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Higher utility bills, taxes squeeze Eswatini's textile sector

16 Mar '26
3 min read
Higher utility bills, taxes squeeze Eswatini's textile sector
Pic: Shutterstock

Insights

  • Eswatini's textile and apparel sector, which is among the country's top five export earners, supporting about **,*** jobs and contributing roughly *.* per cent to GDP, is under stress as rising electricity tariffs, VAT on water and proposed sharp wage hikes are tightening margins, raising fears of job losses.
  • Eswatini counts South Africa as its major export market, followed by the US.

The sector’s growth has been closely linked to the African Growth and Opportunity Act (AGOA), enacted by the United States Congress in **** to strengthen trade ties with sub-Saharan Africa.

After Eswatini (known earlier as Swaziland) joined the programme in ****, it gained duty-free access to the United States for several products, including garments. This preferential market access attracted foreign investment, particularly from Asian manufacturers seeking competitive production bases linked to the Western markets.

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