RESCORP TO PUSH BOUNDARIES THROUGH AFCFTA

MHLUME- The Royal Eswatini Sugar Corporation (RESCorp) says implementing the African Continental Free Trade Area (AfCFTA) will help the company push its boundaries more in exporting its sugar and ethanol.

RESCorp Managing Director (MD) Nick Jackson, said the company was already exporting its ethanol throughout the African continent. Therefore, the implementation of the AfCFTA will present them with more opportunities to reach more markets in the region.

Interview

Jackson shared this during a recent interview with the Times Business Desk, which took place on the sidelines of the company’s suppliers day last Thursday at the Mhlume Country Club.
RESCorp ventured into ethanol when the company acquired Bayside Distillers, which was later relocated to Southgate in Durban and renamed Royal Swazi Distillers (RSD). Since then, its ethanol division has grown from strength to strength and has become a significant player in the international ethanol market, without losing its regional relevance. The company’s plant is engineered to produce superior-quality extra-neutral ethyl alcohol for high-value applications. The company provides beverage-grade ethanol for use in alcoholic beverages, pharmaceuticals, and water treatment products. It also produces feints used to manufacture methylated spirits and bio-gels.

Report

The latest report for the financial year 2023/24, which ended March 30, 2024, shows that the company’s ethanol margin continued to drop, reaching E104 million from E127 million, recorded in the previous year. The company also produces concentrated molasses stillage used to make liquid fertilisers. RESCorp manages approximately 21 700 hectares of irrigated sugar cane on three estates leased from the Eswatini nation and manages an additional 2 750 hectares on behalf of third parties. It has the potential to produce 2.4 million tonnes of cane per season and, when combined with cane from growers, about 470 000 metric tonnes of sugar per season. RESCorp is listed on the Eswatini Stock Exchange Jackson said sugar is currently limited to the Southern African Development Community (SADC) and the Common Market for Eastern and Southern Africa (COMESA). He said the introduction of AfCFTA will allow them to reach more markets across the region.

Collaboration

In March this year, Eswatini, in collaboration with the Economic Commission for Africa (ECA) and the United Nations System, launched the National AfCFTA Implementation Strategy to boost the country’s trade and investment opportunities. The strategy articulates Eswatini’s plans for trade on the African continent, setting out a principled and holistic approach to trade policy. It also equips the country with a robust trade and investment framework. The strategy and its action plan seek to enable Eswatini to achieve sustainable growth, diversify export markets, grow the economy and achieve higher living standards and well-being for its citizens.

Complements

The AfCFTA national strategy complements a broader development framework regarding Eswatini’s trade policy environment and the AfCFTA Agreement. It facilitates the identification of regional value chains to maximise value-addition benefits. It also identifies trade opportunities and constraints, including measures and capacities required to fully take advantage of national, regional and global markets for goods and services within the context of the AfCFTA. The strategy also underscores Eswatini’s needs to address supply-side constraints, in order to trade optimally with the rest of Africa. In addition, policy and regulatory measures need to be improved so that Eswatini can take full advantage of expanded markets under the AfCFTA.

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