Trade recognised as the backbone of Eswatini’s economy

By Delisa Magagula

The Principal Secretary at the Ministry of Commerce, Industry and Trade, Melusi Masuku, has emphasised that trade continues to play a central role in sustaining and growing Eswatini’s economy.

Masuku was speaking at the World Customs Organization (WCO) National workshop on basic rules of origin for Eswatini customs and other government officials.

Masuku highlighted that trade is not only about the movement of goods across borders but a driver of employment, investment, and long-term national development.

The PS explained that Eswatini’s economy is heavily reliant on its ability to access regional and global markets.

With a relatively small domestic market, the country depends on trade to generate revenue, expand industrial output, and create jobs for thousands of Emaswati.

He noted that over 70 per cent of Eswatini’s goods are exported within the Southern African Customs Union (SACU), while preferential trade agreements with the European Union and the United States have provided local producers with critical market access.

“Trade is the lifeblood of Eswatini’s economy. Without it, our industries would not be able to grow, and our people would not benefit from the opportunities that external markets bring,” he said.

The Principal Secretary pointed to the sugar sector as a longstanding example of trade’s impact on the country’s economy.

Sugar remains Eswatini’s largest export commodity, accounting for a significant share of foreign exchange earnings.

Beyond sugar, Masuku said the government is working to expand trade in manufactured goods, textiles, and agricultural products to diversify export earnings and reduce dependence on a single commodity.

He added that government policy is geared toward creating an enabling environment where businesses can thrive, produce competitively, and export sustainably.

This involves aligning Eswatini’s trade policies with regional frameworks such as the African Continental Free Trade Area (AfCFTA), which is expected to unlock new opportunities for local producers to access larger markets across the continent.

Masuku also underscored the importance of infrastructure in strengthening the country’s trading capacity.

Efficient transport networks, customs systems, and trade facilitation measures are essential for reducing the cost of doing business and improving competitiveness.

The government, working with partners, has invested in upgrading border facilities, streamlining customs procedures, and digitalising trade processes to make it easier for businesses to move goods in and out of the country.

“Trade facilitation is just as important as trade agreements. If goods cannot move quickly and cost-effectively, our competitiveness is undermined,” he explained.

The Principal Secretary further highlighted that trade is not only about exports but also about imports that sustain industries and provide essential goods for the population.

Raw materials, machinery, and technology imports support local manufacturing, while consumer goods imports ensure that Emaswati have access to affordable products.

The balance between exports and imports, he said, is what sustains the economy and supports livelihoods.

Turning to the role of small and medium enterprises (SMEs), Masuku noted that the government is actively supporting smaller businesses to participate in trade.

He acknowledged that many SMEs face barriers such as limited access to finance, lack of information about markets, and inadequate capacity to meet export standards.

Through initiatives under the Ministry of Commerce, Industry and Trade, the government is working with development partners to provide training, financing options, and market intelligence to ensure that SMEs are not left out of the benefits of trade.

“SMEs form the backbone of our economy in terms of employment. Helping them to trade, both locally and internationally, is a priority,” he said.

Masuku also pointed to the need for private sector investment to complement government efforts. He encouraged businesses to take advantage of trade agreements and to explore new markets beyond the traditional partners.

He stressed that Eswatini’s competitiveness will depend on its ability to produce goods that meet international quality standards while remaining cost-effective.

He recognised that while trade has brought many benefits, challenges remain. Fluctuations in global commodity prices, changes in trade policies in partner countries, and logistical constraints can all affect the flow of goods.

Climate change also poses a risk to agricultural exports, with droughts and extreme weather threatening key industries such as sugar and forestry.

Masuku assured stakeholders that the government is aware of these challenges and is working to put in place resilience measures that will safeguard the economy.

On regional integration, the Principal Secretary described Eswatini’s membership in SACU and the Southern African Development Community (SADC) as central to its trade strategy.

These platforms provide Eswatini with preferential access to neighbouring markets and allow for harmonisation of standards and policies that ease cross-border trade.

He said the country is committed to playing its part in advancing regional trade agendas that benefit all member states.

In his concluding remarks, Masuku called for continued collaboration between the government, private sector, and development partners to maximise the benefits of trade.

He stressed that trade is not an isolated policy area but a cross-cutting driver of growth that touches on industry, agriculture, infrastructure, and social development.

“Trade remains the backbone of Eswatini’s economy. Our task is to strengthen it, diversify it, and ensure that all our people benefit from it. With the right partnerships and continued investment in competitiveness, Eswatini will secure its place as a strong trading nation,” he said.

The Principal Secretary’s remarks come at a time when Eswatini is looking to accelerate economic recovery and growth.

By positioning trade at the centre of its development agenda, the government is sending a clear message that sustainable economic progress will be built on the country’s ability to connect with regional and global markets.