Political turbulence and post-electoral protests in Mozambique are disrupting Eswatini’s sugar industry, leading to supply chain interruptions, export challenges, and the search for alternative transport routes.
Eswatini’s sugar industry relies heavily on a terminal at the Port of Maputo to ship raw sugar to the European Union and the United States. This terminal, co-owned by Eswatini, South Africa, Zimbabwe, and Mozambique, has been a critical hub for the industry since the mid-1990s.
Nontobeko Mabuza, of the Eswatini Sugar Association (ESA), warned that the unrest in Mozambique poses a significant threat to Eswatini’s sugar exports to regional and European markets. “The alternative export route through Durban [South Africa] adds an extra 10% to costs due to the distance and results in longer response times as shipments are diverted,” Mabuza explained.
In 2023, ESA generated $305 million from over 26,000 tons of sugar exports to the U.S. and other markets under the U.S. African Growth and Opportunity Act (AGOA). However, Bhekizwe Maziya, CEO of the National Agricultural Marketing Board, noted that the instability in Mozambique has caused severe traffic congestion and delays at borders with Eswatini.
The closure of the Lebombo border post between South Africa and Mozambique has been a major issue. “Transportation had to be rerouted from South Africa through Eswatini en route to Mozambique, leading to border congestion and delays for importers and exporters,” Maziya added.
Banele Nyamane, ESA’s CEO, reiterated that transporting sugar along normal routes has become increasingly challenging, resulting in higher costs. “Using Durban is costly as it is further away, and the vessels required often travel to Kenya, causing further delays in product delivery,” Nyamane stated.
Despite the difficulties, Nyamane emphasized that ESA is closely monitoring the situation and receives periodic feedback on route safety. The association had anticipated potential disruptions in Mozambique and collaborated with Eswatini Railways to ensure continued sugar exports.
ESA’s 2023/2024 financial reports show that European countries accounted for around 16% of Eswatini’s sugar imports. During a recent Private Sector Day, ESA’s Chief Financial Officer, Andreas Mendes, highlighted the necessity of alternative routes and emphasized challenges in the agricultural sector, including rising input costs and supply chain disruptions exacerbated by geopolitical tensions.
Mozambican political activist Solomon Mondlane warned of the broader implications of instability, stating, “The unrest could have far-reaching consequences for Southern African economies, especially landlocked countries like Eswatini, which struggle to find alternative export routes.”
Political analyst Sibusiso Nhlabatsi urged the Southern African Development Community (SADC) to enhance conflict management strategies within member states like Mozambique. “It is critical to establish accountability frameworks and ensure member states are responsible for their impact on regional stability,” Nhlabatsi concluded. (Simão Djedje)
