By Thokozani Mazibuko
Minister of Commerce, Industry and Trade, Manqoba Khumalo has told the House of Assembly that more than 25,000 emaSwati are employed by textile firms in the country.
The minister pointed out to the House of Assembly that the Government was in a bid to save the textile jobs in the country.
In his ministerial statement, Minister Khumalo said the textile firms can be geographically located in Siteki, Matsapha, Buhleni, Nhlangano and Matsanjeni in the Lubombo Region.
“Over the past few months, the government has been closely monitoring the performance of the textile and apparel sector in the country as well as the interplay of global forces in the value chain.
“This has resulted in the industry-wide meeting that was hosted by Eswatini Investment Promotion with most of the players in the industry on the 8th of May 2024,” the Minister said.
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Minister Khumalo stated that from the operational side, challenges faced by the industry emanates from the supply chain for the delivery of raw materials owing to delays in clearance of fabric and other raw materials cargo in the major seaports feeding Eswatini.
“This has impacted lead times and order book of our textile companies in Eswatini leading to lay-offs and closures.
The change in production season of the industry which entails conversion in the production for summer styles also has a rebound negative effect in the production volumes,” the minister stated.
The Minister disclosed that some of the textile firms reported declines in their order quantities that were unexpected.
“This is driven by poor demand in the retail sector in the countries where they supply but this situation is expected to improve in time.
In one case, the textile firm closed shop due to a legal issue related to a failure by the company to pay rent for extended periods of time,” the Minister explained to the House of Assembly.
The Minister pointed out that the Ministry was optimistic that the events would subside due to the opening focus on new markets like the African Continental Free Trade area as well as the recent African Growth Act (AGOA).
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Here are some of the most familiar challenges faced by the industry: Production chain issues: the textile production chain involves a series of steps from sourcing raw materials to delivering the final product.
One of the significant challenges is that these steps are often not well-coordinated or communicated.
“We consider the textile industry’s importance in the economy of Eswatini as it is among the top five employers and textile products are in the top 10 export products in Eswatini.
The ministry in its relevant bodies including a national trade facilitation committee (NTLC) will continue working to explore options of making the textile industry competitive,” the Minister further said.
