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

Pic: Shutterstock

Textiles | On 26th Sep 2020

Global economic forecast not as dark as earlier guess: IMF

Though the global economic outlook is not quite as dark as expected...

Pic: Edinburgh Woollen Mill

Fashion | On 26th Sep 2020

FRP appointed to value Peacocks, Edinburgh Woollen Mill

Edinburgh Woollen Mill Group CEO Philip Day has started the...

Pic: Shutterstock

Retail | On 26th Sep 2020

India plans retail trade policy, settling logistics policy

India plans to formulate a retail trade policy for which stakeholder...

Interviews View All

Textile Industry, Head honchos

Textile Industry
Head honchos

Industry could be looking at 10%-15% job losses

Textile industry, Head honchos

Textile industry
Head honchos

Relaxation in FDI norms will support growth of retail sector

Karel Williams, Dow Microbial Control

Karel Williams
Dow Microbial Control

'Silvadur is most rapidly adopted in areas where hygiene-conscious and...

Emanuel Fertuzinhos,

Emanuel Fertuzinhos

Founded in 1981, Lisama, a Portuguese company, is a pioneer in the textile ...

Ronald Van Den Broek,

Ronald Van Den Broek

Headquartered in Japan, Mimaki Engineering Co. Ltd. manufactures and...

Harmeet Singh,

Harmeet Singh

New Delhi-based Jogindra Industries Private Limited provides an assortment ...

Kai Poehler, Voith Paper GmbH & Co. KG

Kai Poehler
Voith Paper GmbH & Co. KG

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

Justin Chan & Shyam Gollakota, University of Washington

Justin Chan & Shyam Gollakota
University of Washington

A fabric that can store data without any electronics or batteries has been ...

Giulio Cesareo, Directa Plus SpA

Giulio Cesareo
Directa Plus SpA

Established in 2005, Direct Plus SpA, is one of the largest producers and...

Akta Adani, India Boulevard

Akta Adani
India Boulevard

India Boulevard is a San Francisco-based curated fashion marketplace that...

Sneha Arora, Label Sneha Arora

Sneha Arora
Label Sneha Arora

Sneha Arora, an alumnus of National Institute of Fashion Technology,...

Suman Nathwani, Suman Nathwani

Suman Nathwani
Suman Nathwani

<span style="font-size: 12px;">Designer Suman Nathwani talks about her...

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

Leave your Comments


September 2020

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


Advanced Search