By 
By Ncaba Ntshakala
The Central Bank of Eswatini’s latest economic developments report reveals a mixed picture for the country’s external sector in February 2024.
While exports continued their robust growth, the trade surplus narrowed compared to the previous month.
Trade surplus shrinks
Eswatini recorded a trade surplus of E91.7 million in February 2024. This represents a decrease from the significantly higher surplus of E474.9 million achieved in January 2024. However, despite the decline, the positive trade balance indicates that the value of exports continues to exceed the value of imports.
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Eswatini’s export performance remained positive in February. The country exported a total of E3.294 billion worth of goods during the month, reflecting a year-on-year increase of 28.5% compared to E3.208 billion exported in January 2024.
This sustained growth in exports is a positive indicator of Eswatini’s economic activity.
Imports rise
While exports continued to climb, imports also witnessed an uptick in February. The value of imports reached E3.203 billion, representing a monthly increase from E2.733 billion in January 2024. Year-on-year, imports grew by 24.2%.
This rise in imports contributed to the narrowing of the trade surplus compared to the previous month.
The report also presents a seasonally adjusted trade balance for February 2024. This adjustment aims to account for seasonal fluctuations in trade patterns, providing a clearer picture of underlying trends.
The seasonally adjusted trade balance stood at E113.8 million in February. Seasonally adjusted exports amounted to E3.433 billion, while seasonally adjusted imports were E3.320 billion.
Year-to-Date trade performance
Looking at the first two months of 2024 combined, Eswatini’s trade performance has been encouraging. The country has achieved a positive trade balance of E566.6 million for the year-to-date period.
This is a significant improvement compared to the E157.2 million trade surplus recorded during the same period in 2023. The year-on-year increase in the trade surplus reflects a positive trend in Eswatini’s external trade.
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South Africa continues to be Eswatini’s primary trading partner. In February 2024, 70.0% of Eswatini’s exports were destined for South Africa, while 79.2% of its imports originated from the neighbouring nation.
This strong trade relationship highlights the economic interconnectedness between the two countries.
Breakdown of key export and import categories:
The report provides a detailed breakdown of Eswatini’s main export and import categories for February 2024.
Exports:
Soft drink concentrates
Exports of soft drink concentrates remained steady month-on-month at E1.670 billion but rose by 28.5% year-on-year.
Sugar and sugar products
Exports of sugar and sugar products grew by 3.5% month-on-month and 31.4% year-on-year, reaching E671.6 million.
Textile and textile apparel
Despite a year-on-year decline of 4.01%, textile and textile apparel exports increased by 45.0% month-on-month, totalling E256.6 million.
Wood and wood articles
Exports of wood and wood articles continued their upward trend, reaching E203.1 million in February. This represents an increase of 11.6% month-on-month and 16.3% year-on-year.
Imports:
Energy products
Imports of energy products, primarily fuel, climbed by 5.0% month-on-month and 13.4% year-on-year, reaching E535.9 million.
Animal and vegetable products
Imports of animal and vegetable products, including food items, rose by 7.7% month-on-month and 31.5% year-on-year, totalling E304.6 million.
Machinery and electrical equipment
Imports of machinery and electrical equipment witnessed a significant surge of 43.4% month-on-month and 31.9% year-on-year, reaching E378.1 million.
