Eswatini Sugar has reported a total revenue of E7.7 billion for the 2024/25 financial year, marking a significant milestone despite global market volatility and local production constraints.
The figure was confirmed during the FY24/25 Performance Report Presentation at the Hilton Garden Inn in Mbabane. The results emphasized the industry’s resilience amid shrinking international sugar prices and climatic threats.
According to ES CEO Banele Nyamane, the E7.7 billion in revenue was generated from a total sugar cane production of about 641,000 tonnes. After deducting operational costs, E7.3 billion was distributed among industry stakeholders, namely growers and millers, under the long-established Sugar Industry Agreement.
Growers received the majority of the revenue at 68.1%, while millers took the remaining 31.9%. Nyamane noted that some millers are also growers, qualifying them for a dual share in the revenue pool.
“This model ensures stability and sustainability,” explained the CEO. “One of the cornerstones of our industry is that once a farmer harvests, they are paid the following week. That certainty is critical to the survival of smallholder growers, and it’s not something common in other crop industries.”
To support this payment model, ES relies heavily on external financing. For the past financial year, the industry incurred finance costs of approximately E300 million. While this has raised concerns among some observers, ES defends the approach as necessary for maintaining liquidity and trust among stakeholders.
Despite the positive revenue figure, ESA warned of ongoing global headwinds. The price of sugar on international markets has declined sharply, dropping from a high of 26 cents per pound to the current level of 16.5 cents.
“Given this decline, the fact that we were still able to increase our revenue is a testament to the interventions we’ve made in the industry,” the CEO said.
These interventions included improving agricultural practices, investing in more resilient sugarcane varieties, and optimizing harvesting times. Last year, the industry reported a worrying drop in yields from 6.2 million tonnes in 2018 to 5.1 million tonnes in 2023, but early signs from the 2024 season suggest a modest recovery is underway.
Yields have risen from 11.9 to 12.6 tonnes per hectare, driven by more favorable weather and the adoption of modern farming methods. ESA expects this upward trend to continue if current support measures are maintained.
The sugar industry remains one of Eswatini’s most critical economic sectors, contributing significantly to national GDP, export earnings, and rural employment. The industry’s integrated value chain—from sugar production to by-products like molasses and electricity—provides multiple streams of value.
One such example is Ubombo Sugar Limited, which continues to generate renewable electricity for the Eswatini Electricity Company (EEC), showcasing how the sector is expanding its contribution beyond just agriculture.
However, ESA cautioned that threats to the industry’s sustainability persist. Chief among them are climate change, the loss of traditional farming knowledge across generations, and international trade disputes. Tensions with South African sugar producers over market access and low-priced imports have also increased pressure.
“While the revenue figure is encouraging, we cannot rest. Our focus must remain on climate resilience, market diversification, and ongoing research to ensure the long-term viability of the industry,” Nyamane said.
As part of a broader effort to elevate the brand internationally, the Eswatini Sugar Association has also begun a rebranding journey and will now be publicly known as Eswatini Sugar.
“In our dealings, we’ll remain the Eswatini Sugar Association, but how we call ourselves would simply be Eswatini Sugar,” Nyamane announced. “It’s because if you go to Europe or within the region, people speak about the product, they ask, where is Eswatini Sugar? So that is what we are intending to amplify.”
The rebrand includes a refreshed logo, which was unveiled during the event. Nyamane expressed gratitude to Yati Media for assisting in the creative process and to the Eswatini Intellectual Property Office (ESIPO) for guiding the association through the legal registration of the new trademark.
“We can only hope that there will be no backlash on our rebranding because rebranding is a tough process,” he acknowledged. “We are hopeful that as we go forward, we will cement our brand not only as Eswatini Sugar locally, but across the world, and amplify this product that has been an anchor to the nation.”
He emphasized that while the name and visual identity are evolving, the vision and mission of the Association remain unchanged.