By 
PULSE OF THE WEEK
…With Siphesihle Dlamini
Eswatini’s economy is powered by a vibrant ecosystem of micro, small, and medium enterprises (MSMEs), numbering around 70,000 according to the National MSME Policy 2024-2029.
These businesses form the backbone of production and contribute significantly to the country’s GDP. Yet, despite this robust base, only about 1 per cent, roughly 700 MSMEs are currently export ready.
This glaring gap between production capacity and export capability underscores a critical challenge for Eswatini’s economic growth and integration into global markets.
Thandeka Dlamini, Manager of External Trade Promotion at the Eswatini Investment & Trade Promotion Authority, highlights this issue, noting that while many MSMEs are actively producing, very few have “digested” the complexities of exporting. “We have an economy that is producing, but we are not ready to go out there to do that,” she said.
Dlamini emphasised that exporting is fundamentally different from selling locally. “Exporting is not the same as selling in SRD. It’s not the same as going to Pick n Pay,” she explained. The export process involves navigating a labyrinth of regulations, logistics, pricing strategies, and documentation that many businesses are unfamiliar with.
For example, the price at which a business sells dried fruits domestically is under its control, but this price will differ significantly when selling in South Africa, and even more so in distant markets like Germany.
“There are costs involved, extra costs,” Dlamini pointed out, including transportation, customs duties, and compliance fees. These factors make it imperative for businesses to assess their readiness before attempting to enter foreign markets.
To address these challenges, the Eswatini Investment & Trade Promotion Authority has developed an export guide that walks businesses through a 10-step checklist designed to evaluate and enhance their export readiness:
Assess export readiness: Businesses must critically evaluate their capacity to meet the demands of international trade, including production scalability and regulatory compliance.
onduct market research: Understanding the target market is crucial. Businesses need to identify which markets are suitable for their products and understand customer preferences and competition.
Develop an export plan: Just as a business has a domestic plan, exporting requires a dedicated export plan outlining objectives, strategies, and resources.
Obtain necessary documentation: Exporting demands various official documents such as export licenses, certificates of origin, and quality assurance certificates.
Arrange logistics: Efficient logistics planning ensures products reach markets on time and in good condition.
Determine export pricing: Pricing must reflect additional costs like freight, tariffs, and currency fluctuations.
Explore export financing: Expanding operations to meet export demand often requires financial support, including trade finance and credit facilities.
Obtain customs clearance: Compliance with customs regulations is mandatory to avoid shipment delays.
Mitigate risks: Exporting exposes businesses to risks such as payment defaults and political instability, which must be managed proactively.
Build capacity: Scaling production and operational capabilities is essential to meet increased demand.
Dlamini stressed that “the point of exporting is so that you grow your operations, you grow your business.” This growth mindset is essential for MSMEs aiming to expand beyond Eswatini’s borders.
Eswatini’s domestic market, with just over 1.2 million people, is limited in size. In contrast, the global market comprises nearly 8 billion consumers. This vast disparity presents an enormous opportunity for MSMEs to scale their businesses by accessing international markets.
However, the low export readiness rate suggests that many businesses lack the necessary tools, knowledge, and resources to capitalise on these opportunities.
he export guide serves as a practical roadmap to bridge this gap, helping businesses navigate the complexities of exporting and build sustainable international operations.
Increasing the number of export-ready MSMEs can have transformative effects on Eswatini’s economy. Expanding exports can boost foreign exchange earnings, create jobs, and foster innovation through exposure to global standards and competition.
Moreover, integration into regional and global value chains can enhance the country’s economic resilience.
For policymakers, supporting MSMEs through capacity building, streamlined export procedures, and access to finance is critical. The export guide is a step in the right direction, but a coordinated effort involving government agencies, private sector stakeholders, and international partners is necessary to scale up export readiness effectively.
Eswatini stands at a crossroads where the potential of its MSME sector to drive economic growth through exports is clear but underutilised. As Thandeka Dlamini articulated, “We have an economy that is producing, but we are not ready to go out there.
” The export guide’s structured approach offers a pathway for businesses to overcome barriers and seize the vast global market. With only 1 per cent currently export-ready, the journey to international trade is challenging but ripe with opportunity for those prepared to embrace it.
