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Agriculture holds major untapped value-chain wealth

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Agriculture, Services and Manufacturing as a share of GDP (per cent)
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MBABANE – Eswatini’s agriculture sector has significant untapped commercial potential, with maize, dairy, beef and vegetables identified as priority value chains capable of driving growth and food security.

The World Bank’s latest Eswatini Agriculture Sector Review: Catalysing Agri-Food System Transformation says these four commodities present commercially viable opportunities that could support rural incomes, employment, import substitution and export growth if backed by strategic investment.

The review, which assesses the performance of the country’s agriculture sector and proposes a roadmap for reform, argues that Eswatini’s challenge is not simply a shortage of public investment.

Instead, it identifies inefficiencies, fragmented programmes and weak links between investment and actual value-chain outcomes as major obstacles preventing the sector from reaching its potential.

The report says the four priority value chains are increasingly commercially viable, supported by domestic demand and access to regional markets.

It warns, however, that unlocking these opportunities will require a shift from production and input-driven interventions towards market-oriented investments that connect farmers to finance, technology, infrastructure, processors and consumers.

The value-chain analysis presents a particularly compelling case for investment.

Maize remains one of the country’s most important food crops because of its widespread consumption and consistent domestic and regional demand.

Under current production conditions, maize generates an estimated profit margin of E6 729 per hectare, equivalent to US$364 and representing 19 per cent of revenue.

The World Bank describes maize as profitable, although not highly lucrative, with relatively low input costs providing one of its advantages. However, productivity remains a major concern.

Average maize yields stood at only 1.2 tonnes per hectare in 2024, with more than 90 per cent of the crop produced by smallholder farmers.

The country’s domestic maize demand was estimated at 140 000 tonnes annually, against supply of only 75 000 tonnes, highlighting a substantial opportunity to expand production and reduce import dependence.

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Written by
Nhlanganiso Mkhonta

Nhlanganiso Mkhonta serves as Business Editor at the Times of Eswatini. He reports on business, economics, finance, investment, entrepreneurship and public policy, producing insightful coverage and analysis of the issues driving Eswatini’s economy and the wider African business environment.

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