Mbabane- Eswatini’s sugar industry grew revenue by 3.9 percent to E8 billion during the 2025/26 financial year despite a sharp collapse in global sugar prices, with a 9.4 percent surge in sugar sales and a 1.9 percent increase in cane crushed helping the sector weather one of its toughest trading periods in recent years.
The latest Eswatini Sugar Integrated Annual Report for 2025/26 shows the industry generated E8 billion in revenue, up from E7.7 billion in the previous financial year, even as world sugar prices fell to their lowest levels in nearly five years.
The performance comes against a backdrop of mounting challenges, including oversupply on the international market, rising imports into the Southern African Customs Union (SACU), volatile exchange rates, adverse weather conditions and escalating production costs.
Chief Executive Officer Banele Nyamane said in the report the industry had been tested by a combination of external shocks that significantly eroded grower margins, but remained focused on safeguarding the sector’s long-term competitiveness.
“The year under review revealed both the strength of the Eswatini sugar industry and the realities of operating in a volatile global market,” he said.
Global sugar prices fell sharply from highs of more than 25 US cents per pound recorded two years ago to below 14 US cents per pound during the reporting period, largely due to increased production in major sugar-producing countries such as Brazil, India and Thailand.
The downturn forced producers across the world to compete in an oversupplied market, placing pressure on export earnings.
The situation was further complicated by a weakening US dollar against the Lilangeni, reducing the value of export proceeds, while rising electricity tariffs, fertiliser prices and irrigation costs squeezed grower profitability.
Despite these headwinds, the industry recorded improvements in several production indicators.
Cane crushed increased to 5.46 million tonnes from 5.36 million tonnes the previous year, while sucrose production rose to 756 583 tonnes. Sugar sales also climbed by more than nine percent to 647 572 tonnes, reflecting stronger market demand despite difficult trading conditions.
However, prolonged rainfall towards the end of the harvesting season left approximately 200 000 tonnes of cane** unharvested, prompting the industry to assess possible changes to future milling seasons to improve flexibility during adverse weather conditions.
The report also highlights growing concern over developments within the SACU market, traditionally the industry’s most profitable destination, accounting for about 72 percent of total sugar sales.
Increasing volumes of imported sugar entering the regional market have intensified competition and forced local producers to lower selling prices to protect market share.
Chairman Meshack Kunene said rising electricity costs had become one of the industry’s biggest operational challenges, particularly for growers who rely heavily on irrigation.
He said maintaining competitiveness would require disciplined cost management, investment in productivity and stronger collaboration between growers and millers.
While navigating the difficult market cycle, Eswatini Sugar accelerated several strategic initiatives aimed at improving future returns.
These included commissioning a Very High Polarised (VHP) sugar bagging facility at Mhlume, completing trial exports of bagged sugar to the United States, securing the production patent for Nucane, the industry’s low glycaemic index sugar, and expanding sustainability certification under the internationally recognised Bonsucro standard.
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