Inspite of challenging global market forces leading to lower international prices placing pressure on revenues and grower margins, Eswatini’s sugar industry displayed great resilience to record revenue growth of E300 million.
The sugar industry generated E7.7 billion in 2025 and for the financial year 2025/26 ending at March 31, 2026, the industry recorded a remarkable E8 billion.
According to a Eswatini Sugar Integrated Annual Report, the significant shift in the international pricing environment placed the industry increasing strain and the global sugar market experienced a sharp correction with prices falling from levels above 25 US Cents per pound two years ago to below 14 cents. 
However, the Eswatini sugar industry managed to grow revenues even as global sugar prices tumbled to their lowest levels in five years.
Also contributing to the challenges, according to the report, were adverse weather disrupted harvesting, production costs escalated and cheap imports increasingly threatened the Southern African Customs Union (SACU) market.
According to the Industry President Nick Jackson, a rising volume of sugar imports from the world market is challenging SACU market stability while a weakening US dollar has reduced the effectiveness of the dollar-based reference price (“DBRP”) used to set tariffs on sugar imports into SACU.
“When global prices fall, more sugar from major low-cost producing countries enters SACU market, intensifying pressure on us as producers.
In response the industry was compelled to discount the selling price to remain competitive,” Jackson said in his foreword in the Integrated Annual report.
Jackson said the industry also faced unfavourable weather conditions during the later part of the season.
“Prolonged rainfall disrupted harvesting operations with significant volumes of cane remaining unharvested in the fields by the end of the season.
These conditions required adjustments to the milling season in an attempt to harvest the remaining cane,” he added.
Chairman of the Eswatini Sugar Board of Directors Meshack Kunene said the year unfolded against a difficult global environment for the sugar industry, testing the resilience of growers and millers across the sector.
“This year’s performance was shaped as much by global market forces as by conditions here at home. Both told a similar story.
Lower international prices placed pressure on revenues and grower margins while climate variability, rising input costs and biotic stressors continued to affect production.
These conditions reinforced the importance of protecting value, supporting those who depend on the industry and keeping long-term sustainability firmly in focus,” Kunene said in his foreword in the ES Integrated Annual Report.
He added: “Despite these pressures, the industry has continued to invest in strengthening its long-term production capacity.
The expansion of area under cane in the Lower Usuthu Smallholder irrigation Project. (“LUSIP II”) will support production growth and broaden participation in the industry.
The resilience of the Eswatini sugar industry depends on cooperation across the value chain. Constructive engagement between growers and millers is essential during periods of market volatility and production pressure,”
Kunene said the rising costs of electricity has become a major concern for the industry.
“Growers are heavily dependent on grid power for irrigation pumping and rising electricity tariffs continue to place significant on production costs.
While solar adoption is increasing and millers are able to generate some power from biomass, energy costs remain significant burden for the sector and require mitigation measures,” he said.
Eswatini Sugar Chief Executive Officer Banele Nyamane said the year under review revealed both the strength of the Eswatini sugar industry and the realties of operating in a volatile global market.
“Although the industry is currently facing headwinds, the industry has weathered similar cycles before and is well positioned to navigate this period. In a year shaped by weaker international prices, rising imports and production-related challenges, the organisation remained focused on delivering against its mandate.
This included supporting industry stability, engaging with key stakeholders, and advancing the priorities that strengthen the long-term competitiveness of the sugar sector,” Nyamane said in his Foreword in the Integrated Annual Report.
He added: “As one of the country’s most important agricultural and export industries, the industry continues to play a vital role in supporting economic activity and livelihoods across Eswatini.
The recovery in sugar production demonstrates the value of maintaining agricultural best practices and strong collaboration across the industry. We also saw a significant decline in customer complaints during the year as the sugar quality concerns of the past two seasons were successfully addressed.,”
Nyamane said despite the operational gains, the financial outcome for the year was shaped by external market conditions.
“Global sugar prices declined to their lowest level in approximately five years. A weaker US dollar against Lilangeni during the latter part of the year further reduced export earnings,” Nyamane said.
He said the viability of the small growers remains a kye priority in the current low-price environment.
“The low world market price coupled with rising input costs (particularly electricity for irrigation and fertilisers) is eroding grower margins.
The industry is therefore working closely with vulnerable growers to help them sustain production,” Nyamane added.
