Eswatini targets sugar import substitution through AfCFTA

By Delisa Magagula

The Government of the Kingdom of Eswatini has expressed its intention to leverage the African Continental Free Trade Area (AfCFTA) to reduce, and eventually eliminate, the importation of sugar into the country.

Speaking during the Eswatini Standards Authority (ESWASA) standards seminar at the Mavuso Trade and Exhibition Centre, Ministry of Commerce,

Industry and Trade Director of Trade, Lungile Dlamini, said AfCFTA presented Eswatini with an opportunity to drive self-sufficiency and enhance its competitiveness in the sugar industry.

The seminar was held on the sixth day of the Eswatini International Trade Fair under the theme ‘Advancing Business Growth through Standardization and Certification’

Dlamini told participants that AfCFTA was not only a trade agreement but also a framework through which the country could align its industries for greater production and market access.

“We must use AfCFTA as a strategic tool to stop importing sugar completely and to strengthen our domestic sector so that it is competitive across Africa,” she said.

She explained that while Eswatini is one of Africa’s notable exporters of sugar, the country still imports refined sugar to meet certain domestic needs.

“The paradox is that we are both exporters and importers. This is a gap that can be closed by aligning production processes, standards, and markets under AfCFTA,” she said.

The seminar emphasised the role of standards and certification in positioning Eswatini’s products to compete within regional and continental markets. Dlamini said standardization was central to trade facilitation and consumer confidence.

“A product that meets agreed standards can move across borders without difficulty. This is essential if Eswatini is to seize the full potential of AfCFTA,” she stated.

The ESWASA Chief Executive Officer, Ncamiso Mhlanga, also addressed the seminar, underlining the importance of compliance.
He said the authority was committed to ensuring that businesses understood certification requirements.

“Our role is to make sure that when you produce in Eswatini, your product is recognized across Africa for quality and safety. This is what will give our industries a competitive advantage,” Mhlanga explained.

Eswatini’s sugar industry has long been a pillar of the economy, accounting for about 5 per cent of the country’s GDP and supporting around 20,000 direct jobs.

However, official figures indicate that Eswatini continues to spend millions on sugar imports. According to FAOSTAT, the country imported 3.23 million kilograms of refined sugar in 2022, valued at US\$2.62 million.

Dlamini said reducing this dependence was not just about trade balances but also about industrial transformation.

“When we continue to import what we can produce, we lose opportunities for local value addition and job creation. Our goal is to strengthen domestic refining capacity and ensure that we no longer rely on imports,” she stated.

Dlamini noted that AfCFTA, which connects 55 African countries into a single market of 1.3 billion people, offered Eswatini new avenues for expanding trade beyond its traditional partners.

“Eswatini’s participation in AfCFTA is about more than exports. It is about positioning our economy to supply domestic and regional demand sustainably,” she said.

She highlighted that sugar was only one example of products where import substitution could deliver growth.

“We have seen the potential in other sectors such as textiles, processed foods, and light manufacturing. But sugar is a strategic starting point because of its economic significance and the strength of our industry,” she said.

Industry representatives who attended the seminar said the government’s intention to phase out sugar imports aligned with their goals.
During a recent launch of Spotted Horse Rum Royal Eswatini Sugar Corporation Director Nick Jackson said the industry was working closely with regulators and trade agencies to expand refining capacity and diversify sugar products.

“We are confident that with AfCFTA and the right policy support, Eswatini can fully meet its domestic sugar needs and continue to grow as an exporter,” the Director.

Small and medium enterprise owners also expressed optimism. One entrepreneur producing sugar-based confectionery products said local sourcing would reduce input costs and improve reliability.

“If imports are reduced, it means we can depend more on domestic suppliers. This will strengthen small businesses,” she said.

Dlamini said government policies, including the AfCFTA implementation strategy and industrial development frameworks, would support the transition.

“We will continue to work with producers, regulators, and development partners to ensure that Eswatini can achieve sugar self-sufficiency. Standards, certification, and competitiveness are at the core of this strategy,” she concluded.

The seminar ended with calls for collaborative efforts among government agencies, private sector players, and consumers to promote the ‘Made in Eswatini’ label.