Swaziland has a potential to increase intra-COMESA trade by E20.9 billion (US$1.9 billion), recent analysis has shown

This was said by Minister of Commerce, Industry and Trade Gideon Dlamini when speaking at the Royal Swazi Convention Centre on Thursday. It was during the Federation of Swaziland Employers and Chamber of Commerce (FSE&CC) Gala Dinner on Thursday.

The minister said products identified for potential export growth in Swaziland include milk, cream, fruits, nuts and other edible parts of plants, concentrates, textiles, wooden furniture and other wooden products. 

“The COMESA market, which has a membership of 19 countries and with a potential to reach 20 (at the accession of South Sudan) has population of more than 370 million, which really  presents the opportunity for the country to increase its trade balance,” Dlamini said.

He mentioned that Swaziland has trade relations with other regions and countries, which offer market access for local products at either lower duty or no duty at all.

Dlamini went on to say there are also ongoing trade negotiations that Swaziland is participating in, including the Tripartite Free Trade Area, which will encompass 26 members of the African Union (from the COMESA, SADC and the East African Union).

The Tripartite FTA which will span from Cape to Cairo will have a combined population of 625 million people and a Gross Domestic Product (GDP) of (E13.2 trillion) US$1.2 trillion, will account for 58 per cent of the continent’s GDP.

The minister said the tripartite FTA, popularly known as the Grand Free Trade Area, will be the largest economic bloc on the continent and the launching pad for the establishment of the continental free trade area in 2017.

Dlamini added that a relatively new area in the trade arena that is getting much attention is trade in services. He said in COMESA, SADC and the Tripartite FTA negotiations, there is a commitment to advance trade in services among member states.

In COMESA and SADC for example, at least six priority sectors have been identified for countries to make commitments for liberalisation of tourism, transport, financial services, energy, construction and communication.

He is of the view that trade in services has a potential to enhance the participation of small and medium enterprises (SMEs) in the above-named sectors, because of in most cases it does not require substantial capital to be established.

“Swaziland, in phase two of the EPA agenda, will be negotiating trade in services with the EU.

“An area of interest in the trade in services for Swaziland may include mode four, which is the temporary movement of natural persons – that is – professionals in different fields of specialisation be allowed to work in the EU.

Inversely, service providers from the EU may be allowed to operate in Swaziland with a requirement to encourage local participation, such as, joint ventures.

Similarly, our export performance with other regions of the world continues to be relatively low in relation to the opportunities that have been made available to us through negotiations.