Key Issues in the Textile and Clothing Sector in Botswana

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.