SACU consumes 71.7 % of Eswatini exports

MBABANE – In terms of export destinations, the SACU market remained a major destination for the country’s exports as the region absorbed 71.7 per cent of the total exports in the 4th quarter of 2023.

This reflected a 6.1 percentage point increase compared to Q3 of 2023.

Other key markets such as the SSA region, the European Union (EU) as well as Asia accounted for 24.0 per cent, 2.8 per cent and 0.8 per cent respectively, which is, however, lower than in the preceding quarter.

PRECEDING

On imports, the SACU region accounted for 83.2 per cent of the country’s major imports, which reflects a 4.5 percentage point increase relative to the preceding quarter.

However, imports from the other key markets also declined relative to the preceding quarter.

This decline in trade with the other markets was mainly attributed to the logistic challenges in the South African market in the review period.

Eswatini’s trade balance remained in positive territory in Q4 2023, reflecting a surplus amounting to E328.0 million, which was however, 69.0 per cent lower than the surplus recorded in the 3rd 2023.

In the quarter under review, merchandise exports were recorded at E10.576 billion while the merchandise imports were at E10.248 billion.

DECLINED

During the quarter, merchandise exports declined by 3.8 per cent relative to the previous quarter.

This was mainly on account of a decrease in the exports of ‘sugar’ (-32.6 per cent), ‘forestry and related products’ (-24.8 per cent), ‘food processing’ (-3.2 per cent), as well as ‘textiles’ (-2.5 per cent), at the back of dampened demand for Eswatini goods.

On the contrary, ‘miscellaneous edibles’ grew by 20.8 per cent supported by stronger external demand in the second half of the year.

On a year-on-year comparison, merchandise exports grew by 14.2 per cent in line with stronger economic activity.

COMPARED

On the other hand, merchandise imports grew by 3.2 per cent when compared to 2023 third quarter.

The uptick in the imports was mainly due to an increase in the imports of ‘food’ (13.4 per cent), ‘capital goods’ (3.4 per cent) as well as ‘fuel and energy’ (3.3 per cent).

However, imports of ‘construction’ as well as ‘other intermediary consumption’ goods declined by 3.5 per cent and 2.8 per cent, respectively.

On a year-on-year comparison, merchandise imports grew by 16.8 per cent when compared to the same period in 2022.