TRALAC - Trade Law Centre

Swaziland: Investment agency focused on developing textile sector

Monday, 04 October 2010

Source: Fibre2Fashion

The Chief Executive Officer of Swaziland Investment Promotion Authority (SIPA) recognizes the textile and garment sector to be of great significance as it substantially adds to the economy of Swaziland. SIPA, therefore, is focused in its efforts to develop the industry.

These comments came at the 2nd yearly textile and apparel benchmarking report ceremony organized at Esibayeni Lodge.

According to him, the organization is, at present, involved in talks with factory owners under the economic partnership agreement (EPA), in order to review the expansion of both local and global markets including the European markets. SIPA is apprehensive about the present functional difficulties faced by the sector, like the soaring manufacturing costs arising out of high service charges.

He pointed out that it is extremely important to immediately locate an appropriate substitution for the Duty Credit Certificate Scheme (DCCS).

He also revealed that the scheme was not conformable with the rules and regulations of World Trade Organization. The scheme, which was highly and badly influenced by several producers, ended in March, 2010. It is necessary to substitute the DCCS with an alternative which will significantly contribute towards developing the present trading scenario, he added by saying.

He further commented that the US ambassador should encourage the US government to stretch the African Growth and Opportunity Act (AGOA) beyond 2015. This would contribute towards the economic development and promotion of foreign as well as local investments in the country.