Africa-Press – Eswatini. The Eswatini Sugar Association (ESA) has achieved an unprecedented E6.44 billion in revenue generated for the Eswatini sugar industry and its members, the sugar cane growers and millers.
The 11.8 per cent increase from Financial Year (fy) 21/22 (E5.66 billion) is the first recorded in over 10 years and was despite shortfall in sugar production and sales volumes forecasts for the year. According to the association’s Integrated Annual Report for 2022/23 released this week, the significant increase in revenue was primarily the result of high sugar prices and a weaker exchange rate of major currencies against the Lilangeni, that worked in the Eswatini industry’s favour.
Distributed
All of the revenues realised by the association are distributed to its members – the sugar cane growers and the millers, with the proceeds being 68.1 per cent for the growers, and 31.9 per cent to the millers. In his statement, the ESE Chief Executive Officer (CEO), Banele Nyamane, who ascended to the position in the year under review, highlighted climatic, political, and economic challenges as contributing factors to the decline in both sugar production and sales volumes. Notwithstanding, the association, through its structures managed to achieve optimum returns for its members. “Obstacles and hardships are an opportunity to prove our mettle and I believe that ESA has done just this. We grappled with climate change, ongoing political and social unrest and a weak economic environment, factors that were all beyond our control. Nevertheless, we continued to use all the expertise and tools at our disposal to meet these uncertainties in global and regional markets,” he stated.
Nyamane further mentioned changing consumption patterns, increased competition and a growing demand for alternative products, as some of the challenges ESA wrestled with during the year under review. It is, however, projected that the world market sugar price will continue its upward trend over the next 18 months and ESA will optimise on this projection.
“Although we are playing catch up in areas where we have fallen behind, we are on a positive trajectory, and I am optimistic about our future growth,” reassured the CEO. The report stated that there was more yet to be achieved in repositioning the organisation in order to ensure continued success in an evolving environment. “ESA has identified a number of strategic interventions through, which the Eswatini sugar industry can evolve to become a future-fit, innovative, competitive and sustainable sugarcane entity promoting long-term stakeholder well-being. This is based on a number of measurable objectives that guide ESA operations and signals a new direction for the organisation,” said Nyamane. ESA is the regulatory body of the sugar industry that provides employment for over 16 000 people as the largest private sector employer, and contributes about five per cent to the country’s gross domestic product (GDP).
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