AfCFTA National Implementation Strategy: Kingdom of Eswatini 2024 – 2028

Abstract

The Kingdom of Eswatini has always adopted a liberal approach to trade and investment being one of the most open and trade dependent economies in the world. The country’s industrial policy and FDI strategy has always targeted export-oriented enterprises, owing to its small domestic market. The structure of Eswatini’s economy is dominated by the service sector which accounted for 52 per cent of total value added in 2021, compared to 43 per cent in 2010. The immediate focus for Eswatini is to take advantage of preferential access to the African market under the AfCFTA. This entails maximizing the sectors where the country currently possesses competitive strength, whilst putting the building blocks that will allow for increased volumes and diversity of exports in both goods and services. The Eswatini AfCFTA Implementation Strategy is “To provide a strategic roadmap for Eswatini to maximize the country’s benefits under the AfCFTA targeting an annual regional export growth of at least 10 per cent”. The strategy is based on seven strategic objectives : Increase and diversify local production for AfCFTA markets in priority sectors, Develop MSMEs export readiness programs targeting AfCFTA markets, Improve access to development finance to encourage exports, Improve border management coordination at domestic and bilateral levels, Increase sector specific support for AfCFTA prioritized and other identified sectors in trade in goods, Prioritize business climate improvements, Develop a competitive services sector to attract investment and diversify exports. The key objective of the AfCFTA national strategy is to complement a broader development framework, especially in relation to the trade policy environment of Eswatini to the AfCFTA Agreement. The national strategy will facilitate the identification of regional value chains that can be exploited, maximizing value addition, identifying trade opportunities and constraints, including measures and capacities required to take full advantage of national, regional, and global markets for both goods and services within the context of AfCFTA.