MBABANE – Food processing rose 27 per cent in the second quarter of 2026, driven by a 53.5 per cent increase in sugar production, the Central Bank reports.
The country’s manufacturing sector continued to underpin economic growth during the second quarter of 2026, supported by improved sugar processing, increased mining output and stronger electricity generation, although weaknesses in construction and textile manufacturing pointed to uneven performance across the economy.
According to the Central Bank of Eswatini’s Recent Economic Developments August/September 2026 Report, economic activity, as measured by seasonally adjusted quarterly Gross Domestic Product (GDP), expanded by 6.5 per cent year-on-year in the quarter ended June 2026, accelerating from a revised growth of 5.9 per cent in the first quarter.
The growth was broad-based, with the primary, secondary and tertiary sectors all recording positive year-on-year growth during the period under review.
However, on a quarter-on-quarter basis, GDP growth slowed to 0.7 per cent in the second quarter, compared with a revised 2.6 per cent in the quarter ended March 2026.
Within the secondary sector, manufacturing remained the major contributor to the positive performance, recording growth of 14 per cent in the second quarter, compared with 12.3 per cent in the previous quarter.
Food processing was among the strongest-performing manufacturing activities, expanding by 27 per cent from 11.6 per cent in the first quarter.
The Central Bank attributed the significant improvement largely to a 53.5 per cent increase in sugar production.
The improved performance in sugar processing was supported by an increase in the area under harvested sugar cane, alongside improvements in sucrose and sugar yields.
The developments point to a stronger performance in the country’s sugar industry during the period, with increased agricultural production translating into higher processing output.
Sugar remains one of Eswatini’s major agricultural and manufacturing products, making developments in cane production and processing particularly important to the performance of the wider economy.
Meanwhile, non-food manufacturing output expanded by 11.1 per cent year-on-year in the second quarter, although this was slower than the 12.4 per cent growth recorded in the first quarter.
The performance was supported by double-digit growth in the manufacturing of chemical products, which includes miscellaneous edibles, as well as cement and other non-metallic products.
However, both activities recorded slightly lower growth rates than in the preceding quarter.
In contrast, the textile and wearing apparel manufacturing subsector remained under pressure, contracting by 3.4 per cent during the second quarter.
The Central Bank noted that the weak performance suggested that the subsector continued to face strain amid uncertain market conditions in its key export destinations.
The contraction is particularly noteworthy given the importance of textile and apparel manufacturing to Eswatini’s export-oriented industrial activities.
