BY LINDELWA MYENI
MBABANE — Eswatini’s agricultural production is strengthening the country’s trade position as the August 2026 merchandise trade balance recorded a preliminary surplus, with increased local harvests reducing the need for food imports while sugar exports support export earnings.
Economist Sanele Sibiya, speaking on the Kusile Breakfast Show, said the seasonal increase in agricultural production was an important contributor to the country’s improving trade position.
He said the August surplus was a positive development, although the financial year-to-date trade balance remained in deficit.
LOCAL PRODUCTION CUTS IMPORTS
Sibiya explained that Eswatini’s economy is strongly influenced by seasonal agricultural production, with the harvest period helping to reduce imports of food products that can be produced locally.
He identified maize, tomatoes and carrots among products whose imports can decline when domestic production increases.
According to Sibiya, increased local production therefore benefits the economy in two ways by improving domestic food supply while reducing the amount of money spent on importing food.
SUGAR SUPPORTS EXPORTS
Sibiya said sugar production also plays an important role in strengthening Eswatini’s export position, particularly during the Lowveld crushing season.
He explained that increased sugar exports contribute to export earnings and can help move the country’s trade balance towards a surplus.
The combination of increased agricultural production and stronger exports provides an opportunity for agriculture to contribute more significantly to Eswatini’s external trade performance.
WATER KEY TO PRODUCTION
Sibiya said maintaining and expanding agricultural production would depend partly on improving access to reliable water, particularly as changing weather patterns create uncertainty for farmers.
He highlighted the importance of water augmentation and irrigation projects in supporting productive capacity.
According to Sibiya, reliable water supplies can help farmers maintain production despite unpredictable rainfall, allowing the country to strengthen both food production and its ability to supply export markets.
EXPORT POTENTIAL GROWS
Sibiya said strengthening Eswatini’s productive capacity could help the country move beyond simply meeting domestic demand and increase its ability to compete in export markets.
He said the seasonal improvement in the trade balance could receive further support towards December as agricultural production and exports remain active.
However, he noted that the pattern can reverse when imports increase again after the harvest season.
The economist said expanding productive capacity was therefore important for ensuring that improvements in the trade position were sustained beyond seasonal changes.
As local farmers increase production and export-oriented sectors such as sugar contribute to foreign earnings, agriculture continues to provide an important opportunity for Eswatini to reduce reliance on imported food while strengthening its position in regional and international markets.
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