Various regional and international trade agreements facilitate access to export markets in Africa and overseas. Through arrangements such as the Cotonou Agreement, Swati products are generally granted preferential access to all of the world’s important markets, including the European Union, the United States, Canada, Japan, and Australia. Eswatini is a signatory to the African Continental Free Trade Area AfCFTA), which connects 1.3 billion people across 55 countries. Eswatini is currently a member state of the Common Market for Eastern and Southern Africa (COMESA). The Preferential Trade Area agreements for eastern and southern Africa grant Swati goods and services preferential access to a market of over 250 million people.
The SADC Trade Protocol came into force in January 2000. This initiative is strongly supported by the World Bank, International Monetary Fund, and the African Development Bank. Under SADC, a company with operations in Eswatini can supply the entire SADC region with minimal export controls. SADC is made up of Angola, Botswana, Democratic Republic of the Congo, Lesotho, Malawi, Mauritius, Mozambique, Namibia, Seychelles, Eswatini, South Africa, Tanzania, Zambia and Zimbabwe.
Eswatini’s membership in the Southern African Customs Union (SACU) (along with Botswana, Lesotho, Namibia, and South Africa) allows for duty-free exchange of goods to a market of 73 million people. Goods from outside the Union require an import permit. Member countries receive due shares of the customs pool generated by commodities imported from outside the SACU. Customs revenue continues to be a major component of Swati government receipts, accounting for up to 55 percent of total revenue. Eswatini established a Southern African Customs Union (SACU) Revenue Stabilization Fund (RSF) in 2023 to manage the unpredictable nature of SACU revenues and maintain macroeconomic stability. The fund helps buffer against revenue shortfalls caused by fluctuations in the SACU common revenue pool.
Eswatini is a signatory of the General Agreement on Tariffs and Trade. The GATT affects Swati industries through its membership in SACU. To meet GATT obligations, South Africa, on behalf of SACU, has submitted schedules for the gradual reduction of tariffs for some commodity imports.