Who Owns Whom

The Sugar Industry in Eswatini 2022

Charles Chinya | Eswatini (formerly Swaziland) | 28 February 2022

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R 13 500.00(ZAR) estimated $ 851.84 (USD)*

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Report Coverage

This report focuses on the sugar industry in Eswatini and includes information on the state and size of the industry, the major players, developments, corporate actions, regulation and other influencing factors. There are profiles of four companies including Royal Eswatini Sugar Corporation, listed on the stock exchange and part-owned by South African RCL Foods, Ubombo Sugar, which majority owned by Illovo Sugar, locally-owned Tambankulu Estates and Crookes Plantations, part of the South African Crookes Brothers group.

The Sugar Industry in Eswatini

Eswatini is Africa’s fourth largest sugar producer and the 25th largest producer worldwide. Sugar is its main export commodity and accounts for over half of the country’s agricultural output. Sugarcane is grown under irrigation in the lowveld of the country on 57,000 hectares of land. The industry is highly regulated, and the Eswatini Sugar Association, an umbrella body of all growers and millers of sugarcane, markets and sells all sugar and molasses produced in the country.

Production

Sugarcane production in Eswatini is forecast to increase marginally in the current year, while sugar production will increase based on more sugar cane delivered to the sugar mills, better quality of sugar cane and a better sugar recovery rate. Sugar manufacturers are attempting to reduce production costs and improve efficiencies and financial performance, and factory recoveries are set improve.

Innovation

Sugar companies are diversifying into new products such as biodegradable plastics, growing new crops and the production of rum, gin and vodka. Industry players are considering pursuing opportunities to supply ethanol to oil companies for fuel blending. The high cost and unreliable supply of electricity is forcing sugar companies to build their own renewable solar energy plants, while Eswatini’s vulnerability to drought has seen companies set up water storage facilities and recycle waste water. Given the growing trend of using artificial sweeteners, it is expected that Eswatini manufacturers may increase production of these products.

Table of Contents

PAGE
1. INTRODUCTION 1
2. COUNTRY PROFILE 1
3. DESCRIPTION OF THE INDUSTRY 3
3.1. Industry Value Chain 6
3.2. Geographic Position 7
3.3. Size of the Industry 9
3.4. Key Success Factors and Pain Points 10
4. LOCAL 11
4.1. Key Trends 14
4.2. Notable Players 16
4.3. Trade 18
4.4. Corporate Actions 21
4.5. Regulations 21
4.6. Enterprise Development and Social Economic Development 22
5. AFRICA 24
6. INTERNATIONAL 27
7. INFLUENCING FACTORS 31
7.1. Environmental Issues 31
7.2. Input Costs 33
7.3. Renewable Energy 33
7.4. COVID-19 34
7.5. Economic Environment 34
7.6. Labour 35
7.7. Technology, Research and Development (R&D) and Innovation 37
7.8. Disease and Pests 37
7.9. Political Risks 38
7.10. Forced Evictions 38
7.11. Poverty 38
7.12. 7.12. HIV/AIDS 39
7.13. Cyclicality 39
7.14. Infrastructure 39
7.15. Food Safety 40
7.16. Government Support 40
8. COMPETITIVE ENVIRONMENT 41
8.1. Competition 41
8.2. Barriers to Entry 41
9. SWOT ANALYSIS 42
10. OUTLOOK 43
11. INDUSTRY ASSOCIATIONS 43
12. REFERENCES 44
12.1. Publications 44
12.2. Websites 44
APPENDIX 1 46
Summary of Notable Players 46
COMPANY PROFILES 47
Crookes Plantations Ltd 47
Royal Eswatini Sugar Corporation Ltd (The) 49
Tambankulu Estates Ltd 52
Ubombo Sugar Ltd 54
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