Mbabane: Eswatini’s trade surplus narrowed sharply in May as imports grew at a much faster pace than exports, reflecting rising demand from businesses and consumers and pointing to an economy that continues to gather momentum.
Latest figures from the Central Bank of Eswatini show that the country’s trade surplus fell to E78.4 million in May from E793.8 million recorded a month earlier. The decline was largely driven by a surge in imports, which rose by 21.9 percent to E3.5 billion, while exports slipped by 2.3 percent to E3.6 billion.
While a shrinking trade surplus may ordinarily raise concerns about weakening export performance, much of the increase was driven by imports of food products and textile inputs, suggesting that firms are purchasing raw materials and intermediate goods needed to support economic activity.
The latest data therefore paints a picture of an economy where domestic demand is strengthening. Businesses appear to be increasing orders for production inputs, while consumers are spending more, resulting in higher demand for imported goods.
Despite the weaker monthly trade balance, the country’s export sector continues to show resilience. Export earnings remain significantly higher than they were a year ago, supported by stronger performance from the manufacturing sector, particularly soft drink concentrates and textiles, which remain among Eswatini’s most important export products.
During the first five months of 2026, Eswatini recorded a cumulative trade surplus of E2 billion, up from E1.5 billion during the same period last year. The improvement suggests that May’s decline was not sufficient to reverse gains achieved earlier in the year.
Exports for the January-to-May period reached E17.3 billion, while imports stood at E15.3 billion, leaving the country with a stronger external trade position than it enjoyed during the corresponding period in 2025.
The figures further underline the critical role played by manufacturing in supporting foreign exchange earnings. Growth in exports of textiles and beverage concentrates has helped offset weakness in other sectors, including sugar, which recorded softer export performance during May.
Trade with South Africa continues to dominate Eswatini’s external sector. More than 70 percent of both exports and imports were conducted with its largest trading partner, highlighting the importance of regional supply chains and economic developments south of the border.
Currency movements also provided some support during the month. The lilangeni strengthened slightly against major international currencies, aided by improved investor sentiment toward the South African economy and favourable global commodity prices.
Although the sharp decline in the monthly trade surplus may attract attention, the underlying figures suggest that the economy’s external position remains relatively healthy. Rising imports appear to be linked more to economic activity than to structural weaknesses, while cumulative trade performance remains stronger than a year ago.
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