MBABANE – Eswatini stands at a critical crossroads as the country confronts growing global tariff pressures while new opportunities emerge across Europe, Africa and beyond.
According to Paul Vos, the Regional Managing Director of the Chartered Institute for Procurement & Supply (CIPS) Southern Africa, the next phase of Eswatini’s economic journey will depend on how effectively it can diversify markets, strengthen regional value chains and embrace digital innovations such as artificial intelligence (AI).
Speaking during a virtual interview with the Times of Eswatini Business Desk, Vos offered insights on the implications of the 10 per cent tariff imposed on Eswatini’s exporters, the country’s trade relationship with South Africa and its future role within the Southern African Development Community (SADC).
He also shared perspectives on reimagining Eswatini and southern Africa’s supply chains and how advanced digital tools like AI and machine learning can enhance procurement and supply resilience.
Vos noted that Eswatini, unlike some of its regional neighbours, had been spared the most severe ‘reciprocal’ tariff hikes, which could have pushed the cost of its exports even higher.
However, the impact of neighbouring countries’ tariffs still filters into the kingdom due to the pegging of the Lilangeni to the South African Rand.
“Even though Eswatini was spared the steepest reciprocal tariffs, it would be misleading to think the country is insulated,” he explained.
“Because of the Rand–Lilangeni peg, any ripple effect in South Africa’s economy eventually flows into Eswatini. That means Eswatini must continue to adapt, diversify and anticipate shocks.”
He added that the current 10 per cent tariff on some exports to the United States could squeeze certain sectors, particularly apparel and agricultural products that have long benefitted from preferential access.
Yet, Vos stressed that exporters had already taken steps to cushion themselves.
Eswatini’s largest trading partner remains South Africa, accounting for the bulk of imports and exports. Vos pointed out that this heavy dependence presents both opportunities and risks.
“South Africa is not just a neighbour; it is the anchor of Eswatini’s trade. When South Africa faces tariff retaliation, electricity constraints, or logistical bottlenecks, Eswatini feels those consequences immediately,” he said.
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