Botswana Exporters and Manufactures Association (BEMA) is appealing to the Government to consider extending the Special Support Programme to the textile industry until December 2013.
The SSP was introduced in response to the Credit Crunch effects and outcry from the garment sector.
The Government approved a short term support for the Textile and Clothing Industry in January 2010 to enable the sector to retain jobs and improve its competitiveness. The assistance was for 2 years and is ending December 2011.
“The withdrawal of the programme will seriously affect the progress made in the last 18 months; it will not be sustainable,” said Fazul Zahir, Chairperson of the textile sector.
Zahir said the government should consider extending the support programme in a different format until December 2013.
“The textile sector has not managed to find its grounding in order to trade locally and regionally and internationally, hence it seriously needs government assistance” said Zahir.
The textile sector suffered major blows in the last few years which resulted in loss of jobs whilst companies shut down in this sector.
Zahir said from the time the SSP was introduced; many people have managed to retain their jobs. The average total employment in the sector in January 2011 was 2516 and as at March 31 2011 it was 3283 signaling a growth of 16 percent.
“This is a positive effect to the industry considering that the textile industry is greatest employer in the manufacturing sector,” said Zahir.
He said the textile sector is fast becoming a major driving force in our economy and it should not be left to crumble down again.
Zahir said about 138 companies have already benefited from the P38 million of special support programme on textile and clothing industries.
He, however, appealed to the government to lower the VAT for domestic textile and clothing industry and abolish/reduce customs duty on all raw materials imported for manufactures locally.
Zahir said the stimulus package was a welcome development as further company closures were prevented and enabled the sector to retain jobs and to improve competitiveness within the sector.
