus narrowed from R8 71 million in 214 to R7 472 million in. Furthermore, export-to-output ratio moderated marginally by 18,7% in following a 19,5% growth in 214. However, the import-to-domestic demand ratio increased marginally by 9,2% in from a growth of 9,8% in 214. Table 4.7: The top five exported beverages products in Product Descriptions HS code R million % share in % share in 214 % share in Wine 2 24 8 94,8 57,3 54, 6,8 Ethyl alcohol 2 28 1 997, 1,3 8,2 13,6 Ethyl alcohol 2 27 1 215,2 9,1 1, 8,3 Waters 2 22 1 15,7 3,6 6,2 7, Fermented beverages 2 26 992,3 2,9 2,7 6,8 Table 4.7 shows that wine was the main product exported and it accounted for 6,8% of the total beverage exports, followed by ethyl alcohol(hs228) (13,6%), ethyl alcohol(hs227)(8,3%), water (7,%) and fermented beverages (6,8%) in. As a main 11

destination for the exports, SADC accounted for the highest share of 36,3% followed by, the EU (36,%), NAFTA (8,6%), Eastern Asia (5,6%) and Sub-Saharan Africa excluding SADC (3,9%). Table 4.8: The top five imported beverages products in Product Description HS code R million % share in % share in 214 % share in Ethyl alcohol 2 28 3 783, 58,8 59,7 58,5 Beer made from malt 2 23 812,8 3,45 1,53 12,6 Water, sweetened 2 22 78,5 1,67 1,22 12,7 Malt 1 17 565,5 11,86 1,97 8,7 Wine 2 24 352,4 3,89 4,88 5,5 Table 4.8 shows the top five imported beverage products in. The leading imports are ethyl alcohol, with a share 58,5%; followed by beer (12,6%), water, sweetened (12,1%); malt (8,7%); and wines (5,5%) (see Table 4.8). The EU was the largest source of imports of beverage products (7,7%) followed by SADC (12,9%), NAFTA (6,5%), Oceania (including Australia and New Zealand) (3,8%) and Americas Rest (2,2%). Table 4.9: Utilisation and reasons for underutilisation of production capacity by large enterprises: beverages (percentage) Period Utilisation Reasons for underutilisation Total underutilisation Raw materials Shortage of Skilled Labour Semi and unskilled Insufficient demand Other 83,1 16,9 2, 18,,2 8,9 4, 214 84,6 15,4 2,3 19,,3 8,1 3,5 84,6 15,5 1,8 2,,2 7,9 4,4 Source: Statistics SA (216) Despite the marginal increase of output in the beverages division, the utilisation of production capacity stagnated at 84,6% in (see Table 4.9). Insufficient demand remains 12

25 214 the main reason for underutilisation, followed by other reasons such as seasonal factors and shortage of skilled labour. Figure 4.8: Number of employment: beverages 8 7 6 5 4 3 2 1 Informal Formal Total Figure 4.8 shows number of employment in the beverages division. During, total formal employment rebounded by 6,% following a contraction of 3,6% recorded in 214. Similarly, the formal employment rebounded by 3,2% from a contraction of 1,9% registered in the previous year. The semi-skilled and unskilled level comprised of 25,3% of the total employees in the beverages division, which is followed by mid-level and high-level with a 19,% and 1,% shares, respectively, in (see Table 4.1). Table 4.1: The skill level of employees: beverages Skill level % share High-level 6 813 1, Mid-level 12 916 19, Semi-skilled and unskilled 17 169 25,3 Informal 3 981 45,6 Total 67 879 1, 13

25 214 R million (25 prices) 25 214 R million (25 prices) 4.3 TOBACCO 25 Figure 4.9: Real output and value added: tobacco 2 15 1 5 Real value added Real output During, the growth of real value added of tobacco contracted by 12,5% following a 29,7% growth registered in 214. However, the real output decelerated by 3,2% following a,9% contraction in the preceding year (see Figure 4,9). The output price of tobacco moderated by 6,2% as following a growth of 7,9% in 214. Similarly the intermediate input price similarly moderated by 4,3% following a 15,9% growth in the preceding year. 35 3 Figure 4.1: Real gross domestic fixed investment: tobacco 25 2 15 1 5 Real gross fixed investments of tobacco contracted by 1,9% following a 13,5% growth registered in the preceding year. The total value of gross fixed capital formation decreased 14

25 214 R million (25 prices) by 1,9%, which was a result of declines in transport equipment (-16,7), machinery and other equipment(-2,2%), respectively, in (see Table 4.1). Table 4.11: Gross fixed capital formation by type of asset: tobacco (R million) Asset type 214 % Change 214- Total 65.1 73.9 72.5-1.9 Machinery and other equipment 64.6 73. 71.4-2.2 Buildings and construction works.1.2.6 2. Transport equipment.4.6.5-16.7 5 4 5 4 3 5 3 2 5 2 1 5 1 5 Figure 4.11: Trade balance of tobacco Export Import During, the real export of tobacco products decelerated by 1,8% as compared to the 5,3% contraction registered in the preceding year. However the real import of tobacco rebounded by 24,2% following a contraction of 16,% recorded in 214 (see Figure 4.11). As a result of the decrease in real import compared to export, the trade surplus narrowed from R1 873 million in 214 to R1 748 million in. During, export-to-output share increased 15

modestly from 13,4% in 214 to 14,4% in and import-to-domestic demand share also increased modestly by 3,9% in following a growth of 3,% in 214. Table 4.12: The top two exported tobacco products in Product Description HS code R million % Share in % Share in 214 % share in Cigars, cigarettes 242 1 925,9 49,2 45,5 67,6 Tobacco and tobacco substitute products 243 1 49,9 38,4 39,6 36,9 As indicated in Table 4.12, the top two exported tobacco products are cigars, cigarettes (67,6%) and tobacco and tobacco substitute products (39,9%) are the main exported product groups. In addition, during, the SADC (59,4%) Western Asia (2,5%), Northern Africa (17,9%), Sub-Saharan Africa (excluding SADC) (4,%) and Europe Rest (1,1%) were the top exporting destinations for tobacco. Table 4.13: The top two imported tobacco products in Product Description HS code R million % Share in % Share in 214 % share in Cigars, cigarettes, 242 577,6 68,9 6,9 84,3 Tobacco and tobacco substitute products 243 117,5 15,9 21, 17,1 As indicated in Table 4.13, the share of cigars, cigarettes (84,3%) has continued to increase compared to tobacco and tobacco substitute products (17,1%) (see Table 4.13). In the European Rest remained the main source of imports for tobacco products (68,1%) followed by the EU (16,3%), American Rest (4,4%), South Asia (3,5%) and SADC (2,5%) 16

25 214 Figure 4.12: Number of employment: tobacco 3 2 5 2 1 5 1 5 The total employment of people in the tobacco division rebounded by 3,6% following a 1,5% contraction registered in the preceding year. In addition, the formal employment rebounded by 3,6% as compared to the 1,5% contraction in 214 (see figure 4.12). In terms of the skills level of employees, the semi-skilled and unskilled levels has the highest share of about 46,5% of the total employment, followed by mid-level (35,%) and high-level (18,5%)(see Table 4.14). Table 4.14: The skill level of employees: tobacco Skill level % Share High-level Mid-level Semi-skilled and unskilled Informal Total 527 18,5 999 35, 1 327 46,5 - - 2 853 1, 17

25 214 R million (25 prices) 25 214 R million (25 prices) 4.4 TEXTILES Figure 4.13: Real output and value added: textiles 3 25 2 15 1 5 Real value added Real output During, the growth of real value added for textiles contracted by 18,8% following a growth of,3% in 214. However, the real output decelerated by 5,7% in as compared to the 1,6% contraction registered in the previous year. The intermediate input price and output price of textile increased modestly by 11,% and 11,6% in following 7,% and 6,5% growth, respectively during 214. Figure 4.14: Real gross domestic fixed investment: textiles 1 4 1 2 1 8 6 4 2 The real gross domestic fixed investment of textiles decelerated by 14,% following a contraction of,3% in 214 (see figure 4.14). Table 4.15 shows the gross capital fixed formation by asset type for textile division, with buildings and construction works declining by 18

25 214 R million (25 prices) -41,3%, followed by transport equipment(12,8%), and machinery and other equipment(- 12,6%). Table 4.15: Gross fixed capital formation by type of asset: textiles (R million) Asset type 214 % Change (214 ) Total 834.5 832.3 715.4-14. Machinery and other equipment 738.6 774. 676.5-12.6 Buildings and construction works 71.7 41.9 24.6-41.3 Transport equipment 24.2 16.4 14.3-12.8 Figure 4.15: Trade balance of textiles 1 9 8 7 6 5 4 3 2 1 Export Import The real exports of textile products contracted by 9,6% in following a 3,3% growth recorded in 214. However, imports rebounded by 7,1% following a contraction of 4,% in the preceding year. In addition export-to-output ratio moderated by 21,2% following a 21,68% growth in 214. Conversely, import-to-domestic ratio increased modestly by 36,9% as compared to 35,2% growth in 214. As a result, the trade deficit widened by R5 681 million in as compared to R4 671 million in 214. 19

Table 4.16: The top five exported textile products in Product Description HS code R million % Share in % Share in 214 % Share in Wool and fine or coarse animal hair 515 899,7 18,7 2,2 13,3 Tarpaulins, sails, awnings, tents, 636 458,7 7,4 6,1 6,8 Sacks & bags of textile material for packing goods 635 332,5 2,5 3,4 4,9 Bed linen, table linen, toilet linen & kitchen linen 632 332, 2,3 2,4 4,9 Non-wovens 563 256,4 6, 5,8 3,8 The top five exported textile products are shown in Table 4.16. Wool and fine coarse animal hair carded and combed accounted for 13,3% share in exports, followed by tarpaulins, sails, awnings, tents, etc. (6,8%), sacks & bags of textile material for packing goods (4,9%), bed linen, table linen, toilet linen & kitchen linen (4,9%), and non-wovens (3,8%) in. SADC, the EU, Eastern Asia, NAFTA, and Oceania (including Australia and New Zealand) accounted as the top five export destinations with a share of 5,2%, 17,7%, 7,9%, 4,8% and 3,9%, respectively. Table 4.17: The top five imported textile products in Product Description HS code R million % Share in % Share in 214 % share in Woven synthetic filament yarn, 547 1 657,9 1,97 12, 11,3 Non-woven 563 1 16, 7,5 8, 7,9 Bed, table, toilet and kitchen linen 632 989,8 6,3 5,5 6,7 Made-up articles of textile materials 637 697,4 4,9 4,5 4,7 Textile fabrics 593 665,5 3,4 3,9 4,5 2

25 214 Table 4.17 shows the top five imported textile products in. The main import of textile products were woven synthetic filament yarn (11,3%); non-woven (7,9%); bed, table, toilet and kitchen linen(6,7%), made-up articles of textile materials (4,7%), and textile fabrics (4,5%). The major source of imports are the Eastern Asia (45,1%), South Asia (21,2%), the EU (16,7%), SADC (8,3%), Western Asia (5,1%), NAFTA (3,%). Table 4.18: Utilisation and reasons for underutilisation of production capacity by large enterprises: textiles (percentage) Period Utilisation Reasons for underutilisation Total underutilisation Raw materials Shortage of Skilled Labour Semi and unskilled Insufficient demand Other 71,5 28,5 1,3,3,1 24,2 2,6 214 69,8 3,2 1,,5, 25,5 3,3 7, 3., 1,,4, 25,3 3,3 Table 4.18 shows that the utilisation of production capacity by large enterprises in the textile division has increased modestly by,2 percentage points in, insufficient demand remains the main reason for underutilisation, followed by other reasons such as seasonal factors. Figure 4.16: Number of employment: textiles 7 6 5 4 3 2 1 Informal Formal Total 21

In, the total employment for textiles rebounded by 4,8%, following a contraction of about 2,9% registered in 214. Similarly, formal employment rebounded by 4,8% as compared to the 2,9% contraction recorded in 214. (see Figure 4.16). Table 4.19 shows the percentage share to the total employment by skill level in the textile division, semi-skilled and unskilled category has 48,6% share, followed by informal (36,6%), mid-level (1,5%) and high level (4,3%). Table 4.19: The skill level of employees: textiles Skill level % Share High-level 2 163 4,3 Mid-level 5 336 1,5 Semi-skilled and unskilled 24 776 48,6 Informal 18 663 36,6 Total 5 939 1, 22

25 214 R million (25 prices) 25 214 R million (25 prices) 4.5 WEARING APPAREL 25 2 15 1 5 Figure 4.17: Real output and value added: wearing apparel Real value added Real output During, the growth of real value added in the wearing apparel division contracted by,7% following a,2% growth recorded in 214. The real output of wearing apparel however, modestly increased by 1,2% in following a growth of,9% in 214 (see figure 4.17). The intermediate input price increased and the output price moderated by 2,2% and 2,8%, respectively in, following growths of 7,1% and 7,7% in the preceding year. Figure 4.18: Real gross domestic fixed investment: wearing apparel 5 45 4 35 3 25 2 15 1 5 The real gross domestic fixed investment for wearing apparel decelerated by 2,7% in following a contraction of 13,4% in 214 (see Figure 4.18).Table 4.2 shows that the total gross 23

25 214 R million (25 prices) fixed capital formation for wearing apparel division decline by -2.7%, with a notable decline in transport equipment(-37,8%) and machinery and other equipment (-8,8%). However, buildings and construction works substantially increased by 864,% in. Table 4.2: Gross fixed capital formation by type of asset: wearing apparel (R million) Asset type 214 % Change (214-) Total 347.3 3.9 292.9-2.7 Machinery and other equipment 34.3 287.3 261.9-8.8 Buildings and construction works 1.9 2.5 24.1 864. Transport equipment 5.1 11.1 6.9-37.8 Figure 4.19: Trade balance of wearing apparel 16 14 12 1 8 6 4 2 Export Import During, real exports of wearing apparel increased modestly by 3,8% in following a growth of 1,6% recorded in 214. However, the real imports rebounded by 6,3% following a 6,5% contraction registered in the previous year. The export-to-output ratio of wearing apparel increased modestly by 3,% as compared to a growth of 27,1% in the preceding 24

year. Similarly, the import-to-domestic ratio increased modestly by 58,7% following a 54,3% growth in 214. As a result, the trade deficit of wearing apparel widened from R8 951 million in 214 to R9 621 million in. Table 4.21: The top five exported wearing apparel products in Product Description HS code R million % Share in % Share in 214 % share in Men's or boys' suits 623 746,5 12,4 8,62 9,9 T-shirts, singlets, tank tops 619 478,8 3,5 4,4 6,3 Women's or girls' suits 624 472,5 3,9 3,4 6,2 Men's or boys' suits, ensembles 613 388,3 3,3 4,4 5,1 Pantyhose, socks & other hosiery, knit or crochet 6115 238,4 7,8 4,8 3,2 The top five exported wearing apparel products are presented in Table 4.21. The main exported wearing apparel product group was men s or boy s suits (9,9%); t-shirts, singlets, tank tops (6,3%); women's or girls' suits (6,2%); men's or boys' suits, ensembles (5,1%); and pantyhose, socks and other hosiery, knit or crochet (3,2%). In, the major export destinations of wearing apparel products were SADC (65,5%), NAFTA(4,1%), the EU (2,2%) and Western Asia (1,9%). Table 4.22: The top five imported wearing apparel products in Product Description HS code R million % Share in % Share in 214 % share in Men's or boys' suits 623 3 792,2 1,7 11,3 15,2 Women's or girls' suits 624 3 5,2 11,3 9,8 12, T-shirts, singlets, tank tops 619 2 941,4 9,9 9,9 11,8 Sweaters, pullovers, vests 611 1 432,2 6,1 6,1 5,7 25

Men's or boys' shirts, not knitted or crocheted 625 1 213,4 4,9 4,6 4,9 The top five imported wearing apparel items during 214 are presented in Table 4.22. Men s or boys suits,(15,2%); women s or girls suits (12,%); t-shirts, singlets, tank tops (11,8%); sweaters, pullovers, vests (5,7%); and men's or boys' shirts, not knitted or crocheted (4,9%) make up for most of the imported wearing apparel products. The major source of imports were Eastern Asia (57,3%), followed by SADC (2,7%), Southern Asia (12,6%), Sub-Saharan Africa (4,9%) and the EU (2,9%). Table 4.23: Utilisation and reasons for underutilisation of production capacity by large enterprises: wearing apparel (percentage) Period Utilisation Reasons for underutilisation Total underutilisation Raw materials Shortage of Skilled Labour Semi and unskilled Insufficient demand Other 81,2 18,9 1,,7,6 13,4 3,2 214 79,3 2,7,6,9,3 16,5 2,5 79,2 2,8,6 1,2,3 16, 2,8 Table 4.23 shows that the utilisation capacity declined marginally in. Insufficient demand remains the main reason for underutilisation of production capacity during followed by other reasons such as seasonal factors. 26

25 214 16 14 12 1 8 6 4 2 Figure 4.2: Number of employment: wearing apparel Informal Formal Total In the total and formal employment in the wearing apparel division rebounded by 4,3% and 1,7%, following contractions of 3,8% and 2,3%, respectively, in 214. Table 4.24 shows that semi-skilled and unskilled category constituted 46,6% share of the total employment, followed by informal (43,2%), mid-level (7,2%) and high-level skilled workers (3,%) in the wearing apparel division in. Table 4.24: The skill level of employees: wearing apparel Skill level % Share High-level 2 297 3, Mid-level 5 548 7,2 Semi-skilled and unskilled 35 88 46,6 Informal 33 132 43,2 Total 76 784 1, 27

25 214 R million (25 prices) 25 214 R million (25 prices) 4.6 LEATHER AND LEATHER PRODUCTS 6 5 4 3 2 1 Figure 4.21: Real output and value added: leather and leather products Real value added Real output During, real value added of leather and leather products decelerated by 22,8% following a 2,5% contraction recorded in 214. Similarly, the real output decelerated by 2,2% as compared to 4,7% contraction in the preceding year. The intermediated input and output price of leather and leather products moderated by 6,2% and 6,5 following growths of 7,6% and 7,6%, respectively in 214. 14 12 1 8 6 4 2 Figure 4.22: Real gross domestic fixed investment: leather and leather products 28

25 214 R million (25 prices) During, the real gross domestic fixed investment in the leather and leather products division rebounded by 32,5% following a contraction of 18,4% in the previous year. The gross fixed capital formation increased for buildings and construction works (42,9%) and machinery and other equipment (36,1%%), while transport equipment experienced a decrease of about -22,7% (see Table 4.25). Table 4.25: Gross fixed capital formation by type of asset: leather and leather products (R million) Asset type 214 % Change (214-) Total 34.3 28. 37.1 32.5 Machinery and other equipment 29.1 21.6 29.4 36.1 Buildings and construction works 3.5 4.2 6. 42.9 Transport equipment 1.8 2.2 1.7-22.7 Figure 4.23: Trade balance of leather and leather products 3 5 3 2 5 2 1 5 1 5 Export Import Source: Quantec EasyData () The real export value of leather and leather products contracted by 8,% following a growth of 14,6% registered in the previous year. However, the real imports of leather and leather products decelerated by,8% following a 6,7% contraction in the previous year. The exportto-output ratio moderated by 58, in following a growth of 58,6% in the preceding year 29

and import-to-domestic ratio increased modestly by 56,9% in following a growth of 55,6% in 214. As a result, the trade surplus of leather and leather products narrowed from R 711 million in the previous year to R49 million in. Table 4.26: The top five exported leather and leather products in Product Description HS code R million % Share in % Share in 214 % share in Bovine or equine leather 414 1 347,4 29,2 32,9 3,2 Articles of leather 425 554,6 4,4 5,5 12,4 Travel goods, 422 396,7 2,4 2,6 8,9 Composition leather 4113 361,6 1,3 1,3 8,1 Leather of animals 417 231, 5,4 7,8 5,2 The top five exported leather and leather products items in are presented in Table 4.26. Bovine or equine leather is the leading export of leather products and accounted for a 3,2% share in. In, the top export destinations for South African leather products were the EU (27,2%), SADC (14,6%), Eastern Asia (1,2%), NAFTA (9,3%), South Asia (5,4%),and America Rest (3,7%). Table 4.27: The top five imported leather and leather products in Product Description HS code R million % Share in % Share in 214 % share in Travel goods. 422 2 687,3 64,8 62,9 63,1 Leather of animals 417 497, 11,9 12,5 11,7 Bovine or equine leather 414 328, 8,2 9,4 7,7 Articles of leather 425 172,6,8 1, 4,1 Composition leather 4113 134,8 1,2 1,5 3,2 3

25 214 Table 4.27 shows the top five imported leather and leather products in. Travel goods, (63,1%); leather of animals (11,7%); bovine or equine leather (7,7%); articles of leather (4,1%); and composition leather (3,2%) were the leading imports of leather products in. The major sources of imports of leather and leather products were: Eastern Asia (58,4%), South Asia (21,5%),the EU (9,3%) SADC (7,2%) and Americas Rest (3,2%). Table 4.28: Utilisation and reasons for underutilisation of production capacity by large enterprises: leather and leather products (percentage) Period Utilisation Reasons for underutilisation Total underutilisation Raw materials Shortage of Skilled Labour Semi and unskilled Insufficient demand Other 69, 31, 4,,4,7 22,3 3,8 214 69,5 3,5 4,6,2,6 23,8 1,5 73,4 26,6 4,5,5 1, 18,8 1,9 Source: Statistics SA (216) The utilisation of production capacity for leather and leather products division increased modestly by 3,9 percentage points in (see Table 4.28). Insufficient demand remained the main reason for underutilisation, followed by shortage of raw materials and other reasons such as downtime due to maintenance. 7 6 5 4 3 2 1 Figure 4.24: Number of employment: leather and leather products Informal Formal Total 31

25 214 R million (25 prices) During, total and formal employment in leather and leather products rebounded by 7,6% and 7,1% following 3,5% and 3,2% contractions, respectively recorded in the previous year (see Figure 4.24). Table 4.29 shows that in terms of skill level, semi-skilled and unskilled level category has a 67,1% share to the total employment, followed by mid-level skills (2,9%), informal (8,5%) and high-level (3,6%). Table 4.29: The skill level of employees: leather and leather products Skill level % share High-level 176 3,6 Mid-level 1 3 2,9 Semi-skilled and unskilled 3 3 67,1 Informal 416 8,5 Total 4 921 1, 4.7 FOOTWEAR Figure 4.25: Real output and value added: footwear 9 8 7 6 5 4 3 2 1 Real value added Real output The real value added in the footwear division contracted by 16,4% following a growth of 4,5% in the previous year. Similarly, the real output in the footwear decelerated by 1,4% 32

25 214 R million (25 prices) following a contraction of 1,3% in the preceding year. The output price increased marginally by 3,6% in following a 3,5% growth in 214, while intermediate input price moderated by 2,2% in following a 6,5% increase in the preceding year. 12 Figure 4.26: Real gross domestic fixed investment: footwear 1 8 6 4 2 During, the real gross domestic fixed investment of the footwear division moderated by 5,4% following a moderation of 16,6% in.the value of gross fixed capital formation by asset type, as shown in Table 4.3, for footwear division decreased for transport equipment (- 44,4), and buildings and construction works(-5.2%). However, gross fixed capital formation for machinery and other equipment increased by 7.4% in. Table 4.3: Gross fixed capital formation by type of asset: footwear (R million) % Change Asset type 214 (214-) Total 9.5 14.6 11.2 5.4 Machinery and other equipment 82.3 9.2 96.9 7.4 Buildings and construction works 7.2 13.5 12.8-5.2 Transport equipment.9.9.5-44.4 33

25 214 R million (25 prices) Figure 4.27: Trade balance of footwear 4 3 5 3 2 5 2 1 5 1 5 Export Import The real exports of footwear products contracted by 1,9% in following a growth of 7,2% in the previous year. However, the real imports rebounded by 5,6% following a 2,% contraction in 214. As a result, trade deficit of footwear widened from R2 594 million in 214 to R2 86 million in. The export-to-output ratio increased from 13,4% in 214 to 14,5% in and import-to-domestic demand ratio decreased from 4,8% in 214 to 44,2% in. Table 4.31: The top five exported footwear products in Product Description HS code R million % Share in % share in 214 % Share in Footwear, outer sole rubber, plastic or leather and upper leather 6 43 551,9 3,3 32,1 39,7 Footwear, outer sole rubber, plastic or leather and upper textile 6 44 387,5 7,8 7,5 27,9 Footwear, NESOI 6 45 381,1 7,1 6,1 27,4 The top three exports of footwear products in are presented in Table 4.31. The footwear, outer sole rubber, plastic or leather and upper leather accounted for 39,7%; followed by footwear, outer sole with plastic or leather and upper textile by 27,9% in. Among the top 34

export destinations, SADC accounted for 91,1% of the exported footwear products, followed by Northern Africa (1,1%) and NAFTA (,9%). Table 4.32: The top three imported footwear products in Product Description HS code R million % Share in % Share in 214 % Share in Footwear, outer sole rubber, plastic or leather and upper textile Footwear, outer sole rubber, plastic or leather and upper leather 644 3 632,6 31,9 32,5 55,9 643 2 791,7 21,3 22,2 43, Footwear 645 162,8 1,9 1,2 2,5 Table 4.32 presents the top three imports of footwear products in. Footwear, outer sole rubber, plastic or leather and upper textile were the major imported products in and accounted for the largest imports of about 55,9% of the footwear imports in. The Eastern Asia (57,3%), South Asia (31,3%), EU (8.1%), SADC (2,6%) and Americas Rest (1,1%) were the major import sources of footwear products. Table 4.33: Utilisation and reasons for underutilisation of production capacity by large enterprises: footwear (percentage) Period Utilisation Reasons for underutilisation Total underutilisation Raw materials Shortage of Skilled Labour Semi and unskilled Insufficient demand Other 89,9 1,2 1,7 1,1, 7,4, 214 85,3 14,7 2,3 2,3, 1,1,2 85, 15, 1,9,8, 12,3,2 Source: Statistics SA (216) The utilisation of production capacity of the footwear division decreased by,3 percentage points as a result of the decrease output of footwear (see Table 4.33). The division is among few agro-processing industries that have the highest percentage of utilisation capacity. 35

25 214 During, insufficient demand remained the key reason for underutilisation, followed by shortage of raw materials and skilled labour. Figure 4.28: Number of employment: footwear 12 1 8 6 4 2 Informal Formal Total During, the footwear division s total employment rebounded by,6% following a contraction of,7 % in the previous year (see Figure 4.28). However, formal employment contracted by,5% as compared to the,% stagnation recorded in 214. Table 4.34 shows that in the footwear division, jobs were created in the semi-skilled and unskilled levels of employees (73,5%), followed by informal, mid and high level skills categories at 19,%, 4,9% and 2,6%,respectively, in 214 (see Table 4.34). Table 4.34: The skill level of employees: footwear Skill level % share High-level 292 2,6 Mid-level 542 4,9 Semi-skilled and unskilled 8 142 73,5 Informal 2 99 19. Total 11 75 1, 36

25 214 R million (25 prices) 25 214 R million (25 prices) 4.8 WOOD AND WOOD PRODUCTS Figure 4.29: Real output and value added: wood and wood products 4 35 3 25 2 15 1 5 Real value added Real output During, real output of wood and wood products decelerated by 2,2% following a contraction of,6 % in 214. Similarly, the real value added grew modestly by 6,% following a 4,4% growth registered in 214. The output price increased slightly by 8,4% compared to 8,% growth in the preceding year. Similarly, the intermediate input price modestly increased by 7,1% in, following a 5,2% growth in 214. 3 5 3 2 5 2 1 5 1 5 Figure 4.3: Real gross domestic fixed investment: wood and wood products 37

25 214 R million (25 prices) The real gross domestic fixed investment in the wood and wood products division is depicted in figure 4.3. During, it moderated by,7% following a growth of 7,8% in the previous year. During the period under review, the gross fixed capital formation by type of assets for wood and wood products division declined for building and construction works, transport equipment, and machinery and other equipment by -32,2%, -13,4% and -,6%, respectively, in (see Table 4.35). Table 4.35: Gross fixed capital formation by type of asset: Wood and wood products (R million) Asset type 214 % Change (214-) Total 7 931.6 7 412.5 7 239.5-2.3 Machinery and other equipment 7 342.3 6 968.9 6 927.9 -.6 Buildings and construction works 547.9 386.1 261.9-32.2 Transport equipment 41.4 57.4 49.7-13.4 Figure 4.31: Trade balance of wood and wood products 8 7 6 5 4 3 2 1 Export Import As shown in Figure 4.31, the value of real exports moderated by 12,1% in following a growth of 27,1% in the previous year. However, the value of imports increased significantly by 7,7% in, following a 1,7% growth in 214. Owing to a growth of real exports compared 38

to real imports, the trade surplus widened from R3 568 million in 214 to R4 135 million in. Export-to-output ratio demand ratio and import-to-domestic ratio demand ratio increased marginally from 16,4% and 1,4% in 214 to 17,7% and 11,% in,, respectively (see Figure 4.31). Table 4.36: The top five exported wood and wood products in Product Description HS code R million % Share in % share in 214 % share in Fuel wood in logs 441 2 674,7 4,6 32,8 31,3 Wood in the rough 443 718,6 4,7 6,7 8,4 Builders' joinery and carpentry of wood 4418 72,7 4,6 5,2 8,2 Wood sawn 447 56,3 2,8 3,1 6,6 Particle board and similar board of wood 441 396,6 3,7 3,6 4,6 Table 4.36 shows the top five exports of wood and wood products in. The leading exports were fuel wood in logs with a share of 31,3%, followed by wood in the rough(8,4%). The major export destinations for wood and wood products were from SADC (34, 1%), Eastern Asia (26,6%), the EU ( 3,2%) and Oceania (including Australia and New Zealand) (2,6%). Table 4.37: The top five imported wood and wood products in Product Description HS code R million % Share in % share in 214 % share in Wood sawn 447 1 529, 25,4 23,6 31,1 Plywood 4412 64,3 12,7 16,2 13, Fibreboard of wood 4411 59,3 14,1 13,3 1,4 Builders' joinery and carpentry wood 4418 373,2 7,8 7,1 7,6 Casks, barrels, vats, etc. and wood parts 4416 266, 5,9 5,9 5,4 39

Table 4.37 presents the top five imports of wood and wood products in. The main imports of wood and wood products were wood sawn (31,1%), plywood (13,%) and fibreboard of wood (1,4%). In addition, the major sources of imports for wood and wood products were from the EU (23,1%), SADC (21,1%), South Asia (19,8%), Eastern Asia (18,7%) and Americas Rest (9,%). Table 4.38: Utilisation and reasons for underutilisation of production capacity by large enterprises: wood and wood products (percentage) Period Utilisation Reasons for underutilisation Total underutilisation Shortage of Raw materials Labour Skilled Semi and unskilled Insufficient demand Other 16,9 1,1 1,8, 9,2 4,9 5,5 214 17,7 1,9 1,6, 9,6 4,7 4,8 17,1 2, 1,5,1 9,3 4,3 4,6 Source: Statistics SA (216) Table 4.38 shows that the utilisation capacity for wood and wood products division contracted by,6 percentage points during. Shortage of semi- and unskilled labour was the major reasons for underutilisation of production capacity in the division. 4

24 25 214 Figure 4.32: Number of employment: wood and wood products 1 9 8 7 6 5 4 3 2 1 Informal Formal Total During the total employment in wood and wood products division moderated by,2% in, following a,3% growth in 214. During the same period, formal employment contracted by 1,5% as compared to the 1,4% growth registered in 214. Table 4.39 shows the number of jobs in wood and wood product division for different skills level of employees categories, with the semi-skilled and unskilled level category having a share of about 38,6%, followed by mid-level (3,%), informal skilled employees (28,9) and high level at 2,5% in (see Table 4.39). Table 4.39: The skills level of employees: wood and wood products Skill level % share High-level 1 513 2,5 Mid-level 18 476 3, Semi-skilled and unskilled 23 758 38,6 Informal 17 783 28,9 Total 61 53 1, 41