The Garment Industry in Eswatini

The Garment Industry in Eswatini

Eswatini, a small landlocked country in Southern Africa, has developed a significant garment and textile industry over the past few decades. This sector is one of the country’s leading sources of employment and a key contributor to its export economy. The growth of the garment industry in Eswatini has been largely driven by favorable trade agreements, foreign direct investment, and government support.

The industry took off in the 1990s when foreign investors, particularly from Taiwan and South Africa, established manufacturing plants in Eswatini due to the country’s political stability, low labor costs, and access to international markets. One of the most influential trade mechanisms has been the African Growth and Opportunity Act (AGOA), a U.S. trade law that allows duty-free exports of certain goods, including garments, to the United States from eligible Sub-Saharan African countries. Eswatini qualified for AGOA benefits in the early 2000s, which led to a significant boom in garment exports.

Most of Eswatini’s garment factories are located in industrial zones around Matsapha and Mbabane. These factories primarily produce denim jeans, T-shirts, and other knitwear products for major brands and retailers in the U.S., South Africa, and Europe. South Africa is a particularly important regional market due to its proximity and large consumer base.

The garment industry in Eswatini employs thousands of people, with the majority being women. This sector has played a crucial role in poverty reduction and women’s empowerment by offering steady, formal employment in a country with limited industrial opportunities. Workers typically engage in sewing, cutting, quality control, and packaging operations.

However, the industry also faces several challenges. Labor rights concerns have emerged over the years, including low wages, long working hours, and inadequate working conditions. Efforts have been made by local unions and international organizations to improve labor standards and ensure compliance with international norms. In 2014, Eswatini was temporarily suspended from AGOA due to concerns about workers’ rights and freedom of association. The country worked to address these issues and was reinstated in 2018, restoring access to the vital U.S. market.

Infrastructure and logistics also pose challenges. Although Eswatini benefits from decent road connections to ports in South Africa and Mozambique, delays and costs associated with regional transport can impact competitiveness. Moreover, the industry relies heavily on imported raw materials, which adds to production costs and complicates supply chains.

To remain competitive, the Eswatini government and private sector are exploring ways to add more value locally, such as producing textiles and materials domestically, improving workforce skills, and attracting new investment. The government, through institutions like the Eswatini Investment Promotion Authority (EIPA), continues to promote the garment sector as a strategic priority for industrial development and economic diversification.

In summary, Eswatini’s garment industry is a vital part of the national economy. With ongoing efforts to improve labor standards, infrastructure, and local value addition, the industry has the potential to continue creating jobs and boosting exports in the coming years.