OVER E1.1BN MAIZE IMPORTS IN 2022

MBABANE – The rate of imports continue to increase in the country despite stable weather conditions observed in the past two financial years.

Maize is a staple food in Eswatini and local suppliers are failing to meet market demands, forcing the country to import. The Eswatini Investment and Trade Authority (EIPA), reported that maize imports amounted to over E1.1 billion in the current financial year. The average imports to Eswatini amount to over E28 billion in the current financial year with sugar imports at the helm. Machinery and equipment imports amount to over E5.2 billion as they make up 18.9 per cent of the overall imports this year.

A noticeable increase was observed in food and live animals as their import amounted to over E4.5 billion. Worth noting is that, exports amounted to E30 billion in the current financial year. The above stated was shared by EIPA’s Sibusiso Mnisi, Manager External Trade Promotion. Mnisi was speaking during the trade finance and incentives seminar at Happy Valley Hotel. The manager said 70 per cent of imports were from South Africa and 30 per cent from the rest OF the world.

Equated

Worth noting, imports to SA equated almost 75 per cent in previous years. Mnisi mentioned that chemicals were one of the products that were imported more in the current financial year. Vegetable oil and fat products’ imports amounted to E168 million followed by electrical appliances with E180 million. The manager added that their aspiration was that all stakeholders were able to appreciate the role of trade in driving economic growth, the opportunities through FTAs, Improved trade facilitation, trade development initiatives by EIPA.

He said import companies entered in huge contracts or received huge orders in large quantities requiring huge working capital. Mnisi mentioned that access to finance was imperative to exporters and they facilitated access to credit services, such as direct loans to business to provide working capital to procure and produce goods and services required to meet orders.

“We also facilitate access to innovative insurances to cover risks (commercial, payment, transport, forex and political risks) and access to credit guarantees that also play a big role as they are extended financiers to guard against the risk of non-payment,” he said. The high cost of farming inputs has negatively affected production which led to the decrease in performance, thus affecting the profit margin.

The agriculture business segment performance has been stagnant in the current reporting period due to challenges in production and market accessibility. Production was low owing to the high cost farming inputs and the market was slow, due to the decrease in quality of produce and the European Union (EU) imposed changes.

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