Swazi Observer

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LUSH HAIRCARE EXPANSION TO INCREASE EMPLOYMENT BY 62%

By NOKUNCEDA MAGAGULA | 2024-10-08

THE expansion of LushHaircare Factory will result to an increase employment opportunities from 1 400 to 2 400 personal by 2026.

This was revealed by Minister of Commerce, Industry and Trade Manqoba Khumalo during a site visit to the factory by members of the House of Assembly Portfolio Committee yesterday.

Lush Haircare Eswatini is a hair products manufacturing company that produces various items, including hair extensions branded ‘Be Beautiful. It has promised to soon
produce weaves of superior quality. Minister Khumalo noted that government had invested E40 million in the purchase of two incomplete factories adjacent to LushHaircare.

He explained that this investment was made because Lush Haircare promised inwriting that they would use the factories to expand their production.

“We received a commitment from them that by this time next year, they would have increased their employee count to 1 500, and by 2026, they would have increased to 2 400,” he said. Currently, the factory employed 850 Emaswati.

The company's move aligned with His Majesty King Mswati III's mandate of creating employment. He mentioned that the company is a brand under the Tolaram Group of Companies, which also includes
Kellogg’s. “We are happy to see that Kellogg's investment has become an anchored investor, as it has led to other investments,” he said.

He expressed that government looked forward to witnessing
further investments from this particular group in Eswatini in various sectors. He explained that the tour was conducted so that senators would feel confident when supporting the budget, as they would have seen the work being done by the government.

Meanwhile, the committee chairperson and Member of Parliament(MP), Masiphula Mamba, stated that government’s purchase of the incomplete factories was a value-for-money investment. “Politicians always look for value for money, and there has been some controversy regarding government buying land worth E2.5 million for E40 million,” he said. Mamba added that through the tour, they wanted to ascertain that government indeed received value for the money paid for the factories.

Stated
With confidence, he stated that based on their observations, they believed government made a good investment, as the factory had created significant employment for Emaswati. “Value for money is tested by the large number of people who are employed here,” he said.

He further encouraged the Eswatini Investment Promotion Authority (EIPA) and the ministry of commerce to support the firm in any way possible for its growth.

Meanwhile, during the release of the first truckload consignment of hair products made in the factory last year, Minister Khumalo stated that to date, the country had constructed and commissioned 27 factory shells, covering an area of about 197 500 square metres.

“The factories are distributed around the country to encourage decentralisation,” he said. Khumalo added that foreign companies investing in Eswatini were encouraged to source their inputs from local suppliers.

“In fact,most foreign companies do business with local suppliers, as it is cheaper for them. However, there are gaps and limitations in the capacity of local supply, which often requires the importation of goods not be sourced locally,” he said.

He said not only the business community benefited fromthe corporate sector, as many of these companies had a strong presence in the social sector through their Corporate Social Responsibility (CSR) programmes.