The European Union (EU) and International Trade Centre (ITC) have teamed up with Business Support Organizations (BSOs) to strengthen their understanding of trade opportunities under the Southern African Development Community-European Union Economic Partnership Agreement (SADC-EU EPA).
The term BSOs refers to organizations that provide advice and help directly to entrepreneurs to help them grow their small businesses.
According to a study conducted by the ITC, only 59% of Eswatini’s total export potential has been realized and there are opportunities for Eswatini to increase existing exports to the EU by 41%, which is equivalent to E16.7 billion ($896 million).
While the EU is among the markets that hold the most untapped export potential for Eswatini, the study conducted by the ITC revealed that it is currently mostly driven by trade deficiencies such as a lack of information about market requirements or rules of origin, or difficulties in complying with them. Moreover, business surveys conducted by the ITC in Eswatini in 2021 found that about four out of five businesses are not aware of the SADC-EU EPA.
Against this backdrop, the ITC under the EU-funded “Eswatini: Promoting growth through competitive alliances” programme conducted a training programme which sought to boost the capacity of BSOs members to effectively advise local companies on how to identify promising trade opportunities in the EU market, meet the origin criteria and qualify for the preferential access.
The training on the rules of origin of the SADC-EU EPA spanned over five days. It also connected BSOs to relevant online tools on market requirements and rules of origin under the SADC-EU EPA. This was the third training. The previous two trainings focused on the preparation of export fact sheets and the second training focused on understanding the SADC-EU EPA and utilization of ITC Market Analysis Tools.
The Head of Cooperation of the EU Delegation to the Kingdom of Eswatini, Eva-Maria Engdahl, said greater economic integration between Eswatini and the EU is crucial for advancing trade between Eswatini and the EU and the EU is proud to be part of this effort.
“The EU is committed to further supporting trade between Eswatini and the EU as a top priority. That is why we have partnered with the ITC to improve businesses’ capacity to take advantage of this trade opportunity with the EU. We need to do more to support MSMEs becoming more integrated into global value chains and comply with the EU standards and requirements,” said Engdahl.
Speaking on behalf of the Eswatini Investment Promotion Authority (EIPA) Manager-External Trade, Sibusiso Mnisi, agreed that even though the agreement was signed in 2018, there are still very few exports that are going to the EU.
“We need to work hard to help our local business to benefit from this huge trade opportunity and to help them understand the requirements, especially on the rules of origin which our last training focused on,” said Mnisi.
He further thanked the ITC and the EU for their continued support.
“The market is there. Let us help our local MSMEs to graduate and export and eliminate unemployment and poverty,” said Mnisi.
Eswatini Multi-Purpose Cooperative Union (ESWAMCU) acting Business Development Manager, Sebenele Mavuso, said the training will go a long way to help them to better assist their cooperative members.
“Part of the services that we offer to our cooperatives is market linkage. This is not limited to local markets only. We are aspiring to also tap into the export market. The training has equipped me with knowledge and skills that will come in handy when advising cooperatives on markets they can tap into and their requirements,” she said.
ESEPARC Research Assistant Gcina Dlamini said the training will add value to his work, especially when analyzing trade data and to have a better understanding of the SADC-EU EPA.
“The tools we have received including the trade data that combines the country’s trade activity under this agreement, will help us analyze which sectors are benefiting and which are not benefiting from the EPA. This will then help us to come up with better-informed recommendations,” Dlamini said.