E5bn Trade Gap – Eswatini Targets Export Growth

By: Nkosiyabusa Nsibande

Eswatini is moving to reshape its trade policy around export diversification, industrialisation and stronger private-sector participation as the country seeks to improve its position in regional and international markets. The Ministry of Commerce, Industry and Trade held a validation workshop for the draft National Trade Policy, bringing together government, private-sector representatives, civil society and development partners to assess the proposed framework before its finalisation.

Officially opening the workshop, Under Secretary Phesheya Dube, representing the Principal Secretary, said the National Trade Policy would play an important role in shaping Eswatini’s economic transformation and strengthening its position within regional and global trade frameworks. The policy is intended to provide a coordinated approach to addressing some of the structural constraints affecting the country’s ability to expand its trade base and compete more effectively.

A major component of the draft policy is export diversification, with the government seeking to reduce the economy’s dependence on a relatively concentrated range of products and markets. Expanding the number of products and destinations from which the country earns foreign exchange could strengthen external-sector resilience while creating additional opportunities for businesses to increase production and investment.

The policy places particular emphasis on industrialisation and value addition, pointing towards a greater role for domestic processing and manufacturing in the trade economy. Rather than exporting raw or minimally processed products, increased value addition could enable local businesses to retain a larger share of the economic value generated from Eswatini’s resources and agricultural production.

This approach could also create opportunities across supporting industries, including logistics, packaging, financial services, technology and professional services. Increased domestic production would require businesses to invest in machinery, infrastructure, skills and working capital, potentially creating demand for additional private-sector financing as firms expand their productive capacity.

Regional and continental integration is another central pillar of the proposed policy. Greater access to African markets could provide Eswatini businesses with a larger customer base and opportunities to achieve economies of scale. However, increased market access also brings stronger competition, requiring local companies to improve productivity, pricing, product standards and operational efficiency.

The draft further identifies access to finance as an important constraint, particularly for MSMEs, women and youth entrepreneurs. For smaller businesses, limited access to affordable financing can restrict their ability to purchase stock, acquire equipment, fulfil larger orders and enter export markets. Addressing this constraint could therefore determine whether the opportunities created by the trade policy translate into actual business expansion.

Trade facilitation and the reduction of non-tariff barriers are also expected to feature prominently in the final policy. Administrative delays, complex procedures and other border-related costs can increase the cost of doing business and reduce the competitiveness of exporters. Streamlining these processes could improve the movement of goods across borders and provide businesses with greater certainty when planning production and deliveries.

The policy also broadens the scope of trade beyond merchandise exports by identifying services such as ICT, tourism, professional services, transport, business process outsourcing and creative industries as potential areas for expansion. The services sector offers opportunities for Eswatini to generate export revenues without relying solely on the movement of physical goods, particularly as digital technologies make it easier for service providers to access customers outside the domestic market.

The validation process is intended to ensure that the policy reflects the practical realities facing businesses and the wider economy. Stakeholders were given an opportunity to assess the draft, identify gaps and propose changes that could strengthen its implementation once adopted.

The Ministry has stressed that the policy requires continued cooperation between government and the private sector. Following the workshop, the draft will be revised to incorporate stakeholder inputs before the final document is completed.

The effectiveness of the policy will ultimately depend on implementation. For Eswatini to derive greater economic value from trade, improved market access will need to be matched by productive investment, competitive businesses, reliable infrastructure, accessible finance and efficient border systems. The success of the framework will therefore be measured not only by higher trade volumes, but by whether it contributes to stronger domestic production, increased value addition, broader export earnings and sustainable private-sector growth.