Mbabane – Local economist Sanele Sibiya says Eswatini must accelerate value-addition, regional market integration and supply-chain resilience to protect its economy from growing global trade and geopolitical volatility.
Sibiya in an interview with Eswatini TV said rising protectionism, shifting alliances and the increasing use of tariffs as a negotiation tool by major economies are creating an unpredictable global trading environment, with smaller, open economies such as Eswatini facing heightened exposure.
“Eswatini’s economic model remains highly sensitive to external shocks,” Sibiya said. “Strengthening domestic production capacity and expanding access to regional markets is no longer optional, it is a risk-management strategy.”
He said Eswatini should leverage its membership in the Southern African Customs Union (SACU), Southern African Development Community (SADC) and the African Continental Free Trade Area (AfCFTA) to grow exports, diversify markets and reduce over-reliance on extra-continental trade.
According to Sibiya, Africa’s renewed push for economic sovereignty which is evident in countries such as Burkina Faso, highlights a broader shift toward retaining more value from natural resources, a lesson Eswatini can apply across sectors including agriculture, agro-processing, manufacturing and mining.
“The continent exports raw materials and imports finished products, and that imbalance constrains growth,” he said. “Beneficiation improves trade balances, creates jobs and strengthens fiscal sustainability.”
Sibiya noted that global supply chains are being restructured as countries respond to tariff risks, market fragmentation and geopolitical uncertainty. He said this presents both risks and opportunities for Eswatini-based businesses.
“Firms that rely heavily on a single export market face increased volatility. Those that align with regional value chains and intra-African trade stand to gain as supply chains shorten,” he said.
Sibiya warned that escalating tariff threats and retaliatory measures could weaken global trade institutions such as the World Trade Organisation (WTO) and trigger inflationary pressures through higher input costs and disrupted trade flows.
“For investors and businesses, uncertainty erodes confidence. Stable and predictable trade rules are essential for long-term capital investment and supply-chain planning,” he sad.
Beyond trade policy, Sibiya stressed that regional stability and security remain critical enablers of economic growth, noting that disruptions in global security arrangements could have spill-over effects on African markets.
“Security underpins investment,” he said, stating that regional cooperation is essential to safeguard trade corridors, infrastructure and investor confidence.
For Eswatini, Sibiya said policy priorities should include scaling up value-addition industries, improving trade facilitation, investing in infrastructure and aligning national industrial strategies with regional and continental frameworks.
“As global markets fragment, Eswatini must position itself as a competitive regional player. The future of growth lies in beneficiation, regional trade and economic resilience,” he said.
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