By Phiwa Sikhondze
The Kingdom of Eswatini has reported a significant increase in its trade surplus for the first quarter of 2024. The surplus soared by an impressive 71.4 percent, amounting to E562 million, compared to the last quarter of 2023.
As revealed by the Ministry of Economic Planning and Development’s first Quarterly Economic Bulletin for 2024, this financial boost comes amidst a period of varied economic fortunes for the country.
“In the quarter under review, the total merchandise exports were recorded at E10.480 billion while the total merchandise imports were at E9.918 billion,” the bulletin notes.
While the total merchandise exports saw a slight contraction of 0.9 percent from the previous quarter, specific sectors such as sugar and forestry & related products experienced growths of 14.1 percent and 8.5 percent, respectively. On the import side, there was a 3.2 percent decline, with notable decreases in food, fuel energy, and other intermediary consumption goods.
The Southern African Customs Union (SACU) remains Eswatini’s largest export market, absorbing 70.1 percent of total exports, despite a slight decrease from the previous quarter. The Sub-Saharan region follows as the second-largest export destination.
The country’s economic landscape has been shaped by various factors, including a robust services sector growth of 11.9 percent, driven by ICT, financial services, and wholesale and retail activities. However, the primary sector faced challenges, with agriculture and forestry activities declining by 7.3 percent.
Eswatini’s monetary policy has remained stable, with the Monetary Policy Consultative Committee (MPCC) maintaining the discount rate at 7.50 percent and the prime lending rate at 11.0 percent. This decision aligns with the easing of domestic inflationary pressures and global economic trends.
The gross official reserves stood at E7.844 billion, sufficient to cover 2.3 months of imports but below the internationally recommended threshold of 3 months. This indicates a need for cautious fiscal management moving forward.
Overall, the rise in Eswatini’s trade surplus is a positive sign for the country’s economic resilience and potential for growth. It reflects the country’s ability to navigate through global economic challenges and capitalize on its strengths in various sectors.