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Eswatini sugar faces Zimbabwe surtaxes
Eswatini sugar faces Zimbabwe surtaxes
Trade
Sunday, 2 November 2025 by Nhlanganiso Mkhonta

 

EZULWINI - Eswatini’s sugar industry has become a symbol of the persistent trade barriers stifling Africa’s regional integration.

The country’s sugar exports are currently facing unilateral surtaxes imposed by Zimbabwe, a measure experts say violates regional trade commitments and highlight the fragility of cross-border commerce under the African Continental Free Trade Area (AfCFTA).

The issue dominated proceedings at the 31st Intergovernmental Committee of Senior Officials and Experts (ICSOE) for Southern Africa, held at the Royal Villas Hotel in Ezulwini from October 29–31, 2025, under the theme ‘Unlocking AfCFTA’s Potential: Building Value Chains and Overcoming Barriers to Trade in Southern Africa.’

According to a United Nations Economic Commission for Africa (UNECA) report, presented by consultant Khwima Singini, the surtaxes imposed on Eswatini sugar by Zimbabwe illustrate how non-tariff barriers (NTBs) remain one of the most significant obstacles to intra-African trade.

UNECA’s latest assessment of NTBs found that Southern Africa’s trade costs are 348.7 per cent higher than the global average, with non-tariff costs accounting for 304 per cent of this figure. Technical Barriers to Trade (TBTs) and Sanitary and Phytosanitary (SPS) measures were identified as the most prevalent impediments, comprising nearly 89 per cent of all reported NTBs.

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… diversifying Eswatini sugar: Beyond raw exports

EZULWINI – Adding a private sector voice to the discussion, Nontobeko Mabuza, Head of Advocacy and Stakeholder Engagement at the Eswatini Sugar, emphasised the urgency of diversifying Eswatini’s sugar exports.

Mabuza said such could help reduce vulnerability to external policy shocks such as Zimbabwe’s surtaxes. She said the country’s sugar industry, while a cornerstone of the economy, still depends heavily on exporting raw sugar to a narrow range of markets — a model increasingly unsustainable in a competitive and protectionist global environment.

Mabuza argued that the way forward lies in value addition and product diversification, including the expansion of refined sugar, specialty sugars and industrial sugar derivatives such as ethanol, molasses-based products and energy co-generation.

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…weak enforcement undermining regional integration

EZULWINI – Muntu Almeida, Deputy Director in Eswatini’s International Trade Department, stressed that the greatest obstacle to integration is not the lack of agreements, but rather the lack of enforcement.

Almeida made his submissions during a panel on the trade policy and regulatory environment.

“Even where regional trade frameworks exist, member States are often slow to implement or enforce reforms,” Almeida said. “This reflects both a lack of political will and insufficient institutional capacity to translate commitments into action.”

He outlined a web of challenges undermining regional trade:

  • Complex customs procedures and inconsistent clearance times;
  • Divergent product standards and certification processes;
  • Restrictive licensing and regulatory duplication;
  • Protectionist policies and export taxes were used to shield domestic industries;
  • Overlapping membership in trade blocs such as SADC, COMESA and SACU, creates conflicting obligations.

“These overlapping systems mean that exporters face multiple, sometimes contradictory requirements,” Almeida said. “For smaller economies like Eswatini, these inconsistencies effectively penalise competitiveness.”

He also warned that financial access remains a critical bottleneck. “MSMEs and informal traders often lack access to the credit needed to scale production or invest in quality compliance. Without inclusive financing mechanisms, participation in regional trade remains limited to a few large players.”

Delegates heard that inadequate infrastructure remains another major constraint. Poor road networks, congested border posts and weak communication systems are increasing the cost and time of moving goods across borders.

UNECA data revealed that transport inefficiencies can inflate the price of goods by 30–40 per cent, effectively pricing out local producers. “It is still more expensive to trade between neighbouring African countries than with partners in Europe or Asia,” Ameida observed.

*Full article available in our publication

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