Eswatini’s agricultural sector is the second largest contributor to the economy after the manufacturing sector. Commercial agriculture is dominated by sugar, canned fruit and beef production for export. Many Emaswati practice subsistence farming, primarily maize cultivation. The country is historically a net importer of maize, animal feed, vegetable, and other products and the volume of imports depends significantly on the amount of rainfall (which impacts local production). In 2019 the value of agriculture imports was in excess of USD 100 million. The top five import products are wheat, yellow maize, rice, whole maize, and fruits and vegetables.
Besides subsistence production, the country meets much of its demand for agricultural products through imports from South Africa.
Maize: Eswatini is a net importer of maize which is a staple food for the country. The country’s output in 2023 was approximately 85000 MT of maize while it imported approximately 38 000 MT. The GKoE increased the fleet of subsidized tractors to farmers to minimize delay in cultivation.
Wheat: Wheat is the only cereal with a significant import share from a country other than South Africa. Culturally, wheat is not a staple food in Eswatini. However, because of GKoE price controls on bread and poor maize yields, people are consuming increasing amounts of imported wheat.
Sugar
The sugar sector is one of Eswatini’s key sectors, accounting for about 5 percent of GDP and about 20,000 jobs. Around 92 percent of the sugar output is exported and Eswatini fills its tariff-free export quota to the United States each year. USDA estimates that sugar production will increase by 4 percent during marketing year (April to March for sugar cane and May to April for sugar) 2023/2024. Smallholders are facing rising production costs, including energy for irrigation. Supporting smallholders to increase efficiency, adapt to climate change, and adopt on-farm solar irrigation is important for Eswatini’s quest to maintain competitiveness. The sugar industry represents a significant opportunity for climate mitigation, as it can be both a producer and user of renewable energy. Bagasse, a waste product, is used as biomass fuel by the industry for electricity and steam generation, and an expansion of usage could provide a source of energy more widely. There are opportunities for diversifying into biomass if an enabling policy framework for renewable energy is developed. The government has proposed agro-industrial parks to develop downstream sugar processing opportunities.
New markets in West Africa and Asia will continue to push the increase in productivity. A sustained depreciation of the rand/lilangeni against major trading currencies will somewhat cushion returns from non-SACU sales.
Forestry. Eswatini’s forests cover approximately 33 percent of Eswatini’s total land area, but commercial forestry constitutes only 22.6 percent of total forestry. Ninety percent of the plantations in Eswatini have forest management certification. The forestry sector accounted for about 1.3 percent of GDP, 5.9 percent of exports, and 14 percent of formal employment in 2022, and forestry sector productivity is relatively high. There is an expected 51 percent growth in roundwood demand in South Africa by 2030, indicating continued regional growth potential. On the domestic front, biomass energy production is an opportunity for the forestry sector.
Beef. The beef value chain is growing quickly, contributing 2.9 percent of total GDP and 32 percent of total agricultural GDP in 2018. Eswatini Meat Industries Limited (EMI) is the only licensed exporter. Eswatini beef enjoys preferential tariff-free access into the European Union (EU) market through the Economic Partnership Agreement, and an exporting contract with Norway, but exports are well below the quota. In the longer run, Eswatini could expand its export market to SACU member states and through the AfCFTA, where it could export value-added meat products. The constraints to investment in the beef sector arise from the current traditional approach to cattle farming (including preference for larger and older animals and a lack of genetic diversity among breedstock) and the lack of incentives to investment in commercial production in the traditional land tenure system. Eswatini’s Department of Agriculture has shown an interest in modernizing the industry and a willingness to seek outside engagement. Opportunities arise from modernizing the industry and developing capacity, as key inhibitors to growth include:
a) the lack of adequate meat grading systems,
(b) the lack of capacity and knowledge among communal farmers,
(c) the rising risk from climate change–induced droughts, and
(d) the overgrazing of rangelands.
The Eswatini Mkhondvo-Ngwavuma Water Augmentation Program (MNWAP) is a top priority of the Government of the Kingdom of Eswatini. MNWAP is a holistic development program that cuts across several sectors but is centered around agricultural and agro-industrial development.
When completed, MNWAP I will transform about 9,400 hectares of uncultivated land into diversified commercial cash cropping, including cotton and legumes, which are less water-intensive than the more traditional sugarcane.
Leading Sub-Sectors
- Sugar manufacturing machinery
- Citrus
- Grains (maize, wheat, etc)
- Tractors, ploughs, harrows, planters
- Harvesting machinery
- Machinery for milling cereals
- Milking machines and dairy machinery
- Haymaking machinery
- Poultry incubators and poultry preparations machinery
- Irrigation equipment
- Value-added fruit processing
- Packaging
- Start up for food-processing establishments
- Supply of ingredients for value-added products
- Supply of equipment and upgrade of technology
- Supply of packaging
Eswatini is expanding its production of industrial crops such as cotton, cassava, strawberry, melons, and sunflowers to supply industry in its processing. As Eswatini is a member of multiple trade blocs, potential markets exist for these products to be exported raw or processed.
U.S. companies can supply equipment and technology for the food processing factories. They can also supply packaging. One company imports jars from China to bottle their food. U.S. companies can also supply machinery and technology for ethanol production. An emerging industry is supplies for the generation of baseload electricity from Biomass.
Resources
- Royal Eswatini Sugar Corporation: https://www.res.co.sz/home.php
- Eswatini Sugar Association https://esa.co.sz/
- Eswatini Water Agriculture Enterprise (ESWADE): www.eswade.co.sz
- USA Distillers: https://www.usadistillers.com /
- Swazican Fruit Canners (Pty) Ltd. https://www.rfg.com/
- Eswatini Kitchen. http://www.eswatinikitchen.com /
- National Maize Corporation (Pty) Ltd. http://www.nmc.co.sz