Business

MATSAPHA - Over 400 textile workers have been retrenched, as African Knitwear, one of the oldest textile factories in the country, is closing.

According to a source close to the matter, the management of the company, located at Matsapha Industrial Site, informed workers in August 2025 that it would cease operations due to various factors, including a lack of orders and financial constraints.

Subsequently, the source stated that management served the workers with notices of termination of employment contracts and submitted these to the Labour Commissioner’s Office in the Ministry of Labour and Social Security.

The source alleged that the closure was due to a lack of orders and financial constraints, as the company was purportedly failing to meet some of its financial obligations, such as remitting Eswatini National Provident Fund (ENPF) monies.

“The one-month notices were dated August 12, 2025, which means that the workers were retrenched on September 12, 2025,” the source said.

He added that during the one-month notice period, management engaged the workers regarding calculations of their terminal benefits and this information was also shared with the Labour Commissioner’s Office. However, the source said the company selected about 100 workers to remain to complete some outstanding work. He stated that, according to management, these 100 workers would continue until December 2025, when the company would completely cease operations.

Meanwhile, efforts to get a comment from the company’s management proved futile. When this publication visited the factory on Friday, it was informed that the directors were out of the country. Earlier this week, when the publication called the company, it was also informed that the directors were unavailable.

However, Acting Labour Commissioner Kingdom Mamba confirmed that, as per procedure, the ministry, through his office, was duly notified about the closure of the textile factory. He said they received notices on August 12, 2025, which, according to law, concluded on September 12, 2025

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Over 400 textile workers have been retrenched. (Pic: Sourced)