Times Of Swaziland: SUGAR EXPORTS DOWN 15%

SUGAR EXPORTS DOWN 15%
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BY ASHMOND NZIMA on 20/10/2021 08:05:00


MBABANE – The country was derailed in its bid to become an export-led economy
in the past month.
In September, exports decreased by 10.7 per cent month-on-month to settle at
E2.851 billion. As a result, the country’s merchandise trade account recorded
a reduced surplus amounting to E276.8 million. It was a decline from the E702.1
million surplus witnessed in August. This is as per the recent economic
developments report from the Central Bank of Eswatini (CBE).
Declined
On a year-on-year basis, the data showed that export sales declined by 3.9 per
cent. The slight appreciation of the Lilangeni from 14.79 in August 2021 to
14.58 in September 2021 partially influenced the decrease in exports. “Exports
have been tracking the exchange rate between June and September 2021 such that a
depreciation in the value of the Lilangeni against the US dollar is partially
reflected in an increase in the value of exports during that period. A further
analysis shows that goods sold to South Africa accounted for 66.4 per cent of
the total export base,” highlighted the report.
Year-to-date exports from January to September this year increased by 7.8 per
cent from the same period last year to E21.632 billion with imports showing a
21.0 per cent rise to E20.855 billion. A further analysis of exports for the
month under review indicated that soft-drink concentrates sold abroad declined
by 11.4 per cent month-on-month while decreasing by 7.4 year-on-year to E1.244
billion. Exports of sugar and its products recorded a wide 15.7 per cent
month-on-month decrease to E650.1 million. Year-on-year figures falling by 9.4
per cent due to waning demand for the country’s sugar during this period.
Stabilise
Notably, the decline in Eswatini major export comes at a time when the South
African sugar industry claimed to stabilise the sector in 2021 after a flood of
sugar imports. The South African Sugar Association is on record saying it is
particularly concerned about high volumes of sugar imports from here in
Eswatini. Meanwhile, the export sales of wood and its articles, which contribute
7.0 per cent to the country’s total exports, fell to E198.8 million in
September. This was a marginal 2.6 per cent month-on-month decline.
However, a 33.5 per cent year-on-year improvement was observed during the same
period due to favourable prices in markets. Textile export sales declined by
14.3 per cent month-on-month and 3.0 per cent year-on-year to E345.3 million. At
least 97.7 per cent of the country’s textile products are exported to the
South African market.
Increase
The import bill, on the other hand, shows a 3.4 per cent month-on-month increase
to E2.574 billion. This was slower than the 24.1 per cent month-on-month
increase in the value of imports in August this year. Compared with last
year’s figures, imports increased by a significant 21.4 per cent. This is
explained as a return to normal import levels coming from a low base due to the
negative effects of the COVID-19 pandemic on global trade. Imports from South
Africa accounted for 74.4 per cent of the total bill. The increase in the import
numbers indicates that the economy has rebounded to its pre-pandemic levels in
terms of economic activity.