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2 MARKETS LOST AS SUGAR EXPORTS FALL 46.3%

21/06/2024 06:55:00 Nhlanganiso Mkhonta

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MBABANE – The shortage of sugar over the past few months has cost the country two international markets in Kenya and South Africa.

During the month of April, exports of sugar and sugar products fell on a month-on-month basis by 46.3 per cent and grew by 30.6 per cent year-on-year, to total E508.6 million. This is according to the Recent Economic Developments (RED) Report from the Central Bank of Eswatini (CBE) for the months of April and May 2024. In an interview with this publication, Eswatini Sugar Association (ESA) Chief Executive Officer (CEO), Banele Nyamane, stated that the shortage of sugar in the country had significant impact on the country’s sugar export markets in Kenya and South Africa. He stated that due to failure to supply sufficient sugar in those markets, they lost two markets.

Nyamane stated that there were a couple of reasons for the shortage of sugar. He said one of those reasons was that during the first three months of the year, there was no production until April. He stated they normally produce sugar from April until November every year. He said they then wait for a certain period for sugar cane to grow in the fields to get ready to be harvested. He said it was for that reason that during this period, they were supposed to have some sugar stored in their reserves awaiting any arising crisis.When explaining the shortage in March, the CEO said under normal circumstances, the company used to have sugar in their reserves that would last the country for some time while waiting for another production process for that particular year to take place.

Planned

When asked yesterday, how the company planned to fix the problem, Nyamane stated that the best way to keep up with the markets, they should revert to producing the over 700 000 metric tonnes they used to produce in the past. He stated over the past years, sugar production has dropped drastically from the over 700 000 metric tonnes to around 500 000 metric tons. The decline in production had been caused by many reasons including climate change among other reasons. Overall, the central bank reported that Eswatini’s key export commodities which accounted for 77.9 per cent of total exports for April 2024, performed as follows; soft drink concentrate exports were reported at E955.9 million in the month and were lower by 44.2 per cent month-on-month and 11.5 per cent higher year-on-year.

Textile and textile apparel exports, which were E348.0 million in the month increased by 27.6 per cent month-on-month and by 34.8 per cent year-on-year. Finally, exports of wood and wood articles which were valued at E211.6 million in April 2024 rose by 1.7 per cent when compared to the preceding month and increased by 80 per cent when compared to the same period in 2023.Conversely, leading imports performed as follows in the fourth month of the year; energy imports, which include fuel and electricity amounted to E548.0 million, recording a 9.7 per cent month-on-month plunge and an increase of 8.6 per cent, year-on-year. Imports of animal and vegetable products totalled E308.6 million in April 2024, which was higher month-on-month by 26.2 per cent and increased year-on-year by 32.0 per cent.

Machinery and electrical equipment imports, registered E380.0 million in the month, growing by 30.4 per cent month-on-month and posting a 64.4 per cent increase year-on-year. Imports of textile and textile apparel totalled E191.4 million in April 2024, reflecting a decrease of 22.9 per cent month-on-month and a decrease of 5.3 per cent year-on-year as the industry continues to bear the brunt of the South African Master Plan. All the while, vehicles imported in the period were valued at E168.0 million, which was a 10.8 per cent decline compared to March 2024 and a 24.0 per cent increase compared to April 2023.