ESWATINI SUGAR EXPLORES ALTERNATIVE SHIPPING ROUTES AMID MIDDLE EAST CONFLICT – CEO

News

BY THEMBA ZWANE

MBABANE – Eswatini Sugar Chief Executive Officer (CEO) Banele Nyamane says the country is exploring alternative shipping routes as a result of challenges encountered in shipping lines through Durban and Maputo ports due to the Middle East conflict.

In an interview with Eswatini Positive News, the CEO revealed that exports are continuing, albeit at an increased cost and slight delays.

“The extra costs are arising from additional surcharges applied by the shipping line for the hike in oil price. Delays are due to shortages of containers as some of them are stuck with goods that were destined for the Middle East. There has also been a reduced flow of shipping lines passing through Durban or Maputo due to the inaccessibility of the ports in the Middle East. As Eswatini Sugar, we continue to explore deferent routes and working hand in hand with our logistics partners,” said Nyamane.

Meanwhile, reports indicate that sugar is one of Eswatini’s key sectors. According to the Eswatini Sugar data, sugar accounts for about 5% 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% 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% 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.

Eswatini’s major sugar export destinations as of 2024 were dominated by South Africa, taking the vast majority of exports ($327M), followed by Italy ($27.5M), the United Kingdom ($25M), the United States ($10.3M), and Kenya ($5.14M). The industry focuses on both regional SACU/SADC markets and premium quota markets like the U.S. and EU.

Top Sugar & Confectionery Export Destinations (2024):
• South Africa: ~$327 million (highest volume, key regional partner).
• Italy: ~$27.5 million.
• United Kingdom: ~$25 million.
• United States: ~$10.3 million (beneficiary of Tariff-Rate Quota (TRQ)).
• Kenya: ~$5.14 million.

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