EIPA urges Eswatini’s textile and garment sector to diversify beyond traditional markets to boost exports, competitiveness, and long-term industry growth.
Eswatini can no longer rely predominantly on traditional markets for its textile-garment exports if it wants to sustain and grow its textile industry, according to the second edition of the market insights report by the Eswatini Investment Promotion Authority (EIPA).
The textile sector is among the country’s top five export-earning industries and supports nearly 20 000 jobs.
The report outlines both risks and emerging opportunities for the sector as it navigates the post-African Growth Opportunity Act (AGOA) era and evolving South African market dynamics.
South Africa absorbs 89 per cent of all textile-garment exports, while the United States accounts for 7 per cent. The rest go to other global markets.
EIPA noted that with AGOA coming to an end and South Africa deepening its localization targets, Eswatini’s heavy reliance on these two markets has turned quite riskier.
The report said specialized apparel manufacturers may see less direct competition and enjoy more stable demand patterns compared to the broader fast-fashion market. There is significant opportunity for investment in upstream segments of the textile value chain, it noted.
As over half of Eswatini’s raw materials for the sector are imported, this dependence highlights potential for local or regional investment in cotton farming, ginning and lint production, dyeing facilities, weaving and fabric manufacturing, and finishing processes, the report added.
News Courtesy : Fibre2Fashion
