Mbabane: Despite the adverse political situation in Eswatini, the country’s main export product, sugar continues to show an upward trajectory. A Kenyan publication reported in August 2021, that the largest consignment of duty-free sugar into Kenya will be sourced from Eswatini (68,959tonnes) followed by Zambia at 41,152 and Mauritius bringing in 36,036.
The report highlighted that shipments from Eswatini, Zambia, and Mauritius will dominate Kenya’s duty-free sugar imports from the Common Market for Eastern and Southern Africa (COMESA) this year to bridge a local deficit in production. Reacting to the news, the Minister of Commerce Industry and Trade Manqoba Khumalo said, “This is a validation that we need to continue investing and improving on sugar exports in the country as this has been proved that the market is viable on this production demand.”
The minister had indicated that he thought Kenya was one of the key markets under COMESA, and he appreciated and enjoyed the economic relationship the two countries have.
However, in light of the current political climate, local economists have publicly indicated that the economy will suffer greatly if the government does not act promptly and respond to the grievances of the people who want political reforms. These include the immediate release of incarcerated Members of Parliament (MPs) Mduduzi Bacede Mabuza and Mthandeni Dube.
University of Eswatini Economist Sanele Sibiya was quoted by local media to have said Eswatini may become a radicalized nation if Emaswati’s concerns were not being addressed. Sibiya foresees a situation where the economy will not return to its normal state but rather continue deteriorating. He said there is an urgent need for dialogue as the consequences of the protests would plunge Emaswati into an economic crisis.
Another economist said the current unrest could cause Emaswati to lose international investors.
The economist said investors favoured democratic countries because that meant a free economy.
If these observations by the economists are anything to go by, Eswatini is in danger of losing the Kenyan sugar market.
However, Khumalo continues to be optimistic about the performance of the sugar industry as sugar exports are one of the economy’s cornerstones and is looking forward to improving exports.
Supplies from the three previously mentioned countries will account for 69.5 percent of the overall 210,163 tons of the commodity that Kenya targets to import from COMESA.
The Kenya Agriculture and Food Authority (AFA), Director General, Kello Harsama says “the Ministry of Agriculture in the new quota rules for each country will see millers allowed to import only 210,163 tons of the commodities this year from the usual 350,000 tons that the country is normally allocated under the COMESA window. All registered dealers and holders of valid import permits for brown/mill white sugar are therefore required to comply with the provisions for the Crops (sugar) Imports, Exports and By-products Regulations 2020 as applicable.
AFA normally considers sugar import permits applications based on a monthly projected deficit, which depends on local sugar production as well as that country’s consumption.
This year the Kenyan Treasury capped the amount of sugar that can be exported duty-free to Kenya from the COMESA states at 210,000 tons to avoid flooding of the market with the cheap sweetener.
The Treasury said in March that imports that will exceed 210,163 tons will attract 100 percent import duty charges as that government seeks to control the falling prices of sugar millers.
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