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NAMBoard enforces 24% edible oil levy

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NAMBoard CEO Bhekizwe Maziya. (File pic)
NAMBoard CEO Bhekizwe Maziya. (File pic)
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MBABANE – NAMBoard will from September 1, 2026 enforce a 24 per cent levy on imported edible oils entering the country, tightening compliance with existing agricultural protection measures.

The enforcement is expected to affect importers and retailers bringing various brands of edible oils into Eswatini, with the National Agricultural Marketing Board (NAMBoard) saying the measure is intended to protect local production while ensuring that importers comply with the law.

NAMBoard Chief Executive Officer Bhekizwe Maziya said the 24 per cent levy was not a new measure, but rather the enforcement of an existing legal requirement after the agricultural marketing authority identified gaps in compliance.

In an interview with the Times of Eswatini Business Desk, Maziya said the legislation provided for levies ranging between 24 per cent and 36 per cent on imported edible oils.

He said NAMBoard had opted for the minimum levy of 24 per cent.

“It is not necessarily a new levy. The law allows between 24 and 36 per cent, and we are going for the minimum, which is 24 per cent,” Maziya said.

Edible oils imported into Eswatini fall under Chapter 15 of the Harmonised System (HS), which covers animal, vegetable or microbial fats and oils and their cleavage products, as well as prepared edible fats.

According to Maziya, different brands and types of edible oils are classified under different HS codes, which are used by importers when declaring their commodities at the country’s border posts.

However, he said not all of the HS codes associated with edible oils attracted the levy, creating an opportunity for some importers to exploit gaps in the system.

Maziya said some importers had been declaring products under HS codes that did not attract the levy, even when the actual commodities being brought into the country were products that should have attracted the charge.

He said this had resulted in under-declaration of imports and effectively allowed some players to bring in edible oils without paying the applicable levy.

“The issue is that not all the codes were attracting the levy, and some importers were taking advantage of those codes to bring in products that should have attracted the levy without paying it,” he said.

The September 1 enforcement will, therefore, seek to strengthen controls and ensure that the levy is paid on products covered by the legislation.

Maziya said the levy was primarily intended to support and protect Eswatini’s local agricultural industry, particularly because the country already has domestic capacity to produce edible oils.

He pointed to Eswatini Oil Mill Industries popularly known as SOMI, based in Matsapha, as a local producer capable of producing more than the domestic market requires.

As of 2020, Eswatini Oil Mill Industries reportedly invested over E80 million into the plant and refinery to process all sunflower and soybeans grown by local farmers.

The facility specialises in producing triple-refined, cholesterol-free cooking oil from sunflower and soybeans, alongside soap products.

According to Maziya, the company not only supplies the local market but also exports some of its products, demonstrating that there is established production capacity within the country.

He said NAMBoard was not seeking to prevent consumers from accessing other brands or to force retailers to sell only locally produced edible oils.

Instead, the organisation continues to allow the importation of alternative brands to accommodate consumer preferences.

Maziya said retailers had raised concerns that they could not simply be required to sell one brand when consumers had different tastes and preferences.

“We do allow the importation of other brands because retailers have told us that they cannot be forced to sell one brand when customers have their own preferences,” he said.

However, he stressed that such imports would be subject to the applicable levy.

The enforcement, he said, was, therefore, about ensuring a level playing field between local producers and importers rather than shutting out imported products.

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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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