Africa-Press – Eswatini. Eswatini’s textile and apparel industry is entering a defining moment as shifting global trade conditions force the sector to explore new markets and diversify its production base.
This follows the release of the latest Market Insights report by the Eswatini Investment Promotion Authority (EIPA), which outlines both the challenges and the emerging opportunities reshaping one of the Kingdom’s most important export sectors.
The report, published on 3 December 2025 and titled “Trade and Investment Opportunities for Eswatini’s Textile and Apparel Industry,” provides an in-depth analysis of how the expiry of the African Growth and Opportunity Act (AGOA) in September 2025, combined with South Africa’s strengthened localisation policies under the Retail, Clothing, Textile, Footwear and Leather (R-CTFL) Master Plan, will affect the national economy.
These shifts, according to EIPA, underscore the urgent need for Eswatini to reposition itself, diversify its export markets, and encourage investment across the wider textile value chain.
Sector Faces Pressure but Shows Resilience
Eswatini’s textile and apparel sector remains one of the top five contributors to the country’s export earnings. It currently employs approximately 20,000 people and continues to play a central role in light manufacturing and rural employment.
The industry is dominated by two production models — Cut, Make and Trim (CMT), and Free on Board (FOB) manufacturing — with a strong dependency on a small number of markets. South Africa absorbs nearly 89 per cent of Eswatini’s textile exports, while 7 per cent go to the United States, with the remainder destined for Europe and other global markets.
The report notes that despite increasing pressure from regional competition and global price shifts, the sector has shown notable resilience. However, this resilience alone will not sustain long-term competitiveness unless the industry adapts to changes in trade policy and consumer demand.
The End of AGOA: A Critical Turning Point
The end of AGOA’s preferential access to the US market presents a significant challenge for Eswatini’s exporters, particularly those whose operations were geared towards duty-free exports into America. Although the US currently accounts for a relatively small share of overall exports, certain firms were heavily reliant on the agreement, meaning its expiry risks contraction if alternatives are not developed.
At the same time, South Africa’s intensified localisation drive under the R-CTFL Master Plan is gradually narrowing the space available for imported goods — including those produced in Eswatini — within its retail sector. This policy push aims to strengthen South Africa’s own manufacturing base, but its ripple effects will be felt throughout the region.
EIPA emphasises that these developments should not be viewed solely as threats, but rather as signals to accelerate Eswatini’s diversification efforts.
Emerging Opportunities in Value-Chain Expansion
One of the most striking findings in the report is the extent of Eswatini’s import dependency. More than 50 per cent of raw materials used in textile production are imported, representing a significant opportunity for upstream investment.
Potential areas of growth include:
Cotton cultivation and ginning
Yarn and fabric production
Dyeing and finishing facilities
Local manufacturing of accessories and trims
Recycling, fabric waste management, and upcycled fashion
By developing these upstream capabilities, Eswatini could strengthen its self-sufficiency, reduce import costs, and create new employment avenues.
The report also highlights niche opportunities in specialised apparel manufacturing — corporate uniforms, schoolwear, children’s clothing, and traditional attire — which continue to show stable demand across the region.
Tools for Exporters and High-Potential New Markets
To support market diversification, EIPA encourages manufacturers to make use of analytical platforms such as the ITC Trade Map and Market Access Map, which help identify export markets with preferential trade terms, lower tariffs, and rising consumer demand.
Several non-traditional markets have already been flagged as high-potential destinations. These include selected economies in the Middle East, East Africa, and Asia, where demand for competitively priced apparel continues to grow.
Incentives to Attract Investors
Eswatini continues to offer a favourable investment climate for the textile and apparel sector. Incentives available to investors include:
Reduced corporate tax rates
Duty-free importation of machinery
Capital building allowances
Access to subsidised factory shells
Industrial land in key manufacturing hubs
The industry’s geographic spread — with factories located in Matsapha, Nhlangano, Big Bend and other regions — positions Eswatini as a strategic manufacturing base with established logistics networks.
A Call for Strategic Action
The report concludes that although the textile and apparel sector has long been a pillar of Eswatini’s light manufacturing, changing regional and global trade dynamics require decisive action to secure its long-term future. EIPA stresses that the industry must innovate, expand its product range, and aggressively explore new market opportunities.
Failure to adapt could expose the sector to significant vulnerability; however, with targeted investment and strategic planning, the changing landscape could unlock new growth prospects for Eswatini.
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