REPLACEMENT FOR NEWLIFE GARMENTS, OVER 400 JOBS

MBABANE – Minister of Commerce, Industry and Trade Manqoba Khumalo says a new company is already in place following the shutdown of Newlife Garments in Matsapha.

Khumalo was speaking on national radio yesterday where he disclosed that the textile firm had closed down, following its failure to pay rent for the factory shell it had been using for quite some time. The minister was reacting to concerns from workers’ unions and other concerned stakeholders over the shutting down of businesses in the country for various reasons and the negative ripple effects it had on the kingdom’s economy. Khumalo said he established that the company, which was based in Matsapha, closed down following the court’s decision to vacate the place after its owners failed to pay rent. “Following this company’s failure to pay the rent, we have found a new one that will take over, but we cannot disclose its name at the moment. The new company will hire over 400 people once it starts operating. I think they will start their operations within 30 days,” the minister said.

On the other hand, the minister revealed that his ministry has been informed that there are other companies which had informed the Ministry of Labour and Social Security, through letters, about their intentions of closing down or effecting lay-offs. “We are going to visit them to find out whether they will close down their companies or lay-off their employees. It is not a good thing to see companies closing down, resulting in the loss of jobs by emaSwati,” the minister said. On a positive note, Khumalo stated that they have several companies which have shown interest in opening businesses in the country and they are in the process of getting factory shells. Furthermore, the minister said that people of around Hlatikhulu would now have jobs following the reconstruction of a factory, which was burnt down during the 2021 political unrest. The factory will offer 400 jobs.

Meanwhile, Nompilo Mncina, the Communications Officer in the Ministry of Labour and Social Security, said they were not allowed to divulge information on companies that had applied for retrenchments or closing down their business. Sanele Sibiya, an Economist and University of Eswatini (UNESWA) Lecturer, said given that the textile industry is the second major employer in the country, the laying off and closing down of factories in the country had a negative economic impact to both the employees and government. He said textile industries in most cases employed unskilled labour but later on they train them to equip them with the required skills-set for the job. “Due to the training of the workers, this sector is now viewed as one with high-skilled labour. So, the shutting down of factories is really a painful thing for emaSwati,” he said.

Sibiya went on to say that the country is currently trying to reduce the high unemployment rate, but the efforts are being hamstrung by the continuous closure of some of the textile firms.
Wander Mkhonza, Amalgamated Trade Unions of Swaziland, Secretary General (SG), criticised government for the closure of some of the companies in the country, resulting in the loss of employment. Mkhonza said should the Ministry of Commerce, Industry and Trade had allowed companies to work in a every conducive environment, most emaSwati would still be employed. “Companies are working in a non-conducive environment, resulting in them shutting down and looking for greener pastures. The ATUSWA SG said he was aware that some companies had approached the Ministry of Labour and Social Security regarding laying off their staff. He said: “Two big companies in the country, which I cannot mention at the moment, have applied to lay off their staff.”      

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