Home / Knowledge / News / Textiles / 'Botswana textile sector relies on US & EU tax incentives'
'Botswana textile sector relies on US & EU tax incentives'
29
May '13
The textile and apparel exports of Botswana, a landlocked country located in Southern Africa, may continue to decline due to the withdrawal of tax incentives by the US and the EU under the Financial Assistance Policy (FAP) as the country is depending on preferential tariffs, according to a research report by the Botswana Institute for Development Policy Analysis (BIDPA).
 
The research report prepared by Mr. Roman Grynberg and Mr. Masedi Motswapong of BIDPA states that Botswana’s textile and garment industry has benefitted from trade preferences and it remains to be seen whether the sector can survive without such preferences.
 
Botswana established the textile and clothing industry during the period 1980-90 and the sector expanded rapidly as a result of the trade preferences available to it under the Southern African Customs Union (SACU) agreement, the Cotonou agreement and the African Growth and Opportunity Act (AGOA).
 
The research report states that the textile and garment sector of Botswana grew by making use of a number of policies including protective tariffs, quotas and export incentives. Furthermore, the preferential trade regimes put in place by the US, the EU and SACU were crucial to the economic growth and development of the country.
 
“The textile and clothing industry of the country did not perform well after the financial crisis in the US and the EU, which led to laying off of workforce by several Botswana firms,” according to the report.
 
In order to boost the growth of textile and apparel sector of the country, Botswana Government developed a special support program to resuscitate the industry. The special program set aside a total of P38 million during 2010-2011 period.
 
However, BIDPA research report states that whether the subsequent rise in textile and garment exports from Botswana can be directly attributable to the government subvention cannot be readily determined.
 
According to the report, if the Government wishes to further develop the textile and clothing sector, then the policies and interventions need to be put in place to secure the sector's productivity and competitiveness.
 
“Bostwana Government needs to first address whether the sector will survive the inevitable further erosion of trade preferences and if so, the interventions need to be revised and focused on those firms best able to survive in the longer term,” the report concludes.
 

Fibre2fashion News Desk - India


Must ReadView All

Courtesy: Rieter

Textiles | On 22nd Aug 2017

Rieter unveils new generation of RDB-D 50 draw frame

Rieter, a producer of textile machinery and automobile components,...

Courtesy: Alizilla

Textiles | On 22nd Aug 2017

‘New Retail’ strategy Alibaba’s focus in next 15 years

Alibaba executive vice chairman Joe Tsai has said that the next 15...

Courtesy: Eurovet/ Interfiliere Shanghai

Textiles | On 22nd Aug 2017

Interfiliere Shanghai to focus on textile printing

Interfiliere Shanghai, the leading trade show for intimates,...

Interviews View All

Nitin Bhatia
Trend Arrest

Setting up a brand for online selling is easy, but running the brand is not

Subhashini Srinivasan
The S Studio

Ethnicwear market will see an upward trend if uniqueness and quality are...

Sunil Kumar Sharma
Loknayak JPNSSSG Ltd

'The blend of cotton–linen yarn has high demand in the domestic and...

Larry L Kinn
Suominen Corporation

Larry L Kinn, Senior Vice President - Operations Americas of Suominen...

Iago Castro Asensio
RCfil Distribuciones S.L.

Iago Castro Asensio, International Business Manager of RCfil...

Kai Poehler
Voith Paper GmbH & Co. KG

The glass mat industry is growing by five to eight per cent annually. Kai...

Silvia Venturini Fendi
Fendi s.r.l

"Yes, my confidence and positive attitude are my strengths and should be...

Ritu Kumar
Label Ritu Kumar

‘Classics will return’ "There are a lot of people wearing western clothes ...

Bani Batra

Bani Batra’s couture wedding collection is inspired by traditional Indian...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH

August 2017

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

news category


Related Categories:

Planning to Take the Leap towards
Sustainability?

Do you see sustainability as a route to business growth?

Yes No

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes No

Active Poll

Do you see sustainability as a route to business growth?

Yes
67.7%
No
16.1%
Skip
16.1%

Total Votes: 31

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes No

Active Poll

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes
45.2%
No
35.5%
Skip
19.4%

Total Votes: 31

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes No

Active Poll

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes
83.9%
No
6.5%
Skip
9.7%

Total Votes: 31

Thanks for your valuable feedback. Claim your free latest sustainability e-book.

Active Poll

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes
61.3%
No
9.7%
Skip
29.0%

Total Votes: 31


E-News Insight
Subscribe Today and Get the
Latest News Update in Your Mail Box.
Advanced Search