MBABANE – Eswatini’s textile and apparel industry is entering a period of rapid transition, as global trade rules shift and regional competitors intensify localisation efforts.
This follows the release of the latest Market Insights report by the Eswatini Investment Promotion Authority (EIPA), which outlines both risks and emerging opportunities for the sector as it navigates the post-AGOA era and evolving South African market dynamics.
The report, titled ‘Trade and Investment Opportunities for Eswatini’s Textile and Apparel Industry,’ is the second edition in EIPA’s Market Insights series.
It provides a detailed assessment of how Eswatini’s manufacturers can reposition themselves in response to the expiry of the African Growth and Opportunity Act (AGOA) in September 2025 and South Africa’s strengthened localisation drive under the Retail, Clothing, Textile, Footwear and Leather (R-CTFL) Master Plan.
According to EIPA, these developments ‘accelerate the need for diversification,’ signalling that the country can no longer rely predominantly on traditional markets if it is to sustain and grow its textile industry.
Eswatini’s textile sector remains one of the country’s most key economic contributors. It is among the top five export-earning industries and supports approximately 20 000 jobs across several regions, including Matsapha, Nhlangano and Big Bend.
The industry is largely driven by Cut, Make, Trim (CMT) and Free on Board (FOB) models, which position manufacturers as agile participants in global value chains.
Despite this, the sector’s export base remains highly concentrated. South Africa absorbs 89 per cent of all textile exports, while the United States accounts for 7 per cent, mainly under AGOA preferences. The remainder goes to other global markets.
EIPA notes that with AGOA coming to an end and South Africa deepening its localisation targets, Eswatini’s heavy reliance on these two markets has become a critical risk factor.
The report states that the industry has nevertheless shown “notable resilience,” maintaining production levels and adapting to market fluctuations over the years. However, decisive action is now required to safeguard this stability.
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Growth prospects in specialised apparel
MBABANE - As part of the industry’s diversification strategy, EIPA points to growing demand in specialised apparel categories.
These include:
- Corporate and industrial uniforms
- Children’s clothing
- Traditional attire
- Niche fashion products
Manufacturers operating in these segments may experience less direct competition and enjoy more stable demand patterns compared to the broader fast-fashion market.
The report emphasises that Eswatini’s manufacturing capabilities, combined with the country’s established infrastructure and relatively low operational costs, position the sector well for expansion into these product lines.
To encourage both local and foreign investment, Eswatini offers a range of incentives that support manufacturing growth. These include:
- Reduced corporate tax rates for qualifying investors
- Duty-free importation of machinery and equipment
- Building allowances
- Access to subsidised factory shells within industrial estates
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New markets highlighted through global trade tools
MBABANE - To support diversification, EIPA highlights a range of non-traditional markets that show strong demand for the types of products manufactured locally.
These markets were identified through analytical platforms such as the International Trade Centre’s (ITC) Trade Map and Market Access Map, which assess global demand patterns, tariffs and trade flows.
According to the report, these tools point to several viable export destinations, offering preferential access or underserved demand within Eswatini’s production capabilities.
Such markets allow local manufacturers to explore opportunities beyond regional dependencies and reduce vulnerability to shifts in neighbouring economies.
While the report does not disclose the full list of countries assessed, it notes that these markets present an opportunity for competitive repositioning, especially for firms already exploring product differentiation.
A notable finding in the report is the significant opportunity for investment in upstream segments of the textile value chain.
The research shows that more than 50 per cent of Eswatini’s textile input materials are imported, including cotton, fabrics, dyes, trims and specialised threads.
This import dependency highlights potential for local or regional investment in:
- Cotton farming
- Ginning and lint production
- Dyeing facilities
- Weaving and fabric manufacturing
- Finishing processes including washing and printing
*Full article available in our publication
