Abstract:
This paper considers the performance of the Textile and Clothing (TC) sector in
Botswana and reviews various national and international incentive schemes aimed at
developing TC exports. The analysis shows that domestic policies and preferential
trade regimes helped establish the sector and still play a central role in its continued
operation. The sector does not operate as yet on the basis of any comparative or
commercial advantage. However, the sector has failed to take advantage of existing
trade preferences because it is faced with many challenges stemming from the cost
of production and efficiency of the sector. The situation worsened, when many
workers lost their jobs and exports declined between 2008 and 2010 due to the
global economic crisis and phasing out of export incentive schemes, respectively. It
is therefore fundamental that appropriate policies and interventions are put in place
to secure the sector’s growth, development and competitiveness. Once government
has determined that the sector is commercially viable in the long term, the short
term measures that have been put in place between 2010-11 need to be replaced with
measures that address the long term productivity and profitability of the sector.
