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ESA REVENUE UP 21.3%

05/09/2019 01:12:00 BY KWANELE DHLADHLA

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MBABANE – The Eswatini Sugar Association (ESA) has recorded a revenue increase of 21.3 per cent during the 2018/19 financial year.

This was disclosed by Chief Executive Officer (CEO) Phil Mnisi, who mentioned that the total revenue had improved from E4.2 billion in the past financial year to E5.1 billion which represented the above cited percentage growth.

Mnisi attributed the improved monetary gains to an increment in sales by 204 220 tonnes. ESA has two primary products being sugar and molasses. Sugar, the main product, was sold into both the domestic market and export market, while all molasses (a by-product of sugar production) was sold domestically.

Development

It should be mentioned that the sugar industry sold into five main markets namely; the European Union (EU), United States of America (USA), Southern African Customs Union (SACU), Common Market for Eastern and Southern Africa (COMESA) and Southern African Development Community (SADC) among others.

The CEO reported that industry growers saw a bumper harvest of over six million tonnes of cane.
Mnisi pointed out that the year started off on a back-foot, having ended 2017 with a surplus in the sugar market and low prices. He said this translated to lower than usual sales for the industry and high stock levels.

“Our industry continued to prove its resilience, and through the commitment and hard work of industry players,” explained Mnisi who also gave credit to ESA staff.

The CEO further mentioned that while global market conditions were subdued, the industry was able to see some sunshine through the dark cloud as demonstrated by the increase in revenue.
“As a sugar association we are committed to obtaining maximum value and returns from the products we sell. This comes with ensuring that we meet customer requirements and enhancing competitiveness of Eswatini sugar in our chosen markets,” said Mnisi.

Turnaround

He further disclosed that indications suggested a turnaround in the global markets towards the end of the 2019/20 season.
It was explained that this turnaround was anticipated to be driven by a sugar supply deficit which could result in an uptick in global market prices, and this could translate to better returns for Eswatini sugar in the markets where it gets traded in.

“The essence of resilience is optimism and belief that no matter what happens; you will find a way to win. With the hard work and dedication of the team at ESA and industry at large, success can only be the constant and the reality we envisage,” added Mnisi.

In her presentation during the Federation of Southern African Development (SADC) Sugar Producers (FSSP) Annual Conference for 2019, convened at the Royal Swazi Spa Convention Centre last Wednesday, Sharon de Sousa, from the ESA, emphasised on the need to secure a sugar-powered future for various economies in the region.

De Sousa observed that consumers and governments were taking heed and were responding through shifting away from traditional sugar.
“The solution is to ask how best to pursue sufficient value addition and diversification through using the whole stick of cane to revitalise the industry,” De Sousa advised.

She emphasised the need to improve and ensure enforceable preferential trade arrangements to ensure regional industries exploit market opportunities within Africa.
It should be mentioned that ensuring sustainable of the sugar industry remains critical for the country since it currently accounts to 11 per cent of Gross Domestic Product (GDP).

Employment

It also provides permanent and seasonal employment to over 12 000 emaSwati, while continuing to invest in social welfare and human capital development which helps it to remain relevant, competitive and highly skilled.

Deputy Prime Minister (DPM) Themba Masuku said the conference had been convened at an opportune time when the need to adapt to the ever changing business landscape in the sugar industry called for constant innovation and sharing of ideas.

“As with any business model, the dynamics within the sugar industry call for ‘new thinking’ and innovation, especially at a time when the traditional nutritional requirements and consumer preferences are fast changing,” said Masuku.