By Ncaba Ntshakala
THE increasing difficulties at Eswatini’s border gates have created an unsustainable situation for exporters, particularly those in the citrus and banana sectors.
Recently, Business Eswatini issued a statement emphasizing the seriousness of the situation, cautioning that the challenges faced at the border are critically undermining exporters’ operations, putting their business sustainability at stake.
These challenges have reportedly resulted in cumulative losses amounting to millions due to delays, product spoilage, and strained relationships with buyers both regionally and internationally.
At the heart of the issue lies a breach of established international protocols designed to protect the integrity of agricultural exports. When goods leave Eswatini, they are sealed with a tamper-proof seal, which should remain intact until the shipment reaches its final destination.
This seal, authorized by the National Plant Protection Organization (NPPO), is crucial for compliance with the International Standards for Phytosanitary Measures (ISPM).
However, recent reports suggest that these seals are being compromised prematurely at the border, with customs officials removing about 10% of the stock under the guise of sampling for phytosanitary testing.
This procedure is then repeated upon arrival in the destination country, resulting in a reduction of the original shipment by up to 30%, without any financial compensation for exporters.
These sampling practices have faced harsh criticism from Business Eswatini and exporters, who argue that the current inspection protocol not only violates international standards but also causes significant financial harm to local agricultural businesses.
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According to Business Eswatini, the resulting depletion of stock and compromised cold chain management due to repeated handling have severely impacted the quality and reliability of these exports, particularly for perishable goods like bananas and citrus.
The organization further highlights the broader economic ramifications, noting that Eswatini’s economy is heavily reliant on export-driven growth. Disruptions to agricultural exports, especially in vital sectors such as citrus and banana farming, could negatively affect the nation’s economic performance.
A statement from Business Eswatini stressed, “Local farm exporters continue to suffer greatly as a result of these ‘manufactured’ trade barriers.”
In response to the situation, Business Eswatini has called for immediate intervention. Senior officials from the Ministries of Agriculture and Commerce, along with representatives from Business Eswatini, held a crucial meeting to tackle the ongoing disruptions.
The stakeholders agreed to form a dedicated team, led by the Principal Secretary of the Ministry of Agriculture and supported by Business Eswatini, to negotiate solutions with South Africa’s Border Management Authority (BMA).
The Ministries of Agriculture and Commerce have promptly classified this issue as an emergency and pledged immediate action.
Business Eswatini has expressed gratitude for the proactive response from these ministries and announced that initial discussions with South African counterparts are set to begin next week.
The dialogue will primarily focus on developing streamlined border procedures that adhere to international standards while preserving product integrity, particularly for exports with stringent cold chain requirements.
While the citrus and banana sectors are the most affected, the current border practices also impact other agricultural exports.
Business Eswatini stated that these additional trade issues would be addressed in the upcoming meetings with South African officials.
Business Eswatini reassured exporters that it would provide continuous updates on new developments and reiterated its commitment to protecting Eswatini’s export interests and economic resilience.
The citrus market in Eswatini is a crucial component of the country’s agricultural economy, with oranges, lemons, and grapefruits among the primary fruits grown for local consumption and export.
The country’s favourable climate, characterized by warm temperatures and seasonal rainfall, supports high-quality citrus production, particularly in the Lowveld regions.
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A significant portion of the citrus produced is exported to key markets, including the European Union and the Middle East, where demand remains high due to Eswatini’s reputation for premium-quality fruit.
The sector plays a vital role in the national economy, providing employment to thousands, from farm workers to logistics personnel, and generating substantial export revenue.
An economist familiar with Eswatini’s agricultural trade dynamics, speaking on condition of anonymity, expressed concerns about the ongoing challenges in the citrus sector, labelling them as “a significant risk to both the agricultural economy and broader export performance.”
According to the economist, “The citrus industry is one of Eswatini’s primary agricultural exports, but the current logistical and border issues could jeopardize its profitability.
These disruptions lead to increased costs, decreased competitiveness, and, in some instances, loss of market share as international buyers look for more reliable sources.”
He emphasized that while these logistical challenges are not unique to Eswatini, the country’s heavy dependence on the South African route for its exports renders it particularly vulnerable.
The economist cautioned that prolonged disruptions could create ripple effects throughout the economy, affecting employment and diminishing foreign exchange earnings.
“Eswatini’s export-led growth strategy relies on a stable and predictable trade environment,” the economist noted, “and if border inefficiencies aren’t addressed promptly, we risk more than just immediate financial losses.
Long-term effects on buyer confidence and potential shifts in trade relations could harm our standing in lucrative markets.”
He suggested that bolstering alternative trade routes and investing in cold-chain infrastructure could be advantageous, though he warned that these measures would necessitate substantial coordination and investment.
