Eswatini’s agricultural sector is the third largest contributor to the economy. Commercial agriculture is dominated by sugar, canned fruit, and beef production for export. Many Emaswati practice subsistence farming, primarily maize cultivation. The country is historically a net importer of maize, animal feed, and vegetables, and the volume of imports depends significantly on the amount of rainfall (which impacts local production). To note, the government discourages the use of genetically modified organisms (GMOs).
Besides subsistence production, the country meets much of its demand for agricultural products through imports from South Africa.
Sugar
Sugar is one of Eswatini’s key sectors. According to the Eswatini Sugar Association, sugar accounts for about 5 percent of GDP and about 20,000 jobs. Eswatini is a beneficiary of the U.S. sugar tariff-rate quota (TRQ), which allows it to export raw sugar duty-free to the United States, prior to reciprocal tariffs. The United States is considered a premium market for Eswatini sugar, with prices much higher than other export markets. In 2024, Eswatini exported 5 percent of its sugar to the United States after receiving a base quota allocation of 17,213 metric tons and an additional allocation of 8,800 metric tons. USDA estimates sugar production will increase by 3 percent in marketing year 2025/2026 based on normal weather conditions and sufficient water for irrigation. Smallholders face rising production costs, including energy for irrigation. Supporting smallholders to increase efficiency, adapt to climate change, and adopt on-farm solar irrigation is important for Eswatini’s quest to maintain competitiveness.
The sugar industry represents a significant opportunity for climate mitigation, as it can be both a producer and user of renewable energy. Bagasse, a waste product, is used as biomass fuel for electricity and steam generation, and an expansion of usage could provide a widespread energy source.
Forestry
Eswatini’s forests cover approximately 33 percent of Eswatini’s total land area, but commercial forestry constitutes only 22.6 percent of total land area. Ninety percent of the plantations in Eswatini have forest management certification. The forestry sector accounted for about 1.3 percent of GDP, 5.9 percent of exports, and 14 percent of formal employment in 2022. There is an expected 51 percent growth in roundwood demand in South Africa by 2030, indicating continued regional growth potential. On the domestic front, biomass energy production is an opportunity for the forestry sector.
Beef
The beef value chain is growing quickly. Eswatini Meat Industries Limited (EMI) is the only licensed exporter. Eswatini’s beef enjoys preferential tariff-free access into the European Union (EU) market through the Economic Partnership Agreement and an exporting contract with Norway, but exports are well below the quota. Eswatini could expand its export market to SACU member states and through the AfCFTA, where it could export value-added meat products. The constraints to investment in the beef sector arise from the traditional approach to cattle farming (including preference for larger and older animals and a lack of genetic diversity among breedstock) and the lack of incentives for investment in commercial production in the traditional land tenure system. Eswatini’s Department of Agriculture has shown an interest in modernizing the industry and a willingness to seek outside engagement. Opportunities arise from modernizing the industry and developing capacity, as key inhibitors to growth include:
- the lack of adequate meat grading systems
- the lack of capacity and knowledge among communal farmers
- increased droughts
- overgrazing of rangelands
The Eswatini Mkhondvo-Ngwavuma Water Augmentation Program (MNWAP) is a top priority of the Government of the Kingdom of Eswatini. MNWAP is a holistic development program that cuts across several sectors but is centered around agricultural and agro-industrial development. When completed, MNWAP will transform about 9,400 hectares of uncultivated land into diversified commercial cash cropping, including cotton and legumes, which are less water-intensive than the more traditional sugarcane.
Leading Sub-sectors
- Sugar manufacturing machinery
- Citrus
- Grains (maize, wheat)
- Tractors, ploughs, harrows, planters
- Harvesting machinery
- Machinery for milling cereals
- Dairy machinery
- Haymaking machinery
- Poultry incubators and poultry preparations machinery
- Irrigation equipment
- Value-added fruit processing
- Packaging
- Start up for food-processing establishments
- Supply of ingredients for value-added products
- Supply of equipment and upgrade of technology
- Supply of packaging
Eswatini is expanding its production of industrial crops such as cotton, cassava, strawberry, melons, and sunflowers. As Eswatini is a member of multiple trade blocs, there are a multitude of potential markets for these products to be exported raw or processed.
U.S. companies can supply equipment, technology, and processing for the food processing factories. One company imports jars from China to bottle their food. There are also opportunities for U.S. companies to supply machinery and technology for ethanol production.
Resources
- Royal Eswatini Sugar Corporation
- Eswatini Sugar Association
- USA Distillers
- Eswatini Kitchen
- National Maize Corporation