By Phiwa Sikhondze
The Central Bank of Eswatini’s (CBE) Recent Economic Developments, August/September 2024 Report has revealed that the country’s export sector exhibited robust growth in September 2024, with total exports reaching E4.205 billion.
This represents a 16.6% increase year-on-year and an 11.1% rise compared to August, reflecting strong demand for key commodities such as soft drink concentrates and sugar products.
The impressive export performance contributed significantly to a widening trade surplus, which reached E996.5 million for the month, up from E301.3 million in August.
The notable increase in the trade surplus can be attributed to the strong growth in exports alongside a decrease in imports, which fell by 7.9% month-on-month to E3.209 billion, although imports were still 14.5% higher than the same period in 2023. The combination of rising exports and declining imports has bolstered Eswatini’s trade position.
Leading the surge in exports were soft drink concentrates, which saw a month-on-month increase of 4.7%, totaling E1.778 billion. Year-on-year, this sector experienced a 9.4% growth, underscoring its resilience and sustained international demand, primarily from South Africa and regional markets.
Another key driver of Eswatini’s export growth was sugar and sugar-related products, which totaled E1.232 billion in September. This marked a substantial rise from E704.7 million in August, representing a remarkable 27.8% year-on-year increase. The surge in sugar exports was largely due to heightened shipments to the United States, which has become an essential destination for Eswatini’s sugar products.
While soft drink concentrates and sugar displayed stellar performances, other sectors experienced mixed outcomes. Exports of textile and textile apparel, while showing a 20.7% year-on-year increase to E396.0 million, contracted by 10.6% month-on-month.
Similarly, wood and wood-related products also saw a decline, amounting to E220.9 million—a 10.4% drop from August and a 7.7% decrease compared to the same period in 2023.
The strong performance in exports has positioned Eswatini to enhance its trade relationships and capitalize on growing demand for its key commodities. South Africa continued to be the dominant destination for Eswatini’s exports, accounting for 60.6% of outbound trade in September. Other significant markets included the USA, Mozambique, Kenya, Botswana, and Nigeria, which collectively absorbed 23.1% of the country’s exports.