Countries of the World/COUNTRYS.BIN/dp/0344/03447.txt

Text File | 1991-06-25 | 25KB | 492 lines

$Unique_ID{COW03447}
$Pretitle{440}
$Title{Swaziland
Industry}
$Subtitle{}
$Author{Greg Dardagan and Jennifer Edley}
$Affiliation{Embassy of Swaziland, Washington DC}
$Subject{cent
per
cotton
crop
production
tons
swaziland
sugar
fruit
citrus}
$Date{1990}
$Log{Canned Hams*0344701.scf
Table 1.*0344701.tab
}
Country:     Swaziland
Book:        A review of commerce and industry 1990 edition Swaziland
Author:      Greg Dardagan and Jennifer Edley
Affiliation: Embassy of Swaziland, Washington DC
Date:        1990

Industry

[See Canned Hams: Processing Plant. Courtesy of the Embassy of Swaziand,
Washington DC.]

     The manufacturing sector is second only to agriculture in its importance
to the economy of Swaziland. It contributes about 22 per cent of the gross
national product. Because the country's economy is based on agriculture and
forestry, many manufacturing and support services are closely associated with
these two sectors.

HISTORICAL BACKGROUND

     The establishment of industrial enterprises in Swaziland dates back to
the early 1950s. At Independence in 1968, the major agricultural and forestry
industries were already established, while the 1970s saw the commissioning of
a fruit-canning factory, fertiliser factory, television and radio assembly
plant, and several food and drink industries.

     The 1980s have seen further developments but the essential character of
the industrial base has not changed significantly. During the decade there
have been developments which include a sugar mill at Simunye, bakeries, a
cement brick plant, a zip fastener factory, a cotton ginnery, a textile mill,
clothing factories and a soft-drink concentrate production plant. At the same
time, many firms have undergone expansion programmes, with associated
increases in employment.

     Originally, the major industrial enterprises were wholly foreign-owned.
But the Tibiyo Taka Ngwane trust fund has acquired substantial stakes in the
manufacturing sector, including the sugar industry; and because of the
standstill in significant industrial development in the first half of the
eighties the Swaziland Industrial Development Company was born.

     Developments in southern Africa have no doubt helped the development of
industry in Swaziland. Coca-Cola is a prime example of what relocation has
done for the country - in 1986 the United States company transferred its
concentrate-making operations from South Africa to a new E18 million plant in
Swaziland.

Agriculture

     Agriculture remains the backbone of Swaziland's economy. It contributes
about 23 per cent to the gross domestic product (GDP). provides employment for
around three-quarters of the country's indigenous wage earners and accounts
for 40 per cent of exports.

     Due to the more favourable rainfall since 1984, traditional agriculture
(rain-fed crop production on Swazi Nation Land) experienced an average annual
real growth of 27 per cent over the 1982-86 period, but the disappointing
maize and cotton crops of 1987 are expected to have caused a substantial drop
in that sub-sector's GDP contribution. The decline was probably reversed in
1988 because of the bumper cotton crop.

     While the GDP contribution of modern agriculture (crop production on
individual tenure farms) averaged E60 million in 1980 prices during 1982-85,
it increased to more than E66 million the following year, mainly because of
the bumper sugar crop. The GDP contribution of individual tenure farms is
thought to have declined in 1987-88. Individual tenure farms cover about 44
per cent of the rural land on which about 800 farms of, on average, roughly
800 ha are located. These farms are owned by freehold or concessionary title
by individuals and companies whose farming practices are generally highly
mechanised and market orientated. Main crops include sugar cane, citrus,
pineapples, cotton and tobacco.

     Swazi Nation Land covers the remainder of the country and is held by the
King in trust for the nation. This land supports about 42 000 small-scale
farmers on holdings of less than 3 ha in size, on which maize growing,
livestock rearing and mixed-crop agriculture are the main activities. In many
instances the harvest is consumed immediately to satisfy family needs.

     A smallholder credit and marketing project has been financed whereby
credit is allocated through the Swazi Development and Savings Bank, which
includes the provision of capital funds for wholesale bases, cold-storage
facilities, technical assistance and the rehabilitation of smallholder
schemes.

     The Central Co-operative Unit of the Ministry of Agriculture and
Co-operatives will help in the marketing of vegetables and maize. Before
implementation, all developments planned for Swazi Nation Land are submitted
to the Central Rural Development Board, which is composed of traditional
chiefs and leaders. A committee of representatives of all ministries and
agencies involved has been established to facilitate implementation and
co-ordination.

     One of the goals of the government's agricultural policy is to attain
self-sufficiency in food production and transform the sector from
traditional subsistence farming to commercial enterprise. To help achieve this
objective, the National Agricultural Marketing Board was created in 1986 to
provide a market for agricultural produce while at the same time stimulating
local production. This market is situated at Nokwane near the Matsapha
Industrial Estate, while 14 other smaller collection centres have been
constructed at various points in the country to facilitate processing,
storage and distribution.

Sugar-Swaziland's sweet success story

SUGAR

     After the record production of 506 349 metric tons of sugar in 1986/87,
the volume of sugar production in 1988/89 is expected to be at the more
average level of around 435 500. No major pest and disease outbreaks were
encountered in 1988/89.

     Sugar sales increased by a little over 8 per cent from 427 085 tons in
1986/87 to 463 168 tons in 1987/88, with Canada - which became Swaziland's
main sugar customer in 1986/87 - buying up about a half of the total quantity
exported in 1987/88. The EEC continued to be the second most important
customer while the volume sold to Portugal stagnated.

     Exports during 1988/89 are expected to total about 375 000 tons which
would represent a 13 per cent decline. This drop is attributable to the lower
sugar crop, the considerably reduced sugar stocks and a significant increase
in local demand. Sugar exports account for nearly half of the value of
national exports, providing revenue of about E200 million.

     Since 1985/86 local sales showed a strong upward trend and in 1987/88
they were 18,7 per cent above the previous year's level. This increase is
primarily due to improved demand from food and beverage manufacturers, as well
as from households.

     The sugar industry is also the largest employer in the country, providing
jobs for more than 15 000 people. All the sugar growing areas are situated in
the lowveld, with the Mhlume and Simunye mills in the north and the Ubombo
mill in the south.

     Swaziland became a signatory to the Lome Convention in 1975, in terms of
which the European Community contracted to buy quantities of sugar from
African, Caribbean and Pacific states. Swaziland committed herself to supply
116 400 tons of white sugar, rising to 117 450 tons under Lome III, annually
in return for a guaranteed price. This provides a good average price for about
one-third of Swaziland's sugar exports.

     The Swaziland Sugar Association is responsible for all sugar sales both
in Swaziland and on world markets. The association co-ordinates sugar research
and undertakes cane testing at the mills. It is a non-profit organisation and
all proceeds are distributed to members of the association who are growers and
millers grouped under the Cane Grower's Association. Anyone wanting to grow
cane is given a quota by the Quota Board. The board measures performance
agai