Eswatini sugar industry targets growth amid global market shifts, climate challenges 

ESWATINI – The Eswatini sugar industry, a cornerstone of the national economy, is positioning itself for long-term growth despite challenges from unstable global markets, shifting trade rules, and the effects of climate change. 

According to the Eswatini Sugar Integrated Annual Report 2025, the sector contributes 6.3 percent to the country’s gross domestic product, generates around a quarter of export earnings, and provides employment for more than 16,000 people. 

Global dynamics present both risks and opportunities. World sugar production for the 2024/25 season is forecast to decline to 174.8 million tonnes, down from 181.3 million tonnes the previous year. The drop is attributed to adverse weather conditions, pest infestations, and increased use of sugarcane for ethanol production.  

At the same time, global consumption is projected to rise slightly to 180.3 million tonnes, leaving a supply deficit of 5.5 million tonnes, the largest in nearly a decade. 

Despite this shortfall, sugar prices remain unstable due to changing consumer preferences for low-sugar products, the impact of weight-loss medicines on demand, competition from alternative sweeteners, and fluctuations in oil prices influencing ethanol production. International trade disruptions and shrinking volumes further add to the uncertainty. 

The African Continental Free Trade Agreement (AfCFTA) is expected to reshape the landscape, with sugar demand rising in sub-Saharan Africa, particularly in fast-growing economies such as Nigeria, Kenya, and Ethiopia.  

However, high production costs, poor infrastructure, and regulatory hurdles continue to limit output in many countries. For Eswatini, expanding regional markets offer significant growth potential, though challenges such as smuggling remain a threat by undermining formal sector prices and profitability. 

Domestically, Eswatini reported a 4 percent increase in cane output, reaching 5.36 million tonnes in 2024/25, while sugar production stood at 640,738 tonnes.  

However, the report highlights ongoing declines in cane and sucrose yields, raising concerns about future sustainability. Lower yields reduce profitability and could eventually drive farmers to switch to alternative crops. 

Key pressures include unpredictable rainfall patterns, rising temperatures, increased fuel and fertiliser costs, pest outbreaks, and labour shortages, prompting greater investment in mechanisation. 

In response, the Eswatini Sugar Association has introduced replanting programmes featuring climate-resilient cane varieties aimed at boosting yields. Improved cultivars from South Africa, Mauritius, Réunion, and Zimbabwe are being tested and adopted to strengthen future production. 

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