Swaziland textile factories close down

"Since January we have had four companies closing down because of harsh economic conditions," said Sihle Mlangeni of the department of Labour and Social Security.

Thirteen companies supplying the US market through a tax-free trade agreement, including the four no longer operating, had been hard hit by the global crisis, Mlangeni said.

"We have been told that most of the firms were no longer getting orders as they used to, before the collapse of major financial institutions in the US."

The textile industry is the second biggest employer in the impoverished landlocked kingdom, where about two thirds of 1.14 million people live in poverty.

Mlangeni said poor business and slow demand had been cited for the closure of the factories, mainly owned by Taiwanese and Chinese companies.

One factory was appealing a court order to pay 630 workers a month's notice pay, the Swaziland Manufacturing and Allied Workers Union said.

At least 800 union members have been affected by the job cuts.

Swaziland is ruled by Africa's last absolute monarch, King Mswati III.

Source: AFP

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