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<\/p>\nBy Kwanele Dhladhla<\/p>\n
United States President Donald Trump\u2019s administration has endorsed a one-year extension of the African Growth and Opportunity Act (AGOA), offering a critical reprieve for sub-Saharan African economies, including Eswatini, where the trade pact supports over 20,000 jobs in the textiles and apparel sector.<\/p>\n
Reuters on Wednesday reported that a White House official confirmed that the law, which was due to expire on Tuesday, would now remain in effect for an additional year.<\/p>\n
First passed in 2000, AGOA provides duty-free access to the U.S. market for thousands of products from eligible African countries.<\/p>\n
Minister of Commerce, Industry and Trade Manqoba Khumalo strongly emphasised that Eswatini would continue positioning itself to take advantage of new trade arrangements.<\/p>\n
\u201cAs we approach the conclusion of AGOA, it is important to reflect on both the potential impacts and the unique opportunities for Eswatini. AGOA has played a significant role in supporting thousands of jobs and livelihoods, particularly within textiles, which accounted for the majority of our US$70 million (E1.2 billion) AGOA exports in 2024,\u201d Khumalo said.<\/p>\n
The minister acknowledged that a permanent non-renewal of AGOA would mean the loss of duty-free and quota-free access.<\/p>\n
However, he stressed that Eswatini has negotiated a highly favorable reciprocal external tariff of just 10 per cent on exports to the United States, the lowest in the region.<\/p>\n
\u201cThis makes Eswatini the most attractive location for U.S.-bound exports compared to our neighbors,\u201d he explained.<\/p>\n
\u201cWe anticipate not a net loss, but a net gain in investments and jobs as businesses seeking competitive access to the U.S. market consider relocating or expanding here.\u201d<\/p>\n
According to the ministry, contingency measures were already in place to ensure factory shells and industrial infrastructure remain operational in the event of a shift away from AGOA.<\/p>\n
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He pointed out that the government was also pushing for diversification in agro-processing, ICT, and renewable energy to cushion the economy from overreliance on textiles.<\/p>\n
An economist noted that the endorsement from Washington, as reported by Reuters, brought a sigh of relief to thousands of factory workers, particularly women, whose livelihoods depend on the textiles sector.<\/p>\n
He said it also reassures investors in the apparel value chain who had expressed concern over market uncertainties.<\/p>\n
Eswatini sugar cushioned by WTO deal, secures new markets in U.S<\/p>\n
Eswatini\u2019s sugar industry is set to remain resilient despite looming changes in U.S. trade arrangements, with its exports guaranteed under World Trade Organisation (WTO) agreements.<\/p>\n
Eswatini Sugar Chief Executive Officer Banele Nyamane welcomed President Trump\u2019s endorsement of the one-year AGOA extension as good news but noted that the country\u2019s sugar exports fall under WTO quotas rather than AGOA.<\/p>\n
\u201cThe most affected products from Eswatini would have been the value-added products from sugar. Our raw sugar exports remain guaranteed, and we are further strengthening our position through new international markets,\u201d Nyamane explained.<\/p>\n
Nyamane recently disclosed that from September 2025, Eswatini would export 16,500 tonnes of sugar annually to the U.S. under a recently concluded deal. Nyamane confirmed that despite the imposition of 10 per cent tariffs, the U.S. market remains attractive.<\/p>\n
\u201cWe will still get better value from the United States compared to other markets,\u201d he said.<\/p>\n
Eswatini Sugar has also scored a breakthrough in Angola, a market long dominated by Brazilian suppliers. Under SADC agreements, Angola has agreed to tariff-free imports from member states. \u201cAngola was a tough market, but safeguards now allow us entry.<\/p>\n
We already supply Namibia, so trucks can move seamlessly from Namibia into Angola,\u201d Nyamane said when delivering financial results for the 2024\/2025 financial year.<\/p>\n
Financially, the company reported revenues rising slightly from E7.4 billion to E7.7 billion, despite falling global sugar prices.<\/p>\n
After deducting costs, net proceeds of E7.3 billion will be distributed across the industry, with 68.1% going to cane growers and 31.9% to millers.<\/p>\n
Nyamane described the results as a big achievement, adding that the rebrand from the Eswatini Sugar Association to Eswatini Sugar signals ambition to assert a stronger identity in regional and global markets.<\/p>\n
\u201cThis position us to grow our footprint across Africa while securing high-value markets abroad,\u201d he said.<\/div><\/strong><\/p>\n
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