ESWATINI’S STRUGGLES TO FULLY UTILISE EU TRADE AGREEMENT

EZULWINI: Significant challenges continue to prevent the nation from maximising the benefits of duty-free and quota-free access to the European Union (EU) market.
This is despite the Kingdom of Eswatini’s advantageous position as a signatory to the EU-SADC Economic Partnership Agreement (EPA), These concerns were echoed during the opening of the National Training Workshop on Sanitary and Phytosanitary (SPS) Measures in Ezulwini. The event, running from January 27 to 31, 2025, brought together stakeholders to address gaps and build capacity in food safety standards critical for enhancing exports to the EU.

The stakeholders attending the workshop include companies that export directly to the EU markets and includes the National Agricultural Marketing Board (NAMBOARD) and Eswatini Meat Industries (Embiveni), Ministries of Health and Agriculture and Eswatini Standards Authority among others. Hildah Moloefe, Chief Technical Advisor for the EU-SADC EPA, who delivered remarks on behalf of the Southern African Development Community (SADC) Executive Secretary Elias Magosi, pointed out that non-compliance with SPS measures remains a major hurdle for Eswatini.

access

“Despite 100 per cent duty-free and quota-free access to the EU market for goods like beef, avocados, citrus fruits and sugar, Eswatini’s export potential remains underutilised due to insufficient production capacities, a narrow export base, inadequate competitiveness and a lack of quality and standards infrastructure,” she said. The challenges are compounded by limited awareness of EU market dynamics and weak compliance controls for critical measures such as pesticide use. Delivering remarks on behalf of the Ministry of Commerce, Industry and Trade, Lungile Dlamini, Director of Trade, emphasised that the EPA’s regulatory framework and development cooperation efforts aim to enhance trade and investment among SADC EPA member states.

“The Kingdom of Eswatini benefits from duty-free, quota-free market access to the EU. However, to fully realise this potential, targeted capacity-building programmes and improved compliance with SPS standards are imperative,” Dlamini stated. She noted that a 2022 assessment commissioned by the SADC Secretariat identified critical gaps in Eswatini’s SPS implementation and highlighted the need for strengthened food control systems. The workshop presented key recommendations to address these challenges:
Strengthening compliance controls for pesticides and other critical measures. Conducting nationwide awareness campaigns to educate stakeholders on quality standards and infrastructure.

Implementing targeted capacity-building initiatives to improve competitiveness in the food value chain. Dlamini added that the workshop aligns with Eswatini’s broader vision of advancing trade and economic growth while fostering greater intra-regional trade with SADC EPA member states. With the involvement of SPS expert Dr John Muma, the workshop aims to equip participants with the tools needed to meet EU standards, ultimately enhancing Eswatini’s export capacity.

liberalisation

The EU remains one of the most important markets for SADC EPA states, with over 98.7 per cent of imports from the region enjoying tariff liberalisation. However, as Moloefe emphasised, realising these opportunities requires enhanced technical capacity, awareness and strategic implementation of SPS measures. The workshop continues this week, providing a platform for stakeholders to address Eswatini’s challenges and identify actionable solutions to unlock the full potential of the EPA. Eswatini has secured preferential access to numerous international markets through various trade agreements, including the Economic Partnership Agreement with the European Union, the African Continental Free Trade Area (AfCFTA) and its membership in the Southern African Development Community (SADC) and the Common Market for Eastern and Southern Africa (COMESA).

These agreements are designed to facilitate trade by reducing tariffs and providing favourable terms for Eswatini’s exports. However, despite these opportunities, Eswatini faces significant challenges that hinder its ability to fully utilise these preferential trade agreements. The World Bank’s Country Partnership Framework for the financial year 2024-2028 identifies several barriers to economic development and job creation in Eswatini, including high transportation and transaction costs, weak access to credit and gaps in energy, information, communication and technology (ICT) and transport infrastructure.

competitiveness

These infrastructural deficits increase the cost of doing business and reduce the competitiveness of Eswatini’s exports.  Additionally, regulatory inconsistencies and bureaucratic hurdles create an unfavourable environment for businesses aiming to establish themselves in Eswatini. Investors often face challenges in obtaining necessary permits and licences, which can delay operations and increase costs. Political instability and policy shifts further exacerbate these issues, deterring potential investors and limiting the growth of trade initiatives. Moreover, Eswatini’s heavy reliance on electricity imports, with over 80 per cent of its electricity sourced from South Africa, poses a risk to its industrial and commercial sectors. Any disruptions in this supply can adversely affect production and trade activities. While Eswatini’s preferential trade agreements offer substantial opportunities for economic growth, the country’s infrastructural deficits, regulatory challenges and energy dependencies significantly impede its capacity to capitalise on these benefits. Addressing these issues is crucial for Eswatini to fully leverage its trade agreements and enhance its participation in the global market.

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