Eswatini can no longer rely predominantly on its traditional export markets for textile and garment products if it aims to sustain and expand its textile industry, according to the second edition of the market insights report released by the Eswatini Investment Promotion Authority (EIPA).
Eswatini Urged to Diversify Textile Export Markets as AGOA Nears End
The report warns that the country’s heavy dependence on South Africa and the United States has become increasingly risky amid shifting global trade dynamics. The textile and garment sector remains one of Eswatini’s top five export-earning industries, supporting nearly 20,000 jobs nationwide.
South Africa currently absorbs 89 percent of Eswatini’s textile and garment exports, while the United States accounts for 7 percent, with the remainder distributed across other international markets. With the African Growth and Opportunity Act (AGOA) approaching its end and South Africa deepening its localisation targets, EIPA cautioned that continued reliance on these markets exposes the sector to growing vulnerability.
New Investment Opportunities Along the Textile Value Chain
The EIPA report highlights both risks and emerging opportunities for Eswatini’s textile sector as it navigates the post-AGOA environment and evolving regional market conditions. According to the analysis, specialised apparel manufacturers may face less direct competition and enjoy more stable demand patterns than companies serving the fast-fashion segment.
Significantly, the report points to strong investment potential in upstream textile segments. Currently, more than half of Eswatini’s raw materials for textile production are imported, creating opportunities for local and regional investments in:
- Cotton farming, ginning, and lint production
- Dyeing and chemical processing
- Weaving and fabric manufacturing
- Finishing and value-added textile operations
EIPA concluded that strengthening upstream capabilities would not only reduce import dependency but also improve the long-term resilience and competitiveness of Eswatini’s textile and garment industry in global markets.
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