ANNEX 5 
KINGDOM OF SWAZILAND 
 
 SACU-Kingdom of Swaziland WT/TPR/S/222/SWZ 
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 CONTENTS 
    Page 
I. ECONOMIC ENVIRONMENT 407 
(1) M AIN FEATURES  407 
(2) R ECENT ECONOMIC DEVELOPMENTS  408 
(3) T RADE PERFORMANCE AND INVESTMENT  410 
(i) Trade in goods and services 410 (ii) Investment 411 
(4) O
UTLOOK  414 
II. TRADE AND INVESTMENT REGIMES 415 
(1) G ENERAL  415 
(2) T RADE AGREEMENTS  417 
(i) General 417 (ii) Common Market for Eastern and Southern Africa (COMESA) 418 
(iii) Other trade arrangements 420 
(3) I
NVESTMENT FRAMEWORK  421 
(4) T RADE -RELATED TECHNICAL ASSISTANCE  422 
(i) Implementation of WTO Agreements 422 
(ii) Human and institutional capacity building for trade negotiations 424 
(iii) Addressing supply-side constraints 424 
III. TRADE POLICIES AND PRACTICES BY MEASURE 425 
(1) O VERVIEW  425 
(2) M EASURES DIRECTLY AFFECTING IMPORTS  425 
(i) Registration, documentation, import duties, and related measures 425 (ii) Import prohibitions, restrictions, and licensing 428 
(iii) Government procurement 429 
(iv) Standards and other technical requirements 430 (v) Other measures 432 
(3) M
EASURES DIRECTLY AFFECTING EXPORTS  433 
(i) Registration, documentation, and taxes 433 (ii) Export prohibitions, controls, and licensing 433 
(iii) Export subsidies and assistance 433 
(4) M
EASURES AFFECTING PRODUCTION AND TRADE  434 
(i) Incentives 434 
(ii) State trading, state-owned en terprises, and privatization 434 
(iii) Competition policy and price controls 436 (iv) Intellectual property protection 436 
IV. TRADE POLICIES BY SECTOR 439 
(1) O
VERVIEW  439 
(2) A GRICULTURE AND RELATED ACTIVITIES  439 
(i) Main features 439 (ii) Policy developments 441 
(iii) Selected activities 442 WT/TPR/S/222/SWZ Trade Policy Review 
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    Page 
(3) M INING , QUARRYING , AND ENERGY  446 
(i) Mining and quarrying 447 
(ii) Energy 448 
(4) M ANUFACTURING  450 
(5) S ERVICES  451 
(i) Financial services 452 (ii) Telecommunications and postal services 454 
(iii) Transport 455 
(iv) Tourism 457 
REFERENCES   459 
APPENDIX TABLES  461 
 
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 CHARTS 
    P a g e  
I. ECONOMIC ENVIRONMENT 
I.1 Direction of merchandise trade, 2003-07 412 
I.2 Structure of exports and imports, 2003-07 413 
TABLES 
I. ECONOMIC ENVIRONMENT 
I.1  Sectoral breakdown of GDP, 2003-07 407 
I.2 Main economic indicators, 2003-08 409 
I.3 Balance of payments, 2003-08 410 I.4 Foreign direct investment, 2003-07 411 
II. TRADE AND INVESTMENT REGIMES  
II.1 Main trade-related legislation, 2009 417 
II.2 Notifications to WTO, 2003-09 418 
III. TRADE POLICIES AND PRACTICES BY MEASURE 
III.1 Levies on milk and dairy products, 2009 426 
III.2 Import levies on agricultural products, 2009 426 
IV. TRADE POLICIES BY SECTOR  
IV.1 Agricultural production and exports, 2002-08 440 
IV.2 Sugar, 2002-09  443 
IV.3 Livestock indicators, 2003-07 444 IV.4 Meat production and sales, 2003-07 445 
IV.5 Unbleached craft pulp produ ction and exports, 2004-07 446 
IV.6 Production and sales of coal and quarried stone, 2005-07 447 IV.7 Electricity generation, sales, and imports, 2005-07 450 
IV.8 Canned fruit production and exports, 2004-07 451 
IV.9 Selected telecommunication indicators, 2003-08 454 
APPENDIX TABLES 
I. ECONOMIC ENVIRONMENT 
AI.1 Exports and re-exports by destination, 2003-07 463 
AI.2 Commodity exports and re-exports, 2003-07 464 
AI.3 Origin of imports, 2003-07 465 
AI.4 Structure of imports, 2003-07 466  SACU-Kingdom of Swaziland  WT/TPR/S/222/SWZ 
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 I. ECONOMIC ENVIRONMENT 
(1) MAIN FEATURES  
1. The Kingdom of Swaziland, with an area of 17,364 km2, is the smallest country in southern 
Africa. Its landlocked situation, bordering on South Africa and Mozambique, makes it heavily 
dependent on its neighbours for access to the sea and to  world markets, and for supplies.  Swaziland's 
population, estimated at around 1.1 million, is almo st 80% rural and grew by 1.7% in 2006.  About 
53% of the population is between 15 and 64 years ol d, 44% are in the 0-14 age group, and only 3% 
are 65 years or over.  Mbabane, the administrative capital1, has a population of around 100,000.2  
2. Swaziland is a lower middle-income country, with a GDP per capita of US$2,251 in 2008, up 
from US$1,311 in 2000.  It has a diversified, but  heavily dualistic, economy, based on its varied 
terrain and land tenure systems (Chapter IV(2)(i)),  and on manufacturing and services development.  
Agriculture contributes 12.7% to GDP, employing 20% of the labour force.  Manufacturing, which accounted for 31.7% of GDP in 2007 (Table I.1), ma inly produces value-added goods based on sugar.  
Services (led by public administration, defence, and education services) is the most important sector in terms of contribution to GDP (50.4% in 2007);  Swaziland is a net importer of services. 
Table I.1 
Sectoral breakdown of GDP, 2003-07 
 2003 2004 2005 2006 2007 
Agriculture, hunting, forestry, and fishing 13.9 13.1 13.4 12.8 12.7 
Mining and quarrying 0.3 0.3 0.3 0.3 0.2 
Manufacturing 33.3 32.7 32.1 31.9 31.7 
Electricity, gas, and water supply 1.5 1.4 1.4 1.5 1.5 
Construction 4.6 4.4 3.7 3.7 3.5 
Services 46.4 48.1 48.4 49.8 50.4 
Wholesale, retail, hotels, and restaurants 7.1 7.5 7.9 8.5 9.0 
Transport, storage, and communications 8.5 9.8 10.5 10.4 10.3 
Financial intermediation 4.2 4.2 4.2 4.3 4.3 
Real estate, renting, and busin ess activities 6.9 6.8 6.7 6.7 6.7 
Public administration, defence, and education    18.2 18.3 18.1 18.4 18.6 
Other services 1.6 1.6 1.5 1.5 1.5 
Source:   Central Bank of Swaziland (2008), Annual Report April 2007-March 2008 . 
3. A state of national disaster was declared in 200 7 due to a severe drought, the worst in the last 
15 years, which affected all regions, particularly the Highveld (traditionally the breadbasket of the 
country), and resulted in a decrease in food security (Chapter IV(2(ii)).3  Moreover, Swaziland has the 
highest HIV/AIDS prevalence rate in the world,  posing a threat to sustainable development.4  In 2008, 
life expectancy was 45.8 years5, the unemployment rate was 28.2%, and around half of the population 
                                                      
1 Swaziland Government online information.  Vi ewed at:  http://www.gov.sz/home.asp?pid=2366. 
2 Lobamba, with a population of about 6,000 is the ro yal and legislative capital, seat of the Parliament. 
3 The government relief programme covered food aid and emergency water provision for a total of 
US$23.6 million;  assistance was also requested from the international community  (UNOCHA, 2007). 
4 About 26% of the population between 15-49 years are HIV-positive (WFP online information, 
"Swaziland."  Viewed at:  http://w ww.wfp.org/countries/swaziland). 
5 Swaziland Central Statistics Office (2008). WT/TPR/S/222/SWZ Trade Policy Review 
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lived on less than US$2 per day.6  Swaziland ranks 141 (out of 177 countries) in the UNDP Human 
Development Index.7 
4. The Poverty Reduction Strategy and Action Pl an (PRSAP), approved by the Cabinet in 
September 2007, is being implemente d with the support of internationa l institutions such as the World 
Bank, UNDP, and the IMF.  It is aimed at, inter alia , reducing poverty by more than 50% by 2015 and 
eradicating it absolutely by 2022 on the basis of  six pillars: macroeconomic  stability and accelerated 
economic growth;  empowering the poor to generate income and reduce inequalities;  fair distribution 
of the benefits of growth through fiscal policy;  human capital development;  improving the quality of 
life for the poor; and improving governance and strengthening institutions.8 
(2) RECENT ECONOMIC DEVELOPMENTS  
5. Swaziland's economy has been growing at a slow pace over the last few years even as rising 
SACU revenue since 2004 has contributed to increase consumption and government spending.  Real 
GDP grew at an annual average rate of 2.9% du ring 2003-08 (compared with an annual average of 
3.7% over 1990-99) mainly because of:  recurrent droughts;  one of the lowest investment growth 
rates in the region9;  and lower external demand for some of Swaziland's traditional exports (i.e. 
textiles and clothing) (Chapter IV(4)). 
6. The annual average inflation rate in Swaziland,  as measured by the consumer price index 
(CPI), was 5.2% during 2003-06 (down from 9.5% over  1990-99). However, inflation rose to 8.1% in 
2007 and an estimated 12.7% in 2008 owing to rapidly increasing food and energy prices during most part of that period (Table I.2).  As a member of the Common Monetary Area (CMA), Swaziland fixes 
its currency, the lilangeni (plural:  emalangeni (E)),  at parity with the South African rand.  The 
Central Bank of Swaziland (CBS), established in 1974, falls under the Ministry of Finance and 
operates as a parastatal.  The main goal of monetary  policy is monetary stability and maintaining the 
peg of the lilangeni against the South African rand.
10  Interest rates in Swaziland closely track South 
African levels as set by the South African Reserve Bank (Main Report, Chapter I(2)).  Swaziland accepted the obligations of Article IV of the IM F on 11 December 1989.  It maintains two foreign 
exchange restrictions on advance payments for im ports: an overall limit of E 250,000 and a 33.33% 
limit for the import of certain capital goods.
11 
7. Since 2004, Swaziland has achieved an important turnaround in its fiscal position mainly 
because of an increase in SACU receipts, which rose from 15% of GDP in 1997 to an estimated 
25.6% in 2008 after peaking at 28.5% in 2006.  Although spending has continued to grow12, the 
overall public sector balance (including grants), improved as a percentage of GDP, from deficits up 
until 2005 to surpluses thereafter, reaching an estim ated 6.5% in 2008 (Table I.2).  The fiscal 
improvement was possible despite a decline in non-tax revenue from around 2% of GDP in 1998/99 
                                                      
6 In purchasing power parity terms (World Bank online information, "Country Brief".  Viewed at: 
http://web.worldbank.org/WBSITE/EXTERNAL/COU NTRIES/AFRICAEXT/SWA ZILANDEXTN /0,,menuP
K:375118~pagePK:141132~piPK:141107~theSitePK:375023,00.html). 
7 UNDP (2008). 
8 IMF (2008c). 
9 Swaziland has experienced a substantial decline in foreign investment since the late 1990s, and since 
2003 total investment has been below the sub-Saharan average (IMF, 2008b). 
10 The rand can circulate freely in Swaziland but this  is not the case for the lilangeni in South Africa 
(CBZ online information.  Viewed at:  http://www.centralbank.org.sz/mission.php). 
11 IMF (2008a). 
12 Total expenditures went from 24% of GDP in 1996 to 33.3% in 2007 partly due to a rise in the wage 
bill from about 10% of GDP to 14% over the same period (IMF, 2008c). SACU-Kingdom of Swaziland  WT/TPR/S/222/SWZ 
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 to less than 1% in 2006/07.  Moreover, current collection practices need to be improved, and the 
general sales tax is yet to be replaced by a VAT.13 
8. Swaziland's debt sustainability indicators have  improved significantly during the last few 
years, partly reflecting an exchange rate a ppreciation between 2002 and 2005 and limited new 
borrowing.  Total public sector debt, as a percenta ge of GDP, declined from 19.9% in 2003 to an 
estimated 15.9% in 2008, while the ratio of external debt to GDP fell from 16.5% to 15.4% over the same period. Similarly, Swaziland's gross offici al reserves jumped from US$265 million (2.1 months 
of imports) in 2003 to an estimated US$681 million in 2008 (3.2 months of imports) (Table I.2). 
Table I.2 
Main economic indicators, 2003-08 
 2003 2004 2005 2006 2007a 2008a 
Miscellaneous        
GDP at current prices (E million) 14,422 15,353 16,050 18,078 20,386 22,856 
Real GDP growth (% change) 3.9 2.5 2.2 2.9 3.5 2.5 
Consumer price inflation (period average;  % change)  7.4 3.4 4.8 5.3 8.1 12.7 
Consumer price inflation (end of period;   % change)  4.6 3.2 6.3 5.5 9.8 13.5 
Monetary sector       
Broad money (% change) 14.1 10.4 5.9 25.1 21.4 .. 
Interest rate  (end of period; % )b 4.2 4.1 3.5 8.5 10.0 .. 
Central government finance (% of GDP)        
Overall balance (including grants) -2.7 -4.6 -1.5 10.5 6.4 6.5 
Overall balance (excluding grants) -3.7 -3.5 -2.5 9.6 6.1 .. 
Government debt 19.9 17.8 15.9 17.4 18.8 15.9 
Domestic debt 3.4 2.8 2.5 2.7 2.1 0.5 
External debt 16.5 15.0 13.4 14.7 16.7 15.4 
National accounts (% of GDP)       
Final consumption expenditure 79.2 82.4 96.4 96.2 94.1 .. 
Private 59.7 59.2 74.9 75.3 73.8 .. 
Government 19.5 23.2 21.5 20.9 20.3 .. 
Capital formation 18.8 19.2 18.6 16.7 16.2 .. 
Gross fixed capital formation 18.8 19.2 18.6 16.7 16.2 .. 
Public 12.9 10.7 9.8 8.7 7.7 .. 
Private 5.9 8.5 8.8 7.9 8.5 .. 
Increases in stocks 0.0 0.0 0.0 0.0 0.0 .. 
Balance of trade for goods and non-factor services 2.0 -1.6 15.0 -12.8 -10.3 .. 
Exports of goods and services 86.8 90.1 76.0 72.9 76.9 .. 
Imports of goods and services -84.7 -91.7 -91.0 -85.7 -87.2 .. 
External sector       
Real effective exchange ratec 13.0 3.0 -2.6 -8.0 3.3 .. 
Current account (% of GDP) 6.8 3.1 -4.1 -7.4 -1.4 -6.4 
Gross official reserves (US$ million) 265 262 244 367 747 681 
Gross official reserves (months of imports) 2.1 1.5 1.3 1.9 3.6 3.2 
.. Not available. 
a Estimates. 
b Interest rate on 12-month time deposits. 
c End of period; a minus sign indicates depreciation. 
Source : IMF (2008), Kingdom of Swaziland: 2008 Article IV Consultation – Staff Report;  Public Information Notice on 
 the Executive Board Discussion;  and Statement by the Executive Director ;  and information provided by the 
 Swazi authorities.  
                                                      
13 The share of domestic taxes in GDP is low co mpared with neighbouring countries, and recent 
domestic revenue efforts (e.g. removal of tax exemptions on rental income, a sales tax amendment to close 
loopholes, and enforcement of tax collections) did not help to significantly increase government revenues (IMF, 2008c). WT/TPR/S/222/SWZ Trade Policy Review 
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(3) T RADE PERFORMANCE AND INVESTMENT  
(i) Trade in goods and services 
9. Swaziland's external current account move d from surpluses up until 2004 to deficits 
thereafter, peaking at 7.4% of GDP in 2006; it is estimated at 6.4% of GDP for 2008.14  T his was 
mainly the result of the trade balance movi ng from surpluses of US$103.8 million in 2003 and 
US$91 million in 2004 to deficits that reached an estimated US$573.1 million in 2008.  The capital and financial account has registered surpluses since 2006 (Table I.3). 
Table I.3 
Balance of payments, 2003-08 
(US$ million) 
 2003 2004 2005 2006 2007a 2008b 
Current account balance 124.2 51. 7 -102.6 -196.7 -41.2 -158.4 
Trade balance 103.8 91.0 -258.1 -252.1 -246.1 -573.1 
Exports, f.o.b  1,387.1 1,808.9 1,636.5 1,663.9 1,766.8 1681.1 
Imports, f.o.b  -1,283.2 -1,717.9 -1,894.6 -1,916.1 -2,013.3 -2254.3 
Services (net) -66.7 -152.6 -120.4 -90.1 -52.1 -16.9 
Exports of services 193.1 250.0 282.4 283.5 454.1 304.6 
Imports of services -259.9 -402.6 -402.8 -376.6 -506.2 -321.5 
Goods and services balance 37.1 -61.6 -378.5 -342.3 -298.6 -590.0 
Income (net) 40.8 7.4 178.3 14.0 63.7 39.0 
Income (credits) 143.5 132.5 271.3 241.8 280.5 201.5 
Income (dedits), of which:   -102.8 -125.1 -93.0 -227.8 -216.8 -162.5 
Interest -18.1 -21.2 -20.1 -21.9 -24.5 -26.5 
Transfers (nets) 46.3 106.0 97.5 131.6 193.7 392.6 
Official sector (mainly SACU re ceipts) 333.3 371.4 339.6 366.5 403.0 623.9 
Private sector -287.0 -265.4 -242.1 -234.9 -209.2 -231.3 
Capital and financial account balance 114.7 -206.6 -46.7 158.6 404.0 190.2 
Capital account balance 0.0 -0.6 -3.5 24.8 -30.1 23.8 
Financial account balance (excluding reserv e assets) 114.7 -206.0 -43.2 133.8 434.1 166.3 
Direct investment 70.7 66.4 -23.8 121.7 14.3 33.4 
Portfolio investment -0.4 -11.3 4.5 -4.0 5.2 -3.0 
Other investment 44.4 -261.2 -23.9 16.0 414.5 135.9 
Errors and omissions -161.6 141.4 148.2 162.7 -4.5 0.0 
Overall balance 77.3 -13.5 -1.1 124.6 358.3 31.8 
a Without corrective policy measures.  
b Projections.  
Source:   IMF (2008), Kingdom of Swaziland:  Selected  Issues and Statistical Appendix . 
10. Swaziland's economy is highly dependent on inte rnational trade:  exports and imports of 
goods and services, as a percentage of GDP, aver aged 171.1% during 2004-06 .  In 2007, Swaziland 
ranked 94th among world merchandise exporters (consider ing the EC Member States together and 
excluding intra-EC trade), and 109th among importers. In services trade, Swaziland ranked 119th 
among exporters and 127th among importers.15 
11. The direction of Swaziland's trade remains highl y concentrated both in terms of markets and 
products.  According to the latest available figur es, in 2007, 45.2% of total merchandise exports 
(including re-exports) were destined for South Africa (57.4% in 2002), and 14.4% for the EC (2.2% in 
2002) (Table AI.1 and Chart I.1).  Sugar exports (including sugar confecti onary and other sugars) 
                                                      
14 IMF (2009). 
15 WTO Statistics database, "Trade Profiles:  Swaziland".  Viewed at: http://stat.wto.org/ 
CountryProfiles/SZ_e.htm. SACU-Kingdom of Swaziland  WT/TPR/S/222/SWZ 
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 represented 17.3% of total merchandise exports in  2007 (up from 8.8% in 2003), while manufacturing 
exports, mostly chemicals, went from 76% in 2003 to 69.8% in 2007 (Table AI.2).  The share of 
textiles and clothing products in Swaziland's me rchandise exports fell from 30.2% in 2003 to 4.8% in 
2007 (Chapter IV(4)).  Some 97% of Swaziland's imports originated in SACU in 2007 (up from 
87.7% in 2003), of which 92.9% came from South Africa (Table AI.3).  Food imports represented 
21.2% of Swaziland's total merchandise imports  in 2007 (up from 16.7% in 2003), followed by 
machinery and transport equipment (19.1%), and fuels (15.6%) (Table AI.4 and Chart I.2).  
12. Balance-of-payments data indicate that Swaziland is, albeit decreasingly, a net importer of 
services, with a deficit that fell from a peak  of US$152.6 million in 2004 to an estimated 
US$16.9 million for 2008 (Table I.3).  
(ii) Investment 
13. Swaziland's average annual inflow of foreign direct investment (FDI) decreased from 
US$67 million during 1990-00 to US$6.6 million over 2003-07, registering negative inflows in 2003 
and 2005 (Table I.4).  This poor FDI performance is mainly due to the sluggish economic activity 
during the last few years, structural constraints, and slow progress of the privatization programme 
(Chapter III(4)(ii)).  As a percentage of GDP, the stock of inward FDI fell to 30.3% in 2007 from 40% 
in 2003.  
Table I.4 
Foreign direct investment, 2003-07 
(US$ million) 
 2003 2004 2005 2006 2007 
FDI inflows -61 71 -50 36 37 
FDI inflows (% of gross fixed capital formation) -13.8 16.1 -9.8 7.7 7.5 
FDI inward stock 719 926 785 827 889 
FDI inward stock (% of GDP) 40.0 39.2 30.3 30.4 30.3 
Source:  UNCTAD (2008), World Investment Report 2008: Swaziland . 
14. Over the last few years, Swaziland has taken step s to improve the investment climate, notably 
through the centralization of business processes (e.g. registration, trading licences, work permits, and 
factory shells identification), under the Swaziland I nvestment Promotion Authority. Nonetheless, in 
general, FDI in Swaziland has been inhibited by structural constraints, such as labour-market 
rigidities;  and the under-developed legal, judicial, a nd regulatory frameworks.  In total, the cost of 
doing business is high:  Swaziland ranks 108th (out of 178 economies) in the World Bank's Ease of 
Doing Business 2009 Index .16 
15. Under Swaziland's PRSAP, a key aim is to attract more FDI inflows as well as to promote 
domestic investment.  A number of measures are envisaged such as: reducing the cost of doing 
business;  improving competitiveness;  developing  and implementing a new set of investment 
incentives that are budget neutral;  and revising the FDI legislation to bring it into line with 
current/modern practices (Chapter II(3)).17 
                                                      
16 The index is based on ten topics (Swaziland's ranking in parenthesis), i.e. starting a business (153);  
dealing with construction permits (21);  employing workers (40);  registering property (153);  getting credit (43);  protecting investors (178);  paying taxes (52);  trading across borders (154); enforcing contracts (129);  
and closing a business (65) (World Bank Group online information, "Explore Economies:  Swaziland".  Viewed 
at:  http://www.doingbusiness.org/E xploreEconomies/?economyid=180). 
17 UNCTAD (2008). WT/TPR/S/222/SWZ Trade Policy Review 
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0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%20032004200520062007Chart I.1
Direction of merchandise trade, 2003-07
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%20032004200520062007(a) Exports
(b) Imports
Source: WTO Secretariat calculations, based on UNSD, Comtrade database (SITC Rev.3).Mozambique United States South Africa Asia
Botswana Europe Other Africa Other
South Africa
EuropeAmerica Other Africa Other
Namibia Asia
 SACU-Kingdom of Swaziland  WT/TPR/S/222/SWZ 
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 0%10%20%30%40%50%60%70%80%90%100%
2003 2004 2005 2006 2007
0%20%40%60%80%100%
2003 2004 2005 2006 2007Chart I.2
Structure of exports and imports, 2003-07
(a) Exports
(b) Imports
Source: WTO Secretariat calculations, based on UNSD, Comtrade database; and IMF Staff Reports.SugarsMixtures of 
odoriferous substancesAgricultural raw materials
Other food Mining
Food
Non-electrical machineryOther semi-manufacturesChemicals
FuelsTransport equipment
Electrical machines Iron and steelOther primary productsTextiles and clothing
Other consumer goods
OtherOther chemicalsClothing
Other manufacturesOther
 WT/TPR/S/222/SWZ Trade Policy Review 
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(4) O UTLOOK  
16. Swaziland's economic growth is expected to  be around 2.5% during the next few years18, i.e. 
insufficient to alleviate poverty. The Poverty Re duction Strategy and Action Plan estimates that, to 
meet the Millennium Development Goals by 2015, the economy needs annual average growth of 
5%.19  Although supported by moderate activity in  the services sector and some improvement in 
manufacturing, growth prospects are seriously constr ained by the effects of the recurrent drought on 
agriculture, the weak invest ment climate, and low demand for Swaziland's exports.  
17. Swaziland's export sector relies on receipts fro m sugar (including sugar confectionary and 
soft-drink concentrates) and to a lesser extent on the textiles and clothing industry.  Therefore, 
developments in the global regimes for trade in bot h subsectors, in particular the erosion of trade 
preferences in the United States and the EC market s, will greatly affect Swaziland's exports.  Other 
major risks to Swaziland's economy include the un certainty of SACU revenue, given that these 
receipts account for the bulk of government revenue.20  Therefore, the authorities acknowledge the 
need to strengthen fiscal policy through, inter alia , the Revenue Authority Bill, which is expected to 
introduce VAT in the second half of 2009, and to increase revenue collection.  The global economic 
slowdown further increases risks for the Swazi economy. 
18. Over the coming years, Swaziland is to accelerate the pace of its structural reforms, including 
implementing the public finance management progra mme, the agricultural diversification strategy, 
and expanding the Matsapha industrial park, as st ipulated in its PRSAP.   Moreover, Swaziland's 
PRSAP is aimed at achieving rapid and broad-ba sed growth to reduce widespread poverty and 
unemployment, and tackle the high incidence of HIV/AIDS. 
                                                      
18 IMF (2009). 
19 IMF (2008c). 
20 South Africa has called for a review of SACU's revenue-sharing arrangement, which could lower 
SACU shares for Swaziland.  In add ition, the pending implementation of the Economic Partnership Agreements 
(EPAs) with the European Communities; the ongoing liberalization under the Trade, Development, and 
Cooperation Agreement (TDCA);  the SADC customs union expected for 2010;  and participation in COMESA, would also have revenue implications for Swaziland. SACU-Kingdom of Swaziland  WT/TPR/S/222/SWZ 
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 II. TRADE AND INVESTMENT REGIMES 
(1) GENERAL  
19. Swaziland has been a member of SACU from its inception;  hence several of its trade policy 
measures are covered by the SACU  framework.  SACU is the major market for the Swaziland's 
exports and the major supplier of goods and servi ces.  South Africa is Swaziland's largest single 
trading partner.  The Trade and Development Cooperation Agreement (TDCA) signed by South 
Africa and the European Communities (EC) in 2002, has had a direct impact on Swaziland's tariff 
reduction schedule. In addition, Swaziland has had to  negotiate various bilateral trade agreements 
between SACU and third parties since the ratificati on of the 2002 SACU Agreement.  This trend has 
placed Swaziland under immense pressure, in financ ial terms as well as in human and institutional 
capacity.  
20. Overall responsibility for trade policy lies with  the International Trade Department (ITD), 
within the Ministry of Commerce, Industry and Trade (MCIT). This configuration was established in 2002.  The ITD has two roles:  domestic and external  trade promotion, and policy analysis.  It has 
national oversight over SACU, COME SA, the Economic Partnership Ag reements (EPAs) between the 
European Communities and ACP countries, AGOA, a nd the WTO.  ITD also has national oversight 
on various bilateral trade negotia tions between SACU, on the one ha nd and, on the other hand, the 
United States, MERCOSUR, EFTA, the EAC, and India.   Negotiations with China are envisaged in 
the near future.  The African Union, NEPAD, and SADC programmes are coordinated by the Ministry 
of Foreign Affairs and Internati onal Cooperation, although the ITD is active in the trade component of 
these programmes. 
21. For a number of years, the effectiveness of the ITD in fulfilling its mandate was impeded by 
human capacity constraints in the areas of nego tiation skills, technical analysis, and policy 
formulation.  The shortcomings on trade policy coor dination at the national level were noted in the 
2003 TPR.
21  As a response, the Government approved a new structure at the beginning of 2008, 
which will eventually increase the ITD staff to 15.  The Trade Policy Analysis Section is made up of 
nine of these new positions.  The 2002 SACU Agre ement also provides for a national body to be 
established in each SACU member country.  Swazila nd's national body will be a unit of the ITD and 
will require the recruitment of two additional staff me mbers.  This unit will be in charge of tariff 
investigations and changes, and the implementation of contingency trade remedies at the national 
level. The unit will also be responsible for ma king recommendations to the SACU Customs Union 
Commission and will work in collaboration with the SACU Tariff Board. 
22. In addition to the ITD, a number of ministries have responsibilities for different aspects of 
Swaziland's trade policy. The Ministry of Finance (MOF) is in charge of SACU relations, because of 
the customs revenue implications of SACU.  The Ministry of Agriculture and Cooperatives (MOAC) 
is responsible for sanitary and phytosanitary legisla tion, and agriculture marketing and import control.  
The Ministry of Commerce, Industry and Trade is also responsible for internal trade regulation, 
promotion of foreign and domestic investment, awarding licences to new businesses, registration of companies, and intellectual property rights.  Swaziland Standards Authority (SWASA), under the 
auspices of the Ministry of Commerce, Industry and Trade, was formed through the Quality and 
Standards Act (10) 2003.  SWASA has the mandate  of promoting standards and quality in local 
industry, commerce, and the public sector, and is the so le custodian of all issues regarding standards, 
quality, accreditation, and metr ology (SQAM) in Swaziland.  
                                                     
 
21 WTO (2003), Annex 5, p. 314. WT/TPR/S/222/SWZ Trade Policy Review 
Page 416 
 
 
23. Other ministries involved in trade-related policy are:  the Ministry of Economic Planning and 
Development (MEPD), which is responsible for ove rall economic policy planning;  the Customs and 
Excise Department, responsible for the administration of border measures, sales tax, and collection of 
import and export statistics;  the Ministry of Justi ce and Constitutional Affairs, which is the custodian 
of laws;  and the Central Statistical Office (CSO ), responsible for collecting and publishing all 
statistical information.  The consultative approach adopted by MCIT in recent years has resulted in 
growing participation of the private sector a nd civil society through the Federation of Swaziland 
Employers (FSE) and the Chamber of Commerc e (CC);  Federation of Swaziland Business 
Community (FESBC);  Coordinating Assembly of Non-Government Organisations (CANGO); 
Council of Churches;  and labour unions. Conse quently, trade negotiations, and trade policy 
formulation and implementation are spread acros s these institutions, and MCIT through ITD, is 
responsible for overall consulta tions through the National Tr ade Negotiating Forum (NTNF). 
However, the NTNF has challenges in meeting as ex pected, which affects the development of national 
positions that can adequately inform negotiations .  The country established a Resident Mission to 
Geneva in 2005.  Currently the Head of Mission, an d one other official, regularly participate in the 
on-going DDA negotiations and other WTO issues.  
24. Swaziland regards trade policy as an important aspect of its macroeconomic policy 
environment, as well as being in line with growth, investment, employment, balance of payments, and 
enhancement of government revenue  through tariffs.  Trade is also seen as a major pillar of poverty 
reduction, in that the facilitation of trade presents opportunities for increased production and 
participation of the poor in small and medium en terprises and other related sectors.  Swaziland has 
traditionally derived over 50% of its revenue from tari ffs on international trade, and thus an increase 
in trade necessarily results in higher government re venues, which could be used to address multiple 
government objectives. 
25. Swaziland published a National E xport Strategy (NES), approved by Cabinet in June 2006, 
with a vision to "achieve sustainable economic growth through enhanced competitiveness, value 
addition and export diversification in targeted sect ors, and a strong Public Private Partnership (PPP) 
contributing to the prosperity of the people of the Kingdom of Swaziland".  The NES embodies Swaziland's trade policy objectives, which are:  (i ) to expand the export base and ensure an increased 
mix of exports, thus reducing the burden on the suga r industry as the main foreign exchange earner;  
(ii) to strengthen the existing relationships with cu rrent markets to ensure that Swaziland takes full 
advantage of preferences offered by these markets;  (iii) to enhance market access for exports from 
Swaziland through branding and impr oved product quality;  (iv) to improve trade facilitation through 
the establishment of strong public-private partnershi ps;  and (v) to pave the way for technological 
innovations that will enhance the competitiveness of Swaziland's exports by ensuring the use of low 
cost production methodologies that do not compromise  the national objective of employment creation. 
26. The trade policy objectives are consistent with th e PRSAP but they need to form an integral 
part of the National Development Plan with rolling trade programmes within a sustainable 
macroeconomic framework. 
27. Swaziland's main trade-related laws have rema ined largely unchanged since the previous TPR 
of SACU (Table II.1). SACU-Kingdom of Swaziland  WT/TPR/S/222/SWZ 
 Page 417 
 
 
 Table II.1 
Main trade-related legislation, 2009 
Area Legislation 
Customs and excise Customs and Excise (Amendment) Act, 2001 
Trade facilitation Business a nd Trade Facilitation Bill, 2001 
Import permits Import Control Order, 1976;  and Legal Notice No. 60, 2000 
Agricultural import levies National Agricultural Marke ting Board Act, 1985;  and Legal Notice No. 2, 2000  
Government procurement Regulati ons on Public Procurement, 2008 
Standards and quality control St andards and Quality Act, 2001 
Health and sanitary controls S eeds and Plants Varieties Act, 2000 
Export financing Small Scale Export Credit Gu arantee Scheme (Centr al Bank of Swaziland 
(Amendment) Act No. 8, 1986) 
Fair trading and competition policy Fair Tr ading Act, 2001;  and Competition Act, 2007  
Intellectual property Merchandise Act No. 24, 1937;   Trade Marks Act No. 6, 1981;  Trade Marks 
Regulations, 1989;  Patents, Utility Mode ls, and Industrial Designs Act No. 6, 
1997;  Seed and Plant Variety Act No. 7, 2000;  Copyright Act No. 36, 1912;  Copyright (Prohibited Importation) Ac t No. 35, 1918;  and Copyright (Rome 
Convention) Act No. 1, 1933 
Forestry Flora Protection Act, 2001  
Minerals Mining Act, 1958;  Mining Regulati ons, 1958;  and Mineral and Environmental 
Authority Act, 1992   
Financial services Money Launde ring Act, 2001;  Central Bank of Swaziland (Amendment) Bill, 
2002;  Financial Institutions Bill, 2002;  Securities Bill, 2002;  Insurance Bill, 
2002;  and Retirement Funds Bill, 2002 
Telecommunications Posts and Telecommunications Act No. 11, 1983;  Public Telecommunications 
Regulations ,1993;  and Posts and Te lecommunications Corporation (Staff) 
Regulations, 1990 
Tourism Tourism Authority Act, 2001 
Source: Information provided by the Swazi authorities.  
(2) TRADE AGREEMENTS  
(i) General 
28. Swaziland has a broad trade relations regime, mainly because of its membership in multiple 
regional trade configurations.  This poses ma jor challenges for the small administration.  
29. Apart from being a WTO member, Swaziland is a member of SACU, the Southern African 
Development Community (SADC)22, and the African Union (AU).  In addition to these trade 
agreements, of which all SACU countries are memb ers, Swaziland also participates in the Common 
Market for Eastern and Southern Africa (COMESA).  Within SACU, Lesotho, Namibia, Swaziland, and South Africa (but not Botswana) form th e Common Monetary Area (CMA), under which the 
Swazi lilangeni is maintained at par with the South African rand, which circulates freely in Swaziland 
(Main Report, Chapter II(2)).   
30. Swaziland benefits from duty-free access to th e U.S. market under the AGOA, including the 
special provisions on textiles and clothing, and from preferential access to the markets of most developed countries under the Generalized System of Preferences (GSP). 
                                                     
 
22 The SADC Trade Protocol, concluded in 1996 , also comprises the SADC Sugar Cooperation 
Agreement, concluded in July 2000.  The agreement has two components:  market access and cooperation.  One 
of its long-term objectives which is particularly importa nt for Swaziland, but also opens it to competition from 
other sources, is the reciprocal, full liberalization of trade in sugar within the SADC region from 2013. WT/TPR/S/222/SWZ Trade Policy Review 
Page 418 
 
 
31. Swaziland, like other smaller SACU members,  has until now had to accept certain trade 
policy instruments determined by South Africa, whic h may not necessarily be the most appropriate for 
its economy.  Swaziland has had to bear the impact of, inter alia , customs tariffs and extensive 
anti-dumping and safeguard duties imposed by S outh Africa (Main Report, Chapter II).   
32. Swaziland has made a number of notifications to the WTO since its last TPR (Table II.2). 
Table II.2  
Notifications to WTO, 2003-09  
WTO Agreement  Description of requirement  Periodicity Most recent notification  Comment  
Agreement on the Implementation of Articl e VII of the GATT 1994 (Customs Valuation) 
Article 22.2  Notification of laws and 
regulations on valuation for 
customs purposes  Once  G/VAL/N/1/SWZ/1 
25 April 2007  Notification of laws on 
valuation  
General Agreement on Tariffs and Trade 1994 
Article XXIV:7(a)  Territorial Application – 
Customs Unions  Once WT/REG231/N/1 28 June 2007 SACU notified to WTO  
Article XXIV:7(a)  Territorial Application –  
Free Trade Areas  Once WT/REG256/N/1 3 November 2008 SACU-EFTA notified to WTO 
Agreement on Subsidies a nd Countervailing Measures 
Article 25.1 
Article XVI:1 of GATT 1994  Notification of subsidies  Once G/SCM/N/123/SWZ 29 September 2006 No subsidies introduced before 2006  
Article 25.11 Notification of 
countervailing actions  Semi-
annual  G/SCM/N/153/Add.1/Rev.1 No actions taken 
Agreement on Technical Barriers to Trade  
Annex 3C Notification of acceptance Once G/TBT/CS/N/174 
23 October 2008 Standardizing body 
Agreement on Trade-Related Aspects of  Intellectual Property Rights (TRIPS) 
Article 63.2  Notification for review 
purposes  Once  IP/N/6/SWZ/1 20 July 2007 Checklist of Issues on Enforcement 
Article 69  International cooperation  Once IP/N/3/Rev.7/ Add.2 
4 June 2004  Notification of contact points 
Source:  WTO documents.  
(ii) Common Market for Eastern and Southern Africa (COMESA) 
33. Swaziland is a founding member of COMESA23, which aims to promote regional integration 
through the development of trade, and natural and hu man resources for the benefit of all its members. 
The main objectives of COMESA include the creati on of a free-trade area;  the establishment of a 
customs union;  free movement of capital and investment, supported by the adoption of a common investment area;  a gradual establishment of a payment union based on the COMESA Clearing House and the eventual establishment of a monetary union;  and  the adoption of co mmon visa arrangements, 
leading eventually to the free movement of persons.
24  COMESA has been notified to the WTO under 
the Enabling Clause.25 
                                                      
23 The other members of COMESA are:  Burundi, Comoros, the Democratic Republic of the Congo, 
Djibouti, Egypt, Eritrea, Ethiopia, Kenya, Libya, Mada gascar, Malawi, Mauritius, Rwanda, Seychelles, Sudan, 
Uganda, Zambia, and Zimbabwe. 
24 ACTRAV/ITCILO online information, "Common Market of Eastern and Southern Africa".  Viewed 
at:  http://www.actrav.itcilo.org/actrav-eng lish/telearn/global/ilo/blokit/comesa.htm. 
25 WTO document WT/COMTD/N/3, 29 June 1995. SACU-Kingdom of Swaziland  WT/TPR/S/222/SWZ 
 Page 419 
 
 
 34. The COMESA FTA was launched in October 20 00 with nine participating states, after 
16 years of gradual reduction of tariffs on intra-COMESA trade.26  In November 2007, 13 countries 
were participating in the FTA;  other member stat es had carried out tariff reductions of between 10% 
and 80%.27  The FTA was meant to be a step toward s the establishment of the customs union.  
Initially, the common external tariff (CET) was to be  in place by 2004.  However, the launch of the 
customs union was once more deferred, to June 2009.   
35. Since Swaziland is already a member of a nother customs union, namely SACU, Swaziland 
cannot participate in the COMESA Customs Union, as it would be technically impossible to belong to 
both.  However, Article 4 of the Treaty estab lishing COMESA recognizes the unique position of 
Swaziland, and thereby grants it temporary exempti on from full application of some of its provisions. 
Therefore, Swaziland is trading in COMESA unde r a derogation allowing COMESA member states 
who have acceded to the FTA, to grant Swaziland pref erential trade treatment without any reciprocity.  
Swaziland can only participate in the COMESA FTA or grant reciprocal treatment to other FTA 
members, with concurrence from its SACU partne rs, under Article 31 of the 2002 SACU Agreement. 
In the absence of concurrence, Swaziland's deroga tion has been extended several times, most recently 
in December 2008, for two years.   
36. One of the major principles of COMESA is va riable-speed integration, which creates an 
opportunity for member states to move at a pace that suits their circumstances in the integration 
process.  COMESA member states not read y to join the customs union, by the 13th Summit in 
June 2009, would continue to trade with memb ers joining the customs union, on alternative 
preferential terms.  Swaziland would, therefore, c ontinue to enjoy market access preferences in the 
COMESA market.  In addition, it would continue to participate actively in COMESA programmes, 
including cooperation in infrastructure, agriculture , transport, energy, government procurement, 
customs clearance automation, and other related capacity-building areas. 
37. To benefit from preferential treatment, goods orig inating in COMESA must satisfy one of the 
following origin criteria.  COMESA origin is grante d to:  goods wholly produced in the region using 
no outside materials; goods with a maximum imported c ontent of 60% of the c.i.f. value of materials 
used in production;  goods containing no less than 35% ex-factory value added28, reduced to 25% if 
the final product is considered of "particular im portance" to the economic development of a member 
state29;  or goods that have been subject to a cha nge in tariff heading (4-digit level) following 
transformation.  In December 2007, the change in  tariff heading criterion had been agreed for a 
certain number of tariff lines (HS chapters 1, 2, 3, 22 , 24, and 27);  agreement is yet to be reached on 
other items, notably wheat flour, cooking oil, plastics, textiles, machinery, and equipment. 
38. COMESA cooperates with other regional organiza tions to liberalize trade.  Under memoranda 
of understanding, the Indian Ocean Commission (IO C) (see below), East African Community, and 
Intergovernmental Authority on Development have agreed to adopt the COM ESA trade liberalization 
                                                      
26 The COMESA was formed in 1994  as a successor to the Preferen tial Trade Area (PTA).  Tariff 
reduction had started in 1984 within  the framework of the PTA, but wa s accelerated with the formation of 
COMESA. 
27 Preferential margins granted to CO MESA partners not yet participating in the FTA are: Democratic 
Republic of Congo, zero (i.e. no preference granted); Eritrea, 80%; Ethiopia, 10%;  and Uganda, 80%.  Swaziland is not participating in the FTA and not exte nding any tariff reduction under derogation, due to its 
membership in SACU.   
28 Value added is defined as the difference between the ex-factory cost of the finished product and the 
c.i.f. value of material inputs imported from outside the COMESA sub-region.  The minimum level of value 
added was reduced from 45% to 35% in 2000. 
29 A long list of approved products is specified in the COMESA Treaty as being of particular 
importance to the economic development of the members. WT/TPR/S/222/SWZ Trade Policy Review 
Page 420 
 
 
programme.  A Joint Task Force of COMESA, EAC,  and SADC (see below) has been set up to 
harmonize their programmes. The idea of a pan regional FTA encompassing the three regions (COMESA, SADC, and the EAC) was officially launc hed in a first tripartite Summit in October 2008. 
The Summit discussed a roadmap to guide the process and established in stitutions that will coordinate 
the activities. 
39. The decision-making structure of COMESA includes the Authority of Heads of State and 
Government (the supreme policy-ma king organ);  the Council of Ministers;  the Sectoral Ministerial 
Meetings;  the Committee of Governors of Cent ral Banks;  the Intergovernmental Committee;  
Technical Committees;  and the Secretariat.  A Consultative Committee of the Business Community 
and Other Interest Groups has also been established.       
(iii) Other trade arrangements 
40. Swaziland maintains no bilateral trade agreements with other countries. 
41. Swaziland had preferential access to the EC ma rket under the Cotonou Agreement, which 
expired at the end of 2007.  Swaz iland is now negotiating the EPAs with the EC as part of the SADC 
Group (Main Report, Chapter II(3)).   
42. Swaziland's principal interest in the EC market  has historically been in sugar and beef.  
Swaziland's sugar exports to the EC were under a sp ecial protocol attached to the Cotonou Agreement 
under which 17 African, Caribbean, and Pacific (A CP) sugar-producing countries received duty-free 
access and a supported price.
30  Approximately 36% of sugar is exported to the EC at agreed 
quantities and supported prices.  However, sinc e 2008, Swaziland has been subject to greater 
competition in the EC market for sugar, because of  the extension of duty-free access for sugar exports 
from all LDCs under the EC's "Everything But Ar ms" Initiative:  Swaziland is not an LDC.  
Diversification of Swaziland's markets for suga r, as well as further development of sugar-using 
industries, is therefore critical.  Swaziland's beef  exports to the EC benefit from a tariff quota under 
which the ad valorem  element of the EC's common external tariff on beef is reduced by 92%.31 
43. In June 2008, Swaziland, together with othe r SADC states, signed the Interim Economic 
Partnership Agreement (IEPA) with the EC, whic h extended the duty-free and quota-free market 
access for goods originating in the ACP group of countries, in light of the expiry of the Cotonou Agreement.  Swaziland has to present the IEPA to Parliament for ratificati on and notify it to the 
WTO.  The second-phase negotiations are focusing on the liberalization of trade in services and 
investment.  
44. On 18 January 2001, Swaziland became the 35
th country added to the list of U.S. AGOA 
beneficiaries (sub-Saharan African countries) as a lesser-developed beneficiary country (LDBC), 
following the passage of the revised Industrial Relations Act in November 2000.32  A s  a n  L D B C ,  
Swaziland gains access to the U.S. market for tex tiles and clothing. Countri es with per capita GDP 
below US$1,500 in 1998 enjoy duty-free access for cl othing made from fabric originating anywhere 
in the world;  in contrast, the general AGOA rule provides unlimited access for clothing made from U.S. fabric, yarn, and thread, and permits up to 3.5%  of overall U.S. imports of clothing originating in 
AGOA beneficiaries (in quantity terms, measured in  square metre equivalents) to be made from 
African fabric and yarn until 2009. AGOA renews the GSP until 2015 and expands duty-free access to 
                                                     
 
30 See Swaziland Sugar Journal , "Markets for Swazi Sugar:  Patterns, Challenges, and Strategic 
Considerations", September 2001.   
31 Cotonou Agreement, Trade Regime Applicable during the Preparatory Period, Protocol 4, Articles 
1 and 2. 
32 Act No.1 of 2000. SACU-Kingdom of Swaziland  WT/TPR/S/222/SWZ 
 Page 421 
 
 
 textiles and apparel products.  The United States is the second largest destination for Swaziland's 
exports, by volume and value, although a large pr oportion of the exports are textiles and clothing.  
The domestic economy is yet to fully utilize th e AGOA preferences fully in order to boost the 
manufacture of products other than  sugar and textile and clothing. 
45. Aside from the AGOA, Swaziland's sugar be nefits from tariff-quota access to the 
United States under U.S. WTO commitments, eith er on the basis of MFN or eligibility for 
GSP treatment.  Swaziland's guaranteed minimum access to the U.S. market is 16,000 tonnes.  If the U.S. market is in deficit, Swaziland may also  benefit from a variable amount of extra access, 
dependent on a stocks-to-use trigger ratio of 15%.
33  
(3) INVESTMENT FRAMEWORK  
46. Swaziland is working with its development pa rtners on comprehensive Investment Code.  
Consultations with stakeholders in both the public and private sectors were undertaken in early 2009, 
on an Investment Policy issues paper.  The draft I nvestment Policy should be finalized before the end 
of 2009.   
47. The Swaziland Investment Promotion Act pr ovides for non-discriminatory treatment of 
investors and investments, thus affording them  national treatment.  Sw aziland has a number of 
incentives available equally to local and foreign inv estors.  These include:  (i) provision of factory 
shells, with subsidized rental and a grace period for payment of the first rental;  (ii) reduced corporate 
tax of 10% (instead of 30%) and exemption from wit hholding tax for ten years;  (iii) deduction of the 
cost of training Swazi nationals from tax liability (training allowance)34;  (iv) import duty and sales 
tax concessions;  (v) accelerated depreciation at an  initial 50% depreciation allowance in the first 
year;  and many other incentives including duty-free importation of equipment.  
48. There are no formal policies or practices that discriminate against foreign investment, and 
companies can be 100% foreign-owned.  Foreign inv estment faces minimal screening, but is restricted 
in the essential utilities sectors, i.e. telephone, water,  and electricity.  Foreign investors are also 
required to use domestic labour whenever possible,  and the process for obtaining residence and work 
permits can be burdensome,  although the Investment Promotion Agency does its best to obtain these 
within 30 days.  In general, the investment re gime lacks important legislative underpinning and 
institutional capacity for implementation.  Reside nts and non-residents may hold foreign exchange 
accounts.  However, payments and transfers are s ubject to approval from the Central Bank;  approval 
procedures are undertaken by the commercial banks on be half of clients.  The Central Bank must also 
approve most inward capital transfers.  Mo st other capital transactions require detailed 
documentation.   
49. The Constitution bars the foreign ownership of land, although a release is offered within the 
Constitution in projects where land is a factor in the investment.  Thus, new investors may still acquire title to land for industrial, agricultural, a nd other economic activities. Another option  is for 
foreign investor to enter into a partnership with a local entity or individual. 
50. Swaziland is a member of the Multilateral Investment Guarantee Agency (MIGA). 
                                                     
 
33 Information supplied by the Swazi Sugar Association. 
34 Sections 14 and 18 of the Income Tax Order provide for 100% deduction from taxable income of the 
cost of training Swazi employees under approved schemes by the Commissioner of Taxes, such as agriculture 
and agricultural services, forestry, mining, manufacturing, construction, wholesale trade, retail trade, hotel and 
restaurant, transport and storage, financial institutions, r eal estate, and business services.  Primarily, the training 
scheme must lead to the acquisition of knowledge and skills.   WT/TPR/S/222/SWZ Trade Policy Review 
Page 422 
 
 
(4) TRADE -RELATED TECHNICAL ASSISTANCE  
51. Swaziland faces many challenges and obstacles in  the implementation of WTO Agreements,  
regional trade agreements, and in its overall trade policy objectives.  Constraints include lack of 
awareness and understanding of the WTO, its Agreem ents and the benefits of implementing these 
Agreements; weak human and institutional capacity, lack of coordination on trade matters, although 
this has now been addressed to a large extent (secti on (1) above); and supply-side constraints.     
Trade-related technical assistance (TRTA) is, therefore, of utmost importance to Swaziland.  While recognizing the challenges at national level, Swazi land has raised concern over the absence of a 
regional capacity-building programme to be managed by the SACU Secretariat.  This could address 
the delay in the development and/ or harmonization of the SACU common policies.  It would also 
facilitate development of the common negotiating positi on, which will be pivotal to achieving equity 
from trade relations with third parties, as provide d in Article 31 of the 2002 SACU Agreement.    
52. Swaziland has received TRTA from the WTO since the last TPR of SACU in 2003, but the 
Government considers that it needs a more focu sed programme of activities in many areas at the 
national level.  In its technical assistance re quest for 2008-09, Swaziland has included activities on 
general capacity building, trade in services, and sen sitization of parliamentar ians on the multilateral 
trading system.  
53. Swaziland does not have an integrated trade policy;  policies are scattered in various 
documents making it difficult to grasp the overall dir ection of the Government's trade strategies, and 
the linkages between trade policy and the broad eco nomic development plans.  The European Union 
has extended technical assistance towards the develo pment of a Trade Strategy in 2009.  Technical 
assistance may be required to help implement the activities that will be outlined in the document. 
54. The country's trade-related technical assistance n eeds can be classified into three categories:  
the implementation of WTO Agreements; building institutional and human capacity to participate 
effectively in the multilateral trading system; and ad dressing supply-side constraints.  To this end, 
Swaziland's TRTA needs are consolidated in the Trade Capacity Building Needs Assessment (2004), 
National Export Strategy (2006), and Needs Assessment on Trade Facilitation (2007).    
(i) Implementation of WTO Agreements 
55. There is need to align national laws, rules,  and regulations to WTO requirements, e.g. 
notification requirements;  and for training of G overnment officials and the private sector on WTO 
matters. Swaziland's implementation -related concerns are in the areas of TRIPS, sanitary and 
phytosanitary measures (SPS), rules of origin and procedures, standards and technical regulations, 
contingency trade remedies, and trade facilitation  Lack of understanding of the relevant provisions 
especially during drafting of national laws in th e Ministry of Justice and Constitutional Affairs 
(MOJCA), makes it difficult to address WTO obligations.  
56. With the assistance of the World Property Organization (WIPO) policy guidelines, an 
institutional framework and draft legislation ar e in place within MOJCA.  Capacity-building 
requirements include advice on implementing the (draft ) legislation, and training for MOJCA staff as 
well as the personnel of enforcement agencies, custom s, and the police, on intellectual property rights 
(IPRs).  TRIPS training workshops over a period of two years, focusing on issues of compliance 
(enforcement of laws and regula tions) should be part of the progr amme of trade-related technical 
assistance.  Staff attachments to established IPR serv ices in the region are also considered an essential 
training component.  Swaziland is also seeking assistance for the creation of a specialized "information centre" in the form of a central IPR lib rary, and an institute of inventors.  This could 
serve as a vehicle for the transfer of technology.  SACU-Kingdom of Swaziland  WT/TPR/S/222/SWZ 
 Page 423 
 
 
 57. The absence of a national policy on sanitary and phytosanitary measures, which could ensure 
technical compliance on imports and exports in Swaz iland, is an impediment to trade.  Technical 
assistance is needed to advise on an appropriate policy framework on which to base a review and 
update existing and the development of new legisla tion.  Swaziland needs legislation on livestock 
development and food safety standards certification,  based on the principle "from farm gate to 
consumption".  Laboratory technicians need to be tr ained in microbiology and existing staff upgraded 
to graduate level.  There is a need for an active national SPS committee to ensure that regular training 
on sanitary and phytosanitary measures, determin ing compliance with the measures, inspection 
monitoring, and approval of procedures and system s-enforcement translate into tangible results.  
Laboratories and other testing facilities are very poor ly equipped to cope with the demands of the 
international/global market place and the domestic consumer market.  Public health needs are 
becoming high priority because of the emergence of virus transmission from animals to humans.  The few existing laboratories require urgent upgrading, particularly the virology laboratories, and new 
facilities are needed.  
58. Rules of origin and customs procedures are a critical factor in Swaziland's ability to 
successfully access global markets and to attract fore ign direct investment.  Swaziland needs national 
workshops to train customs, investment, industry, an d trade officials, together with the private sector, 
on the rules of origin, including under trade agreements, and on consultation and certification 
mechanisms.  Customs and trade o fficials also need specialized tr aining on criteria for determining 
origin, and on the preparation of negotiating proposals and analysis. 
59. Swaziland needs national workshops on TBT, including notifications, with the aim of 
establishing a coordination mechanism for the activ ities that are currently spread across various 
institutions.  There is need for technical assistance to identify standards that will address the needs of 
the Swazi economy, and with the development of the standards legislation.  Capacity building will 
also be needed in terms of training inspectors and auditors to be responsible  for enforcing compliance 
with the national standards.  The Swaziland standa rds authority needs a testing laboratory and other 
equipment in order to carry out its mandate effectively, and training assistance in order to equip 
officers with the necessary skills.  In  addition, the existing legislation needs to be amended in order to 
eliminate duplication of roles and to address Swazila nd's standards and technical regulations matters 
in a comprehensive manner.  Swaziland also rec ognises that the establishment of an information 
reference on standards and techni cal regulations is needed.  
60. The Swaziland authorities require intensive traini ng on contingency trade remedies, especially 
at the implementation stage, even at SACU level.  The National Tariff Body and Department of Industry could take a leading role in the implemen tation of the resulting trade policy.  Assistance is 
needed for policy formulation or design, as well as  the initiation of a legislative programme and the 
review of institutional requirements to implem ent measures on existing international safeguard 
regulations.  Swaziland needs training for legal pers onnel, especially for legal drafting, as well as for 
statisticians on the compilation and analysis of data .  Other interested or affected stakeholders, 
especially the private sector, should be included in  any proposed training programme and their role 
and participation in trade policy clearly defined. 
61. Swaziland is currently receiving technical assi stance on trade facilitation.  This involves 
training of government officials and representatives of the private sector, and financial assistance to participate in the Trade Facilitation negotiations at the WTO.  The country has also conducted a 
Needs  Assessment with assistan ce from the WTO.  A National Working Group on Trade Facilitation 
has been established, and is expected to meet re gularly to ensure complia nce with WTO obligations. 
Swaziland believes that if the financial assistance to wards participation in the negotiations could be 
extended to the private sector (as observers), a nd other sectors of government other than trade and 
customs;  this would increase the level of commit ment to implement reforms.  Swaziland is also WT/TPR/S/222/SWZ Trade Policy Review 
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expected to implement the EC trade facilitation st andards for the implementation of the EPA, which 
will require technical assistance. 
(ii) Human and institutional capacity building for trade negotiations 
62. Swaziland is involved in trade negotiations with  regional partners in the context of SADC; 
with the EC for an economic partnership agreemen t to replace the Cotonou Agreement; and within the 
WTO under the Doha Development Agenda (DDA).  Swaziland's participation in the WTO's work 
programme, including the DDA negotiations, is affected  by its lack of adequate representation in 
Geneva. It is also crucial to strengthen links be tween the Geneva-based staff and staff in Swaziland 
involved in trade policy formulation, especially  considering the scope of the DDA, and the 
implementation requirements likely to follow from the conclusion of the negotiations.  The country is 
also negotiating under SACU for trade agreements w ith third parties and participates in the SACU 
quarterly work programme aimed at implementi ng the 2002 Agreement, as well as the SADC and 
COMESA work programmes.  The schedules of these negotiations often overlap, and constrain the 
development of national negotiating mandates that would secure sustainable benefits of economic 
development for Swaziland.  Most of the staff in the ITD has not been trained in negotiation skills;  
therefore, a national workshop on negotiating tec hniques for other Government departments and the 
private sector would help address this deficiency.  The officials also need training on the design of 
tariff policy, understanding modalities and preparati on of offers, and export market development.  
63. Officials in the ITD, Industry Department, and the Ministry of Finance, as well as the 
Swaziland Investment Promotion Authority and th e private sector, would benefit from a national 
workshop targeting the state of play in the non-ag riculture market access (NAMA) negotiations, and 
preparing for domestic policy reforms and the scheduling of concessions to WTO Members.  In addition, further training on understanding on trade- related investment measures (TRIMs) is needed, 
to complement the proposed formulation of an invest ment code;  this would he lp generate exports to 
markets that become accessible as a result of trade negotiations.  
(iii) Addressing supply-side constraints 
64. Trade competitiveness in Swaziland is affected by an array of supply-side constraints.  These 
are contained in the National Export Strategy, Trade Facilitation Needs Assessment, Investor 
Roadmap and Comprehensive EPA Impact Assessmen t and Sustainability Study for the Kingdom of 
Swaziland. 
65. The country has not been successful in diversifying the economy away from the products 
historically supported by preferential prices.  While services are growing in value and coverage, 
investment growth is limited by the absence of independent regulators in key sectors.  
66. In order to address these constraints systematically, Swaziland intends to formally begin 
introducing the Aid for Trade Initiative at national level in a formal manner.  Consideration, therefore, 
should be given to including in the technical assistance programmes a national workshop on Aid for 
Trade that would lead to the establishment of a na tional committee involving all stakeholders.  The 
ITD hopes that the national committee would facilitate  the review, including costing and prioritization 
of the needs identified in the four documents.   SACU-Kingdom of Swaziland  WT/TPR/S/222/SWZ 
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 III. TRADE POLICIES AND PRACTICES BY MEASURE 
(1) O VERVIEW  
67. Swaziland continues to apply customs-relate d issues harmonized under SACU, including the 
Common External Tariff (Main Report, Chapter III(3)).   Imports into and exports from Swaziland are 
governed by the Customs Act.  Cu stoms clearance is not yet full y computerized and there is no 
computerized management information system, but UNCTAD's Automated System for Customs Data (ASYCUDA) is being introduced.  Swaziland imposes import levies on dairy products, other 
agricultural products, and petrol and diesel.  It is in the process of introducing a VAT;  currently, sales 
tax is applied to all imported and locally produced goods and services. 
68. Trade prohibitions and restrictions are ma intained for TBT and SPS reasons, or under 
international conventions to wh ich Swaziland is a signatory.  Th e Swaziland Standards Authority 
(SWASA) became operational in April 2007. No netheless, the demarcation of responsibilities 
between SWASA and the Quality Assurance Unit is yet to be clearly defined.  With the aim of having 
a modern and efficient government procurement re gime, new regulations were adopted in 2008 and 
the Procurement Bill 2008 is before the Parliament;  a maximum 15% price preference is still granted 
to Swazi-owned and registered companies.  
69. Swaziland has a number of incentives available e qually to local and foreign investors.  In 
2006, as part of its privatization policy, the Govern ment approved a five-lanes privatization roadmap, 
and identified some state-owned enterprises not eligib le for privatization (section (4)(ii) below).  In 
2007, the Competition Act was adopted and the Co mpetition Commission was established with the 
aim of encouraging competition in the economy.  Sw aziland's legislation on IPRs has not changed 
since its last Review, but the Copyright Bill is awaiting Parliament's approval. 
(2) M
EASURES DIRECTLY AFFECTING IMPORTS  
(i) Registration, documentation, import duties, and related measures 
70. All businesses operating in Swaziland must be re gistered.  Most trades and professions are 
covered by specific Acts of Parliament; if not regist ered under specific legislation, a trading firm must 
be licensed under the Trading Licence Order of 1975 by the Ministry of Commerce, Industry and 
Trade. Any person or organizati on engaged in the trade or business of importing into Swaziland 
and/or exporting out of Swaziland goods or commoditi es of any nature requires a licence, for which 
an annual fee of E 400 is payable.  A Trade and Business Facilitation Bill, aimed at simplifying 
procedures for trade licensing, is currently going through the Parliament. 
71. Importers and exporters must be registered with the Customs and Excise Department under 
the Ministry of Finance.  Declaration is th rough the Single Administrative Document (SAD) 
introduced in 2006, which applies to all imports and e xports regardless of their origin or destination . 
Almost all imports arrive in Durban, South Africa by sea, and from there are transported by road or 
rail to Swaziland.  Under the SACU Agreement, customs clearance of imports into the customs union 
can take place at the first office of entry into the union or at their final destination.   From Durban, 
imports must be declared for transit:  a security b ond is required for goods being moved by road, to 
cover the duty and taxes in case the goods are illicitly diverted for home use in South Africa.35  
Clearance for goods imported into Swaziland from within SACU (for VAT collection purposes) is 
                                                      
35 No security is required for goods moving by rail because of the very low probability that they can be 
illicitly diverted for home use. WT/TPR/S/222/SWZ Trade Policy Review 
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done at land borders, the international airport, the pa rcel post, or the railway station. Customs duties 
are not payable on these goods. 
72. Swaziland has, from time to tim e, exercised its right under th e SACU agreement to protect 
infant industries.  Milk and dairy products, vegetables, flour, and wheat have been protected under 
this process. 
73. Swaziland imposes import levies on dairy products , other agricultural products, and petrol 
and diesel.  Under Dairy Act No. 28 of 1968 and Legal Notice No. 2 of 2000, dairy products are 
subject to fixed levies of between E 0.29 and E 4.10 per litre or per kg (Table III.1).  Under National 
Agricultural Marketing Board Act No. 13 of 1985 ( as amended), other agricultural products, such as 
maize, rice, wheat, and turkey are subject to levi es ranging from 1% to 25% (Table III.2).  The rates 
of the levies are "made known publicly in advance by the Board".  Petrol and diesel are subject to a fuel levy, fuel oil levy, and fuel tax set at E 0. 16, E 0.05, and E 0.40 per litre (a cumulative rate of 
E 0.61/litre).
36 
Table III.1 
Levies on milk and dairy products, 2009 
Product Import levy (E) 
Baby formulas 3.83 per kg 
Butter 2.77 per kg 
Cheese (Cheddar, Gouda or other) 4.10 per kg 
Condensed milk 1.61 per litre 
Dairy juice 0.29 per litre 
Dessert or ice cream mixtures 1.28 per kg 
Fermented milk/emasi/buttermilk 0.57 per litre 
Fresh full cream, low fat or skimmed milk 0.40 per litre 
Fresh/sour cream or UHT cream 1.97 per litre 
Full cream milk powder 4.05 per kg 
Full cream UHT milk and flavoured milk 0.44 per litre 
Low fat UHT milk 0.43 per litre 
Skim milk powder/dairy powder blends 1.61 per kg 
Whey/buttermilk powder 0.59 per kg 
Yoghourt 0.91 per litre or kg 
Source:  Legal Notice No. 80 of 2006. 
Table III.2 
Import levies on agricultural productsa, 2009 
Products  Import levyb (%)  
Apples, pears, peaches, and grapes 3.5 
Bananas 10.0 
Cabbages, tomatoes, potatoe s, and sweet potatoes 7.5 
Fresh fruits, excluding apples, pears,  peaches, grapes, and bananas 7.5 
Fresh vegetables, excluding cabbages, toma toes, potatoes, and sweet potatoes 7.5 
Maize products, excluding starch processed poultry feed and animal feed 7.5 
Maize, including seed maize, yellow maize, and popcorn 1.0 
Poultry and poultry products, excluding turkey 15.0 
Processed poultry 7.5 
Table III.2 (cont'd) 
                                                      
36 The fuel levy includes a contributio n to motor vehicle accident insurance. SACU-Kingdom of Swaziland  WT/TPR/S/222/SWZ 
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 Products  Import levyb (%)  
Rice 3.5 
Turkey 25.0 
Wheat 3.5 
Wheaten products 5.5 
a Import levies under Section 6 of the National Agricultural Mark eting Board Act, 1985, as defined in the Import and Export of 
 Scheduled Products (Amendment) Notice, 2006. 
b On all items except rice, the actual rate of levy to be app lied on any particular date will be  made known publicly in advance  by 
 the Board.  
Source:  Information provided by the Swazi authorities. 
74. Swaziland is in the process of introducing the VAT .  Currently, sales tax is applied to goods 
and services, under the Sales Tax Act of 1983.  The tax is applied either at the point of entry into 
Swaziland or at the point of sale from the local producer.  The sales tax rates are 25% for luxury 
goods (e.g. alcohol and tobacco), a nd 14% for other goods and services.  Sales tax is not applied to:  
goods that form part of a final product for resale;  agricultural inputs (fertilizers, seeds, etc.);  plant and machinery used for manufacturing;  basic foods tuffs, such as dairy products, maize, bread, meat, 
vegetables, sugar, and salt;  othe r foodstuffs imported by hotels and restaurants (who charge sales tax 
at the point of final sale);  scholastic materials;  medical and surgical supplies;  and electricity and 
water. 
75. There are also general exemptions to sales tax for the diplomatic corps and for goods and 
services provided under technical assistance agreements ; other exemptions may be provided as part of 
bilateral or multilateral agreements.  Tax on purch ases of new and used clothes up to a value of 
E 1,250, and wines and spirits between E 1,250 and E 10,000 is reduced by 20% (a flat rate of 20% is 
applicable on wines and spirits). Goods provided in  the context of foreign aid to the Swaziland 
Government, or as part of technical assistance progr ammes, are exempted from duties.  There are also 
provisions for duty rebates on goods imported for use by the Government. 
76. Most companies either use a customs clearing agent fo r customs clearance or have an           
in-house import-export section:  the process is comp lex, and can be slow and costly if not done 
professionally.
37  Goods arriving in Swaziland may be en tered for home use or for processing as raw 
materials or inputs;  they may also be entered fo r warehousing where they will be stored in bond until 
the importer enters them for home use or for re-expo rt.  The key customs-clearance documents are the 
bill of entry (form SAD 500) and supporting documents, such as invoices, bill of lading, road manifest, and packing list.  Other documents, e.g. import permits, SPS certificates, and certificates of origin, may also be required. 
77. Customs clearance is not yet fully computerized in Swaziland and there is no computerized 
management information system;  the ASYCUDA is being introduced. According to the authorities, 
on average, clearance takes 20 minutes, provided that all documents are in order, but can take up to 
3 days when there are issues to settle (e.g. value and customs tariff classification of the goods).  All 
goods are physically examined by customs before being released.  Appeals against customs decisions 
are made to the Minister of Finance and appeals ag ainst the Minister's decisions may be heard in the 
courts.
38 
                                                      
37 Another advantage of using an agent is that the importer need not be concerned with formalities in 
South Africa. 
38 USAID (2005). WT/TPR/S/222/SWZ Trade Policy Review 
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78. According to the authorities, Swaziland is  implementing the WTO Customs Valuation 
Agreement (CVA), on the basis of Part IX of Customs and Excise Act No. 21 of 1971.39  Customs 
concludes that the invoice price is too low, the impo rter must justify the low price.  Swaziland needs 
additional personnel and further technical as sistance in order to implement the CVA 
(Chapter II(4)(i)). 
79. The Revenue Authority Bill is being considered  by the Parliament. The major and immediate 
change expected once the revenue authority is est ablished is the merging of the revenue services 
(Customs and Inland Revenue) and an effective organizational structure.40 
80. Applied customs tariffs, excise duties, valuation methods, origin rules, and contingency trade 
remedies are, to date, the only trade policy me asures harmonized throughout SACU (Main Report, 
Chapter III). 
(ii) Import prohibitions, restrictions, and licensing 
81. Import prohibitions are maintained for various reasons, including international conventions, 
security, and health and safety considerations.  They cover, inter alia , drugs and narcotics;  
pornographic or objectionable materials;  pl ants, seeds, bulbs, and raw cotton;  uncooked 
meat/poultry; honey, beeswax, bees and their larvae or eggs, and used beehive appliances;  uncut 
diamonds;  unwrought gold;  and ammunition. 
82. Under the Import Control Order of 1976 and Legal Notice No. 60 of 2000, 15 broad 
categories of products are subject to import permit s issued by the Ministry of Finance:  arms;  
automotive parts;  drugs;  electrical appliances; gold and other precious metals;  mineral fuels;  
mineral oils; specified agricultural products (i.e. wh eat, flour, dairy products, maize, and rice);  used 
clothing;  used earthmoving equipment;  used footwear ;  used motor vehicles;  used textiles;  used 
tyres and tyres casings;  and wild animal products.  Import licensing is used to monitor the flow of 
licensed goods mainly for health, safety, and environmental reasons. 
83. Permits, including to import specified agricultu ral products, are issued by the Ministry of 
Finance. Any individual, firm or institution may a pply for an import permit, which is valid for one 
year (renewable for another year).  All applica tions for import permits must pass through the Import 
Permit Committee.41  First-time applicants must present a certificate of incorporation, memorandum 
and articles of association, trading licence, tax clearance certificate, original proforma invoice for the articles to be imported, and most recent bank stat ement, and must agree to inspection of their 
premises. Subsequent applications need to be accompanied only by the curr ent trading licence, tax 
clearance, and proforma invoices.  On importation of the goods, the importer must produce an 
invoice, bill of entry, bill of lading, and any other relevant documents.  An administrative charge is 
levied on import permit goods at the rate of E 1.00 per E 2,000 of value (0.05%). 
84. The National Agricultural Marketing Board ( NAMBOARD) may limit imports of agricultural 
products by defining quantities that may be imported and by raising import levies.  Levies and quotas 
are set on the basis of the balance of local productio n, or of seasonal production (e.g. of bananas);  in 
                                                     
 
39 WTO document G/VAL/N/1/SWZ/1, 25 April 2007. 
40 USAID (2005). 
41 The Committee is chaired by the Director of Import Permit within the Ministry of Finance, and 
comprises representatives of the Ministries of Finance, Foreign Affairs and Trade, Enterprise and Employment, 
Income Tax, and Customs and Excise, as well as the Central Bank of Swaziland.  The Committee meets weekly 
on Wednesdays.  Applications may be filed until  3.30 p.m on Tuesdays. SACU-Kingdom of Swaziland  WT/TPR/S/222/SWZ 
 Page 429 
 
 
 relation to national disasters;  or in relation to infant industry protection under which the quantity or 
quality of imports is monitored. 
(iii) Government procurement 
85. Central and local governments, and parastat al organizations are not restricted under 
Swaziland's laws as to sources of goods and services.   Such restrictions may be imposed, however, by 
the terms of donor or technical assistance agreements.  In the 2008/09 Budget, 65.9% of government expenditure was on procurement of goods, services, and capital works.
42  Swaziland is neither a 
signatory nor an observer to the Plurilate ral Agreement on Government Procurement. 
86. With the aim of enacting a modern and efficient  government procurement regime, a reform 
programme led by the Ministry of Finance began in 2003.  The main objectives of the reform are to:  
ensure transparency and accountability in public  procurement while maintaining appropriate 
confidentiality of information;  achieve economy , efficiency, and maximum competition to ensure 
value for money in the use of public funds;  promote more diverse private-sector participation, through fair and non-discriminatory treatment of tend erers;  develop economic capacity in Swaziland, 
through the provision of opportunities for Swazi supp liers to participate in public procurement; and 
promote regional trade. 
87. One of the main outcomes of the reform has b een the adoption of the Regulations on Public 
Procurement 2008, which replaced the Swaziland Gove rnment Stores Regulation of 1975.  The new 
regulations specify five procurement methods:  (i) open tende ring for goods, works, and                  
non-consultant services as the preferred method
43;  (ii) limited tendering for goods, works and          
non-consultant services44;  (iii) request for proposals for consultant services45;  (iv) request for 
quotations for minor works and goods46;  and (v) single source for all types of requirements.47  
Procuring entities may divide a procurement requireme nt only when it is anticipated that the award of 
several separate contracts may result in th e best overall value for the procuring entity.48 
88. A maximum 15% price preference is granted in favour of Swazi-owned and registered 
companies.  In addition, other measures are en visaged to promote Swazi companies in public 
procurement, such as:  encouraging foreign compan ies to subcontract with Swazi companies;  where 
                                                      
42 Swazi Observer online information.  Viewed a t:  http://www.observer.org. sz/index.php?news=2384. 
43 Tendering should be international where the goods, works or services are not available under 
competitive price and other conditions from at least three suppliers in Swaziland;  or regional or international 
participation is required in accordan ce with an agreement entered into by the Government of Swaziland.  Open 
tendering may be conducted with or without pre-quali fication (Article 40 of the Regulations on Public 
Procurement 2008). 
44 Limited tendering may be used where:  the goods, works or services are only  available from a limited 
number of suppliers; there is insufficient time for use of  open tendering in an em ergency situation; or the 
estimated value does not exceed the specified threshold (Article 41 of the Regulatio ns on Public Procurement 
2008). 
45 Proposals are obtained from a shortlist of tenderers, with or without advertisement. No advertisement 
is necessary if the value of the good or service is less than E 15,000 (Article 42 of the Regulations on Public 
Procurement 2008). 
46 This method compares quotations from three tenderers.  It may be used where the estimated value 
does not exceed the threshold (Article 43 of the Regulations on Public Procurement 2008). 
47 This method may be used, inter alia , where:  the goods, works or se rvices are only available from a 
single source;  in an emergency situation;  and when additional goods, works or services must be procured from 
the same source due to compatibility, standardization or continuity (Article 44 of the Regulations on Public 
Procurement 2008). 
48 Article 45 of the Regulations on Public Procurement 2008. WT/TPR/S/222/SWZ Trade Policy Review 
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feasible and appropriate, dividing pr ocurement requirements into lots, of a size for which small Swazi 
companies are qualified and able to tender;  and provide training in tendering requirements for Swazi 
companies.49 
89. The new regulations also established a singl e tender board, the Sw aziland National Tender 
Board (SNTB), to replace the Central and Treasury Tender Boards.50  The SNTB, chaired by the 
Ministry of Finance as its Principal Secretary51, now manages all tendering processes:  it aims to 
ensure compliance with the regulations by minist ries and departments, a nd approves all high value 
awards.   A recommendation to award a contract is to be for the best evaluated tenderer, as determined 
by the evaluation methodology and criteria specified in the invitation document. The procuring entity 
should prepare a notice indicating the name of the be st evaluated tenderer, the value of the proposed 
contract, and any evaluation scores.  The notice shoul d be sent directly to a ll tenderers who submitted 
tenders by letter, published on the Government's public procurement website and, where appropriate, 
by fax or email.  The procuring entity should allo w at least ten working days between the date of 
despatch and publication of the notice, and the contract being awarded. 
90. The Procurement Bill 2008 is before Parliament.   The Bill envisages, inter alia , establishing 
the Swaziland Public Procurement Regulatory Au thority (SPPRA) to serve as an independent 
regulatory body, with responsibility for policy, re gulation, oversight, prof essional development, and 
management and dissemination of in formation on public procurement.  Its main functions would be to 
advise the Government and procuring entities on pr ocurement policy, report on the performance and 
functioning of the public procurement system, a nd recommend changes.  SPPRA would be governed 
by a Board of Directors composed of a non-execu tive chairperson and four non-executive members, 
amongst whom at least two from the private sector, civil society or professional bodies, to be appointed by the Minister of Finance. 
(iv) Standards and other technical requirements 
(a) Standardization, testing, and certification 
91. Swaziland accepted the TBT Code of Good Practice on 9 October 2008.
52  The Quality 
Assurance Unit (under the Ministry of Commer ce, Industry and Trade) is the enquiry point. 
92. Swaziland continues to apply South African standards procedures and relies on the South 
African Bureau of Standards (SABS) and the So uth African National Accreditation System (SANAS) 
for all questions relating to standard-setting, testi ng, certification.  Noneth eless, under Standards and 
Quality Assurance Act No. 10 of 2003, the Swazila nd Standards Authority (SWASA) was established 
as a parastatal under the Ministry of Commerce, Industry, and Trade.53  It became operational in April 
2007.  The Act gives SWASA the mandate of promoting standards and quality in the local industry, 
                                                      
49 Articles 21and 22 of the Regulations on Public Procurement 2008. 
50 The Central Tender Board was responsible for th e sale or purchase of government immovable 
property and other capital projects, while the Treasury Tender Board was responsible for all sales or purchases 
of government moveable property, and contracts for annual supply arrangements and individual purchases 
(WTO, 2003). 
51 Other members of the Board are:  the Accountant General, Undersecretary of the Ministry of Public 
Works and Transport, representative of the Attorney Ge neral's Office, Undersecretary of the Ministry of 
Enterprise and Employment;  the head of th e technical secretariat is the secretary. 
52 WTO document G/TBT/CS/2/Rev.15, 2 March 2009. 
53 The Act provides that SWASA should be independent and be governed by a Council.  It consists of 
representatives from various ministries (Agriculture;  Natural Resources and Energy ;  Commerce, Industry, and 
Trade;  and Finance) and private-sector representativ es from the Federation of Swaziland Employers, Chamber 
of Commerce, and the Un iversity of Swaziland. SACU-Kingdom of Swaziland  WT/TPR/S/222/SWZ 
 Page 431 
 
 
 commerce, and the public sector, while being the sole custodian of all issues regarding standards and 
quality in Swaziland.54  However, the demarcation of responsibilities between SWASA and the 
Quality Assurance Unit is yet to be clearly defined.55 
93. There are currently no Swazi standards.  SWASA does not yet have laboratories, therefore it 
uses credible local and international laboratories.   For TBT purposes, Swaziland recognizes 
certification by reputable international bodies. SWAS A is in the process of acquiring membership to 
the International Organisation for Standardisa tion (ISO), African Standardisation Organisation 
(ARSO), International Electrotechnical Commiss ion (IEC), and the International Laboratory 
Accreditation Forum (IAF). SWASA is also participating in the SADC programme on 
Standardisation, Quality Assurance and Metrology (SQAM). 
94. Swaziland requires technical assistance on TBT matters (Chapter II(4)(i)). 
(b) Sanitary and phytosanitary measures 
95. The national enquiry points under the WTO SPS Ag reement are the Directorate of Veterinary 
Services (for sanitary measures), under the Ministry of Agriculture, and the Directorate of Research 
(for phytosanitary measures), also under the Ministry of Agriculture.56 
96. Veterinary and animal health conditions are la id down in Animal Disease Act No. 7 of 1965, 
as amended.  Under the Act, the Minister of Agricu lture may restrict imports or exports of animals, 
animal products, live virus and other pathogens or biological or chemi cal products for the treatment of 
animals or the use of the latter.  He may also fix maximum and minimum wholesale and retail prices for any animal or animal product sold in Swaziland.  
97. Swaziland has a fairly open border with respect to  the movement of animals, vegetables, and 
their products, provided that the point of origin is an approved establishment.  Nonetheless, the 
Animal Disease Act specifies various import requirements in terms of veterinary certification, and a quarantine period of 30 days;  the Customs and Ex cise Act regulates the import of hides and skins, 
meat, and eggs.  Enforcement issues are now the responsibility of both the Department of Customs 
and Excise and the Ministry of Agriculture.  Animals brought in for slaughter are not subject to 
quarantine, but must be slaughtered within 48 hour s of arrival.  Livestock from approved regional 
suppliers (on condition that they are tested prior to export)  may be imported without restriction. 
Swaziland is free of foot-and-mouth disease and has a protective cordon down the eastern side of the country to prevent the movement of cattle from east to west.  
98. Phytosanitary conditions, including for the import of  plants and seeds, are basically regulated 
by Plant Control Act No. 7 of 1981 and the Seeds a nd Plants Varieties Act of 2000.  Phytosanitary 
certificates are required from the Ministry of Agriculture to import citrus fruit or trees, under the Plant Control Act;  in respect of cotton, the Cotton Boar d is empowered to issue certificates, and works 
through agricultural research stations to prevent the spread of pests and diseases.  The Sugar Act of 
1967 empowers the sugar industry itself to determine th e varieties of sugar cane that may be imported, 
and the conditions for import and fo r testing varieties of sugar.  
                                                     
 
54 SWASA online information. Viewed at: h ttp://www.swasa.co.sz/index.php?option=com_ 
content&task=view&id=23&Itemid=38. 
55 Swaziland Standards Authority (2008). 
56 WTO document G/SPS/ENQ/24, 1 October 2008. WT/TPR/S/222/SWZ Trade Policy Review 
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99. Swaziland has no specific policy in respect of ge netically modified varieties of plants or 
animals, or materials made therefrom. Nonetheless, draft legislation on genetically modified organisms is currently awa iting Parliament approval. 
100. In general, all plants and materials require an import permit, although some are not normally 
restricted if they bear proof that they are fro m SACU;  these goods include fruit and vegetables other 
than citrus, flowers, and other materials regularly sold by florists and greengrocers;  seed potatoes; 
and a range of other plants or vegetables includi ng certain subtropical fruit and crops, vegetables, 
legumes, ornamentals, and others.  Purchases by indi viduals of plants from state-registered nurseries, 
fruit and vegetables (including not more than 20 kg of  citrus per person), and cut flowers, wreaths, 
and herbaceous pot plants bought in South Africa, fo r immediate use or consumption and not for sale, 
may be imported without a permit.   
101. The importation of seeds produced under certification by the International Seed Test 
Association is not restricted;  however, there are no Association members in Swaziland.  Otherwise, under the Seeds and Plants Varieties Act, all imports  must be tested by a phytopathologist based in 
Swaziland, and/or issued with a clearance certificate.   Phytosanitary standards are set by notice in the 
Government Gazette  and are updated as new diseases are identified. 
102. Swaziland has a closed list of seed and plant varie ties.  Items to be added to the list must be 
distinct, uniform and stable, and must be certified for value, cultivation use, and merit.  The list 
applies to important, certified crops and includes maize, beans, sorghum, groundnuts, tobacco, cotton, 
and cowpeas.  Other seeds are not controlled in this way.   For a variety to be added to the list it must 
be tested, usually over a two-year period, by the Agricultural Research Station and then considered by 
the Variety Committee of the Ministry of Agriculture. 
103. Seeds produced by regional producers of good reput e are allowed entry without certification:  
some companies in South Africa and in Zimbabwe fa ll into this category.  Indigenous plants imported 
from the region require a permit issued by the National Trust Commission  on the basis of the 
Convention on International Trade in Endangered Species of Wild Fauna and Flora (CITES).  This 
body also protects local plant species and maintains a list of protected and specially protected species 
for which an export permit would be required. 
(c) Marking, labelling, and packaging 
104. The Agriculture Act of 1967 (Part XII) deals with marking in the dairy industry, including 
using approved containers for carrying milk and cream.  It also indicates that, inter alia , the grade and 
registration numbers of producers should appear on the labelling or the wrapper.  Requirements on 
wrapping and packaging of dairy pr oducts is addressed in Section 78.
57  The use of any bottle, jar, tin 
or other container or any paper, cardboard or ot her material that is not clean and free from 
contaminants is not allowed (Section 28).  It also  states that food shall not be transported without 
packaging unless such food is sealed in grease-pr oof vegetable parchment or other non-absorbing 
material. 
(v) Other measures 
105. Swaziland has no countertrade or offset arra ngements, or agreements with foreign 
governments or enterprises designed to influence th e quantity or value of goods and services exported 
                                                      
57 On margarine, for example, ever y wrapper must be distinctively printed in plain capital letters one-
third of an inch-square, with  the trade name of its contents, and no ot her printed matter except the registered 
number of the premises on which it was manufactured and the net weight of the contents. SACU-Kingdom of Swaziland  WT/TPR/S/222/SWZ 
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 to Swaziland, nor does it maintain any surveillan ce measures on imports.  Trade sanctions have not 
been imposed unless required by resolution of the United Nations.   
106. Swaziland has no requirement for local content other than the preferences given under 
government procurement.  It generally does not maintain strategic stocks of food or other 
commodities but maintains financial reserves to  allow it to purchase stocks when needed. 
(3) M EASURES DIRECTLY AFFECTING EXPORTS  
(i) Registration, documentation, and taxes 
107. The same registration procedures apply to expo rters as to importers (section (2)(i) above). 
Most exports go through the Port of Durban, alt hough sugar is usually exported through the port of 
Mozambique.  Most exporters use cl earing agents or freight forwarde rs to handle the export logistics 
in South Africa, which include provision of a secur ity bond to cover the goods in transit to Durban.  
The main export documents required are:  the export bill of entry (Form SAD 500);  exchange control 
form (Form 178), provided by the companies' bankers  indicating the value of goods to be exported; 
and supporting documents, such as the invoice and certificate of origin.  Consignment may be examined, especially if a refund or discharge of a security will be claimed after their exportation.  
After documents have been processed and the good s examined, the unit of transport is sealed by 
Customs and released for exportation.
58  
108. The only tax or fee collected on exports is the Sugar Levy (Chapter IV(2)(iii)(a)), which is 
charged at 5.75% of the proceeds from the net ex-mill export protocol sales to the EC, and applies two years in arrears.
59  
(ii) Export prohibitions, controls, and licensing 
109. Export prohibitions apply to products controlled under, inter alia , the Convention on 
International Trade in Endangered Species (CITES) of Wild Fauna and Flora.  Export prohibitions 
may also be imposed in case of food shortages resu lting from drought or other natural disasters.  
(iii) Export subsidies and assistance 
110. The authorities have in the past considered th e creation of export processing zones but this 
was not considered viable. Items incorporated in to an export product may be imported free of all 
duties or a duty refund may be obtained.  The Depa rtment of Customs and Excise is responsible for 
monitoring this concession and determining any refund due.  Refunds are normally issued as duty 
credits.  
111. The Export Credit Guarantee Scheme (ECGS), fi nanced through the Mi nistry of Commerce, 
Industry and Trade60, aims to enable:  exporters to meet th eir working capital requirements;  exporters 
who do not have enough collateral security to obtain  financial assistance; sm all exporters operating 
from Swaziland to obtain finance from commercial banks at concessionary interest rates;  banks that 
have lent under the scheme to borrow by discounting their promi ssory notes within the Refinance 
                                                      
58 When a unit of transport is sealed, customs offices  en route, even in South Africa, are supposed only 
to check the integrity of the seal (USAID, 2005). 
59 Rate of Sugar Levy Notice, 1997 (Act No. 4 of 1997). 
60 The ECGS funds are vested in treasury bills and term deposits monitored by the Central Bank of 
Swaziland (CBS).  The role of the CBS is to provide the guarantee to the commercial banks lending to exporters. WT/TPR/S/222/SWZ Trade Policy Review 
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Facility provided by the scheme;  exporters to k eep reasonable stock levels so they can respond 
promptly to incoming queries or export orders;  Swaz i exporters to extend easier credit terms, of up to 
180 days, to importers without adversely a ffecting the exporter's cash flow position. 
112. Prospective exporters must submit complete viable project proposals to their commercial 
bank to access ECGS funds.  Businesses must be registered in Swaziland and present a business plan 
containing budgets and cash flow projections, audited accounts for the previous period (if already in 
operation), and the owners' contribution (security or collateral) to financing the project; export orders 
contracts or letters of credit indicating the list of customers and volume of export trade anticipated, and any other information considered material or relevant by the bank.   
113. The ECGS covers 75% of the loan in the case of pre-shipment applications, and 85% in the 
case of post-shipment applications.  The maximum guarantee to any one exporter is E 2.5 million.  
Interest is charged at the prime in terest rate per annum;  the CBS also charges a premium currently set 
at 0.53-2.33%, depending on the leng th and type of credit, and a filing fee of E 25 for a new guarantee 
or an extension of an old one.  According to the authorities, the scheme is not widely used, partly because very few SMEs are involved in the export trade, and partly because the conditions of the 
scheme are quite rigorous. 
114. The Trade Promotion Unit (TPU), within the Mi nistry of Commerce, Industry and Trade, is 
the national focal point for trade promotion; its main  objective is "to promote the growth of exports by 
acting as a catalyst to motivate exporters by providing directly, or in cooperation with other institutions, the services that they require".
61  The unit supports private-sector enterprises by 
promoting their goods on world markets, identifies new export products and ma rket opportunities, and 
helps enterprises to participate in regional and ov erseas trade fairs and exhibitions by paying for the 
shipment costs of the exhibits and for the exhib ition space. The TPU is also responsible for issuing 
certificates of origin under SADC, COMESA and  GSP, while the Department of Customs and Excise does the same under AGOA. 
(4) M
EASURES AFFECTING PRODUCTION AND TRADE  
(i) Incentives 115. Swaziland has a number of incentives available for both local and foreign investors on an 
equal basis (see section (3) above). 
116. The incentives relating to factory premises are granted by the Ministry of Commerce, 
Industry and Trade on the recommendation of the Swaziland Investment Promotion Agency (SIPA).  
The period of grace before the first rent is paid  depends on the nature of the business and on 
negotiations with SIPA; generally rent is not pa id until the business starts operations.  The rent 
payable depends on the location of the factory, and the extent of subsidy can range from 25-40% of 
the market rate depending on the negotiations with SIPA and its perception of the importance of the 
investment.
62  
(ii) State trading, state-owned enterprises, and privatization  
117. A large number of state-owned enterprises (S OEs) operate in Swaziland.  Under Public 
Enterprises (Control and Monitoring) Act No. 8 of 1989, SOEs are classified as "Category A or B" 
                                                      
61 WTO (2003). 
62 For example, an investor proposing to employ 1,000 people would be able to negotiate a better 
package than one employing 500 people (USAID, 2005). SACU-Kingdom of Swaziland  WT/TPR/S/222/SWZ 
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 depending on the extent of government ownership.63  Some "Category A" enterprises are monopolies 
and/or have exclusive rights, such as the Swaziland Water Service Corporation (SWSC), the 
Swaziland Electricity Company (SEC), and the Swaziland Posts and Telecommunications Corporations (SPTC) (Chapter IV(5)((ii)).  "Cat egory B" enterprises include the Central Bank of 
Swaziland (CBS) and the Swaziland Indus trial Development Company (SIDC).
64 
118. Under the Public Enterprises Act, the Public En terprises Unit (PEU), within the Ministry of 
Finance, is to monitor and report on the perform ance of all "Category A" SOEs, to ensure their 
efficient operation, to provide technical assistance wh en necessary, and to advise the Cabinet Standing 
Committee on Public Enterprises on relevant issues.  In  2006, as part of its privatization policy, the 
Government approved a privatization roadmap, whic h entails the transformation of the PEU into a 
Public Enterprises Agency.  The sum of E 3 million has been set aside for the implementation of the 
privatization policy.  
119. The roadmap specifies five lanes for privati zation (names of SOEs in parentheses):  
(i) priority cases for regulation and/or restructuri ng before privatization (SWSC, SEB, and SPTC, and 
Central Transport Administration);  (ii) fast track for immediate privatization or sale of shares since 
little restructuring is required (Swaziland Ra ilway, Swaziland Developm ent and Savings Bank, 
Swaziland Development Finance Corporation, Swaziland Water and Agricultural Development 
Corporation, Royal Swazi National Airways Corporation, Piggs Peak Hotel and Casino65, and 60% of 
South African Airlink shares);  (iii) parallel trac k to review "Category B" enterprises and other 
government shareholdings with a view to immediate privatization or sale of shares, business or assets 
(First National Bank, Havelock Mine Corporation,  Ion Swaziland, Lulote-BMEP, MNSP Pty Limited, 
Nedbank, Old Mutual, Parmalat Swaziland, Roya l Swazi Sugar Company, SIDC, Standard Bank 
Swaziland, Swaziland Building Society, Swaziland Fr uit Canners, Swaziland Royal Insurance, Swazi 
MTN, and Shiselweni Hotels and Nhlangano Casino Hotel);  (iv) second priority for restructuring 
with a view to partial or full privatization (S mall Enterprises Development Company, Motor Vehicle 
Accident Fund, Swaziland National Housing Boar d, Swaziland Television Authority, Swaziland 
National Trust Commission, and Commercial Board);  and (v) not appropriate for privatization except 
possible outsourcing of services (National Emer gency Response Council on HIV/AIDS, National 
Agricultural Marketing Board, National Maize Corporation, Swaziland Cotton Board, Swaziland 
Dairy Board, Sebenta, University of Swazila nd, Commission for Mediation, Arbitration and 
Conciliation, Swaziland Investment Promotion Aut hority, Swaziland Provident Fund, and Swaziland 
Tourism Authority).  In addition, the following SOEs have been classified as not eligible for 
privatization: CBS, Manzini City Council, Mbaban e City Council, Public Service Pensions Fund, 
Raleigh Fitkin Memorial Hospital, and SIDC.66 
120. Swaziland has not made any notifications to the WTO regarding state-trading enterprises. 
Nonetheless, some SOEs such as the National Agricultural Marketing Board, National Maize 
                                                      
63 "Category A" public enterprises are either wholly owned by the Government, majority owned by the 
Government or dependant upon Government subvention for financial support.  "Category B" are enterprises in 
which the Government has a minority interest or that monitor other financial institutions or that are local 
Government authorities. 
64 SIDC, a joint-venture between the Government and major international and local financial 
institutions, offers potential or actual investors: assistance in project appraisal and identification of local or 
foreign joint-venture partners;  financial services including equity finance and   medium- and long-term loans "at competitive interest rates";  and leasing of factory bui ldings, particularly in the Matsapha Industrial Estate 
(WTO, 2003). 
65 Leased to Orion Hotels until 2017. 
66 Ministry of Finance (2006). WT/TPR/S/222/SWZ Trade Policy Review 
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Corporation, Swaziland Sugar Association, Swaz iland Citrus Board, Swaziland Cotton Board, and 
Swaziland Dairy Board are still operating unde r monopoly or hold exclusive rights. 
(iii) Competition policy and price controls 
121. Swaziland enacted the Competition Act No. 8 of 2007 with the aim of encouraging 
competition in the economy by, inter alia , controlling anti-competitive trade practices, including 
prohibition of abuse of dominance, and monitori ng mergers and acquisitions, and monopolies and 
concentration of economic power.  An indepe ndent Competition Commission was established under 
the Act67;  the Competition Authority is in the process of being set up. 
122. The Commission, inter alia :  carries out, on its own initiative or upon request, investigations 
in relation to the conduct of business, such as the abuse of a dominant position and mergers;  takes 
action to regulate the creation of a merger or to prevent or redress the abuse of a dominant position by any enterprise;  provides information for the guidance of consumers regarding their rights under the Act;  and undertakes studies and makes available to the public reports regarding the operation of the 
Act.
68  
123. Price controls in Swaziland are imposed under the Price Control Order of 1973.69  T h i s  
provides for the fixing of maximum prices for both goods and services.  The Minister of Agriculture 
may fix maximum and minimum wholesale and retail prices for any animal or animal product sold in Swaziland (section (2)(iv)(b)).  Currently, price cont rols are applied top bread , sugar, dairy products, 
gasoline, and postal and telecommunication services.  
(iv) Intellectual property protection 
(a) Overview 
124. Swaziland's legislation on intellectual property rights (IPRs) has not ch anged since its last 
Review.  It consists of:  Merchandise Act No. 24 of 1937;  Trade Marks Act No. 6 of 1981 and Trade 
Marks Regulations of 1989;  Patents, Utility Mode ls, and Industrial Designs Act No. 6 of 1997; and 
Seed and Plant Variety Act No. 7 of 2000.  Copyright is protected under Copyright Act No. 36 of 1912, Copyright (Prohibited Importation) Act No. 35 of 1918, and Copyright (Rome Convention) Act 
No. 1 of 1933;  however, the Copyright Bill is awaiti ng Parliament's approval.  There is no legislation 
relating to geographical indications, layout-designs  (topographies) of integrated circuits or the 
protection of undisclosed information in Swaziland.
70  
125. General responsibility for IPR issues is under th e Registrar-General's Department in the 
Ministry of Justice.  This is also the contact point under Article 69 of the WTO TRIPS Agreement.71 
Other institutions responsible for intellectual pr operty matters are:  the Customs and Excise 
                                                      
67 The Competition Commission comprises representativ es of the Ministry responsible for enterprise, 
the Ministry responsible for finance, the Ministry responsible for economic planning and development, a 
member nominated by the Swaziland Chamber of Co mmerce and Industry, the Economics Association of 
Swaziland, the Swaziland Consumers Association, the Sw aziland Institute of Accountants, the Law Society of 
Swaziland, and a member appointed by the Minister of Enterprise and Employment. Each member holds office 
for up to three years, and may be reappointed for anot her term (Articles 8 and 9 of the Competition Act 2007). 
68 Article 11 of the Competition Act 2007. 
69 Order-In-Council No. 25 of 1973. 
70 WTO document IP/N/SWZ/1, 5 May 2004. 
71 WTO document IP/N/3/Rev.10, 16 May 2008. SACU-Kingdom of Swaziland  WT/TPR/S/222/SWZ 
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 Department (Ministry of Finance), for matters related to border meas ures;  and courts of law, for 
enforcement issues.   
126. Swaziland is a member of the World Intellectual Property Organization (WIPO) and the 
African Regional Industrial Property Or ganization (ARIPO).  It is a signa tory to the:  ARIPO Protocol 
on Patents and Industrial Designs;  Paris Convention fo r the Protection of Industrial Property;  Patent 
Cooperation Treaty;  Berne Convention for the Prot ection of Literary and Artistic Works;  Rome 
Convention for the Protection of Performers,  Producers of Phonograms and Broadcasting 
Organizations;  and Madrid Agreement Concerni ng the International Registration of Marks.  
Swaziland is also in the process of accession to the WIPO Internet treaties.  Its intellectual property 
legislation was reviewed by the WTO TRIPS Council in November 2001.72  
(b) Industrial property 
127. The Patents, Utility Models and Industrial D esigns Act of 1997, establishes a Registrar of 
Patents, in the Registrar-General's Office of the Mi nistry of Justice.  Patents are valid for 20 years 
from the time of application, subject to working of  the invention.  Utility model certificates are valid 
for seven years from the application date, without po ssibility of renewal. Registrations of industrial 
designs are valid for five years from the date of a pplication, renewable for tw o subsequent periods of 
five years. There is no provision in the patent legi slation for the protection of new varieties of plants73, 
nor for pharmaceutical or chemical products.  
128. The Trade Marks Act of 1981 establishes a Registrar of Trade Marks (in the 
Registrar-General's Office).  Trade marks may be registered for a period of ten years, and renewed for 
subsequent periods of ten years, indefinitely.  Th e registered owner of a trade mark in Swaziland has 
the exclusive right to use the mark, and any assignment  or transmission of the mark must be registered 
by the assignee.  Appeals against the Registrar's d ecisions regarding trade marks may be made to the 
High Court.  The Fair Trading Act, 2001 also provides for pursuit and penalties in the case of 
violation of trade marks.  
129. Under Patents, Utility Models and Industrial Designs Act No . 6 of 1997, the term of 
protection for industrial designs is 15 years.  An application for protec tion of an industrial design is be 
filed with the Registrar and must contain a request, drawing, or other adequate graphic representations 
of the article and an indication of the kind of  products for which the design will be used.74  There is no 
provision in the legislation for compulsory licencing in respect of industrial designs.  Textile designs 
are not provided for.  
(c) Copyright and related rights 
130. Copyright legislation (the Copyright Act 1912) covers literary, dramatic, and artistic works, 
performances, and sound recordings first published in any part of the Commonwealth.  The term of 
copyright protection is the life of the author plus 50 years.  The legislation does not comply with Article 9 of the TRIPS Agreement (protection of th e exclusive rights of auth ors in relation to their 
                                                     
 
72 WTO document IP/Q-Q4/SWZ/1, 18 October 2007, contains the questions posed and answers given 
during the review. 
73 The protection of new plant varieties is the responsibility of the Ministry of Agriculture (WTO 
document IP/Q-Q4/SWZ/1, 18 October 2007). 
74 The application may be accompanied by a specimen of  the article;  and must be accompanied by the  
application fee.  Where the applicant is  not the creator, he/she must provide the statement justifying his/her right 
to registration of the design (WTO document IP/Q-Q4/SWZ/1, 18 October 2007). WT/TPR/S/222/SWZ Trade Policy Review 
Page 438 
 
 
literary and artistic works), nor with  the Berne and Rome Conventions.75  There are no provisions 
exist for royalties to be paid to musicians, authors or performers. 
131. A new Copyright Bill, based on the WIPO model, addresses the administration of copyright 
and neighbouring rights, audiovisual works, expressi on of folklore, and computer programs.  It will 
establish a Copyright Society, which will be responsible  for the promotion of the interests of authors, 
artists, and performers, and a Copyright Administrato r's office in the Registrar-General's office.  
(d) Enforcement 
132. Penalties for infringement of IPR legislation va ry between a maximum fine of E 2,000 and/or 
imprisonment for six months under the Trade Marks Ac t to a maximum fine of E 10,000 and/or five 
years' imprisonment under the Patents, Utility Models  and Designs Act.  Civil suits for damages may 
also be brought. The legislation allows for appeal  procedures at the High Court. Swaziland faces a 
severe problem of piracy in audio and audiovisual cassettes, CDs, and DVDs.   
133. Swaziland requires technical assistance on IPR issu es, including for traini ng of officials and 
for amendment of its legal framework (Chapter II(4)). 
                                                      
75 WTO document IP/Q-Q4/SWZ/1, 18 October 2007. SACU-Kingdom of Swaziland  WT/TPR/S/222/SWZ 
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 IV. TRADE POLICIES BY SECTOR 
(1) O VERVIEW  
134. Agriculture in Swaziland is highly dualistic, with large-scale, commercial, irrigated, 
export-oriented production on "title deed land", and sm all-scale, rain-fed, production for local markets 
(often informal or subsistence level) on "Swazi nation land".  Under its Comprehensive Agriculture 
Sector Policy, Swaziland's key objectives are to  promote food security and increase productivity 
through the diversification and commercializat ion of activities, while ensuring community 
participation and sustainable development of its na tural resources.  Agriculture is threatened by a 
number of factors, notably droughts. 
135. Manufacturing remains largely based on value-adde d in sugar (confectionery and soft drinks), 
which benefits from preferential access to the EC and to the United States.  Some sugar-using and 
wheat-using industries have expressed concerns about  the structure of SACU tariffs, as they would 
wish to benefit from lower cost sources for their raw materials.  Swaziland is eligible for the African 
Growth and Opportunity Act (AGOA) preferences,  since January 2001, including on textiles and 
clothing, and is counted as a less developed benefici ary country. Nonetheless, exports of garments and 
apparel to the United States have fallen over the last few years. 
136. Services, notably tourism, form a crucial component of Swaziland's overall policy of 
economic diversification, and private-sector participa tion is to be encouraged through privatization. 
Since its previous Review, Swaziland has been modernizing its financial services legislation, 
implementing its National Transport Policy, which set s out a strategy for the integrated development 
of all transport modes, and opened the mobile tele coms market to competition (in 2008).  However, 
the state-owned Swaziland Post and Telecommunicati ons Corporation (SPTC) continues to dominate 
telecoms and postal services. 
(2) AGRICULTURE AND RELATED ACTIVITIES  
(i) Main features 
137. Around 80% of the Swazi population is rural-based  with livelihood pre dominantly dependent 
on subsistence farming and/or livestock herding.76  Agriculture also plays an important role in 
providing raw materials for the largely agri-based manufacturing industries.  Some 11% of the land is arable; the average land area per family is about 1.3 ha.
77  The sector has been affected by severe 
droughts, notably in 2007.  Despite the worst drough t in 15 years, the sector is estimated to have 
registered an annual growth rate of 2% in 2007 (-2% in 2006, 5.5% in 2005, -3.7% in 2004, and 6.1% 
in 2003).78   
138. Agriculture in Swaziland is divided between "title deed land" (TDL)79 and "Swazi nation 
land" (SNL).80  Large-scale agriculture focuses on production of sugar (Swaziland's largest single 
                                                      
76 UNOCHA (2007). 
77 FAO online information, "Swaziland".  Viewed at:  http://www.fao.org/fileadmin/templates/tc/tce/ 
pdf/Swaziland_factsheet.pdf. 
78 Central Bank of Swaziland (2008). 
79 TDL is privately owned, covers about 40% of the cultivated land, and accounts for about 80% of 
total agricultural output.  Access to TDL and its resources is regulated by the owner.  It is used mainly for 
ranching, forestry or estate production of crops such as sugar cane and citrus fruits. 
80 SNL makes up almost 60% of the cultivated land and accounts for about 20 % of total agricultural 
output. It is held in trust by the king and allocated by tribal chiefs according to traditional arrangements.   WT/TPR/S/222/SWZ Trade Policy Review 
Page 440 
 
 
crop), meat, dairy products, citrus , and other fruit, while the small-scale sector is devoted mainly to 
production of maize81, cotton82, vegetables, and other foodstu ffs, as well as cattle and other 
livestock.83  Raw and refined sugar, sugar products , and ethanol constitute Swaziland's main 
agricultural exports (over 20% of total merchandise e xports), followed by citrus fruits (Table IV.1).84  
Main imports include maize, wheat, eggs, chickens, prepared food, beef and veal, and sunflower seed 
oil. Swaziland is a net food importer, in particular of wheat, maize, chickens, beef and veal, sunflower 
seed oil, eggs, and milk and milk products.85 
Table IV.1 
Agricultural production and exports, 2002-08  
Commodity 2002/03 2003/04 2004/05 2005/06 2006/07 2007/08
Maize ('000 tonnes) 62.5 71.0 74.5 67.1 69.2 ..
Sugarcane ('000 tonnes) 4,609 5,046 4,8884 5,144 4,931 5,076
Sugar production ('000 tonnes) 583.0 628.2 597.6 652.7 623.4 631.2 
Citrus ('000 tonnes) 74.4 70.9 67.1 70.5 70.8 ..
Citrus export ('000 tonnes) 35.7 28.2 32.3 32.6 .. ..
Canned fruit export ('000 tonnes) 26.6 27.7 22.4 17.8 .. ..
Export value (€ million)  209.1 197.9 191.2 260.5 .. ..
Cotton ('000 tonnes) 3.5 2.8 5.0 0.9 .. ..
Wood pulp (tonnes) 186,649 167,734 180,590 172,495 .. ..
Export volume (tonnes) 197,681 156,340 182,852 181,925 .. ..
Export value (€ million)  676.8 424.6 446.4 410.0 .. ..
Meat (tonnes) 5,383 9,023 4,116 7,464 .. ..
Export volume (tonnes) 742 780 223 28 .. ..
Export value (€ million) 15.4 29.9 7.6 0.8 .. ..
.. Not available. 
Source:  IMF (2008), Kingdom of Swaziland:  2008 Article IV Consultation – Staff Report;  Public Information Notice on 
 the Executive Board Discussion;  and Statement by the Executive Director , Washington D.C.;  Central Bank of 
 Swaziland (2007), Annual Report 2006-2007 ;  and information provided by the Swazi authorities.  
139. Livestock's contribution to Swaziland's GDP declined from 1.2% in 2000 to 0.4% in 2007, 
but it plays an important role in the livelihoods of  smallholder farmers as key sources of income, food, 
and draught power.  Cattle comprise the second largest component of the country's livestock after poultry.  A large proportion of households own goa ts and other back-yard stock such as chicken and 
ducks.  Small farmers own about 77% of the total cattl e population.  In spite of a relatively large cattle 
population (639,718 in 2007), Swaziland continues to be a net importer of beef and beef products, 
largely because of low productivity due to  the undernourished and overgrazed herds.
86  
140. Forestry contributed 0.4% to Swaziland's GDP in 2007, and accounted for 17% of formal 
employment. It also provides raw materials for va lue-added products.  The Highveld of Swaziland 
                                                      
81 Maize is the dominant crop and remains the staple food grown by the majority of rural households. 
In 2006, Swaziland was 56.5% self-sufficient in maize.  
82 A Cotton Strategic Plan is being finalized in a bid to revive production. 
83 Efforts have been made to bring SNL farmers up to the commercial or semi-commercial level 
through, inter alia , the use of yield-increasing inputs and extens ion advice.  However, these have failed to 
increase production mainly becau se the incentives were inadequate for the risk and labour involved (FAO/WFP, 
2008). 
84 Citrus production (i.e. oranges, grapefruit, and lime) rose from 70,955 tonnes in 2004 to 
85,263 tonnes in 2007.  The Swaziland Citrus Board ex ports the fruit primarily to the EC (Central Bank of 
Swaziland, 2008). 
85 FAO online information.  Viewed at:  http://www.fao.org. 
86 Ministry of Economic Planning and Development (2008). SACU-Kingdom of Swaziland  WT/TPR/S/222/SWZ 
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 contains 166,000 ha of commercial forests, one of  the largest commercial tree plantations in the 
world.  Swaziland has a comparative advantage in pi ne-growing, given that it takes about 16 years for 
this tree to mature (ready for unbleached kraft pu lp production), compared with 40 years in the 
northern hemisphere.  Commercial forests are locat ed in both TDL and SNL.  Swaziland's major 
forest product is wood-pulp, and its exports amounted to €410 milli on in 2005/06 (€676.8 million in 
2002/03), i.e. about 11% of total merchandise exports.87  Other forest products include saw timber, 
eucalyptus mining timber, and treated poles for transmission lines and fencing.   
(ii) Policy developments 
141. The Ministry of Agriculture is responsible for the overall administration of the sector, such as 
formulating policies and providing advisory services to farmers.  Under its Comprehensive 
Agriculture Sector Policy, Swaziland's key objec tives are to promote food security and increase 
productivity through the diversification and co mmercialization of activ ities, while ensuring 
community participation and sustainable development of its natural resources.88  The National 
Programme for Food Security is being implemente d.  In addition, the National Agricultural Summit 
Programme of Action is being implemented over an  eight-year period with the aim of improving 
access to finance for agricultural produc tion, stabilizing agricultural markets, strengthening          
early-warning systems and disaster-preparedness m echanisms, increasing agricultural productivity, 
enhancing water management and smallholder irrigation, strengthening agricultural research, and 
diversification of crops and livestock production.89 
142. Food security is threatened by a number of factors, notably low rainfall and limited irrigable 
land.  As a result, the Irrigation Policy was fo rmulated in 2006/07.  The Maguga dam project, 
completed in 2006/07, allowed for the irrigatio n of over 6,000 ha and benefited more than 
30,000 households.90  Moreover, the Lower Usuthu smallholde r irrigation project became operational 
at the end of 2008, creating about 6,500 ha of irrigable land.91  Problems emanating from soil erosion, 
haphazard location of non-agricultural activities, overgrazing, and expanding population also pose a tremendous challenge to food security.  The Rese ttlement Policy, developed since 2003, seeks to 
address these issues. 
143. Swaziland's main agricultural exports, sugar in  particular, remain heavily dependent on the 
maintenance of existing preferential access to the EC , U.S., and SACU markets.  Withdrawal of these 
preferences in a short period would probably cause the collapse of the sector (section (iii)(a) below). 
144. The Ministry of Agriculture intends to incorpor ate idle state farms into large-scale agriculture 
projects when funding becomes available. In 2006,  the Central Cooperative Union was liquidated 
                                                     
 
87 FAO/WFP (2008). 
88 The Government is promoting diversification of agricultural exports into various cash crops (e.g. 
mushrooms), as well as additional forms of livestock other than cattle (e.g. goats and pigs), and dairy produce 
(Ministry of Agriculture online information.  Viewed at:  http://www.gov.sz/home.asp?pid=1789). 
89 In 2007, the Government hosted an Agricultural Summit, which brought together the various 
stakeholders.  The Summit's outcome was the National Agricultural Summit Programme of Action (Ministry of 
Economic Planning and Development, 2008). 
90 The completion of the Maguga dam project marked the end of phase one of the Komati river basin 
development project, an initiative between Swaziland and South Africa (Komati Basin Water Authority online 
information.  Viewed at:  http://www.kobwa .co.za/index.cfm?objectid=5033B524-E0C4-BB9D-
7CE0C98A4387D3CC). 
91 The project, supervised by the Swaziland Water and Development Enterprise, is to build three dams 
by 2012.  It aims to impound, stor e, and distribute 155 million cubic me tres of water per year (African 
Agriculture online information, "Dam construction project in Swaziland to increase irrigable land", 30 August 2008.  Viewed at:  http://africanagriculture.blogspot.com/search/label/Swaziland). WT/TPR/S/222/SWZ Trade Policy Review 
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because of poor financial and stock management;  it worked for over 30 years to raise agricultural 
output and the incomes of small-holder farmers.  Nonetheless, credit has expanded especially among 
rural dwellers with little or no access to formal banking system.92   
145. In 2007, the Ministry of Agriculture allocated 10,000 ha of land in drought-affected Lavumisa 
to a private company for a US$5 million project to draw biofuel from cassava, which is            
drought-tolerant and productive in poor soils. The pr oject is expected to generate an estimated 
16,000 jobs.  Another project will use aloe plants that grow naturally in various communities.  In 
2008, both biodiesel oil projects were endorsed by the Ministry of Agriculture and are expected to 
have great export potential.93  
146. Swaziland requires import permits for a number of  farm and processed products (wheat flour, 
dairy products, maize, and rice) and maintains impor t levies on a range of da iry products under Legal 
Notice No. 80 of 2006, and on a number of other pr oducts under the National Agricultural Marketing 
Board Act of 1985 (Chapter III(2)(ii)).  Price contro ls under the Price Control Order of 1973 apply to, 
inter alia , bread, sugar, and dairy products (Chapter III(4)(iii)). 
147. The simple average MFN tariff in agriculture (ISIC Rev.2 definition) is 3.7%, with rates 
ranging from zero to 44% (Main Report, Table AIII.2).   Specific, mixed, and variable (formula) duties 
apply mainly to agricultural products (Main Report, Chapter III(3)(i)). 
(iii) Selected activities   
(a) Sugar 
148. Sugar accounts for about 60% of agricultural output, 35% of agricultural employment, and 
around 20% of Swaziland's GDP.94  Land allocated to sugarcane rose from 48,307 ha in 2002/03 to 
52,068 ha in 2008/09 (Table IV.2).95  Most sugar production is on large estates on irrigated TDL;  a 
small volume is produced by small farmers on SNL.   Swaziland has three sugar mills, at Big Bend, 
Simunye, and Mhlume.96  Sugar production was 626,984 tonnes in 2008/09 (up from 583,014 tonnes 
in 2002/03).  However, recent price declines may have altered the profitability of sugar production 
and the balance of crops being pr oduced in sugar-cane growing areas.97 
149. The Swaziland Sugar Association (SSA), regulated  under the 1967 Sugar Act, is a statutory 
body representing all millers and growers and is re sponsible for sales and marketing of all sugar 
produced.  It controls some two thirds of the i ndustry and is among the larg est sugar exporters in 
Africa. Under the Swazi Economic Empowerment Initia tive, a portion of the sugar sold to the regional 
market is reserved for local traders; the process is  meant to assist traders develop the skills and 
sophistication required for the export market.  As  an alternative outlet the SSA commissioned an 
                                                      
92 IMF (2008c). 
93 African Agriculture online information. Viewed at:  http://africanagriculture.blogspot.com/ 
search/label/Swaziland. 
94 Afrol News , "Good times over for sugar farmers". Viewed at:  http://www.afrol.com/ 
printable_article/20525. 
95 Farmers continue shifting from maize to sugarcane mainly due to the difference in profitability (FAO 
online information, "Aquastat:  Swaziland". Viewed a t:  http://www.fao.org/nr/water/aquastat/countries/ 
swaziland/index.stm. 
96 Production includes raw, refined, and brown sugar, and molasses as by-product used for the 
production of alcohol or sold to small local and foreign customers for food and feed production (USDA, 2007). 
97 According to the Swaziland Sugar Association, th e price cut translates in to an income loss of 
US$30 million a year, i.e. more than four times the annual amount of EC aid to Swaziland ( Afrol News , "Good 
times over for sugar farmers online information".  View ed at:  http://www.afrol.com/ printable_article/20525). SACU-Kingdom of Swaziland  WT/TPR/S/222/SWZ 
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 ethanol project in September 2005, with the aim of  expanding the production capacity of the distillery 
from 13 million litres per year to 32 million litres.98 
Table IV.2 
Sugar, 2002-09 
 2002/03 2003/04 2004/05 2005/06 2006/07 2007/08 2008/09
Area under cultivation (ha) 48, 307 49,932 50,932 52,196 52,233 52,020 52,068
Production (tonnes) 583,014 628,191 597,563 652,735 623,357 631,236 626,984
Domestic sales (tonnes) 280,925 331,920 311,310 314,537 318,201 307,232 319,716
Exports (tonnes) 279,700 279,613 295,364 320,212 319,834 319,603 298,574
Exports (US$ million) 197.5 157.9 204.4 259.4 298.6 285.2 286.7
EC 85.0 56.7 76.1 86.7 93.2 118.7 107.3
SACU 86.4 83.1 105.9 130.5 144.4 131.3 129.9
Other 26.2 18.2 22.3 42.2 61.0 35.1 39.4
Source:  IMF (2008), Kingdom of Swaziland:  Selected  Issues and Statistical Appendix ;  and information provided by the 
 Swazi authorities.  
150. In 2008/09, sugar exports amounted to US$286.7 million (against US$197.5 million in 
2002/03).  About 45% of the exports were sold with in SACU and 37.3% to the EC (Table IV.2).  
Swaziland's sugar benefits from preferential access;  from agreed supply quantities at agreed prices in 
the EC and United States, and from supported prices.   Without this protection, Swaziland would 
receive prices based on competition from world ma rket sugar, including from lower cost producers 
like Brazil, India, and Thailand. 
151. Swaziland's access to the EC market is princi pally governed by the Sugar Protocol, annexed 
to the Cotonou Agreement.  The Sugar Protocol ends on 30 September 2009;  as from 
1 October 2009, all exports of beet sugar or s ugar cane from ACP states will enter the EC duty free 
and quota free.99  Under the Sugar Protocol, the EC agrees to purchase and import "agreed quantities" 
at a "guaranteed price" well above market prices, free of duty.  In July 2004, the EC announced a 
phased reduction in the price paid for sugar im ports.  For the marketing years 2006/07 and 2007/08, 
the price per tonne of sugar was redu ced to €496.8 (from €523.7 until 2005/06).100  During 2007, 
several small (subsistence) farmers faced with fa lling yields due to the drought and escalating costs 
were unable to meet their loan obligations as the price fell.101  Swaziland's annual sugar exports to the 
EC have amounted to more than 160,000 tonnes, on average, since 2001.  Moreover, under the Special Preferential Sugar Agreement (SPSA) of 1 995, Swaziland benefits from an additional EC 
tariff quota, at a reduced rate of duty, of some 62,000 tonnes (one-fifth of a global tariff quota of 
300,000 tonnes) at a price of €427/tonne.  However,  the recent loss of 15,000 tonnes of Swaziland's 
share under the SPSA has further worsen ed the sugar situation in Swaziland.
102  As a result,  
Swaziland, in collaboration with the European Co mmission, has put in place the National Adaptation 
Strategy.  This will be implemented through a Rest ructuring and Diversification Management Unit 
                                                      
98 USDA (2006). 
99 EC Council Decision 2007/627/EC, 28 September 2007. To mitigate the effects of EC price cuts on 
ACP countries with preferential access to the EC sugar market, a fund of €1 ,244 billion was set aside by the EC 
during 2007-13. 
100 In 2008/09 and 2009/10, the price will be furthe r reduced to €434.1 and €335, respectively (IMF, 
2008b). 
101 A few lending agencies also refused to extend further credit to these farmers (IMF, 2008b). 
102 FAO/WFP (2008). WT/TPR/S/222/SWZ Trade Policy Review 
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with the aim of ensuring that Swaziland adapts to the challenges resulting from EC sugar reforms, 
through a number of projects funded by the EC.103  
152. Swaziland also benefits from a preferential ta riff quota, currently around 18,700 tonnes of 
sugar, into the United States (against 16,000 tonnes in 2002/2003).  The SADC Sugar Cooperation 
Agreement, annexed  to the SADC Trade Protocol, has the long-term objective of full liberalization in 
the sugar subsector in the region after 2012 (Main Re port, Chapter II(3));  in the meantime it provides 
for temporary measures "to insulate member States ' sugar producing industries from the destabilizing 
effects of the distorted global market".104  
153. Imports of sugar products are duty-free (Main Re port, Table AIII.2).  A sugar export levy is 
charged on all sugar exported from Swaziland, ex cept to Botswana, Lesotho, Namibia, and 
South Africa.  According to the authorities, the s ugar export levy is meant to provide a mechanism for 
the further distributing the economic rent arising out  of the (supernormal) be nefits provided by the 
Sugar Protocol.  The levy, collected from the SSA , is on net ex-mill sales to the EC under the quota 
arrangements of the Cotonou Agreements.105 
(b) Livestock 
154. According to the latest livestock census,  there were 639,718 registered cattle in 
December 2007 (600,252 in 2003).  The deterioration of grazing lands has resulted in a gradual shift towards the rearing of goats and sheep, which can be  maintained within sma ller rangelands.  In 2007, 
the goat population reached 480,208, while the sh eep population amounted to 19,433 head.  Total 
cattle slaughters fell from 48,038 in 2003 to 39,339 in 2007, as both  Swaziland Meat Industries (SMI) 
and other commercial slaughters declined.
106  The mortality rate fell from 5.9% in 2003 to 3.7% in 
2007 as no major disease outbreak was reported during the period (Table IV.3).  Imports of live animals and some products of animal origin are du ty free, while the tariff rate is 17.4% for meat 
products and 23% for dairy products (M ain Report, Tables AIII.1 and AIII.2). 
Table IV.3 
Livestock indicators, 2003-07 
 2003 2004 2005 2006 2007 
Total population 600,252 623,712 648,250 657,860 639,718 
Slaughtered by Swaziland Meat Industries 20,697 11,433 10,723 8,162 7,312 
Other commercial slaughters 10,680 4,370 31,169 34,581 32,027 
Total slaughters 48,038 15,803 41,892 42,743 39,339 
Deaths 35,698 21,575 24,869 25,560 23,882 
Mortality rate 5.9 3.5 3.8 3.9 3.7 
Source:   Central Bank of Swaziland (2008), Annual Report April 2007-March 2008 . 
155. Over the last few years, the Ministry of Agriculture has encouraged good animal husbandry 
and proper health and feeding practices to deve lop the livestock subsector and produce high-quality 
                                                      
103 These projects include social services and infrastructure development supporting small-holder 
sugarcane growers (Ministry of Economic Planning and Development, 2008). 
104 WTO (2003). 
105 Net ex-mill export sales proceeds are equivalent to the gross amount received by the SAA for sugar 
exported, less expenses as prescribed in the Act, and is payable quarterly (USAID, 2005). 
106 Swaziland Meat Industries, a stat e-owned company, operates the main  abattoir and is the only meat 
exporter. It has set up demonstration ranches in order to promote better animal husbandry practices, and to 
encourage farmers to sell cattle at the optimum age of two or three years. It is also attempting to boost pork 
production through a smallholder pig production training scheme (Agriculturist online information, "Country Profile:  Swaziland". Viewed at:  http ://www.new-ag.info/02-6/countryp.html). SACU-Kingdom of Swaziland  WT/TPR/S/222/SWZ 
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 meat for both domestic consumption and export.  Marketing activities and programmes by both the 
Ministry of Agriculture and SMI aim to encourag e commercialization of cattle.  Meat production fell 
from 9,023 tonnes in 2003 to 8,116 tonnes in 2007 (Table IV.4), while meat exports increased from 
780 tonnes to 834 tonnes, helped by the lifting of the ban on Swaziland's beef exports to the EC in 
July 2007.107  A National Livestock Identification Project is under way in an effort to ensure 
acceptable standards are adhered to. Full exploitation of  the EC market is, however, limited by supply 
constraints due to increasing production costs, such as increasing prices of cereal, a major input in animal feed. 
Table IV.4 
Meat production and sales, 2003-07 
 2003 2004 2005 2006 2007 
Production (tonnes) 9,023 4,116 7,464 7,955 8,116 
Domestic sales (tonnes) 8,249 6,023 7,017 7,142 7,288 
Exports (tonnes) 780 223 837 803 834 
Exports (E '000) 29,914 7,612 17,580 19,130 26,412 
Source:   Central Bank of Swaziland (2008), Annual Report April 2007-March 2008 . 
156. Most of Swaziland's pork requirements are supp lied by the abattoir and processing operation 
at Simunye and a number of other producers. Th ere are some 800 poultry operations in Swaziland 
ranging from large commercial producers to smallhol ders.  Swazi Poultry Processors increased the 
supply of broiler from 2.1 million in 2006 to 2.3 mill ion in 2007.  Production of pigs is also popular 
amongst small-scale farmers, the major constraint s to the pig industry are the unavailability of 
breeding stock and high feed costs.  Egg producti on is established in areas with potential for growth 
and, as a result, many local farmers offer good quality eggs at competitive prices.  Ostrich farming is a 
growing entity;  the birds are raised primarily for their skins, with meat and feathers as secondary 
products.  Smallholder dair y production is constraine d by the unavailability of locally bred dairy cows 
and high production costs.  In 2007, milk prod uction on SNL was 2.4 million litres, from 2,011 dairy 
cows owned by 357 farmers.108  
(c) Forestry 
157. Swaziland's total planted forest area is estimate d at 107,000 ha.  There is cultivated plantation 
forest – largely for commercial purposes – and "natural" woodlands and scrublands largely on 
communal lands, where there is little formal econo mic development, and degradation has been 
increasing due to, conversion to agriculture, uncontr olled extraction of for est products, and large 
livestock populations.109  MFN tariffs on forestry products average 4.3%, with rates ranging up to 
25% (Main Report, Table AIII.2). 
158. Swaziland is endowed with a wide range of forest resources:  there are more than 
3,400 species of higher plants (i.e. about 14% of Southern Africa's species), and 39 plant species have 
a global conservation status.  Protected areas make up about 4% of the country's total land area.  
There are 123 national parks, mainly in the north-western and north-eastern parts of the country. Forest fires, due to drought have a large impact on the forestry subsector.
110 
                                                      
107 In 2005, the EC banned beef imports from Swaz iland due to its failure to show the provenance of 
slaughtered cattle and incomplete vaccination records. 
108 Ministry of Economic Planning and Development (2008). 
109 FAO (2002). 
110 FAO (2002). WT/TPR/S/222/SWZ Trade Policy Review 
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159. Unbleached kraft pulp (UKP) production fell fro m 180,590 tonnes in 2004 to 170,400 tonnes 
in 2007, due to the impact of forest fires on the availability of timber.111  Exports of UKP also 
decreased over the period (Table IV.5);  the main markets are the Far East, the United States, the EC, 
and South Africa.  Other forest exports include  mining and construction timber, doors and pallets, 
wooden furniture and shelving units, as well as eucalyptus oil. 
Table IV.5 
Unbleached craft pulp production and exports, 2004-07 
 2004 2005 2006 2007 
Production (tonnes) 180,590 172,495 160,654 170,400 
Exports (tonnes) 182,852 156,340 159,344 173,573 
Exports (E' 000) 446.4 410.0 423.6 684.1 
Source:   Central Bank of Swaziland (2008), Annual Report April 2007-March 2008 . 
160. The Forest Policy and National Forestry Ac tion Programme, implemented following the 
Forest Policy and Legislation Project 1998-2001, is designed to achieve sustainable forest 
management, and aims to promote awareness of fo restry issues and provide training and education.112  
The Forest Policy covers a wide variety of issu es, including economic and social sustainability, 
biodiversity, pollution control, relations between commercial forestry and community development, 
taxation questions, certification of forestry activ ities under Forest Stewardship Council (FSC) or ISO 
14001, and relation of forestry management to such Swazi laws as the 2001 Standards and Quality 
Assurance Act (Chapter III(2)(iv)) and the 2000 Industri al Relations Act.  In relation to trade policy 
measures, it focuses on creating an enabling environm ent for downstream, value-adding industries, by 
enhancing existing tax incentives. It suggests inves tigating whether this could better be achieved 
through offering pioneer status with tax exempti on and industry protection for a given period, or 
whether export taxes on unprocessed or semi-process ed products could have the desired effect.  A new 
forest policy and legislation are under preparation.113 
161. The existing legislation on forestry in Swaz iland consists of the Natural Resources Act 1951, 
the Flora Protection Act, 2001, aimed at protecti ng indigenous flora, includi ng environmental impact 
assessment in respect of any activity impacting on su ch flora, and the Control of Tree Planting Act, 
1972. 
(3) MINING , QUARRYING , AND ENERGY  
162. The mining and quarrying sector accounted for 0.2% of Swaziland's GDP in 2007 (down from 
0.3% in 2003), while water and electricity contributed  1.5% (the same as in 2003).  The Ministry of 
Natural Resources and Energy is responsible for coordinating development and operational activities 
in mining, quarrying, energy, water, and land.114  The average MFN tariff in mining and quarrying 
(ISIC Rev.2 definition) is 0.8%, with rates ranging from zero to 10%.  Imports of electricity are duty 
free (Main Report, Table AIII.2).  
                                                      
111 The largest pine growing area is Usutu Forest, one of the biggest man-made forests in the world 
covering 66,000 ha and accounting for two thirds of Swaziland's forested land. These trees are used to produce UKP when they are just 16 years ol d, compared with 40 years in th e northern hemisphere (SADC online 
information.  Viewed at:  http://www.sadcreview. com/country_profiles/Swazila nd/swa_agriculture.htm). 
112 SADC online information.  Viewed at:  http ://www.sadcreview.com/coun try_profiles/Swaziland/ 
swa_agriculture.htm. 
113 FAO (2002). 
114 Ministry of Natural Resources and Energy online information. Viewed at: http://www.gov.sz/ 
home.asp?pid=63. SACU-Kingdom of Swaziland  WT/TPR/S/222/SWZ 
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 (i) Mining and quarrying 
163. Value-added in mining and quarrying contracted  by 47.3% in 2007 (after having grown by 
15.8% in 2006), due to a significant decline in the production of both coal and quarried stone, Swaziland's main mining products.  Maloma Collie ry is the only active coal mine;  it produces 
anthracite coal. Production of coal rose from 221,701 tonnes in 2005 to 241,283 tonnes in 2007, 
peaking at 310,570 tonnes in 2006 (Table IV.6).  This was the result of a reduction in mining area as 
well as a lower yield of coal. Despite the d ecline in production, revenue from coal reached 
E 102.5 million in 2007, supporte d by a 32% increase in the price of anthracite coal.
115  Little        
export-related activity takes place;  some anthrac ite is exported to South Africa for use in the 
metallurgical industries. 
Table IV.6 
Production and sales of coal  and quarried stone, 2005-07 
 2005 2006 2007 
Production of coal (tonnes) 221,701 310,570 241,283 
Sales of coal (E '000) 47.5 102.4 102.5 
Production of quarried stone (m3) 566,771 534,688 207,535 
Sales of quarried stone (E '000) 15.3 17.6 12.8 
Source:   Central Bank of Swaziland (2008), Annual Report April 2007-March 2008 . 
164. Quarried stone is generally used for local ro ad construction and repair.  Production decreased 
from 566,777 cubic meters in 2005 to 207,535 cubic meters in 2007 (Table IV.6), mainly because of 
the lack of major construction work and because pr ivate contractors for main civil projects operated 
their own quarries. Public-funded projects are license d to quarry stone within the project site, while 
private construction projects buy from commercial quarries (i.e. the Kwalini and Mbabane Quarries).  
Swaziland also has deposits of asbestos116, sand and soapstone, and kaolin , gold, talc, and silica on a 
limited scale.  Excavation of sand and soapstone is strictly controlled under the Mineral and Environmental Authority Act of 1992, which provides for substantial penalties for illegal extraction.  
165. Under the Constitution, all mining rights are vest ed in the King, and held in trust for the 
Swazi nation;  royalties are assigned to the royal fund  Tisuka Taka Ngwane.  Under the Mining Act of 
1958 and the Mining Regulations of 1958, the Ministry of Natural Resources and Energy's 
Department of Geological Surveys and Mines processes prospecting and mining lease licences.  The application steps for each licence are the same, though application information differs:  (i) the investor 
sends a letter to the Commissioner of Mines indicati ng his desire to apply for a prospecting or mining 
licence, including a brief description of the proposed project
117;  (ii) the investor presents the 
prospecting or mining project to the Minerals Management Board (MMB)118, including information 
on the financial, technical, and marketing aspects of the project;  (iii) if the MMB approves the application, the investor appears before the Ne gotiating Committee to negotiate the terms of the 
prospecting licence or mining lease, including state royalties and the financial role of the government 
                                                     
 
115 Central Bank of Swaziland (2008). 
116 Asbestos production has closed down as a result of the declining use of asbestos for insulation and 
international anti-asbestos campaigns related to health concerns. 
117 For a mining licence, the investor  attaches an area plan indicatin g the mine coordinates.  For a 
prospecting licence the investor attach es a physical description of the ar ea to be prospected, including all 
geological information (USAID, 2005).  
118 The MMB consists of the Commissioner of Mines, mine engineer, economist, legal practitioner, and 
three other persons, including the Chai rperson, appointed by the King on th e advice of the Minister of Natural 
Resources and Energy. WT/TPR/S/222/SWZ Trade Policy Review 
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in the company's project119;  (iv) the Negotiating Committee communicates approval to the MMB;  
(v) the MMB makes a recommendation to the King, who then makes the final decision;  and (vi) the 
Geological Surveys and Minerals Department draws up the prospecting or mining licence.  There is 
no fee for the application process. 
166. Swaziland is reviewing its mining legisl ation with the aim of aligning it, inter alia , with the 
SADC Mining Protocol.  In the first phase of th e review, a National Mining Policy was approved in 
October 2003.  The second phase involved the Draft Mines and Minerals Bill of 2007, which meant 
reviewing the Mines Health and Safety legislatio n, the Explosives Control legislation, and the 
Diamond legislation.  The authorities expect to fini sh reviewing the mining legislation at the end of 
2009. 
167. Holders of mining rights are subject to taxes on properties able to produce precious and non-
precious metals to which they hold rights.  Three taxes are grouped together:  tax on the transfer of 
mining rights;  ground tax on mineral rights;  and capita l gains tax.  Transfer of mining rights is taxed 
at 27.5% on the first E 20,000 value and 37.5% above E 20,000.  The tax on unexploited rights is E 10 per ha in each of the first five years, and E 50 per ha thereafter.  The tax on gains from shares in 
mineral rights is 37.5% of the gain.
120 
168. The mining and quarrying subsector does not receive  special incentives.  However, it benefits 
from the general incentives available in Swazila nd, such as import duty and sales tax concessions 
(Chapter III(4)(i)). 
(ii) Energy 
169. Swaziland has no known oil or gas deposits, and has no refinery; all fuel consumed is 
imported. Most households in rural areas use fire wood as the main form of energy, while paraffin 
(kerosene) meets the majority of peri-urban energy needs.  Liquefi ed petroleum gas (LPG) and, to a 
limited extent, electricity are also used by rural cons umers.  The use of renewable energy is minimal.  
It is estimated that 55% of households use fi rewood, 30% paraffin, and 10% LPG.  Of the 95% 
without electricity, 80% use wax candles for domestic lighting.121  Natural gas is not consumed in 
Swaziland.  All the coal Swaziland produces is export ed to South Africa, and the coal consumed is 
imported from South Africa.122   
170. The Ministry of Natural Resources and Ener gy has drawn a National Energy Policy to, inter 
alia, restructure the electricity supply industry an d to provide a framework for a comprehensive 
reform of the subsector.  As part of the Nationa l Energy Policy, the Electricity Act, the Swaziland 
Electricity Company Act, and the Energy Regulatory Authority Act were promulgated on 
1 March 2007.  The Electricity Act of 2007, which repealed the Electricity Act of 1963, regulates the 
generation, transmission, distribution, and supply of  electricity in Swaziland.  The Energy Regulatory 
Act of 2007 established an independent Energy Regul atory Authority (ERA) to:  process applications 
for licences;  modify/vary licences;  approve tariffs, prices, charges, and terms and conditions of 
operating a licence;  and monitor the performance and the efficiency of licensed operators.  
171. A licence is required from ERA for: generation,  transmission, distribution, and supply of 
electricity; performing the functions of integrated  power system operator; off-grid and mini-grid 
                                                      
119 Mining policy in Swaziland gives the Government the right to a 51% share in all mining projects 
(USAID, 2005). 
120 USAID (2005). 
121 Ministry of Economic Planning and Development (2006). 
122 The reason is mainly the non-compatibility of local coal to most of the industrial equipment/boiler. SACU-Kingdom of Swaziland  WT/TPR/S/222/SWZ 
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 supplies of electricity; and importing and exporting elect ricity into or outside Swaziland.  A licence is 
not needed by a person who generates, transmits or  distributes electricity for his own use;  a person 
who sells less than 1GWh of electricity per annum to customers; and off-grid and mini-grid schemes 
specifically exempted by the Minister. 
172. The Swaziland Electricity Company Act of 20 07 converted the Swaziland Electricity Board 
(SEB) into the Swaziland Electricity Company (SEC).  The SEC is a state-owned company subject to regulation by ERA, and has the de facto  monopoly on power generation, transmission/transportation, 
distribution, and import/export.  It has a load capacity of 172 megawatts (MW), a system transmission capacity of 700 MW, and is currently upgrading systems to improve power quality and reliability.
123  
A newly constructed Maguga power station, with  a capacity of 20 MW, started functioning in 
June 2007.  The SEC faces some particular challenges in providing reliable power services:  Swaziland's mountainous geography a nd climatic conditions generate frequent electrical storms that 
can knock out power services.  
173. The Ministry of Natural Resources and Energy regulates the prices of petrol, diesel, and 
paraffin, while prices of other petroleum products, su ch as LPG and lubricants, are determined by the 
Fuel Pricing Committee based on market forces.
124 The Ministry has a fuel pricing system that keeps 
track of the fuel costs on a daily basis, and this information is used by th e Committee when reviewing 
fuel prices.  The country’s economic condition is al so taken into consideration when adjusting fuel 
prices.  The electricity tariff structure app lies different rates to the various categories.125  Before the 
establishment of ERA, prices were calculated by th e SEB and submitted to Parliament for approval.  
Now, electricity prices are approved by ERA. 
174. In 2007, domestic electricity generation was 134.2 gigawatt hour (gWh) (down from 
159.5 gWh in 2005), covering only 12% of total demand. Imports of electricity increased from 868 gWh in 2005 to 1,152 gWh in 2007 (Table IV.7).  About 80% of electricity imports come from 
South Africa's ESKOM, some 10% originate in Mozambique
126, and the remaining 10% is          
locally produced using mainly hydro sources.  One of the main policies of the Ministry of Natural 
Resources and Energy is diversification of fuel su pply sources to ensure their reliability/security.  
Currently, storage for petroleum products is co mmercially based and owned by the various oil 
companies operating in Swaziland.  They are located  at the Matsapha Industrial Site.  However, a 
feasibility study by the Ministry of Natural Res ources and Energy has looked at establishing a 90-day 
storage facility for petrol and diesel.  Funding is be ing sought to start the c onstruction of the facility 
so as to ensure security of supply in Swaziland in the event of supply disruptions. 
                                                      
123 SEC's generation capacity is 50 MW consisting of hydropower and diesel generators.  SEC uses its 
own power generation during peak periods when imported power is most expensive (USAID, 2005). 
124 The Fuel Pricing Committee meets regularly to m onitor the fuel price situation and advise the 
Ministry on appropriate price changes based on market conditions. The Committee comprises representatives from:  the Government (Ministry of Finance, Ministry of Economic Planning and Development, Department of 
Customs and Excise, Ministry of Public Works and Transport, Ministry of Enterprise and Employment, 
Swaziland Environment Authority);  oil industry (oil  companies and retailers association);  consumers 
associations;  and the private s ector (Chamber of Commerce). 
125 The categories are: domestic, general purposes, sma ll commercial, off-peak water heating,        
small-holder irrigation, large commercial and industrial, and large irrigation. 
126 Mozambique has agreed to allow Swaziland to use the petroleum facilities at Maputo's port to store 
oil imports, which would then be transported to Swaziland by rail and road.  Swaziland has traditionally 
obtained most of its supplies from Durban, which is much further away than Maputo.  Such an arrangement could help reduce transport costs for oil im ports (Economist Intelligence Unit, 2009). WT/TPR/S/222/SWZ Trade Policy Review 
Page 450 
 
 
Table IV.7 
Electricity generation, sales, and imports, 2005-07 
(gWh) 
 2005 2006 2007 
Domestic generation 159.5 125.8 134.2 
SEB sales 868.0 912.0 1,151.9 
Imports 668.7 774.2 1,017.7 
Source:   Central Bank of Swaziland (2008), Annual Report April 2007-March 2008.  
175. Swaziland is an operating member of the Southern  Africa Power Pool.  It is also a signatory 
to the SADC Energy Protocol.127 
176. Under the Poverty Reduction Strategy and Action Pl an (PRSAP), a key goal is for all people 
to have access to affordable, safe, sustainable, secure and environmentally friendly sources of energy 
by 2010.  The strategies contained in the PR SAP are to:  establish community woodlots and 
encourage forestation and reforestation on available la nd;  diversify energy sources in a cost effective 
manner, moving towards sustainable energy sources;  ensure the supply of energy services in rural 
and peri-urban areas;  provide electricity to rural ar eas; encourage efficient use of energy and promote 
the adoption of the pre-paid electricity system in order to minimize costs;  and legislate against the 
indiscriminate harvesting of wood resources for commercial gain.128 
(4) MANUFACTURING  
177. Manufacturing accounted for 31.7% of GDP in 2007 (33.3% in 2003), and contributed almost 
70% to export revenues (Chapter I(3)(i)).  Th e sector remains based on value-added in sugar 
(confectionery, and soft drinks – Swaziland hosts the principal Coca-Cola concentrate plant for 
southern and eastern Africa), canned fruit, forestry  products, and textiles and clothing.  Sugar and 
edible concentrates together accounted for 56.3% of merchandise exports in 2007 (34.5% in 2003).  
Wood-based products are also significant value-ad ded exports.  Tissue and kraft wrapping paper, 
exported to South Africa, are based on recycled waste paper mainly imported from South Africa. 
178. Most food and fodder exports (soft drink c oncentrates, confectionery, canned fruits, wheat 
and maize-based animal feeds) ar e to the SACU region, principally South Africa, although Swaziland 
also exports throughout the SADC and COMESA regions, principally to Mozambique, Angola, 
Tanzania, and Zimbabwe.  COMESA is considered by  the authorities as an important region for the 
development of trade.  Some sugar-using and wheat-using indus tries have expressed concerns about  
the structure of SACU's tariffs;  they wish to bene fit from lower cost sources than SACU for their raw 
materials. 
179. Swaziland has been eligible for AGOA benef its in the United States since January 2001, 
including on textiles and clothing, and is cons idered a less developed beneficiary country 
(Chapter II(2)(iii)).  Nonetheless, exports of garm ents and apparel to the United States have fallen 
over the last few years as some firms have been  operating below capacity and failed to supply on 
time, resulting in the withdrawal of orders.129  In addition, competition from China and India has 
intensified. 
                                                      
127 Central Bank of Swaziland (2008). 
128 Ministry of Economic Planning and Development (2006). 
129 Firms were reported to have lost 50% of their orders in 2008, especially from stores in the 
United States (Economist Intelligence Unit, 2009). SACU-Kingdom of Swaziland  WT/TPR/S/222/SWZ 
 Page 451 
 
 
 180. Another important manufacturing industry for Swaziland is fruit-canning.  Production at 
Swaziland Fruit Canners (SFC), the main grower an d only processor of fruits in Swaziland, comprises 
canned fruit, juice concentrate, fruit cups, and jars .  Production is dominated by canned fruit (72% of 
total production in 2007).  Pineapple grown by SFC is supplemented by contracted growers and local 
farmers.  Production of canned fruit decreased from 25,379 tonnes in 2004 to 24,089 tonnes in 2007, 
mainly due to the reduced availability of land fo r cultivation.  Exports, on the other hand, increased 
during the period (Table IV.8).  Major market for Swaziland's cannery products are South Africa, the 
EC, and the United States. 
Table IV.8 
Canned fruit production and exports, 2004-07 
 2004 2005 2006 2007 
Production (tonnes) 25,379 25,379 24,189 24,089 
Exports (tonnes) 22,389 23,875 24,008 23,980 
Exports (E million)  110.2 150.2 137.1 150.8 
Source:   Central Bank of Swaziland (2008), Annual Report April 2007-March 2008 . 
181. The Ministry of Commerce, Industry and Trad e (MCIT) is responsible for the sector, 
including formulating, implementing, and monitori ng the industrial development policy, conducting 
industrial studies and surveys, establishing industria l estates, as well as development/expansion and 
sale of industrial land.   The MCIT also aims to create employment opportunities for the rural 
population, by decentralizing industrial activities to rural areas, and help reduce poverty.  The private 
sector is seen as the main engine of growth, w ith the Government facilitating the process by creating 
an enabling environment.  The decentralization programme also seeks to promote business linkages 
for small and medium-sized enterprises (SMEs).130  
182. Based on its Industrial Estate Strategy and Mast erplan, the MCIT develops industrial estates 
by providing basic infrastructure, i.e. access to water, sewer, road, electricity, and telephone services.  
The industrial estates are designated according to the character of the industrial area (e.g. light, heavy, 
dry, wet, high-tech or mixed) which is then z oned according to the nature of the activities of the 
companies, such as pollutive, non-pollutive, and support services (e.g. transport and banks).  The 
MCIT also  provides serviced land to prospective invest ors in designated industrial estate/areas. 
183. Tariffs on manufactured imports average 8.5%, with rates ranging up to 96% on some food 
products (Main Report, Table AIII.2). 
(5) SERVICES  
184. The services sector accounted for 50.4% of GDP in 2007 (up from 46.4% in 2003).  Public 
administration, defence, education, health and other social services comprise the main segment 
(18.6% of total GDP);  followed by transport, st orage and communication (10.3%);  wholesale, retail, 
hotels and restaurants (9%);  real estate, re nting and business activities (6.7%);  financial 
intermediation (4.3%);  and other services (1.5%) .  Swaziland remains a net importer of services, 
although the deficit fell from a peak of US$152.6 m illion in 2004 to an estimated US$16.9 million in 
2008 (Chapter I(3)(i)). 
                                                      
130 The Ministry of Commerce, Industry, and Trade online information. Viewed at: http://www.gov.sz/ 
home.asp?pid=2102. WT/TPR/S/222/SWZ Trade Policy Review 
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185. Services, particularly tourism, are a crucial component of Swaziland's overall policy of 
economic diversification.  The Government is promoting the development of the sector, and 
private-sector participation is being encouraged. 
186. Under the General Agreement on Trade in Services (GATS), Swaziland scheduled 
sector-specific commitments only in some busine ss services, hospital services, and hotels and 
restaurant services.131  Under its horizontal commitments on ma rket access, it included nine sectors or 
subsectors (engineering services, integrated engineering services, medical and dental services, consultancy services related to the installation of  computer hardware, re search and experimental 
services on natural sciences and engineering, manage ment consulting services, technical testing and 
analysis services, hospital services, and hotel and restaurant services).
132  
187. Swaziland's MFN exemptions in services relate to financial services, where an exemption is 
made for the preferential access for CMA members to Swaziland's capital and money markets, and the maintenance of exchange controls by the CMA; a nd to any existing or future bilateral agreements 
relating to international road transport (includi ng road/rail transport) reserving or limiting the 
provision of a transport service "into, in, across or out of Swaziland" to members of such agreements 
(e.g. the SADC Protocol on Road Transport). 
188. Swaziland has not yet tabled its initial conditio nal offer in the ongoing services negotiations. 
(i) Financial services 
189. Swaziland's financial services subsector basi cally comprises 5 banks and 265 non-banking 
institutions (NBIs), including 2 00 pension funds, 56 savings and credit cooperatives (SCCOs), and 
5 insurance companies.   There are no insurance brokers.  As a percentage of GDP, banks' assets 
represented 31% at the end of 2006, while those of NBIs' assets accounted for 54% (of which 85% 
from pension funds).
133  
190. Four commercial banks (three are South African subsidiaries) and one building society are in 
operation in Swaziland. The commercial banks are (o wnership in parentheses):  First National Bank 
Swaziland (100% foreign);  Nedba nk Swaziland (67% foreign, 23 % government, and 10% public); 
Standard Bank Swaziland (65% foreign, 25% gove rnment, and 10% public);  and Swazibank (100% 
government).134  The authorities have begun the process of privatizing Swazi Bank 
(Chapter III(4)(ii)).   Commercial bank lending is dominated by short-term loans to the agri-processing 
sector, principally the sugar industry.  The Swazila nd Building Society (100% public) is the country's 
major provider of long-term mort gage lending on TDL properties, and it recently started lending on 
SNL properties. 
191. The Central Bank of Swaziland (CBS) is respons ible for banking supervision. Under the 
Financial Institutions Act 2005, which repealed the  Financial Institutions (Consolidated) Order 1975, 
banks are required to obtain a licence from the CB S before they start operations.  Conditions for 
                                                      
131 WTO document S/DCS/W/SWZ, 24 January 2003. 
132 In all cases, Swaziland has left measures affecti ng cross-border supply unbound, and allows market 
access without limitation on consump tion abroad and commercial presence.  Under movement of natural 
persons, Swaziland has bound measures affecting supply, by a limited range of senior professional staff, in 
engineering, medical, computer, management consulting, hospital, and hotel and catering services (WTO, 2003). 
133 IMF (2008a). 
134 Swazibank, previously Swaziland Development and Savings Bank, is licensed to provide the full 
range of banking services but is also required under its statutes to promote rural development, infrastructure development, and local empowerment. SACU-Kingdom of Swaziland  WT/TPR/S/222/SWZ 
 Page 453 
 
 
 obtaining a licence include:  the applicant must be a company registered in Swaziland;  the applicant 
must explain what activities the proposed bank will engage in, how they w ill be conducted and the 
resources available to the group.  The CBS must be satis fied as to the financial integrity and history of 
the applicant;  character and experience of manage ment;  capital adequacy;  how it would benefit the 
community;  and its effect on existing banks.  Licence fees are E 1,000 for a head office and E 500 for 
a regional branch. 
192. Under the Financial Institutions Act 2005,  a bank incorporated in Swaziland must have an 
initial capital in the form of paid-up shares of not less than E 15 million, or paid-up shares and 
reserves amounting to the greater of E 15 million or 5% of its liabilities to the public in Swaziland in 
terms of the most recent balance sheet.135  The CBS requires each bank to maintain a minimum capital 
ratio of not less than 8% of total risk-weighted assets.   In addition, banks should not lend more than 
25% of their capital resources (both on and off the balance sheet) to any one client or what is considered by the central bank to be a connected group of clients.
136  Liquidity requirements are 13% 
of total liabilities to the public for commercial banks , and 10% for building societies.  The CBS has 
not yet set a date for the implementation of Basel II.137 
193. The main risk to the financial subsector seems  to be the weakly supervised NBIs, notably 
SCCOs, and the emergence of pyramid schemes.138  The number of SCCOs grew significantly during 
2008 as they attempted to take advantage of the li quidity surge from the requirement that insurance 
and retirement funds must increase their holdings of  domestic assets from 10% to 30% of total assets 
by 2009.139  SCCOs have also been able to capitalize on the difficulties people have in accessing the 
banking system, because of high fees and high cost of borrowing.140  Total assets by SCCOs 
represented about 3% of total NBI assets at the en d of 2006, i.e. about 4% of the banking system 
deposits.141  The legislation on NBIs is being reviewed by the CBS (which currently has no 
jurisdiction in this area) with the intention of putting in place a sound regulatory framework.   To 
better supervise and regulate SCCOs, the Ministry of Agriculture and the CBS have begun a technical 
collaboration plan.142 
194. Responsibility for regulating and overseeing the activ ities of NBIs lies with several agencies.  
Insurance and pension funds are supervised and regulat ed by the Office of the Registrar of Insurances 
and Pensions, established under the Insurance Act a nd the Retirement Funds Act 2005;  the Ministry 
of Agriculture is responsible for c ooperative unions;  and the Ministry of Finance is r esponsible for all 
other NBIs.  A bill that would establish a new, inde pendent regulatory agency to supervise NBIs, the 
Financial Services Regulatory Authority, is still in Parliament awaiting promulgation. 
195. The Insurance Act and the Retirement Funds  Act 2005 repealed the Swaziland Royal 
Insurance Corporation Order 1973 and brought to an end the monopoly status of the Swaziland Royal 
                                                      
135 The CBS on its discretion, and upon approval by Parliament to amend the Financial Institutions Act 
2005, may require a larger sum than the sum stipulated in the legislation. 
136 Banks are required to seek the explicit approval of the CBS to exceed this limit. 
137 Central Bank of Swaziland (2008). 
138 IMF (2008a). 
139 Access to banking services is generally not availabl e to certain segments of the population, such as 
those living in rural areas or without steady incomes. 
140 In recent years, there has been a public outcry with regard to bank overcharges;  the CBS is 
analysing the situation (Central Bank of Swaziland, 2008). 
141 IMF (2008a). 
142 The plan sets prudential standards for SCCOs and provides for training of Ministry of Agriculture 
staff to better monitor financial soundness, enforce compliance, and compile information relevant to monitoring SCCOs. WT/TPR/S/222/SWZ Trade Policy Review 
Page 454 
 
 
Insurance Company143;  four new companies started operations in 2008.  The main line of insurance 
business is compulsory motor insurance.  The Act opened the insurance market to foreign investors 
under certain conditions:  only public companies with  paid-up share capital of at least E 2 million may 
apply for registration as insurers;  at least 15% of th e shares of the company must be held either by 
natural persons who are citizens of Swaziland or by juridical persons.  At least 51% of the shares or 
interest of juridical persons (or, in the case of a re tirement fund, of its membership) must be held by 
citizens of Swaziland; at least 10% of the directors of the company must be citizens of Swaziland;  and any insurer registered in Swaziland must ma intain a principal office and appoint a principal 
representative in Swaziland. 
196. The Retirement Funds Act 2005 provides for the use of retirement funds policies as collateral 
when obtaining loans for building on Swazi nation land.  The Act also mandates pension funds to withdraw 30% of their assets from external financial markets and invest them in Swaziland;  the compliance date is set between November 2007 and 2009.  The Ministry of Finance is currently 
developing a strategy for creating investment inst ruments within Swaziland where the money will be 
invested. 
197. The Swaziland Stock Exchange ( SSX), inaugurated in July 1999,  is still underdeveloped, with 
a domestic market capitalization of 8.1% of GDP at the end of 2006.  It has six companies listed:  only one is domestic;  the rest are linked to their headquarters in South Africa.  The SSX is regulated 
by the Capital Markets Development Unit of the CBS.
144 
198. Swaziland made no commitments in financial services under the GATS. 
(ii) Telecommunications and postal services 
199. Swaziland's telecommunications network, par ticularly for mobile phone services, has grown 
during the last few years.  Subscribers in the mobile market increased from about 85,000 in 2003 to 
some 457,000 in 2008, while the number of internet subscribers rose from around 14,000 to 21,000 (Table IV.9).  At the end of 2008, there we re about 294,000 fixed tele phone subscribers, i.e. a 
teledensity of 28.56 per 100 inhabitants.   The fixed network is 100% digital. 
Table IV.9 
Selected telecommunica tion indicators, 2003-08 
 2003 2004 2005 2006 2007 2008 
Telephone subscribers ('000) 131.2 189.5 235.0 294.0 294.0 294.0 
Telephone subscribers per 100 inhab itants 12.68 18.32 22.77 28.56 28.56 28.56 
Main fixed telephone lines ('000) 46.2 44.5 35.0 44.0 44.0 44.0 
Main fixed lines per 100 inhab itants 4.46 4.30 3.39 4.27 4.27 4.27 
Cellular mobile subscribers ('000) 85.0 145.0 200.0 250.0 380.0 457.0 
Cellular subscribers per 100 inhabitants 8.21 14.02 19.37 24.29 33.29 39.80 
Internet subscribers ('000) 14.0 18.0 20.5 21.0 21.0 21.0 
Internet subscribers per 100 inhabitants 1.35 1.74 1.99 2.04 2.04 2.04 
Internet users ('000) 27.0 36.0 41.6 42.0 42.0 48.2 
Internet users per 100 inhabitants 2.61 3.48 4.03 4.08 4.08 4.20 
Source:  ITU online information, "ICT Statis tics Database".  Viewed at:  http://w ww.itu.int/ITU-D/icteye/Indicators/ 
 Indicators.aspx# [24 June 2009].  
                                                      
143 The Royal Insurance Company is 40% government-owned. 
144 IMF (2008a). SACU-Kingdom of Swaziland  WT/TPR/S/222/SWZ 
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 200. Telecommunications and postal services are mainly governed by the Posts and 
Telecommunications Act No. 11 of 1983;  the Public  Telecommunications Regulations of 1993;  and 
the Posts and Telecommunications Corporation (S taff) Regulations of 1990.  The Ministry of 
Tourism, Environment and Telecommunications (MTET)  is the policy maker for the subsector;  there 
is no regulatory authority. 
201. The state-owned Swaziland Posts and Telecomm unications Corporation (SPTC), established 
under the Posts and Telecommunications Act, con tinues to dominate telecommunications and postal 
services.  Swazi Telecom, under the SPTC, has th e monopoly over fixed line services, while Swazi 
MTN is the only mobile operator.  Swazi MTN is owned by SPTC (51% of the shares), MTN of 
South Africa (30%), and Swaziland Empowerment Lim ited (19%).  Nonetheless, in 2008, the mobile 
market was opened to competition.  Prices on tele com services are set by the companies, although 
consumers are consulted through a market resea rch mechanism where they present their price 
proposals to the company management, which will deci de on the price to be charged. SPTC has been 
identified as a priority case for regulation and/or restru cturing before privatization (Chapter III(4)(ii)). 
202. Postal services in Swaziland are run by Swazi Post, also under the SPTC. 
203. Swaziland made no commitments on telecomm unications and postal services under the 
GATS. 
(iii) Transport 
(a) Overview 
204. Transport infrastructure development accounted for 32% of the 2008/09 Budget, mainly for 
road infrastructure improvement and the constructi on of the Sikhuphe international airport.  A key 
challenge for Swaziland is that maintenance of road s, railways, and airports has been inadequate.145  
Most of Swaziland's trade is transported by road :  however, the rail network, some of which has 
become dilapidated, is being overhauled and new lines are being constructed to link more effectively 
with Maputo, the main port for Swaziland's exports.  Air services exist only for passenger flights;  
cargo flights will be introduced upon completion of the Sikhuphe airport. 
205. The Ministry of Public Works and Transport (MPWT) is responsible for the overall running 
of the subsector, including formulating policies, monitoring their implementation, and administering 
the institutional and legal framework.  In 2000, the MPWT published its National Transport Policy, 
setting out a strategy for the integrated developmen t of all transport modes. The following areas have 
been considered for commercialization:  provision and maintenance of the road network and the rail 
infrastructure; railway operations;  and the Depart ment of Civil Aviation restructured into a Civil 
Aviation Authority and Airport Authority.  So me of the proposed policies are to:  achieve 
coordination and synergy between pub lic and private sectors activities; and promote and ensure safety 
in the sector.146  
206. Swaziland made no commitments on tr ansport services under the GATS.  
                                                      
145 The Ministry of Public Works and Transport's 2001/2002 " Transport Bulletin ", shows that transport 
infrastructure spending absorbed more than 35% of the government's annual capital budget in FY 2001/02 and 
5.4% of the recurrent budget. 
146 Ministry of Public Works and Transport (2000). WT/TPR/S/222/SWZ Trade Policy Review 
Page 456 
 
 
(b) Road transport 
207. The transport system in Swaziland is based principally on road transport:  nearly all 
passengers are conveyed by road on public transport147, as are a major portion of the goods 
transported within Swaziland.  The bulk of road fre ight operations continue to be carried out by 
multinational companies based in Swaziland, with only a few Swazi companies.  There are 12 border 
posts used by freight operators, of which 11 are with South Africa and 1 with Mozambique.  Over 
90% of goods transported by road in cross-border movements go to South Africa. 
208. The road network is about 4,000 km in length, w ith an additional 1,500 km of feeder roads.  
All roads connecting towns, industrial areas, and border posts are paved to facilitate trade.  The 
maintenance and upgrading of main roads is the responsibility of th e MPWT, while feeder roads in 
rural areas are under the Ministry of Tinkhundla Administration and Develpment.148  T h e  R o a d s  
Department (RD), under the MPWT, is responsible fo r planning, design, construction, rehabilitation, 
and maintenance of the road network.  The Road  Transportation Department, also under the MPWT, 
is in charge of the coordination and control of road transport.149  
209. One of the key problems in the subsector is overl oading of vehicles.  As a result, a nationwide 
axle-load survey was carried out and a fixed wei ghbridge was commissioned at Matsapha as a first 
step towards overload control.  Under the Nationa l Transport Policy, an autonomous and accountable 
Roads Authority is to be established, and steps are being taken to develop a road funding policy, 
partly based on user charges on one major highway. 
210. The National Transport Policy also includes a rural access policy, under which the MPWT 
has been mandated to take over responsibility for maintenance of the feed er-road network, using 
labour-intensive methods.150  The policy also seeks to improve the regulatory structure for road 
transport and to this end a new Road Transport Bill and Road Traffic Act are before Parliament. 
211. Swaziland's road transport system is regulated by the Road Transportation Act No. 5 of 2007, 
while the Road Traffic Act No 6. of 2007 regulates ge neral traffic. The basic charge per passenger is 
E 4 for a distance of up to 8 km; thereafter every extra km is charged at E 0.40.  Meter taxis' basic 
charge is E 28 for any journey up to 3 km;  thereaf ter every extra km is charged at E 4.  Cabotage by 
foreigners is allowed but it is restricted to non- availability of local services and only to specially 
adapted vehicles that cannot be sourced locally. 
(c) Rail transport 
212. Swaziland's rail network is about 300 km long.151  The Railways Act of 1962 established the 
parastatal Swaziland Railway to provide transpor t services for import and export of goods as well as 
transit cargo.  Swaziland Railway owns and mainta ins the railway network, which is directly 
competitive with Mozambique's ports and transport links to and from Zimbabwe and northern parts of 
                                                      
147 The majority of the population uses public transport. 
148 Swaziland government online information. Viewed  at: http://www.gov.sz/tools/Printbody.asp?pid= 
406&ItemID=5627&ToolID=2. 
149 Ministry of Public Works and Transport (2000). 
150 Ministry of Public Works and Transport (2000). 
151 Rail transport in Swaziland began in 1964 with the opening of the line linking the Nqwenya iron ore 
mine at KaDake on the border with Mozambique.  Operations continued until the mine ceased activities in 1980. 
As a result, some 70 km between Matsapha and KaDake were abandoned and the rail line removed (Ministry of 
Public Works and Transport, 2000). SACU-Kingdom of Swaziland  WT/TPR/S/222/SWZ 
 Page 457 
 
 
 South Africa.  There is very little rail passenger se rvice, although tourist trains have been increasing 
over the last few years. 
213. An aim of the National Transport Policy is to provide, maintain, and improve a safe, 
cost-effective, reliable, and environmentally friendly rail network.  To achieve this, it is envisaged to 
restructure the subsector with the involvement of th e private sector;  the Go vernment is to develop 
supportive regulatory and investor-friendly legislation. It  is also contemplated to standardize practices 
and procedures at the SADC level.152  
(d) Air transport 
214. Airlink Swaziland, a joint venture between the G overnment and South African Airways, is the 
only airline currently operating after the wholly  state-owned Swazi Express Airways (SEA) was 
placed in liquidation on 2 May 2008.   SEA cited unfair competition as the reason for its closure, 
although high fuel prices also played a part. Noneth eless, the liquidators have reportedly identified a 
company interested in reviving the airline and operating its routes.153  Over 50 aircraft are on the 
Swaziland Aircraft Register;  most are light aircraft.  There is no significant air freight operation. Swaziland has one international airport, at Matsa pha, and there are two othe r state-owned and nine 
privately-owned airstrips.  There are plans to upgrade Matsapha airport and to construct a new 
international airport at Sikuphe.  Airport-relate d fees include airport passenger tax (E 50 per 
passenger), airport landi ng, and parking fees. 
215. The Department of Civil Aviation is responsible  for the regulation of civil aviation and the 
establishment and maintenance of aerodromes and air navigation facilities.  This includes licensing of 
air transport operations and maintenance of Intern ational Civil Aviation Organization Standards and 
Recommended Practices.  The Department of Civil Av iation also negotiates bilateral agreements with 
other countries. Nonetheless, scheduled air services c ontinue to be operated in  terms of memoranda of 
understanding and diplomatic  notes between governments. 
(iv) Tourism 
216. Tourism contributed 9.7% to Swaziland's GDP in 2007 (up from 2% in 2001) following a 
remarkable performance during the last few years.  There were over 1.2 million international visitors 
in 2008 (341,000 in 2001), and almost 400,000 overnight guests;  the length of stay averaged 2.2 nights in 2007.
154  Tourists are mostly from South Africa (65% of total visitors in 2007), followed 
by Mozambique (18.4%), Europe (9.6%), the United States (1.6%), and Asia (1.5%). 
217. Swaziland's rich cultural heritage, and a di verse panorama and scenic landscape form the 
basis for the development of tourism activities,  a key policy objective for the Government.  
Attractions include the upgraded Royal Swazi S un Hotel Golf Course and Orion Casino, the first 
online casino in southern Africa.  The parastatal  Swaziland Tourism Authority (STA), established in 
2001 under the Tourism Authority Act, has recently expanded its activities on promoting 
community-based tourism. In this regard, a numbe r of projects have been completed, including 
opening the Mahamba Gorge in 2006.155  STA is also tasked marketing Swaziland as an ideal tourist 
destination in the southern African region, and c oordinating the activities of the sector.  A number of 
                                                      
152 Ministry of Public Works and Transport (2000). 
153 SEA blamed the Government for allowing it only two daily flight frequencies on the profitable 
Johannesburg route as against five for Airlink Swaziland (Economist Intelligence Unit, 2009). 
154 While European and South African visitors averaged  two nights, United States residents stayed five 
nights (Ministry of Economic Planning and Development, 2008). 
155 This will allow rural communities to develo p tourism attractions on Swazi nation land. WT/TPR/S/222/SWZ Trade Policy Review 
Page 458 
 
 
strategies have been initiated, such as water sport,  ecotourism, recreational and conferring services, 
and the development of the Jozini Dam area into a major tourism resort by 2010.  
218. Swaziland is a member of the Regional Touris m Organization of Southern Africa (RETOSA), 
which promotes tourism throughout the southern African region and has a well-developed website.156 
Some of the main regional initiatives include the L ubombo Tourism Route together with South Africa 
and Mozambique, and the Trans Frontier Conserva tion Area, which allows resource sharing, free 
game movement between countries, and joint-marke ting ventures.  In addition, Swaziland expects to 
profit from the 2010 FIFA World Cup to be held in South Africa, and the Swaziland Facilitatory 
Committee has been established.  Possible benef its include, supplying accommodation, providing the 
visiting teams with training facilities before th e tournament, participa ting in provision of 
transportation services, and entertainment, food, and beverages. 
219. STA has enhanced its marketing strategy in orde r to shift the attention of tourists away from 
some of the problems in the subsector, such as stray cattle along roads, and the limited operation of foreign exchange bureaus.  In an effort to st rengthen the regulatory measures and the quality of 
service, the Ministry of Tourism, Environment and Communications is to table in Parliament 
regulations that will establish minimum standard s for tourist accommodation establishments, and a 
grading scheme for hotels and restaurants. 
220. According to the authorities, there are no barrier s to foreign entry in tourism. Although there 
is no official taxation system for the subsector, all hotel bills include a service fee. 
 
 
 
                                                     
 
156 RETOSA online information.  Viewed at:  h ttp://www.retosa.co.za.  RETOSA covers Angola, 
Botswana, Democratic Republic of Congo, Lesotho, Malawi, Mauritius, Mozambique, Namibia, Seychelles, South Africa, Swaziland, Tanzania, Zambia, and Zimbabwe. SACU-Kingdom of Swaziland  WT/TPR/S/222/SWZ 
 Page 459 
 
 
 REFERENCES 
Central Bank of Swaziland (2008), Annual Report April 2007-March 2008 , Mbabane. 
Economist Intelligence Unit (2009), Country Report:  Swaziland , London. 
FAO (2002), State of Forest and Tree Genetic Resources in Swaziland , May.  Viewed at:  
http://www.fao.org/DOCREP/005/AC500E/AC500E00.HTM. 
FAO/WFP (2008), Crop and Food Supply Assessment Mission to Swaziland , Rome. 
IMF (2008a), Kingdom of Swaziland:  2008 Article IV C onsultation – Staff Report;  Public 
Information Notice on the Executive Board Discu ssion;  and Statement by the Executive Director , 
Washington D.C. 
IMF (2008b), Kingdom of Swaziland:  Selected Issues and Statistical Appendix , Washington D.C. 
IMF (2008c), Kingdom of Swaziland:  Staff Report for the 2007 Article IV Consultation , Washington 
D.C. 
IMF (2009), World Economic Outlook , April, Washington D.C. 
Ministry of Economic Pla nning and Development (2006), A Poverty Reduction Strategy and Action 
Programme: Towards Shared Growth and Empowerment , Volume 1, Mbabane. 
Ministry of Economic Planning and Development (2008), Economic  Review and Outlook 2007/2008-
2010/11 , Mbabane. 
Ministry of Finance (2006), Implementing Privatization Policy:  The Privatization Roadmap , 
Mbabane. 
Ministry of Public Works and Transport (2000), National Transport Policy , Mbabane. 
Swaziland Central Statistics Office (2008), Demographic and Health Survey , Mbabane. 
Swaziland Standards Authority (2008), Corporate Strategic Plan 2008-2010 , Mbabane.  
UNCTAD (2008), World Investment Report 2008:  Swaziland , Geneva. 
UNDP (2008), Human Development Report 2007/2008 , New York. 
UNOCHA (2007), Swaziland Drought Flash Appeal 2007 .  Viewed at: 
http://ochadms.unog.ch/quickplace/cap/main.nsf/ h_Index/Flash_2007_Swaziland/$FILE/Flash_2007_
Swaziland.doc?OpenElement. 
USAID (2005), The Swaziland Investor Roadmap , Washington D.C. 
USDA (2006), Swaziland Sugar:  Annual Report , May.  Viewed at:  http://www.fas.usda.gov/ 
gainfiles/200605/146187631.pdf. WT/TPR/S/222/SWZ Trade Policy Review 
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USDA (2007), Swaziland Sugar:  Annual Report , April.  Viewed at:  http://www.fas.usda.gov/ 
gainfiles/200704/146280820.pdf. 
WTO (2003), Trade Policy Review:  SACU , Geneva. 
  
 APPENDIX TABLES 
 SACU-Kingdom of Swaziland  WT/TPR/S/222/SWZ 
 Page 463 
 
 
 Table AI.1  
Exports and re-exports by destination, 2003-07 
(US$ million and per cent)  
Description 2003 2004 2005 2006 2007 
            
Total re-exports 1,731.6 2,200.0 1,569.8 1,569.8 1,569.8 
            
  (Per cent) 
            
America 10.3 8.4 7.6 3.6 3.2 
    United States 10.2 8.3 7.5 3.3 3.2 
    Other America 0.1 0.1 0.1 0.3 0.0 
            
Europe 2.3 1.7 0.9 1.4 14.4 
    EC(25) 2.2 1.5 0.8 1.4 14.4 
      United Kingdom 1.1 0.8 0.3 0.0 14.2 
      Italy 0.2 0.2 0.1 0.0 0.2 
      Netherlands 0.1 0.1 0.1 1.0 0.0 
    EFTA 0.0 0.0 0.0 0.0 0.0 
    Other Europe 0.1 0.1 0.1 0.0 0.0 
            
            
Africa 80.7 83.7 86.4 74.6 78.5 
      South Africa 68.3 72.0 74.6 36.7 45.2 
      Botswana 0.0 0.0 0.0 1.7 31.6 
      Mauritius 0.5 0.3 0. 3 0.5 0.5 
      Mozambique 4.5 4.3 5.4 1.8 0.5 
      Madagascar 0.3 0.4 0.5 0.6 0.2 
      Zambia 0.3 0.7 0.2 1.6 0.1 
      Zimbabwe 3.2 0.5 0.3 0.3 0.1 
      Namibia 0.0 0.0 0.1 1.6 0.1 
      Lesotho 0.0 0.0 0.1 0.0 0.0 
      Morocco 0.0 0.0 0.0 0.0 0.0 
      Kenya 1.4 2.5 1.8 0.2 0.0 
      Malawi 0.3 0.4 0.2 28.9 0.0 
      Congo 0.0 0.0 0.0 0.0 0.0 
            
Middle East 0.0 0.0 0.1 0.0 0.9 
      Iran Islamic Rep. 0.0 0.0 0.0 0.0 0.9 
      United Arab Emirates 0.0 0.0 0.0 0.0 0.0 
            
Asia 6.8 6.2 5.0 20.5 3.0 
    China 3.4 1.5 0.4 0.0 0.0 
    Japan 0.0 0.3 0.1 0.0 2.6 
    Six East Asian traders 0.1 0.0 0.4 5.9 0.0 
    Other Asia 3.2 4.4 4.0 14.6 0.4 
      Australia 1.7 1.9 1.9 14.3 0.3 
      New Zealand 1.6 2.5 2.0 0.3 0.1 
            
Other 0.0 0.0 0.0 0.0 0.0 
Source:   UNSD, Comtrade databa se (SITC Rev.3 data). 
 WT/TPR/S/222/SWZ Trade Policy Review 
Page 464 
 
 
Table AI.2  
Commodity exports and re-exports, 2003-07  
(US$ million and per cent)  
Description 2003 2004 2005 2006 2007 
            
Total exports and re-exports 1,731.6 2,200.0 1,569.8 1,569.8 1,569.8 
            
  (Per cent) 
      
Total primary products 23.6 23.6 25.8 35.4 30.1 
   Agriculture 22.8 22.6 24.7 34.3 28.3 
      Food 14.7 15.6 17.3 25.5 21.1 
         0611  Sugars, beet/cane, raw,  solid, no added flavour 6.1 7.3 8.8 17.6 14.1 
         0612  Other beet, cane, and chemically pure sucrose 0.4 0.6 1.1 1.0 1.1 
         0622  Sugar confectionery, not containing cocoa 1.7 1.5 0.7 0.7 1.1 
         0619  Other sugars 0.6 0.7 1.1 1.4 1.0 
         0739  Food preparations containing cocoa, n.e.s. 0.3 0.2 0.4 0.4 0.8 
      Agricultural raw material 8.1 7.0 7.3 8.8 7.2 
         2514  Chemical wood pu lp, soda, unbleached 6. 4 5.2 4.0 5.9 2.6 
         2484  Wood of non-coniferous, sawn of a thickness > 6 mm 0.3 0.4 0.8 0.8 1.7 
         2450  Fuel wood (excluding w ood waste) wood charcoal 0.5 0.4 0.6 0.8 1.1 
   Mining 0.8 1.0 1.2 1.2 1.8 
      Ores and other minerals 0.2 0.2 0.4 0.2 0.5 
      Non-ferrous metals 0.0 0.0 0.1 0.0 0.0 
      Fuels 0.6 0.7 0.7 0.9 1.2 
         3211  Anthracite, not agglomerated 0.5 0.6 0.3 0.7 1.2 
Manufactures 76.0 76.1 71.7 64.5 69.8 
   Iron and steel 0.3 0.3 0.2 0.0 0.0 
   Chemicals 37.8 45.9 49.0 47.2 55.3 
         5514  Mixtures of odoriferous substances, industrial 36.8 44.9 37.8 26.5 29.4 
         5989  Chemical products and preparations, n.e.s. 0.0 0.0 6.8 14.1 19.9 
         5137  Monocarboxylic acids and their anhydrides 0.0 0.0 1.0 2.1 2.3 
         5139  Carboxylic acids, etc. 0.0 0.0 0.3 0.7 1.0 
         5237  Carbonates, percarbonates 0.0 0.0 0.3 1.3 0.8 
   Other semi-manufactures 1.4 1.4 1.5 1.7 2.3 
         6416  Paper and paperboard, currugated/creped, etc. 0.0 0.0 0.0 0.3 1.0 
   Machinery and transport equipment 3.5 5.4 5.1 2.0 2.8 
      Power generating machines 0.1 0.0 0.1 0.0 0.0 
      Other non-electrical machinery 1.3 2.5 2.0 0.5 0.4 
         Agricultural machinery and tractors 0.1 0.1 0.1 0.0 0.0 
      Office machines and telecomm unication equipment 0.4 0.3 0.3 0.0 0.0 
      Other electrical machines 0.6 1.3 1.3 1.4 2.2 
         7752  Household fri dges and freezers 0.5 1.2 1.2 1.4 2.2 
      Automotive products 1.0 1.1 1.2 0.1 0.2 
      Other transport equipment 0.1 0.2 0.3 0.0 0.0 
   Textiles 1.3 1.2 0.6 0.3 0.4 
   Clothing 28.9 18.6 12.0 9.9 4.4 
         8454  T-shirts, singlets a nd other vests, knitted 6.9 6.4 4. 1 3.1 1.4 
         8426  Trousers, breeches, etc., women's/girls', not 1.7 2.8 2.2 2.1 1.0 
   Other consumer goods 2.9 3.2 3.4 3.4 4.6 
         8928  Printed matter, n.e.s. 0.8 1.2 1.5 1.6 2.2 
         8931  Plastics containers, stoppers, lids, etc. 0.0 0.0 0.0 0.2 1.1 
Other 0.4 0.3 2.4 0.1 0.2 
   Gold 0.0 0.0 0.0 0.0 0.0 
Source:  UNSD, Comtrade databa se (SITC Rev.3 data). SACU-Kingdom of Swaziland  WT/TPR/S/222/SWZ 
 Page 465 
 
 
 Table AI.3  
Origin of imports, 2003-07  
(US$ million and per cent)  
  2003 2004 2005 2006 2007 
            
Total (US$ million) 1,432.3 1,799.8 1,654.0 1,321.8 1,164.2 
            
  (per cent) 
      
America 0.5 0.4 0.5 0.8 0.4 
    United States 0.3 0.3 0.4 0.6 0.4 
    Other America 0.2 0.1 0.1 0.2 0.0 
            
Europe 1.4 1.4 1.7 4.3 0.1 
    EC(25) 1.4 1.4 1.7 2.7 0.1 
      Italy 0.4 0.3 0.5 0.4 0.0 
      United Kingdom 0.3 0.2 0.2 1.3 0.0 
      Spain 0.0 0.1 0.2 0.1 0.0 
      Denmark 0.0 0.1 0.0 0.0 0.0 
      Portugal 0.0 0.0 0.0 0.2 0.0 
      Ireland 0.0 0.0 0.0 0.2 0.0 
      Netherlands 0.1 0.1 0.3 0.0 0.0 
      Poland 0.0 0.0 0.0 0.0 0.0 
      Malta 0.0 0.0 0.0 0.0 0.0 
    EFTA 0.0 0.0 0.0 1.6 0.0 
    Other Europe 0.0 0.0 0.0 0.0 0.0 
            
Commonwealth of Independent Stat es (CIS) 0.0 0.0 0.0 0.0 0.0 
            
Africa 87.7 91.5 89.2 79.4 97.2 
      South Africa 87.0 90.8 88.3 75.4 92.9 
      Namibia 0.0 0.0 0.0 0.9 2.2 
      Lesotho 0.0 0.0 0.0 0.0 1.4 
      Botswana 0.0 0.0 0.0 0.4 0.5 
      Mozambique 0.5 0.6 0.8 1.0 0.2 
      Ghana 0.0 0.0 0.0 0.0 0.0 
      Nigeria 0.0 0.0 0.0 0.1 0.0 
            
Middle East 0.1 0.1 0.1 0.7 0.0 
            
Asia 9.6 6.7 8.4 14.8 2.2 
    China 1.8 1.1 2.3 4.2 0.4 
    Japan 0.6 0.5 0.8 1.7 0.0 
    Six East Asian traders 6.5 4.6 4.6 8.4 1.8 
      Hong Kong, China 1.8 1.2 1.0 2.0 0.9 
      Singapore 0.4 0.2 0.4 2.4 0.5 
      Chinese Taipei 4.1 3.0 2.8 2.6 0.4 
    Other Asia 0.7 0.6 0.7 0.5 0.0 
      India 0.1 0.2 0.2 0.3 0.0 
            
Other 0.6 0.0 0.0 0.0 0.0 
Source:   WTO Secretariat calculations, based on UNS D, Comtrade database (SITC Rev.3 data). 
 WT/TPR/S/222/SWZ Trade Policy Review 
Page 466 
 
 
Table AI.4  
Structure of imports, 2003-07  
(US$ million and per cent)  
  2003 2004 2005 2006 2007 
            
Total (US$ million) 1,432.3 1,799.8 1,654.0 1,321.8 1,164.2 
      
  (per cent) 
            
Total primary products 28.8 30.9 31.4 31.5 38.8 
   Agriculture 18.7 21.1 19.1 17.2 22.2 
      Food 16.7 19.8 18.0 16.2 21.2 
         0449  Other maize, unmilled 1.3 1.1 1.0 1.1 3.9 
         0819  Food waste, animal feeds n.e.s. 0.8 0.7 0.7 0.9 1.1 
         0412  Other wheat (including spelt) and meslin, unmilled 0.4 0.5 0.7 0.5 1.0 
         1110  Non-alcoholic be verage, n.e.s. 0.5 0.7 0.7 0.6 0.7 
         0423  Rice, milled,  semi-milled 0.4 0.6 0.5 0.6 0.7 
      Agricultural raw material 2.0 1.4 1.1 1.0 1.0 
   Mining 10.2 9.8 12.3 14.4 16.6 
      Ores and other minerals 0.3 0.4 0.3 0.5 0.7 
      Non-ferrous metals 0.5 0.4 0.4 0.7 0.4 
      Fuels 9.4 9.0 11.5 13.1 15.6 
         3212  Other coal, whether or pul verized, not agglomerated 0.4 0.5 0.4 0.5 0.9 
Manufactures 65.2 65.6 65.7 66.3 60.9 
   Iron and steel 1.8 2.3 2.8 2.5 2.8 
   Chemicals 13.0 14.2 13.5 13.3 13.6 
         5429  Medicaments, n.e.s. 1.0 1.3 1.6 1.4 1.4 
         5514  Mixtures of odoriferous substances, industrial use 3.0 1.3 1.2 2.1 1.2 
         5139  Carboxylic acids, etc. 0.3 0.4 0.4 0.7 1.0 
         5629  Fertilizer s, nes 0.5 1. 0 0.9 0.7 0.7 
         5541  Soap 0.6 0.8 0.7 0.5 0.7 
   Other semi-manufactures 9.3 11.1 11.8 10.4 10.9 
         6612  Portland cement and similar hydraulic cements 0.7 1.1 1.8 1.2 1.2 
         6911  Iron or steel structures, tubes and the like, for use in 
 structures 0.4 0.7 0.7 0.7 0.8 
         6414  Kraft paper, etc., uncoa ted, n.e.s., rolls/sheets 0.4 0.5 0.5 0.5 0.8 
   Machinery and transport equipment 26.6 21.6 20.5 22.6 19.1 
      Power generating machines 0.4 0.3 0.5 0.4 0.3 
      Other non-electrical machinery 12.7 6.7 6.6 8.3 5.5 
         Agricultural machinery and tractors 0.8 0.9 0.8 0.9 0.6 
      Office machines and telecomm unication equipment 2.6 2.9 2.7 2.6 3.2 
         7641  Electrical apparatus for line telephony/telegraphy 0.4 0.3 0.4 0.6 1.1 
      Other electrical machines 2.4 2.5 2.8 2.8 3.1 
      Automotive products 7.9 8.7 7.4 7.7 6.4 
         7812  Motor vehicles for the transport of persons, n.e.s. 2.8 3.2 3.3 2.9 2.4 
         7821  Goods vehicles 3.0 2.7 1.8 2.1 2.1 
         7843  Other motor ve hicle parts and accessories of 722, 
 781 to 783 1.3 1.5 1.4 1.4 1.4 
      Other transport equipment 0.6 0.5 0.5 0.7 0.4 
   Textiles 3.9 4.3 5.2 6.4 3.1 
   Clothing 2.9 3.0 3.2 2.7 2.7 
   Other consumer goods 7.7 9.0 8.7 8.5 8.8 
         8931  Plastics containers, stoppers, lids, etc. 0.9 1.2 0.9 1.1 1.5 
Other 6.0 3.5 2.9 2.2 0.3 
         9310  Special transactions and commodities not classified by 
 type 5.9 3.5 2.9 2.2 0.3 
Source:  WTO Secretariat calculations, based on UNSD,  Comtrade database (SITC Rev.3 data). 
 
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