. . . Minister Manqoba says Eswatini recorded E31.5 bn exports since 2022

MINISTER of Commerce, Industry and Trade, Mancoba Khumalo revealed that for the year under review, 2022, Eswatini has recorded E31.5 billion in total exports, with over 90 per being destined for the African continent.

The minister was speaking at the third edition of the Eswatini Annual Exporter Awards which was held at Happy Valley Hotel on Friday. Khumalo thanked the USA Government and in particular the USAID Africa Trade and Investment Southern Africa buy-in programme, Business Eswatini and all partners for collaborating and supporting EIPA and exporters to host these awards. “Your efforts are bearing fruit because our exports have been on the increase in the past five years,” he said.

The minister said as EIPA has now and again emphasized the need for MSMEs to internationalize their business, he also reiterated this point to grow the export base and by extension export revenue. He urged entrepreneurs to push beyond boundaries to increase Eswatini’s exports to reach at least

E50 billion export in the next five years.

Khumalo opined that this can be achieved through collaboration with development partners to host export readiness training programs to graduate at least 5 per cent of the over 4 500 Small and Medium Enterprises (SMEs) in Eswatini to exporting businesses. He said currently, the Eswatini database of existing exporters is below 200.

He revealed that of the 54 countries in Africa that have signed the Africa Continental Free Trade Agreement (AfCFTA), Eswatini exports to 30 of them something which reflects a high ranking in intra-Africa trade.

Agreement

The minister revealed that about 5 per cent of all exports go to the European Union market with the rest exported to the United States of America under the Africa Growth Opportunity Act (AGOA), Taiwan and to the rest of the world mostly to countries where Eswatini currently has no trade agreement.

“By exporting, the country is reaping benefits such as foreign revenue generation and most importantly job creation which results from the expansion of your businesses driven by external demand. Over and above this, you are flying the Eswatini flag high in that our products can reach countries on almost all continents either as finished consumer products or are used as inputs to make other products. For your businesses, I’m sure you have noted that exporting does not only lead to increased profits but can also bring efficiencies in operations through the need to compete with the best globally,” Khumalo said.

Export

He added that export readiness training programs and providing access to trade finance to spur exports are some of the strategic objectives contained in the AfCFTA Implementation Strategy that was launched.

“One is, therefore, gratified at learning that earlier today you had a peer-leaning event which seeks to address issues of access to trade finance. We urge our development finance institutions and banking institutions to step up and proactively develop innovative export finance products that will be easily accessible to our MSMEs,” he said.

Khumalo mentioned that as they

celebrate the incredible exporters who have demonstrated export excellence, passion, and a competitive spirit year-in year-out, increased export volumes, opened new market channels and overcome export hurdles, the awards are also about inspiring potential exporters and in particular the MSMEs to understand that with passion and tenacity, they can venture into export business and reap the accruing rewards.

Spotlight

The minister also stated that the Eswatini Exporters Awards speak well for Eswatini as it puts the spotlight on the strides that the Government has undertaken to proactively negotiate preferential market access in different countries and regions of the world.

“The most recent being the Africa Continental Free Trade Agreement (AfCFTA) which presents a market size of 1.3 billion people and a combined GDP of over E63.6 trillion. You will all recall that just last week, we launched the AfCFTA National Implementation Strategy with a vision, “to provide a strategic roadmap for Eswatini to maximise benefits under the AfCFTA targeting an annual regional export growth of 10 per cent,” he stated. The minister said the strategy has seven strategic objectives all of which emphasised growing our trade mostly with Africa and the rest of the world.

Khumalo said his ministry pledges to continue supporting entrepreneurs by formulating enabling trade policies, opening more preferential markets, and providing incentives to make Eswatini’s exports more competitive.

“We are working with EIPA in reviewing their Act and will further support them in establishing a one-stop shop to streamline and fast-track businesses and investor facilitation,” he said.

The minister reiterated His Majesty’s Speech from the Throne where he urged the private sector to intensify their efforts of exploiting opportunities in regional and international markets and in Eswatini’s quest as a country of becoming a global commerce hub.

He said as a country, we should also work towards streamlining border formalities to make trade easy.