"Textile sector on brink as costs surge, orders shrink", 16 February 2026

The textile and apparel industry is warning of imminent retrenchments as operating costs spiral beyond sustainability...

Factory owners claim a convergence of pressures, a 15 per cent value-added tax (VAT) on water introduced on February 1, 2026, steep electricity tariff increases effective April 1 and a proposed 66.67 per cent salary increment over three years, have pushed the sector to the edge...

“...We are absorbing costs from utilities, rentals, transport and raw materials, yet our selling prices are dictated by buyers outside our borders,” said one industry insider.

South Africa remains the primary market for Eswatini’s garments. However, textile firms report declining orders from major retailers such as TFG Group and Woolworths.

While South Africa’s October retail data showed a 5.8 per cent year-on-year increase in textiles, clothing and footwear sales, industry sources say this growth is largely promotion-driven, with retailers discounting heavily. That, in turn, pushes them to procure at the lowest possible cost...

The textile employers said when retailers struggle, they inevitably feel the shock.

Local manufacturers said the impact is visible. Drake Clothing closed last year, leaving about 350 workers jobless. Golden Jubilee Textiles ceased operations, affecting roughly 650 employees, though it has pledged to reopen. In 2023, Kasumi Apparels Textiles closed, costing 1 782 jobs before eventually resuming operations...