Mbabane- An unprecedented, European-led boom in sugar exports has narrowly insulated Eswatini from a looming trade deficit, offsetting a severe 27.6% crash in the nation’s dominant soft drink manufacturing sector and a crippling 44.4% spike in month-on-month energy import costs.
According to the latest data from the Central Bank of Eswatini, the kingdom posted a positive merchandise trade balance of E794.2 million for the month. While the figure keeps the country’s trade accounts in the black, it represents a sharp 12.5% contraction from the E907.8 million surplus recorded in March, exposing Eswatini’s vulnerability to shifting global commodity demands and internal energy pressures.
“The month-on-month erosion was primarily triggered by a 3.4% dip in overall export earnings, which fell to E3.7 billion. This decline was anchored by a dramatic slump in the kingdom’s dominant export pillar: soft drink concentrates. External sales of the manufacturing staple plummeted 27.6% month-on-month to E1.3 billion, a double-digit decline of 10.7% even when measured against April of last year,” reads the report.
Stepping into the breach to prevent a slide into a flat trade deficit was the agricultural sector. Driven by an aggressive influx of orders from European markets, exports of sugar and sugar confectionery skyrocketed by 54.7% compared to March, bringing in E1.1 billion. The year-on-year trajectory for sugar is even more striking, posting a 73% jump and proving that global sweet-tooth demand is currently acting as the economy’s primary shock absorber. Textiles offered modest, steady support, edging up fractionally to E309.3 million.
Meanwhile, total imports held relatively flat at E2.9 billion, hiding an alarming re-allocation of Eswatini’s cash reserves. Fuel and electricity imports ballooned by 44.4% in a single month to reach E744.1 million, driven by higher fuel volumes. To pay for this soaring energy bill, domestic demand for capital and consumer goods was heavily suppressed; vehicle imports plunged by 23.3% to E188.1 million, while machinery and industrial electrical equipment imports retreated 22.8% to E276.2 million. Food and agricultural imports also fell to E258.6 million as dairy and fruit inflows slowed.
The data further underscores Eswatini’s deep, unchanged reliance on South Africa, which continues to dominate the pipeline by absorbing 60.4% of the kingdom’s exports and sourcing an overwhelming 70.5% of its imports. Outside of this bilateral relationship, Spain and a handful of African nations (Kenya, Nigeria, Mozambique, and Zimbabwe) bought up a combined 25.8% of exports, while a diverse bloc including China, Germany, the UAE, Ireland, and the US supplied 15.2% of inbound cargo.
On a broader macroeconomic horizon, the Central Bank’s data suggests that despite intense monthly volatility, Eswatini’s core baseline is holding its ground. The cumulative trade surplus for the first four months of 2026 sits at E1.9 billion, a minor 1.2% increase over the same period last year, indicating that while the kingdom is walking a tightrope between fluctuating export sectors, its trade engine remains resilient.
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