ESWATINI UNDERUTILISING TRADE AGREEMENTS - AFDB

MBABANE - Eswatini’s membership in several trade agreements presents significant opportunities for its private sector, which include market access and diversification, thereby, offsetting the small domestic market.

However, the African Development Bank (AfDB) says the country has not been able to optimally utilise the existing preferential trade agreements, due to inadequate capacity to consistently meet the supply needs of its markets. In its country focus report 2024, the AfDB said deepening regional integration and leveraging trade links will be critical for private sector’s export-led growth. The AfDB said to achieve this, Eswatini needs to work with other members of regional trade zones, to help lower barriers to trade, and address key infrastructure gaps, especially around transportation and connectivity.

Support

The immediate focus for Eswatini is to take advantage of preferential access to the African market under the African Continental Free Trade Area (AfCFTA), to support its structural transformation. This entails maximising on the sectors where the country currently possesses competitive strength, while putting the building blocks that will allow for increased volumes and diversity of exports in both goods and services.

\The current sectors under trade in goods include: Agro-processing (agriculture and food-processing); sugar value-chain; clothing and textiles; beef and the leather value-chain.
Under trade in services, tourism, transport, financial, professional services, communication services, creative industries, including sports, music and art are identified as priority sectors.
The production of automotive accessories and components, and the pharmaceutical industry value chains have been suggested for further development, as they hold some potential for Eswatini but are underdeveloped.

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