South Africa is mulling a ZAR7bn (US$8.95bn) investment into its flagging textile sector, according to a report in Business Day.

Referring to a draft deal and government industry department document, the report said most of the money will be ploughed into upgrading plants and equipment.

The government aims to open up to 285,000 new jobs in the sector.

The paper claims the industry has suffered 60,000 job losses since 2003, hampered by cheap Chinese imports.