257' The manufacturing industry is dominated by processing local agricultural andforest products. Recessionary forces in the region aggravated by droughtconditions in 1982 and 1983 saw reductions in africulturalry-based manufacturingindustries such as cotton ginning and meat processing. The chemical and fertilizerplants experienced Particular difficulties following a marked decline in demandbecause of the drought and the fertilizer plant which ls teopotorily closed down.The number of new firms in the country has also fallen during the recent past,reflecting the impact of the incentives package offered in South African"homelands". However, a marginal increase in manufacturing output was experlencedin 1984 following the inauguration of a brick manufacturing company. Althoughproduction in 1984 was insignificant, sources suggest that the works could berunning at full capacitY (I million bricks per week) by mid-I985. prospects forthe manufacturing sector in 1985 and beyond will be further improved by theimplementation of two other important industrial projects, namely, a cottonspinning mill and a shoe factory. 268' rn a concerted effort to compete with the incentives offered in the homelands,the @vernment has introduced a new package of financial incentives forinvestment. AII new firms in manufacturing industries not previously repreeentedin swaziland are, under certain con<litions, exempted from Company tax for the firstfive years of operation. For new firms in existing industries and for expandingfirms, the system of arlowances is to be made more favourabre. These meaaures nereintro<luced in the l9g5 budget speech. 269' rn the mining sector, there had been improvement since 1983 owing to increasesin the val,ue and volume of sales of both coal and asbestos, despite declines in theproduction of both minerals. In 19g4, honever, foreign exchange earnings fell toE 18'1 million, mainly because of a decrease in asbestos exports. Howeverr coclexports showed an increase following a rise in production. Diamonds were alsoexported following successfur exproration efforts in previous years. 27o' rn the transportation sector, the Government has signed a loan agreement withthe t{or}d Bank for 98.6 mil,lion to support the road rehabilitation programme thatis being undertaken following cyclone Domoina. The project will assist inrepairing about 700 km of main roads and approaches to key bridges and 500 km ofdistrict roads. The project is being supplemented by usArD (united states Agencyfor Internationar Development) (3I.06 milrion) and the covernment of the u"i;;J-'Kingdom of Great Britain and lforthern Ireland, which has undertaken thereconstruction of one of the nrincipal damaged bridges (Big Bend).
**Analysis**
The text primarily discusses the current state and prospects of various sectors in Swaziland, including manufacturing, mining, and transportation. The text also touches on government policies and incentives aimed at promoting economic development and investment in these sectors. Given the focus on industrial and economic development, it is likely that the text belongs to one or more categories related to these themes.

**Category**
Economic development, Industry