Textile and garment production plays a significant role in Eswatini’s manufacturing sector. In the last several years, the textile and garment industry has grown to offer a wide range of services, including spinning, weaving, knitting, dyeing, and finishing. Introducing such labour-intensive processes locally has increased employment opportunities; currently, the industry provides jobs for over 15,000 Swazis. Eswatini’s textile and garment manufacturers are primarily located in the Matsapha Industrial Estate. Eswatini’s offering of comprehensive product lines in one location is attractive to buyers, as it allows them to meet their broad purchasing needs in one place. As a result, Eswatini provides textiles and garments to some of the largest retailers in the United States, Europe, and South Africa.
Industry History
The Swazi textiles industry took off in 2001 after Eswatini signed the African Growth and Opportunity Act (AGOA) with the US in 2000. Guaranteed export markets encouraged investors to enter the country and boosted employment. As a result, garment exports to the US tripled in the three years following Eswatini’s membership with AGOA. Now that the industry has been established, opportunities to capitalize on current infrastructure and relevant trade policy make setting up new businesses in the industry simpler.
Value Chain
Though the textile and garment sector is export-oriented, the industry is vertically integrated and includes cotton farming and the production of cotton lint. The Eswatini Cotton Board is mandated to promote the development of the cotton industry by, among other things, regulating the procurement of planting seed by farmers to ensure a marketable final product.
The Board’s activities include initiatives to increase overall cotton production, provide resources to market cotton, and develop small-scale spinning industries. The Board was also instrumental in the acquisition of the country’s first locally owned cotton ginnery. Finally, the Board is working closely with relevant stakeholders to introduce genetically engineered cotton seed in order to explore the potential of growing genetically modified cotton in an effort to increase yields and reduce production costs.
Sector Opportunities
The footwear manufacturing industry is confined mostly to traditional footwear that is used in a number of cultural activities. A number of smaller, basic operations focused on sandals and other basic shoes operate in a number of communities providing customer specific designs.
These are mostly informal operators scattered around the country. The country has in the past played host to a sneaker manufacturing company, which stopped operating in the early 90’s. Commercial footwear manufactures are non-existent in the country as there are no manufacturing entities in this category. This industry has a huge potential as Eswatini has preferential agreements with the US, EU and the region (Africa).
Availability of Raw Materials
Cotton: The revitalized cotton industry has potential to become increasingly export oriented and also supply the domestic market. Cotton fibres and yarn can also be imported from the SADC region to supplement production if necessary. Leather: Eswatini has raw materials like cow skin hides as the country has about 639,718 cattle, commercial slaughters about 42,743 cattle in the year 2007/08.Game leather can also be sourced locally.
Textile and Apparel: Several leading international companies are into textile manufacturing and can provide raw material for value addition. Wool and Mohair: Neighbouring South Africa is the world’s largest mohair producer and the fifth largest producer of wool. Competitively Priced Cost of Labour: Despite that the infrastructure in Eswatini is nearly world class, costs are comparable to those of developing countries.