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Government announces textile rescue package
23 Oct '10
2 min read
As revealed by an official statement, the Ministry of Trade and Industry has declared a revival package for textile sector, which would benefit 44 textile firms including, 11 large scale, seven medium scale and 25 small scale firms and one micro company.
Gaborone and Francistown region turned out to be the most successful claimant of this revival package with 19 companies getting the aid, while Molepolole, Selebi-Phikwe, Tutume, Bobonong and 10 other villages followed the sequence.
The pace at which the companies are being brought within the coverage of the assistance has remained to be slow. However, the Ministry is optimistic that, the assistance would be extended to a number of other companies in different cities, towns and villages of the country.
As per Central Statistics Office (CSO) figures, textiles constituted to be Botswana's main non-mineral export prior to the economic slump and stood at P2.7 billion in 2007, before it dropped to P1.8 billion in 2008 and further to P1.4 billion in 2009.
Further, though the official data depicts that the textile exports are far below the ones recorded prior to the economic slump, the Trade Ministry is optimistic that its revival package would help the industry to recuperate and to post higher results next year and ahead.
The Bank of Botswana (BoB) data reveals that, the total exports of the textile firms as on June 30, 2010 came to P300 million, which is far below exports of P869.8 million recorded during corresponding period in 2008.
Though these figures have been derived by relying on factors like prices and the Pula/US$ exchange rate, but then the analysts do accept that the 2008 market crash have had greatest influence on the exports.
The sector, prior to 2009 employed over 6,000 workers, but post recession its labour strength has seen a sharp fall of 80 percent. However, the CSO statistics reveal that, prior to the economic slump, the textile industry together with textile yarn manufacturing, synthetic material, clothing and other outfits, stood amongst the most rapidly growing industries in terms of employment generation.
Gaborone and Francistown region turned out to be the most successful claimant of this revival package with 19 companies getting the aid, while Molepolole, Selebi-Phikwe, Tutume, Bobonong and 10 other villages followed the sequence.
The pace at which the companies are being brought within the coverage of the assistance has remained to be slow. However, the Ministry is optimistic that, the assistance would be extended to a number of other companies in different cities, towns and villages of the country.
As per Central Statistics Office (CSO) figures, textiles constituted to be Botswana's main non-mineral export prior to the economic slump and stood at P2.7 billion in 2007, before it dropped to P1.8 billion in 2008 and further to P1.4 billion in 2009.
Further, though the official data depicts that the textile exports are far below the ones recorded prior to the economic slump, the Trade Ministry is optimistic that its revival package would help the industry to recuperate and to post higher results next year and ahead.
The Bank of Botswana (BoB) data reveals that, the total exports of the textile firms as on June 30, 2010 came to P300 million, which is far below exports of P869.8 million recorded during corresponding period in 2008.
Though these figures have been derived by relying on factors like prices and the Pula/US$ exchange rate, but then the analysts do accept that the 2008 market crash have had greatest influence on the exports.
The sector, prior to 2009 employed over 6,000 workers, but post recession its labour strength has seen a sharp fall of 80 percent. However, the CSO statistics reveal that, prior to the economic slump, the textile industry together with textile yarn manufacturing, synthetic material, clothing and other outfits, stood amongst the most rapidly growing industries in terms of employment generation.
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