ANNEX 5
KINGDOM OF SWAZILANDSACU-Kingdom of Swaziland WT/TPR/S/114/SWZ
Page A5-307
CONTENTS
Page
I. THE ECONOMIC ENVIRONMENT 309
(1) M AIN FEATURES 309
(2) R ECENT ECONOMIC DEVELOPMENTS 310
(3) T RADE PERFORMANCE AND INVESTMENTS 312
(4) O UTLOOK 313
II. TRADE AND INVESTMENT REGIMES 314
(1) P OLICY FORMULATION AND IMPLEMENTATION 314
(2) T RADE AGREEMENTS 315
(i) The Common Market for Eastern and Southern Africa (COMESA) 316
(ii) The Regional Integration Facilitation Forum (RIFF) 318
(iii) Other trade arrangements 318
(3) I NVESTMENT FRAMEWORK 320
(4) T RADE -RELATED TECHNICAL ASSISTANCE 320
(i) Implementation of WTO Agreements and capacity building 320(ii) Supply-side constraints 322
III. TRADE POLICIES AND PRACTICES BY MEASURE 323
(1) Overview 323
(2) M
EASURES DIRECTLY AFFECTING IMPORTS 323
(i) Registration, and import duties and related measures 323(ii) Import prohibitions and licensing 325(iii) Government procurement 326
(iv) Standards and other technical requirements 327
(v) Other measures 328
(3) M
EASURES DIRECTLY AFFECTING EXPORTS 328
(i) Registration and taxes 328(ii) Export prohibitions, controls, and licensing 329
(iii) Export subsidies and assistance 329
(4) M
EASURES AFFECTING PRODUCTION AND TRADE 330
(i) Incentives 330(ii) State-owned enterprises and privatization 330(iii) Competition policy and price controls 333(iv) Intellectual property protection 333
IV. TRADE POLICIES AND PRACTICES BY SECTOR 335
(1) O
VERVIEW 335
(2) P RIMARY SECTOR 335
(i) Agriculture and related activities 335(ii) Mining and quarrying 339
(3) M
ANUFACTURING 340
(4) S ERVICES 341
(i) Financial services 341(ii) Telecommunications 342WT/TPR/S/114/SWZ Trade Policy Review
Page A5-308
Page
(iii) Transport 343
(iv) Tourism 344
REFERENCES 347
APPENDIX TABLES 349
TABLES
I. THE ECONOMIC ENVIRONMENT
I.1 Main economic indicators, 1997-01 312
I.2 Swaziland's commodity export price trends, 1996-00 313
II. TRADE AND INVESTMENT REGIMES
II.1 Swaziland's trade-related legislation in force and in progress, February 2003 315
III. TRADE POLICIES AND PRACTICES BY MEASURE
III.1 Levies on milk and dairy products under Legal Notice No. 2 of 2000 324
III.2 Import levies on agricultural products 325
III.3 Goods requiring import permits 326
III.4 Operating surpluses/deficits of selected public enterprises, 1996-00 331III.5 Public enterprise performance indicators, 1998-00 332III.6 Registration of intellectual property rights, 1991-02 334
IV. TRADE POLICIES AND PRACTICES BY SECTOR
IV.1 Receipts and Bednights Sold, Tourism, 1997-00 344
APPENDIX TABLES
I. THE ECONOMIC ENVIRONMENT
AI.1 Merchandise exports, 1997-01 351
AI.2 Merchandise imports, 1997-01 352
AI.3 Merchandise exports by destination, 1997-01 353AI.4 Merchandise imports by origin, 1997-01 354SACU-Kingdom of Swaziland WT/TPR/S/114/SWZ
Page A5-309
I. THE ECONOMIC ENVIRONMENT
(1) MAIN FEATURES
1. With an area of some 17,000 square kilometres, and a population of just under 1 million,
Swaziland is the smallest country in southern Africa. It is classed as a medium-development country
by the United Nations and as a lower middle-income country by the World Bank.  However, this
classification conceals a high level of poverty and of inequality among economic sectors (particularlybetween the cash and subsistence economies, and also related to geographical location and land tenure
systems (see below)). Swaziland’s position as a small, landlocked country 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.  The ending of the civil war in Mozambique reopened the avenue to the
Indian Ocean through Maputo, which has become the principal port of outlet for Swaziland’s overseasexports.
2. Swaziland has a diversified, but heavily dualistic, economy, based on its varied terrain and
land tenure systems
1, and on industrial and services development, which, in many cases, began before
the end of apartheid in South Africa.  The main agricultural crops in the formal sector are sugar,
which has for many years benefited from preferential access to the European Union and UnitedStates’ markets, maize, meat, dairy products, pineapples, citrus and other fruit such as avocados,
bananas, grenadillas, litchis, and guavas.  The informal or subsistence sector can also produce some
maize, sugar, and livestock on a commercial basis in good years.  The industrial sector, which
accounts for about 35% of calculated GDP, produces goods based on value-added in sugar
(confectionery, soft drinks – Swaziland has the principal Coca-Cola concentrate plant for southern
and eastern Africa), maize meal for human consumption, animal feeds based on maize and other
grains, milk and other processed dairy products, canned fruit, beer, pulp and paper, and plasticpackaging.  Under incentives provided by the U.S. African Growth and Opportunity Act (AGOA), the
textile and clothing sector is now beginning to grow.
3. Swaziland’s population was, until recently, believed to be growing by 2.9% annually.
However, a very high incidence of HIV/AIDS and related diseases may have reduced population
growth to around 1%, has seriously affected age structure and life expectancy, and will have seriouseffects on the social structure and the country’s future economic performance.
2  Current estimates by
UNAIDS and other agencies suggest that some  170,000 of Swaziland’s 950,000 population had the
HIV infection at end-2001, that the proportion of the adult population (ages 15-49) affected was
33.4%, the second highest infection rate in Africa3, that life expectancy has fallen to 40 years, and that
currently there are up to 40,000 AIDS orphans.4  The Government formed the National Emergency
Response Committee on HIV/AIDS (NERCHA) in December 2001 with an operating budget of E 32
million (U$3 million) for 2002/03;  E 20 million of this sum was allocated from the national budget.
                                                     
1 There are four main land areas:  highveld, middleveld, lowveld and the mountainous Lubombo area
bordering Mozambique.  Land tenure takes two forms:  title deed land (largely leased to large-scale commercial
farming, often based on foreign capital and using irrigation intensively, particularly in the sugar sector) and
Swazi nation land (over 50% of the cultivable area, without written tenancies, largely dedicated to small-scalesubsistence farming and highly affected by weather conditions).
2 See Haacker (2002).  In the Staff Report for the 2002 Article IV Consultation (November 2002), the
IMF estimates that if current trends are not reversed, by 2010 the country’s population could start to shrink by0.4% annually, life expectancy could fall to 27 years, and the number of orphans could rise to 25% of all
children.  According to the Swaziland Human Developm ent Report, other economic costs from a shrinking tax
base, increasing pressure on pension funds and lower productivity could cumulatively amount to over E1 billion.  Haacker suggests that the level of per capita output could fall by some 7% over the medium term.
3 Following Botswana.
4 UNAIDS/WHO (2002) and IMF (2002).WT/TPR/S/114/SWZ Trade Policy Review
Page A5-310
NERCHA estimates that the cost of treating the fu ll-blown AIDS population (not including those with
HIV at an earlier stage) would be some E 60 million annually.  The Government has submitted an
application to the Global HIV/AIDS Fund for E 160 million per year during 2003-07 and has in the
meantime received a donation from one pharmaceutical company of anti-retroviral drugs for free
distribution to prevent mother-to-child transmission of the HIV virus, for a period of five years.
(2) RECENT ECONOMIC DEVELOPMENTS
4. Since the last review of SACU , the annual growth rate of Swaziland’s GDP has declined,
from 3.8% in 1997 to 2% in 2000 and to 1.8% in 2001, well below the previously estimated growth of
population.   The Central Bank attributes the sharp decline in growth of 2001 mainly to sluggish
performance in agriculture caused by a combination of reduced planting, high input costs (partly due
to the depreciation of the lilangeni5, see below), and regional drought and floods.6  The slowdown in
agriculture and the downturn in South Africa’s gr owth in 2001 affected performance in manufacturing
(which is also largely dependent on food processing).  Offsetting these factors in 2002 may be a spur
to exports outside the CMA through the depreciation of the currency and possible new opportunities
in the U.S. market under the African Growth and Opportunity Act (AGOA).7  However, inflation is
rising and reached 12% in July 2002, partly reflecting the food crisis, and this may counteractbeneficial effects of currency depreciation.
8
5. Income distribution remains highly unequal, with 10% of the population owning 40% of the
wealth.  Unemployment is high - over 20% overall and over 40% among the 15 to 24 age group - and
increasing, and rural and peri-urban poverty are widespread; 70% of the population lives in rural areas
and 66% exists below the poverty line.9  Informal sector employment has increased in recent years,
including a 4% increase in 2001, as companies have restructured within Swaziland and the number of
Swazi workers employed in South Africa has fallen.10
6. Increasing unemployment has put severe strains on the rural economy.  In addition, in the last
three years, a combination of excessive rains and drought has had a severe impact on agricultural
production, particularly in the "Swazi nation" rain-f ed subsistence areas. Consequently, at present,
Swaziland is undergoing a severe food supply crisis, with a particularly heavy impact on women,
children, the elderly and those orphaned or ma de vulnerable by HIV/AIDS.  Approximately
onequarter of rural homesteads have suffered varying degrees of crop failure, and in some cases the
failure has been complete.11  The FAO estimated in May 2002 that at least 144,000 people, or 15% of
the population, had been severely affected by the food crisis and were in immediate need of food aid;
some estimates suggest that by end 2002 some 280,000 (29% of the population) could require food
aid.
                                                     
5 The Swazi currency is the lilangeni (plural emalangeni) which is maintained at par with the South
African rand.  Although the rand circulates freely within Swaziland, it is not legal tender. Recent reports
suggest that the authorities are considering reclassify ing the rand as legal tender, as it was before 1986.
6 For a discussion of this question, see Clay et al. (forthcoming).
7 However, recent reports suggest that the United St ates may be reconsidering the terms of Swaziland’s
access to AGOA, following a crisis in the country’s judicial system.
8 IMF estimates show an appreciation of 1% in the real effective exchange rate during 2001.
9 The World Bank estimated in 2000 that some 43% and 41% of rural and urban Swazis live in poverty,
and that Swaziland required an annual growth rate of 5% in real GDP to prevent the numbers of the poor fromrising (World Bank, 2000).
10 Central Bank of Swaziland (2002).
11 UNICEF (2002).SACU-Kingdom of Swaziland WT/TPR/S/114/SWZ
Page A5-311
7. The government sector accounts for one third of total domestic consumption, and 26% of
GDP.12  SACU customs revenue in 2001 was estimated to account for just over half of that share -
13.2% of GDP - down from 14% of GDP at the end of the 1990s, and projected to fall further. Net
incoming transfers add between 10% and 12% annually to GDP.  Gross national savings (GNS) and
investment varied between 14% and 17% of GDP between 1998 and 2001.13
8. The current account deficit of Swaziland’s balance of payments, measured in U.S. dollars,
declined from US$94 million (6.9% of GDP) in 1997 to US$22 million in 1999, rising to
US$52 million in 2000 and 53 million (4.1% of GDP) in 2001.14  According to the Central Bank,
Swaziland’s bilateral balance of current payments with South Africa is consistently  in substantial
deficit; depending on the year, this has tended to be offset by the balance with the rest of the world.
In 2000, South Africa accounted for 55% of Swaziland’s export receipts and 88% of its importpayments in lilangeni terms (section (3) below)
15; South Africa’s dominance of the services account is
less marked, with 58% of credits and 49% of debits in 2000, but Swaziland remains in substantial
deficit on the services account both worldwide and to South Africa.
9. Inward transfers of SACU revenue are an important positive element in Swaziland’s current
account balance, and account for 51% of government revenue.  Between 1997 and 2000/01, theirvalue is estimated to have increased from E 547 million to E 1,407 million;  in dollar terms, the
equivalents would be US$118.9 million and around 140 million (see Chapter II(2), and Main Report,
Chapter II(2)(i)).
10. Swaziland’s international reserves position has fluctuated, but declined in relative terms over
recent years; net official foreign exchange rese rves stood at 2.5 months of imports of goods and
services at end 2001, as against 2.7 months at en d 1997 (Table I.1), with a U.S. dollar value of
imports in  2001 lower than in 1997.  Total external debt rose from 21% to 26% of GDP between 1998
and 2000, this share fell slightly in 2001.  Debt servicing, which had fallen from 2% to 1.5% of
exports of goods and services between 1997 and 1998, rose to 2.3% by 2001.
16
                                                     
12 Central Bank estimates put final consumption expenditure at 82.5% of GDP in 2001, growing by
15.3% in that year, largely due to escalation in government personnel expenditure (Central Bank of Swaziland,2002).
13 IMF (2002) estimates.  Central Bank of Swaziland estimates that  GNS fell from 32.2% of GDP in
2000 to 28.4% in 2001 (Central Bank of Swaziland, 2002).
14 The current account of the balance of payments has been fully liberalized and Swaziland has
accepted the obligations of Article VIII of the IMF Agreement on 11 December 1989.
15 Accurate trade and payments analysis is difficult in all the smaller SACU countries.  Because of the
transit of most goods through South Africa and the lack of national customs checks within the SACU area,import data (both total and by source) are notoriously unrelia ble:  export data may be better, but this is subject to
the accuracy of valuation and recording of consignments.  IMF (2002) notes that "Deficiencies in the quality of
Swaziland’s economic data are pervasive and hamper internal policymaking and effective surveillance …national accounts and international trade data … are reported with irregular periodicity and with substantiallags."
16 IMF (2002, Staff Report for Article IV Consultation, November 2002).WT/TPR/S/114/SWZ Trade Policy Review
Page A5-312
Table I.1.
Main economic indicators, 1997-01
1997 1998 1999 2000 2001
Miscellaneous (% change)
Real GDP growth (at market prices ) 3.8 3.3 3.5 2.0 1.8
Consumer price inflation (all groups index) 7.8 4.9 9.1 6.4 7.5
Government finance (% of GDP)
Central government balancea  (excluding grants) 1.6 0.5 -1.5 -1.4 -2.8
Balance of payments (US$ million)
Current account balanceb- 8 0- 9 4- 2 2- 5 2- 5 3
of which:
- Trade balance -214 -107 -131 -137 -74
- Services balance -120 -178 -109 -106 -95
-  N e t  i n c o m e 1 3 85 78 86 73 5
- Net transfers 116 134 131 124 81
Memorandum
Net official reserves (months of imports of good and
services)2.7 2.9 3.0 2.8 2.5
Debt service ratio (% of exports of goods and services) 2.0 1.5 2.3 2.7 2.3
a Fiscal year.
b Includes transfers of SACU revenue.
Source : Central Statistical Office;  Central Bank of Swaziland; and IMF (2002), Staff Report, February.
(3) TRADE PERFORMANCE AND INVESTMENTS
11. The U.S. dollar value of Swaziland’s merchandise exports and imports, having increased
somewhat up to 1998, declined over the period 1998-01 (Tables AI.1 and AI.2). A large part of thedollar decline in exports may be attributed to the effects of nominal rand/lilangeni depreciation:  in
local currency terms, the value of exports increased by 4% between 1998 and 2000
17, and was
expected to rise by a further 11% in 2001.18  However, the market prices received by Swaziland for its
principal export commodity, sugar, have fallen considerably since the mid-1990s – particularly on the
unprotected, residual market outside the EU and U.S. markets - and this is reflected in the foreignexchange value of sugar exports, while the volume exported has increased (Table I.2).
19  Prices for
wood pulp, asbestos, citrus fruits and canned fruit have also fallen.  Thus, Swaziland has experienced
a substantial terms of trade loss, particularly since 1998.
12. Food and chemicals (mainly sugar-based flavourings) made up 60% of Swaziland’s total
exports in 2001, as against 56% in 1997 (Table AI.1).  The share of clothing has also increased, from
4% to nearly 12%, particularly in 2001 and 2002 as market access to the United States under AGOA
conditions began to have its effect. According to national statistics supplied to the United Nations,70% of Swaziland’s exports and over 90% of its imports (average 1999-01) are destined to and
sourced from South Africa (Tables AI.3 and AI.4).
20 As noted above, this is likely to be highly
distorted, particularly on the import side, because goods, once within the SACU area, circulate freely;
internal border controls within SACU are not str ong; and goods destined for the smaller markets, like
                                                     
17 Central Bank of Swaziland (2001).
18 Central Bank of Swaziland (2002).  However, IMF suggests that the CPI-based real effective
exchange rate of the lilangeni appreciated by abou t 9% between 1998 and September 2001, mainly because of
the inflation differential between Swaziland and South Africa.
19 UNSD, Comtrade data, reflected in Table AI.3, show that there has also been some diversification
from raw and refined sugar to a group called "flavours, industrial use" or "mixtures of odoriferous substancesfor the food industry", which presumably refers to Coca-Cola concentrate production.
20 Data are difficult to verify: the Central Bank of Swaziland estimates 55% and 88% in 2000; IMF
(2002), suggests 50% and 80% for 2001.SACU-Kingdom of Swaziland WT/TPR/S/114/SWZ
Page A5-313
Swaziland, may well be broken-bulk within South Africa.21 The figures must therefore be treated with
caution. In recent years, the balance between South Africa and "other" markets for exports has
changed in favour of the latter;  other markets accounted for 44% of the lilangeni value of exports in
2000 as against 39.6% in 1998.  This may reflect an increase in competitiveness of Swazi exports
outside the CMA as the rand and lilangeni have depreciated in nominal terms.
Table I.2
Swaziland’s commodity export price trends, 1996-00
1996 1997 1998 1999 2000
Average unit price, US$/tonne
Sugara
- Volume ('000 tonnes)
- Value (US$ million)- European Union- United States- Other- World average244
147574640739597254
126540450365496267
108451371295406237
103486382171435275
97
429380171355
Wood pulp 442 347 221 347 331
Asbestos 522 471 365 391 234
Citrus fruit 399 297 250 222 194
Canned fruit 844 774 722 698 630
Coal 15 21 23 20 18
a In 2000, Swaziland exported 183,000 tonnes of sugar to the EU, 16,000 tonnes to the United States, and
76,000 tonnes to other destinations.
Source : Swaziland Sugar Association/Central Bank of Swaziland, in IMF, Staff Report, February 2002, Statistical 
Appendix, tables 34 and 35.
(4) OUTLOOK
13. Macroeconomic growth in the Swaziland ec onomy continues to slow, and the short-term
outlook is not optimistic as it depends heavily  on developments in the South African, COMESA,
United States, and EU markets.  Swaziland’s status  as a middle income developing country disguises
the heavily dualistic nature of the economy, which remains a major constraint on meaningful
progress. Dependency on one main product (sugar and related products) and preferential, highly
supported access to one principal market outside SACU (the European Union) should be a major
concern for the Swazi authorities. The food supply s ituation is becoming increasingly precarious for
the majority of the population, who live in main cities or on Swazi nation land; in combination with
the very high incidence of HIV/AIDS, which is slowing population growth, decimating the working
population, and severely hollowing out the overall population structure, this represents the severest
medium-to-long-term challenge facing economic and social policy-makers in Swaziland, as in othersmall southern African countries.
                                                     
21 For example, all of Swaziland’s oil is sourced through South Africa, but no doubt does not originate
from there.WT/TPR/S/114/SWZ Trade Policy Review
Page A5-314
II. TRADE AND INVESTMENT REGIMES
(1) P OLICY FORMULATION AND IMPLEMENTATION
1. Swaziland is a monarchy, one of three in Africa22, with a unique combination of western
(Roman-Dutch) and traditional legal systems.  The Parliamentary system consists of two houses:  the
upper house (Senate) comprises 30 senators, 20 appointed by the King and 10 elected by the lower
house (House of Assembly);  the House of Assembly, has 55 Members directly elected under thetinkhundla  system (which has three stages, nomination, primary elections, and secondary elections)
and ten royal appointees. Under the traditional sy stem, the Swazi National Council (Libandla), which
is headed by the King and the Queen Mother and comprises a cross-section of society, advises the
King.  The Parliament’s task is to pass and amend legislation.
2. At the national level (i.e. on issues not covered by the SACU Agreement), a large number of
Ministries have responsibilities for different aspects of Swaziland’s trade policy. Although it is
recognized within Government that policy coordination is seriously lacking, little or nothing has been
done to rectify it.
3. Formal responsibility for trade relations, WTO participation, Cotonou renegotiation, and trade
promotion rests with the Ministry of Foreign Affairs and Trade (MOFAT);  it was transferred toMOFAT following the abolition of the Ministry of Commerce and Industry in November 1996.  The
Ministry of Enterprise and Employment (MEE) remains responsible for internal trade regulation and
for the promotion of foreign and domestic investment.  The Ministry of Agriculture and Cooperatives
(MOAC) is responsible for Swaziland’s participation in the WTO agriculture negotiations (the only
aspect of WTO where a Swazi delegation participates regularly and actively). The Ministry of Finance
(MOF) is in charge of SACU relations, because of the revenue aspects.  The Ministry of Economic
Planning and Development (MEPD) is responsible for overall economic policy planning;  Customs is
responsible for the administration of border measures, sales tax and collection of import and export
statistics;  the Ministry of Justice and Constitutional Affairs is the custodian of laws relating to
intellectual property;  and the Central Statistical Office (CSO) is responsible for publication of
statistical series.  The 2001 SACU Agreement also provides for a National Body to be established in
each SACU member country.  Swaziland’s National Body, which will be a unit of the InternationalTrade Department of MOFAT, will be in charge of SACU issues (including tariff changes) at the
national level and will make recommendations to the Customs Union Commission (Main Report,
Chapter II(2)(ii)(a)).
4. The International Trade Department (ITD) of MOFAT, established in September 2002, has
overall responsibility for external trade policy questions.  It therefore has to deal with the complexrelations among SACU, SADC, COMESA, the RIFF, the African Union, new African initiatives like
NEPAD, the Cotonou renegotiations, AGOA, and th e WTO.  However, the ITD is extremely
understaffed and will have to struggle to establish real authority to undertake these roles.
5. Efforts are being made in Swaziland to improve coordination, not only among different
aspects of trade policy (with the creation of the ITD), but also among the political and economicactors involved domestically.  A National Coordinati ng Network, of Government, business and civil
society, has been set up and has held one meeting so far.
6. Table II.1 presents Swaziland's main trade-related laws.
                                                     
22 The others are Lesotho and Morocco.SACU-Kingdom of Swaziland WT/TPR/S/114/SWZ
Page A5-315
Table II.1
Swaziland's trade-related legislation in force and in progress, February 2003
Area Legislation
Customs and Excise Customs and Excise Act, 1971 and Customs and Excise (Amendment) Act, 2001
Sales Tax Sales Tax Act, 1983
Trade facilitation Business and Trade Facilitation Bill, 2001
Import permits Import Control Order, 1976; Legal Notice No. 60, 2000
Agricultural import levies National Agricultural Marketing Board Act, 1985;  Legal Notice No. 2, 2000
Government procurement Swaziland Government Stores Regulation, 1975
Standards, quality control Standards and Quality Act, 2001
Health and sanitary controls Animal Disease Act, 1965;  Plant Control Act, 1981;  Seeds and Plants Varieties
Act, 2000
Export financing Small Scale Export Credit Guarantee Scheme
Fair trading and competition policy Fair Trading Act, 2001;  Competition Bill, 2002
Public enterprise deregulation Public Enterprises (Control and Monitoring) Act 1989
Intellectual property:
  Trade marks Trade Marks Act, 1981
  Patents, utility models, industrial designs Patents, Utility Models and Industrial Designs Act, 1997
  Copyright Copyright Act, 1912;  Copyright Bill, 2003
Forestry Natural Resources Act 1951;  Control of Tree Planting Act, 1972;  Flora
Protection Act, 2001
Minerals Mineral and Environmental Authority Act, 1992
Financial services Money Laundering Act, 2001;  Central Bank of Swaziland (Amendment) Bill,
2002;  Financial Institutions Bill, 2002;  Securities Bill, 2002;  Insurance Bill,
2002;  Retirement Funds Bill, 2002
Telecommunications Posts and Telecommunications Act, 1983
Tourism Tourism Authority Act, 2001
Source: Information provided by the Swaziland authorities.
(2) TRADE AGREEMENTS
7. Swaziland’s trading relations are complex and difficult for a small administration to handle.
The country is a member of the WTO, the Sout hern African Customs Union (SACU), the Southern
African Development Community (SADC)23, and the African Union (AU), as well as a signatory to
the Cotonou Agreement governing relationships be tween the ACP (African, Caribbean and Pacific)
group and the European Union (Main Report, Chapter II).  In addition to these trade agreements, of
which all SACU countries are members, Swaziland (a s well as Namibia) also participates in the
Common Market for Eastern and Southern Afri ca (COMESA), and the Regional Integration
Facilitation Forum (RIFF) (section (ii) below).  Within SACU, Lesotho, Namibia, Swaziland, and
South Africa (but not Botswana) form the Common Monetary Area (CMA) under which the lilangeni
is maintained at par with the South African rand, which circulates freely in Swaziland (Main Report,
Chapter II(3)).  Swaziland benefits from duty-free access to the U.S. market under the AGOA,including the special provisions for textiles and clothing, and from preferential access to the markets
of most developed countries under the Ge neralized System of Preferences (GSP).
8. Swaziland, like other smaller SA CU members, has until now had to accept certain trade
policy instruments laid down by South Africa, which are not necessarily the most appropriate for
these smaller economies.  It is thus required to bear the impact of, inter alia , customs tariffs and
extensive anti-dumping and safeguard duties set by South Africa (Main Report, Chapter II).
                                                     
23 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.  Itslong-term objective – particularly important for Swaziland, but also opening it to competition from othersources - is the reciprocal, full liberalization of trade in sugar within the SADC region from 2013.WT/TPR/S/114/SWZ Trade Policy Review
Page A5-316
Furthermore, because of the reworking of SACU's  revenue-sharing formula and the effects of the
South Africa/European Union free-trade agreemen t (Trade, Development and Cooperation Agreement
(TDCA)), the revenue available for Swaziland and other smaller SACU members is expected to fall
with effect from 2005.24
9. Although Swaziland has no mission in Geneva, it has participated actively in the negotiations
on agriculture under the post-Uruguay Round "built-in agenda" and in phase II of the negotiationssince the Doha Ministerial Conference.
25  It does not, however, participate actively in other aspects of
the Doha Development Agenda at present.  Swaziland has made no notifications to the WTO since its
previous Trade Policy Review. Swaziland’s trade-related technical-assistance needs are summarized
under section (4) below.
(i) The Common Market for Eastern and Southern Africa (COMESA)
10. Swaziland is a member of COMESA;  it ratified the Treaty establishing the organization in
2002.26  The COMESA agenda is to deepen and broaden the integration process among member states
through:  the complete elimination of tariffs and non-tariff barriers to regional trade, and the adoption
of a common external tariff (CET);  the free movement of capital, labour, goods, and the right of
establishment within COMESA;  the adoption of a common set of standards and technical regulations,quality control procedures, certification schemes, and sanitary and phytosanitary regulations;  the
standardization of internal taxation (including value-added tax and excise duties), and conditions
regarding industrial cooperation, particularly on company laws, intellectual property rights, and
investment laws;  application of harmonized competition policies;  and the establishment of a
monetary union.
27  COMESA was notified to the WTO under the Enabling Clause in 1995.
11. COMESA is intended to become a customs a nd monetary union.  The COMESA free trade
area (FTA) was launched on 1 November 2000; nine members met the deadline for implementation.28
The status of the participation of several other members, including Swaziland, varies considerably.
Both Swaziland and Namibia operate under derogations from the Treaty, which permit them to apply
the full SACU customs duties to goods imported from other members.29 This derogation is in
                                                     
24 See Chapter I(2).  IMF (2002) estimates that SACU receipts will fall from 14.1% of GDP (49.8% of
total revenue and grants) in 2000 to 12.3% of GDP (46.5% of revenue and grants) in 2003. Goods imported into
South Africa, and hence the SACU area, from the European Union will be free of import duty;  by the end of thetransition period (Annex 4 on South Africa).  This will improve their competitive position vis-à-visSouth African and SACU-produced goods and reduce the value of import duties charged and earned by theSACU countries.
25 Swaziland has presented two papers in the WTO agriculture negotiations: G/AG/NG/W/95, "Market
Access under Special and Differential Treatment for Developing Countries", and a later non-paper presenting aninformal proposal for trade preferences for small developing countries (see Chapter IV).
26 The other members are Angola, Burundi, Comoro s, Djibouti, Egypt, Eritrea, Ethiopia, Kenya,
Madagascar, Malawi, Mauritius, Namibia, Rwanda, Seychelles, Sudan, Uganda, the Democratic Republic of theCongo, Zambia, and Zimbabwe.  Tanzania, Lesotho, and Mozambique have withdrawn.
27 See COMESA online information.  Available at:  http://www.comesa.org/obj.htm.
28 The nine members are Djibouti, Egypt, Kenya, Madagascar, Malawi, Mauritius, Sudan, Zambia and
Zimbabwe.  Tariffs are at zero for merchandise trade between the COMESA FTA members, without exception.
29 The status of implementation of the tariff reduction programme varies substantially among the
members yet to join the FTA.  Rwanda has published legislation effecting a tariff reduction of 80% from1 January 2002, 90% from 1 January 2003 and 100% from 1 January 2004.  Burundi has decided to introduce a
further tariff reduction of 80% from the current le vel of 60% as from January 2003, and will effect a 100%
reduction in January 2004 (on COMESA originating products).  Consultations are continuing with theDemocratic Republic of the Congo, Seychelles, Como ros, and Uganda.  Eritrea and Ethiopia are still studying
the implications of membership.  Namibia and Swaziland (both are SACU members) are under a derogation thatexcuses them from the obligation to provide (on a reciprocal basis) pref erential access to goods originating inSACU-Kingdom of Swaziland WT/TPR/S/114/SWZ
Page A5-317
principle due to expire during 2003;  through the National Coordinating Network, Swaziland is,
currently considering its options regarding its relationships simultaneously with COMESA and SACUin the event the derogation is not renewed.
12. The COMESA customs union is to be implemented by 1 November 2004 with a common
external tariff (CET) comprising four tariff bands:  zero, 5%, 15%, and 30% (on capital goods, raw
materials, intermediate goods, and final goods, respectively).  However, since most COMESA
members have maximum tariff bands below 30%, discussions are under way on the possibility ofreducing the agreed CET rate on final goods.
13. Tariff preferences under COMESA are subject to rules of origin requirements.  The
agreement provides four alternative criteria for determining origin on which an exporter may claimeligibility for preferential treatment:  that goods  are wholly produced in the region using no outside
materials;  that imported content of goods is not more  than 60% of the c.i.f. value of the total cost of
materials used in production;  that goods contain not less than 35% ex-factory value added 
30, reduced
to 25% if the final product is considered to be of "particular importance" to the economic
development of a member state31;  or that there is a change of tariff classification heading following
transformation.
14. Swaziland’s exports to other COMESA members were approximately US$100 million, or
12% of its total exports in 2000; the value of imports  from COMESA sources is only some 3% of the
value of exports to the area – possibly in part because of the MFN rates charged by Swaziland on
imports from COMESA members unde r the SACU agreement.  The ma in regional destinations are
Mozambique, Zimbabwe, Tanzania, Kenya, Zambia, and Angola.
15. The COMESA Monetary Harmonisation Programm e is to be implemented in four phases,
from 1992 to 2025.  The final phase should culminate in full monetary union, with the use of
irrevocable fixed exchange rates, a single currency or parallel currencies; full harmonization of
economic, fiscal, and monetary policies of member states; full integration of the financial structure;
pooling of foreign reserves;  and the establishment of a common monetary authority.  A coordinating
body, comprising regional experts from central bank s and finance ministries, was formed to oversee
implementation of policy measures and to advance the process of monetary harmonization towards
monetary union.
16. Several institutions have been established to assist COMESA members in their development.
The Eastern and Southern African Trade and Development Bank (PTA Bank) provides trade and
project financing to public and private investors domiciled in a bank member state.32  The COMESA
Clearing House has diminished in importance following liberalization of most members' foreign
exchange regimes.  Its role is being re-directed towards improving the efficiency of clearing
                                                                                                                                                                    
other COMESA countries until 31 July 2003.  This is intended to allow time for consultations between the
COMESA Secretariat and the two countries as well as to  enable them to seek the concurrence of the other
SACU member states.  The COMESA Treaty therefore provides for a multi-speed integration programme.
30 Value added is defined as the difference between the ex-factory cost of the finished products and the
c.i.f. value of material inputs imported from outside the COMESA sub-region.  The minimum level of valueadded was reduced from 45% to 35% in 2000.  Egypt and Uganda maintain the 45% ex-factory value-addedlevel.
31 A wide list of approved products is specified in the COMESA Treaty as being of particular
importance to the economic development of the members.
32 Not all COMESA members are members of th e PTA Bank:  Angola, Namibia, Seychelles,
Swaziland, Uganda, and the Democratic Republic of the Congo are not members.  Egypt joined the Bankin 2000.  Since 1994, non-COMESA members have been permitted to become PTA Bank members;  Somalia,Tanzania, and, since 2001, China are such members.WT/TPR/S/114/SWZ Trade Policy Review
Page A5-318
operations to complement the services offered by  commercial banks;  providing traders with some
form of political insurance on intra-regional trade;  and facilitating monetary and fiscal policy
harmonization within the region.  The PTA Re-Insur ance Company (ZEP-RE) assists the development
of the insurance and re-insurance industry in the COMESA region (Swaziland is not a member at this
point, reflecting the absence of road-based trade). The Africa Trade Insurance Agency (ATIA),
launched in August 2001, is aimed at creating investor confidence by providing cover against politicalrisk.  Although promoted by COMESA , membership of ATIA is open to all the member states of the
African Union, formerly called the Organization of African Unity  (OAU).
33  The COMESA Court of
Justice became operational in 1998.  Its general jurisdiction is to adjudicate upon all matters that may
be referred to it under the Treaty.  Swaziland has not been involved in any formal disputes within this
framework.
17. The protocol on free movement of persons is to be implemented in several stages; the first
stage of removing visa requirements was adopted in 2000.  Although several countries have removed
the visa requirements they are still maintained by Swaziland, as well as by Angola, Burundi, theDemocratic Republic of the Congo, Djibouti, E gypt, Ethiopia, Madagascar, Rwanda, and Sudan.
(ii) The Regional Integration Facilitation Forum (RIFF)
18. Swaziland and Namibia are the only SACU members that participate in the Regional
Integration Facilitation Forum (RIFF), formerly known as the Cross-Border Initiative (CBI). RIFF is
open to countries in eastern and southern Africa a nd the Indian Ocean that are members of COMESA,
SADC, East African Community (EAC), and the Indian Ocean Commission (IOC). RIFF aims to
move member countries towards increased economic integration by facilitating private investment,
trade, and payments between them, as well as cross-border mobility of labour and capital. The RIFF
was developed in close collaboration with the economic integration organizations in the region.  As a
forum, the RIFF is to reinforce and complement efforts undertaken by these organizations.  Launchedin 1992, the RIFF is co-sponsored by the European Commission, the International Monetary Fund, the
World Bank, and the African Development Bank.  It has no Secretariat at the regional level and works
on a voluntary basis.
19. According to the authorities, Swaziland has made great progress in achieving the activities set
out in the RIFF Matrix.  It was assisted through the RIFF framework in establishing the SwazilandInvestment Promotion Authority in 1998.  Curren tly, a work programme has been developed within
Swaziland for the promotion of RIFF activities in the financial year 2002/03.
(iii) Other trade arrangements
20. Swaziland maintains no bilateral trade agreements with other countries.
21. Swaziland has preferential access to the EU ma rket under the Cotonou Agreement, subject to
meeting the relevant rules of origin (Main Report, Chapter II(6)(i)).  Swaziland’s principal interest in
the EU market has historically been in two produc ts:  sugar and beef.  Most of Swaziland’s sugar
exports go to the EU, under a special protocol attached to the Cotonou Agreement under which 17
ACP sugar-producing countries receive duty-free access and a supported price.
34  However,
                                                     
33 Founding members of the ATIA are Burundi, Kenya, Malawi, Rwanda, Tanzania, Uganda, and
Zambia. Only Tanzania is a non-COMESA country.
34 See Swaziland Sugar Journal (2001).  The price obtained by Swaziland under the EU Sugar Protocol
in February 2001 was €3,600/tonne, nearly two and a half times the then world price of €1,463.  Exports to theUnited States of "tariff quota" sugar earned €3,426/tonne in the same period.  See also trade data in Table I.2.SACU-Kingdom of Swaziland WT/TPR/S/114/SWZ
Page A5-319
Swaziland will already become subject to greater competition in the EU market for sugar from 200835,
because of the extension of duty-free access for sugar exports from all least developed countries
(LDCs) – Swaziland is not an LDC – under the EU's "Everything But Arms" Initiative.
Diversification of Swaziland’s markets for sugar, as well as further development of sugar-using
industries, is therefore crucial and the SACU , SADC, and COMESA markets are of principal
importance. Swaziland’s beef exports to the EU benefit from a tariff quota under which the ad
valorem  element of the EU’s common external tariff on beef is reduced by 92%.36
22. Like other SACU countries, particularly non-LD Cs, Swaziland is weighing the balance of its
interests in the future Cotonou negotiations between  allying itself to the South Africa-EU free-trade
agreement or some other arrangement possibly within SADC. Swaziland is in the preliminary stages
of a study to assess the impact and sustainability of an economic partnership agreement (EPA) withthe European Union, either for SACU as a group or by joining the EU/South Africa Trade and
Development Cooperation Agreement (TDCA).
23. On 18 January 2001, Swaziland became the 35
th country added to the list of AGOA
beneficiaries (sub-Saharan African countries) as a lesser-developed beneficiary country (LDBC),
following the passage of the revised Industrial Relations Act in November 2000.37  As an LDBC, the
major advantages Swaziland gains from the AGOA are in access to the U.S. market for textiles and
clothing. Countries with per capita GDP below US$1,500 in 1998 enjoy, until 30 September 2004,
duty-free access for clothing made from fabric originating anywhere in the world;  in contrast, the
general AGOA rule provides unlimite d 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.
24. A 2002 report by USTR, on U.S. trade and investment policy toward Sub-Saharan Africa
states that:  "Swaziland’s duty-free exports to the United States under AGOA were valued at US$14.8
million in 2001, primarily textiles, apparel and agricultural products." Swaziland has seen a
substantial increase in investment, especially in textiles and clothing. Investors have been primarily
from Chinese Taipei and South Africa.  By end-2002, AGOA had contributed nearly 17,000 jobs toSwaziland’s economy; roughly 20 textile and apparel factories had begun or expanded operations and
other new investments were under consideration.
25. Statistics compiled by the United States International Trade Commission show total imports
into the United States from Swaziland nearly doubling between January-November 2001 and the same
period of 2002, from US$55.6million to US$104.6million.  Textiles and apparel accounted for US$48million (74% of the total) in 2001, but only US $8 million of this benef ited from AGOA provisions.
Other main U.S. imports from Swaziland were "agricultural products" (sugar) and "forest products"
(wood pulp).
38
26. Independently of the AGOA, Swaziland benefits from tariff rate quota access to the United
States for sugar under the United States’ WTO commitments.  Swaziland’s guaranteed minimum
                                                     
35 See WTO document WT/COMTD/N/4/Add.2, 5 October 2001, and Swaziland Business Yearbook
(2002), page 73.
36 Cotonou Agreement, Trade Régime Applicable during the Preparatory Period, Protocol 4, Articles 1
and 2.
37 Act No.1 of 2000.
38 "U.S. Trade and Investment with Sub-Saharan Africa".  Available online at
http://reportweb.usitc.gov/africa/by_country.jsp .WT/TPR/S/114/SWZ Trade Policy Review
Page A5-320
access to the U.S. market is 16,000 tons.  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% (Box IV.1).39
(3) INVESTMENT FRAMEWORK
27. Swaziland is in the process of updating its legislation on investment conditions.  As yet, there
is no comprehensive Investment Code, although the idea has been discussed.  A draft Trade and
Business Facilitation Bill (see Chapter III(2)(i)) is before Parliament; a new Companies Bill, replacingthe Companies Act of 1912, and a draft Competition Bill are before the Cabinet for approval, prior to
submission to Parliament.  A new Fair Trading Ac t and a new Standards and Quality Assurance Act
were enacted in 2001 (Chapter III(2)(iv) and (4)(iii)).  Swaziland has joined the Multilateral
Investment Guarantee Agency (MIGA).
(4) T
RADE -RELATED TECHNICAL ASSISTANCE40
28. Swaziland faces many challenges and obstacles in the development of its trade policy.
Technical assistance is therefore of utmost importance to Swaziland.  Swaziland has, as yet, no
diplomatic representation in Geneva, although the Government has decided to establish a Mission
there;  its nearest representation is in Brussels. Its participation in the multilateral trading system and
the WTO has therefore been very limited.  Other constraints include lack of awareness andunderstanding of the WTO and its Agreements; weak human and institutional capacity, including lack
of coordination, although this is being addressed (section (1) above);  and supply side constraints.
29. Swaziland's trade-related technical assistance needs can be classified into two categories:  the
implementation of WTO Agreements and institutional and human capacity building; and supply-side
constraints.
(i) Implementation of WTO Agreements and capacity building
30. In Swaziland, there is a general lack of awareness and understanding of the WTO and its
Agreements.  Implementation of the Agreements is therefore difficult. Although it has benefited from
technical assistance provided by the WTO, Swaziland considers that it needs a more focused
programme of technical assistance activities in many areas, at the national level.  These include the
alignment of national laws, rules and regulations on WTO requirements; notification requirements;
and training of Government officials on WTO matters.
31. Swaziland's implementation-related concerns are in the areas of TRIPS, customs valuation,
and sanitary and phytosanitary measures (SPS).  L ack of understanding of the relevant provisions
makes it difficult to translate WTO Agreements into national laws;  in addition, Swaziland lacks the
human and institutional capacity to implement the agreements.  This weak human capacity includes
lack of legal expertise, particularly with rega rd to the implementation of the TRIPS Agreement.
Assistance is also required in the enforcement of laws, particularly through training of customs and
police officials.
32. Swaziland has made no notifications to the WTO since its previous Trade Policy Review
(section (2)).  The authorities have stated that this is due to a lack of understanding of the notification
requirements and how to submit notifications to the WTO.  In its technical assistance request for
                                                     
39 Swazi Sugar Association.
40 Information in this section is based on consultations held in Swaziland in connection with this Trade
Policy Review; Swaziland's request for technical assistance (letter dated 1/07/02); and selected literature.SACU-Kingdom of Swaziland WT/TPR/S/114/SWZ
Page A5-321
2003, Swaziland has indicated the need for a national seminar on notification requirements and
implementation of WTO Agreements.
33. As a WTO Member without local representation, Swaziland has not been fully engaged in the
day-to-day activities of the WTO nor has it been able to participate effectively in the ongoing
negotiations.  The Government is making efforts, particularly with regard to the negotiations on
agriculture, where officials from the capital have attended some of the Special Sessions of theCommittee on Agriculture and Swaziland has subm itted two proposals.  Swazi officials have
participated in the "Geneva Weeks" organized by the WTO for non-resident Members and
Observers.
41  As a non-resident member of the WTO, Swaziland may also benefit from the assistance
provided by the Agency for International Trade In formation and Cooperation (AITIC), which is based
in Geneva.  In October 2000, the AITIC Non-Resi dents’ Unit was established to assist WTO
Members (like Swaziland) and Observers with no representation in Geneva.  The type of assistance
provided by AITIC includes the provision of background notes and summaries of meetings as well as
logistical support to non-resident officials attending meetings in Geneva.42  Swaziland may also
benefit from technical assistance supplied by the Commonwealth and ACP, as a member of both of
these organizations, as well as the research of such institutions as the South Centre.
34. Swaziland plans to establish a national Reference Centre in the newly-established
International Trade Department of the Ministry of Foreign Affairs and Trade. This would enable
Government officials, business and the academic communities, and others, to obtain trade-related
information and documents from the WTO Internet web site and databases.
35. Until recently, lack of coordination of trade matters added to Swaziland's ineffective
participation in the multilateral trading system.  As already noted, many different Ministries have
responsibility for particular trade policy issues. Creation of the International Trade Department inMOFAT, and of the National Coordinating Networ k, is intended to alleviate these problems.
36. Training of officials (including in negotiating skills) and sensitization both of the public and
private sectors, including Members of Parliament , on WTO issues would be useful.  Swaziland has
also indicated the need to train trainers on trade policy issues.  Although Swazi officials have
benefited from a number of regional training courses organized by the WTO
43, since 1995, no national
                                                     
41 Geneva Week is a week-long event where officials from non-resident countries are briefed on the
state of play in the work of the WTO, including briefings on the negotiating bodies as established by the TradeNegotiations Committee.
42 Logistical support includes the provision of temporary offices, meeting rooms, secretarial services,
and internet facilities.  One of the fundamental mechanisms of the AITIC Non-Resident's Unit is the "EarlyWarning System" designed to: determine the key external trade sector(s) for each non-resident; monitor fromGeneva the WTO meetings relating to these sectors; keep non-residents informed prior to and following each
meeting; advise non-residents as early as possible of the orientation of WTO discussions directly related to thesekey sectors, to enable them to intervene before critical decisions are taken in their absence; and to facilitate the
presence of representatives at WTO meetings of importance to them.  Information is available online at:
www.aitic.org.
43 Regional activities in which Swaziland has participated include: Regional Seminar on SPS for
Southern African Developing countries (Namibia, 1999); Conference on TRIPS Agreement and ImplementationRequirements (Botswana, 1999); Regional Seminar on Trade and Environment (South Africa, 2000); RulesImplementation Seminar (South Africa, 2000); Regional Workshop on Competition Policy (South Africa,
2001); Seminar for SADC countries on Agriculture and the WTO (Botswana, 2001); WTO/ISO Workshop on
International Standard Setting for Sub-Saharan Africa (Kenya, 2002; Intensive Training Course on Trade andInvestment for Anglophone Africa (South Africa, 2002);  First WTO-ECA-ADB Trade Policy Course forAfrican countries (Ethiopia, 2002); SACU Trade Policy Review Seminar (Lesotho, 2002); Trade andEnvironment Seminar (Namibia, 2002).WT/TPR/S/114/SWZ Trade Policy Review
Page A5-322
trade policy course has been organized in Swaziland and only three Swazi officials have benefited
from the three-month trade policy courses held at the WTO Secretariat.  Further participation in such
trade policy courses would greatly increase knowledge and understanding of trade policy issues.44
37. Sensitization of all stake holders — civil society, media, academia — on the WTO could
increase the awareness of the multilateral trading system, and assist trade policy formulation and
implementation in Swaziland.  Swaziland has expressed the need for training of officials as well as forkeeping Members of Parliament informed on the developments in the WTO.  This is particularly
important since Swaziland is currently in the process of enacting new laws in such areas as
intellectual property, fair trading, competition policy, etc.
(ii) Supply-side constraints
38. Swaziland's supply-side constraints include its position as a small, land-locked country,
heavily dependent on agricultural production for exports;  its limited domestic market, shortage of
skilled labour and infrastructural deficiencies. However, the Government is taking measures to
address some of these constraints, in particular infrastructural impediments.
39. As mentioned in the Economic and Social Refo rm Agenda (ESRA), the Government's action
programme, a number of infrastructural programmes are being carried out.  Swaziland has identifiedthe transport sector as a priority area.  The high priority placed on the improvement of transportation
corridors reflects the Government's commitment to fo stering investment and growth in industry. Other
areas of infrastructure improvements are energy, rail transport, roads, air transport,
telecommunications, and water. Swaziland is highly  dependent on its rail and road networks for the
transportation of exports and imports of various commodities.
40. In southern Africa, most countries are linking up in transborder programmes such as the
Maputo Development Corridor, which connects South Africa and Mozambique, and the Lubombo
Spatial Development Initiative, connecting Swaziland, South Africa, and Mozambique.  Swaziland
has consequently concentrated on further extension of road and rail networks so as to exploit the
potential economic benefits that could be derived from these two programmes, and a substantial
amount of the budget is targeted at improving the country's road network (Chapter IV(4) (iii)).  Such
improvements would ensure a free flow of peopl e, goods, services, and information within the
economy.
45
                                                     
44 In total, from 1995 to the end of 2002, Swaziland has taken part in 36 WTO technical assistance
activities.
45 Ministry of Enterprise and Employment (2002).SACU-Kingdom of Swaziland WT/TPR/S/114/SWZ
Page A5-323
III. TRADE POLICIES AND PRACTICES BY MEASURE
(1) Overview
1. Like other SACU member states, Swaziland co ntinues to apply the SACU Common External
Tariff.  Until the revised SACU agreement comes into force, duty rates therefore are effectively
determined by South Africa, without necessarily having reference to the economic structures of the
smaller SACU members (Main Report, Chapter III(2) and (3)).
2. As a small developing economy, Swaziland’s export policies are largely determined by
external conditions.  These include, principally, access to, and policies pursued by, South Africa, but
also access to SADC (and to a certain extent COMESA) member States and to the European Union.
Access for sugar determines not only Swaziland’s attit ude to EU relations as such, but also affects its
participation in WTO negotiations and dispute procedures (Box IV.1).  To comply with the provisionsof the U.S. African Growth and Opportunities Act (AGOA), Swaziland has been required to introduce
new licensing and visa mechanisms for textiles and clothing (see below and Chapter II(2)(iii)).  The
trade and cooperation agreement between South Africa and the European Union has also affected, and
will continue to affect, Swaziland’s import structur e, by effectively granting preferences in SACU to
goods of European Union origin, as well as reducing the future tariff revenue available from theSACU revenue pool (Chapter I(2)).
3. Imports into and exports from Swaziland are governed by the Customs Act.  Goods entering
the SACU area are charged customs duty once only, at the port of entry.  This means that, in practice,
the Swaziland customs department is responsible for the clearance and levy of customs duty on goods
arriving directly from Mozambique or by air, and for the levy of sales tax on goods originating in all
sources, including South Africa.
(2) M
EASURES DIRECTLY AFFECTING IMPORTS
(i) Registration, and import duties and related measures
4. Under the 1969 SACU Agreement, BLNS count ries, including Swaziland, have implemented
import duty rates and related measures determined by South Africa. In practice, applied customs
tariffs, excise duties, valuation methods, origin rules, and contingency trade remedies are, so far, the
only trade policy measures harmonized throug hout SACU.  These common policy measures are
covered under the Main Report (Chapter III).  As regards import duties and related measures,
differences exist among SACU members in customs clearance procedures, import levies other than
customs tariffs and excise duties, and duty and tax concessions.
5. Swaziland has never been required to apply South African anti-dumping (AD) and
countervailing (CV) duties, as no goods bearing such duties have ever entered the customs unionthrough Swaziland.  However, goods imported via South Africa, on which AD or CV duties are
applied on entry into South Africa, do bear these extra duties when imported into Swaziland; this can
affect the Swazi economy, as do the "formula duties" applied to "sensitive" agricultural products by
South Africa.  Swaziland does not have any independe nt legislative provisions  concerning AD or CV
duties.
6. Import levies have been used by Swaziland to relieve import pressure on such products as
maize, vegetables, chicken, eggs, milk and milk products. In addition, the National Agricultural
Marketing Board (NAMBOARD) may suspend imports of such products if they are considered too
high for the local market to bear.WT/TPR/S/114/SWZ Trade Policy Review
Page A5-324
7. All businesses operating in Swaziland must be registered.  Most trades and professions are
covered by specific Acts of Parliament; if not registered under specific legislation, a trading firm must
be licensed under the Trading Licence Order by the Ministry of Economy and Enterprise. A Trade and
Business Facilitation Bill, aimed at simplifying procedures for trade licensing, is currently going
through the Swaziland Parliament.  As of mid-January 2003, the Bill had passed through the House of
Senate but still had to pass through the House of Assembly.
8. Certain imports (now a relatively short negative list) require an import permit, issued by the
Ministry of Finance, to which an invoice for the goods would be attached (see section (ii) below).
Exports require a form F178, provided by the companies' bankers, which indicates the value of goods
to be exported; this is used to monitor the repatriation of the proceeds of sale and for statistical
purposes.
9. Swaziland does not conduct preshipment inspections for its imports.  Customs clearance takes
on average one day, provided that all documents are in order. Appeals against Customs decisions are
made to the Minister of Finance and appeals against the Minister’s decisions may be heard in the
courts.
10. Swaziland has from time to time exercised its  right under the SACU agreement to protect
infant industries.  Fertilizers, cement, beer and most recently flour milling have been covered by this
process (see Main Report, Chapters II(2)(i) and III(3)(i) for details of the provision on protection of
infant industries by BLNS countries).
11. Swaziland imposes import levies on a number of agricultural products for protective reasons .
Dairy products are subject to fixed levies of between 40 cents and E 4.00 per litre or per kg. under the
Dairy Act, 196846, and the related regulations most recently amended in 2000 (Table III.1).  Other
agricultural products are subject to variable levies under the National Agricultural Marketing BoardAct, 1985
47, as amended in 2002 (Table III.2).  The rates of the levies are "made known publicly in
advance by the Board".
Table III.1
Levies on milk and dairy products under Legal Notice No. 2 of 2000
Products Import levy
Full cream UHT milk and flavoured milk 40c per litre
Low fat UHT milk 40c per litre
Fresh full cream, low fat or skimmed milk 35c per litre
Fermented milk/Emasi/Buttermilk 50c per litre
Fresh/sour cream or UHT cream E 1.85 per litre
Dairy juice 25c per litre
Yoghourt 85c per litre or kg.
Condensed milk E 1.50 per litre
Dessert or ice cream mixtures E 1.20 per kg.
Baby formulas E 3.60 per kg.
Butter E 2.60 per kg.
Full cream milk powder E 3.80 per kg.
Skim milk powder/ dairy powder blends E 1.50 per kg.
Whey/buttermilk powder 55c per kg.
Cheese (Cheddar, Gouda or other) E 4.00 per kg.
Source: Information provided by the Swaziland authorities.
                                                     
46 Act No. 28 of 1968.
47 Act No. 13 of 1985.SACU-Kingdom of Swaziland WT/TPR/S/114/SWZ
Page A5-325
Table III.2
Import levies on agricultural productsa
Products Import levyb
Maize, including seed maize, yellow maize and popcorn between 1% and 4.5%
Maize products, including processed poultry feed,
animal feed and maize starchbetween 1% and 10.5%
Rice 3.5%
Fresh fruits, excluding apples, pears, peaches, grapes and bananas between 1% and 7.5%
Apples, pears, peaches and grapes between 1% and 4.5%
Bananas between 6.5% and 25%
Fresh vegetables, excluding cabbages, tomatoes, potatoes
and sweet potatoesbetween 1% and 10%
Cabbages, tomatoes, potatoes and sweet potatoes between 1% and 20%
Poultry and poultry products including live broiler birds,
day old chicks and hatching eggs
Wheat between 3% and 5%
Wheaten products between 7% and 18.5%
a Import levies under Section 6 of the National Agricultural Marketing Board Act, 1985 as defined in the Import and Export of 
Scheduled Products (Amendment) Notice, 2002.
b On all items except rice, the actual rate of levy to be applied at any particular date will be made known publicly in advance by 
the Board.
Source: Information provided by the Swaziland authorities.
12. Petrol and diesel are subject to fuel levy, fuel oil levy, and fuel tax at rates of 16 cents, 5 cents
and 40 cents per litre (a cumulative rate of 61 cents/litre); the fuel levy includes a contribution to
motor vehicle accident insurance.
13. Swaziland plans to introduce value-added tax within the next two years. 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 the country or at the point of sale from the local producer.  The current rates of sales tax
are 14% for goods and services and 25% for luxury goods (e.g. alcohol and tobacco).
14. 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 foodstuffs, such asdairy products, maize, bread, meat, vegetables, sugar, and salt;  other 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.
15. 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 ofbilateral or multilateral agreements.  Duty on purchases 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%
applicable on wines and spirits).
16. Goods provided in the context of foreign aid to the Swaziland Government, or as part of
technical assistance programmes, are exempted from duties.  There are also provisions for dutyrebates on goods imported for use by the Government.
(ii) Import prohibitions and licensing
17. Since its 1998 Trade Policy Review, Swaziland has markedly liberalized its import permit
system.  The basic legislation remains the Import Control Order, 1976.  However, Legal Notice No.WT/TPR/S/114/SWZ Trade Policy Review
Page A5-326
60 of 2000 reduced the number of products subject to import permits to 15 broadly defined categories
(Table III.3).  Import licensing is now used to mon itor the flow of licensed goods mainly for health,
safety, and environmental reasons.
Table III.3
Goods requiring import permits
Used motor vehicles Automotive parts
Used earthmoving equipment Arms
Used clothing Drugs
Used tyres and tyre casings Gold and other precious metals
Used footwear Wild animal products
Used textiles Specified agricultural products
(wheat flour, dairy products, maize, rice)
Mineral fuels Electrical appliances
Mineral oils
Source: Import Control Order, 1976 as amended by Legal Notice No. 60 of 2000;  information provided by the Swaziland 
authorities.
18. All applications for import permits have to pass through the Import Permit Committee. The
Committee is chaired by the Director of Import Permit within the Ministry of Finance, and comprisesrepresentatives 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.  Any individual, firm or institution can apply for an import permit,
which is valid for one year.  Applications may be filed weekly until  Tuesday at 3.30 p.m. First-time
applicants must present a certificate of incorporation, memorandum and articles of association,trading licence, tax clearance certificate, original pr oforma invoice for the articles to be imported, and
most recent bank statement, and must agree to inspection of their premises.  Subsequent applications
need to be accompanied only by the current tradin g 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%).
19. 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 production, or of seasonal production (e.g. of bananas) or in
relation to national disasters (e.g. the present food shortage), or in relation to infant industry
protection under which the quantity or quality of imports is monitored.
(iii) Government procurement
20. Government, local government, and parastatal organizations are not restricted under
Swaziland’s laws as to the source of goods and services. Such restrictions may be imposed, however,
by the terms of donor or technical assistance agreements.  Swaziland is neither a signatory nor an
observer to the Plurilateral Agreement on Government Procurement.
21. Swaziland’s procurement procedures are set out in the Swaziland Government Stores
Regulation, 1975.  Part I of the regulation covers purchases of vehicles; Part II all other goods and
services.  There are two tender boards:  the Central Tender Board, chaired by the Principal Secretary
of the Ministry of Finance, is responsible for sale or purchase of government immovable property and
other capital projects and agreeing contracts for works or services, including the employment of
consultants;  the Treasury Tender Board, chaired by the Accountant-General, is responsible for allsales or purchases of government moveable property, and letting of contracts for annual supplySACU-Kingdom of Swaziland WT/TPR/S/114/SWZ
Page A5-327
arrangements and individual purchases.  Goods and services above E 500,000 in value for any one
item are put out for tender by open advertisement or direct reference to the Crown Agents. In
construction tenders below E 1 million, preference shall always be given to Swazi small business
companies registered with the Ministry of Works and Construction.  Supply tenders up to E 100,000
are restricted to Swazi owned and registered comp anies.  Performance bonds of 5% of the value over
E 500,000 of contracts are required.  In all other cases, a 15% preferential price difference is grantedin favour of Swazi owned and registered companie s.  These conditions apply to contracts supplied
from all sources including SACU, SADC and COMESA.
(iv) Standards and other technical requirements
22. Until recently, Swaziland applied South African standards procedures and relied on the
relevant authorities in the Republic for all questions relating to standard-setting, testing, certification,etc.  A new Standards and Quality Assurance  (SQA) Act was enacted in 2001, and implementing
regulations are being drafted at the time of writing (January 2003). The Act establishes a new
Swaziland Standards Authority (a Category A State enterprise) whose function will be to draft
Swaziland standards, including mandatory standards as may be decided by the responsible Minister,
and to provide for inspection, testing and certification of products.  It is anticipated that nationalstandards will be adopted and adapted from international standards.
23. Live animals and birds are subject to the Anim al Disease Act of 1965, which specifies various
import requirements in terms of veterinary certification, and a quarantine period of 30 days.  The
same Act regulates the import of hides and skins, meat, and eggs.  Animals brought in for slaughter
are not subject to quarantine, but must be slaughtered within 48 hours of arrival.  Livestock from
approved regional suppliers may be imported without restriction.
24. Swaziland and South Africa have 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.
Nevertheless, Swaziland applies quarantine regulations to the live animals and requires vaccination
certification.  Several animal diseases are worrisome, for example rabies, foot-and-mouth, and
Newcastle disease.  Swaziland is free of foot-and-mouth disease, as is South Africa, and has a
protective cordon down the eastern side of the country to prevent the movement of cattle from east towest.
25. Import of plants and seeds is controlled by the Plant Control Act of 1981 in respect of
phytosanitary requirements (Chapter IV (2)(i)(a)), and the Seeds and Plants Varieties Act of 2000. To
import citrus fruit or trees, phytosanitary certificates are required from the Ministry of Agriculture
under the Plant Control Act;  in respect of cotton, the Cotton Board is empowered to issue certificatesand 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 the varieties of sugar cane that can
be imported, and the conditions for import and for testing varieties of sugar.
26. The importation of seeds produced under cert ification of the International Seed Test
Association is not restricted;  how ever, Swaziland has no Association members.  Otherwise, under the
Seeds and Plants Varieties Act, all imports must be tested by a phytopathologist and issued with a
clearance certificate.  Phytosanitary standards are set by notice in the Government Gazette  and are
updated as new diseases are identified.
27. Swaziland has a closed list of seed and plant varieties, which requires that items added to the
list must be distinct, uniform and stable, and must be certified for value, cultivation use, and merit.
Additional requirements are imposed to protect farmers.  The list applies to important, certified cropsWT/TPR/S/114/SWZ Trade Policy Review
Page A5-328
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 be considered by the Variety Committee of the
Ministry of Agriculture.
28. Seeds produced by regional producers of good repute are allowed entry without any
certification.  Four companies in South Africa and one in Zimbabwe fall into this category.
29. Indigenous plants imported from the region require a permit issued by the National Trust
Commission. 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.
30. Labelling, packaging, and marking regulations are being drafted under the Standards and
Quality Assurance Act.  Swaziland has already constructed a food technology laboratory to ensurethat domestic production conforms to what the Government requires from others.
31. Swaziland has no specific policy in respect of genetically modified varieties of plants or
animals, or materials made therefrom. According to the authorities, consultations are ongoing in a
SACU  sub-committee established to harmonize policy in this area; the Swaziland Tourism Authority,
under the Ministry of Environment, is the responsible agency in Swaziland.
(v) Other measures
32. Swaziland has no countertrade or offset arrangements, or agreements with foreign
governments or enterprises designed to influence the quantity or value of goods and services exported
to Swaziland, nor does it maintain any surveillance measures on imports. Trade sanctions have not
been imposed unless required by resolution of the United Nations.
33. 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 othercommodities but, rather, financial reserves to a llow it to purchase as and when need arises.
(3) M
EASURES DIRECTLY AFFECTING EXPORTS
(i) Registration and taxes
34. The same business licence procedures apply to exporters as to importers (section (2)(i)
above). Export firms are required to register as exporters with the Trade Promotion Unit (TPU) of theMOFAT; for purposes of registration, an exporter must have a certificate of incorporation (for a
company) and  a trading licence; at the time of export, an exporter must be in possession of completed
and signed commercial invoice, bill of entry and certificate of origin forms and an Export Proceeds
Declaration form signed and stamped by its commercial bank. Export declarations relate to
certificates of origin under SADC, COMESA, GSP schemes, Euro I (ACP) conditions and AGOA.The Trade Promotion Unit of the Ministry of Foreign Affairs and Trade is responsible for certification
of origin uner SADC, COMESA a nd GSP, and the Department of Customs for certification under
Euro I and AGOA.SACU-Kingdom of Swaziland WT/TPR/S/114/SWZ
Page A5-329
35. The only tax or fee collected on exports is the Sugar Levy (Chapter IV(2)(i)(a)), which is
charged at a rate of 5.75% of the proceeds from the net ex-mill export protocol sales to the EU, and
applies two years in arrears.48
(ii) Export prohibitions, controls, and licensing
36. Export prohibitions apply to products controlled under the various conventions on threatened
species, etc. to which Swaziland belongs.  Export prohibitions may also be imposed in case of food
shortages resulting from drought or other natural disasters.
37. Swaziland has been required to amend its Customs and Excise Act to satisfy the provisions of
the United States’ African Growth and Opportunity Act. This involves introducing visa and
certificate-of-origin provisions and permitting joint inspection of premises by  Swazi and U.S.
customs officials.
(iii) Export subsidies and assistance
38. No export subsidies are provided to exporters in Swaziland. The authorities have in the past
considered the creation of export processing zones but this was not considered viable. Items
incorporated into an export product may be imported free of all duties or a duty refund may be
obtained.  The Department of Custom s and Excise is responsible for monitoring this concession and
determining any refund due.  Refunds are normally issued as duty credits.
39. The Central Bank of Swaziland administers a Small Scale Export Credit Guarantee Scheme
(ECGS), available to small and medium-sized enterp rises (SMEs) in Swaziland involved in the export
trade.  Exporters, or 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.  Loans under the
ECGS are made at prime lending rate, and the ECGS guarantees 75% of pre-shipment and 85% of
post-shipment loans approved by the commercia l banks under the scheme.  According to the
authorities, the scheme is not widely used, partly because very few SMEs are involved in the exporttrade and partly because the conditions of the scheme are quite rigorous.
40. The Trade Promotion Unit (TPU) within the Ministry of Foreign Affairs and Trade is the
national focal point for trade promotion
49; 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."50  The unit supports private-sector enterprises by
promoting their goods on world markets, identifies new export products and market opportunities, and
helps enterprises to participate in regional and overseas trade fairs and exhibitions by paying for the
shipment costs of the exhibits and for the exhibition space.
                                                     
48 Rate of Sugar Levy Notice, 1997 (Act No. 4 of 1997).
49  TPU online information is available at:  tpu@realnet.co.sz .
50  Ministry of Enterprise and Employment (2002).WT/TPR/S/114/SWZ Trade Policy Review
Page A5-330
(4) M EASURES AFFECTING PRODUCTION AND TRADE
(i) Incentives
41. The structure of direct corporate taxation and tax incentives in Swaziland has been simplified
considerably in recent years. The corporate tax rate was cut from 37.5% to a flat rate of 30% in July
2001.51  Tax concessions for investors (such as a five-year tax holiday for new manufacturing
enterprises) were replaced in 2000 by a concessional flat rate of 10% for a ten-year period, applicableto new investors or new product lines in manufacturing for export, with criteria relating to capital
employed and number of people to be employed also taken into account. Dividends are exempted
from withholding tax for ten years, and 15% of human resource training costs can be offset against
tax. Allowances with respect to depreciation of machinery, vehicles, and equipment are reported to
vary according to the nature of the item.
52  
42. The Swaziland authorities state that the main reasons for making these changes include the
need to discourage "footloose" industries that may be attracted by a highly incentive-driven tax
structure.  Changes in South Africa’s business taxa tion, and the need to remain competitive with the
Republic, are also relevant factors.
(ii) State-owned enterprises and privatization
43. A large number of parastatal enterprises operate in Swaziland.  Data from the authorities
show 19 Category "A" public enterprises active in the year 2000;  three (Royal Swazi National
Airways, the Swaziland National Provident Fund, and the NIDCS) have ceased to function.53 The
Government has a smaller portfolio of minority shareholdings in a number of commercial businesses,
some of which are classified as Category "B" public enterprises.  The Cotton Board and the Central
Co-operative Union, which are owned by members, and SEBENTA (adult education) are not owned
by the Government, but are eligible for subventions from the Government. Category A publicenterprises represented almost 7% of formal -sector employment and 22% of public sector
employment in 1998.
44. Performance indicators for public enterprises between 1996 and 2000 show that as a whole
(excluding the education sector) they have been profitable;  but performance varies widely between
enterprises and between years (Tables III.4 and III.5).  The major loss-making public entities havebeen the Swazi National Provident Fund and Swazi Bank (both of which are now undergoing major
restructuring) and the University of Swaziland, while the major consistently profit-making enterprises
have been the Swaziland Electricity Board and the Posts and Telecommunications, both of which are
public monopolies.  The Public Enterprises Unit believes that the ratios reflected in Table III.5 are in
some cases inappropriate for a proper explanation of the characteristic of all the parastatals included,thus it is in the process of developing "a new set of financial and non-financial indicators specific to
each public enterprise, which will be reflected in the Unit’s forthcoming Annual Report".
54
                                                     
51 Swaziland Business Yearbook (2002).
52 Swaziland Business Yearbook (2002).
53 "Category A" public enterprises, as defined in the Public Enterprises Act 1989, are enterprises that
are wholly owned by Government or in which the Government has a majority interest or that are dependent
upon Government for their financial support.  In additio n to the enterprises listed in Table III.4, Category A
includes the Central Transport Administration, the Commercial Board, and the Swaziland TourismDevelopment Company.
54 Communication from the authorities, January 2003.SACU-Kingdom of Swaziland WT/TPR/S/114/SWZ
Page A5-331
Table III.4
Operating surpluses/deficits of selected public enterprises, 1996-00a
(Emalangeni)
Sector 1996 1997 1998 1999 2000
Agriculture
Swaziland Dairy Board 1,041 -916 -1,432 73 -1,717
National Maize Corporation 29,088 -1,746 2,967 3,042 3,881
Swaziland Cotton Board 187 1,063 364 652 301
NAMBOARD 1,441 805 1,115 -936 125
Sub-total 31,757 -794 3,014 2,830 2,590
Transport sector
Royal Swazi National Airways -8,669 -20,706 -1,612
Swaziland Railways 11,700 8,294 -37 5,522 2,323
Sub-total 3,031 -12,412 -1,649 5,522 2,323
Finance sector
Swaziland National Provident Fund 17,530 23,660 11,412 -15,987
Swazi Bank -33,401 -36,354 -13,382 -25,308 -11,723
Entreprise Trust Fund 324 5,043 9,700
MVA .. .. .. -632 -914
Sub-total -15,857 -6,972 -1,646 -36,884 -2,937
Utilities sector
Swaziland Electricity Board 15,985 35,379 30,255 38,542 23,615
Posts and Telecommunications 5,246 32,304 37,049 25,297 26,939
Swaziland Water Services Corporation -6,669 1,360 -803 -1,551 2,938
Sub-total 14,562 69,043 66,501 62,288 53,492
Business promotion sector
NIDCS 1,243 1,245 1,032
SIPA .. .. .. -1,801 5,054
Small Enterprises Development Co. 1,295 248 -1,272 -1,212 -1,218
Sub-total 2,538 1,493 -240 -3,013 3,835
Other
Piggs Peak Hotel -285 46 -533 -91
Swaziland Television Authority -4,976 -8,262
National Housing Board -1,890 344 -764 -130 815
National Trust Commission 327 198 580 -5,574 -5,584
Sub-Total -6,824 588 -717 -13,967 -4,860
Grand total 29,793 50,946 68,649 16,777 54,443
Educational sector
UNISWA -2,916 -512 -3,795 -55,865 -22,055
Sebenta 259 569 614 -1,490 -1,177
Sub-total -2,657 57 -3,181 -57,355 -23,233
Grand Total (including eduction) 27,106 51,003 65,468 (40,578) 31,210
.. Not available.
a Year end 31 March.
Source : Data provided by the Swaziland authorities.WT/TPR/S/114/SWZ Trade Policy Review
Page A5-332
Table III.5
Public enterprise performance indicators, 1998-00a
(Emalangeni)
Revenue/Fixed assets ratio Return on capital employed Return on revenue
Sector 1998 1999 2000 1998 1999 2000 1998 1999 2000
Agriculture 4.13 7.59 3.35 0.14 0.08 0.05 0.07 0.03 0.04
Transport 0.92 0.63 0.99 -0.01 0.03 0.01 -0.01 0.07 0.02
Finance 0.69 1.11 1.95 -0.05 -0.09 -0.02 -0.35 -0.46 -0.06
Utilities 0.75 0.67 0.70 0.15 0.08 0.06 0.20 0.14 0.11
Business promotion 0.62 1.11 4.09 0.00 -0.34 0.30 -0.06 -1.15 0.32
a Year end 31 March.
Source : Data provided by the Swaziland authorities.
45. In addition to these public enterprises, th ere are two principal holding companies with
investments widespread across sectors:  the Sw aziland Industrial Development Company (SIDC) and
Tibiyo Taka Ngwane (Tibiyo).
46. SIDC is a joint venture between the Swaz iland Government and a number of major
international and local financial institutions. SIDC currently offers the following services to potential
or actual investors in Swaziland: 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 buildings, particularly in the Matsapha
Industrial Estate.
47. Tibiyo is a Swazi Nation organization, sepa rate from the Governmental structure and
reporting to the King.  Its objectives are to:  complement government in fostering economic
development and self sufficiency;  increase formal sector employment;  increase income in the handsof citizens;  earn or save foreign exchange;  develop rural communities;  foster and support Swazi
tradition and cultural heritage;  and assist financially and materially in the education and training of
citizens.
48. Tibiyo is heavily involved in the sugar sector through a number of joint ventures, such as:  the
Royal Swaziland Sugar Corporation, jointly ow ned by Tibiyo, Tate and Lyle, Commonwealth
Development Corporation (CDC), the Nigerian and Swaziland Governments and other minority
shareholders;  Ulombo Sugar, jointly owned by Illovo Africa Ltd and Tibiyo;  Mhlume Sugar
Company, jointly owned by CDC and Tibiyo;  and the Inyomi Yani Swaziland Irrigation Scheme.
The organization also has significant investments in maize cropping and milling, rice milling, cattle
ranching, dairy farming, a number of manufacturing sectors (brewing, brickworks, printing, and
confectionery manufacturing), and smaller participation in mining and services (tourism, insurance
and wholesale trade).
49. The Public Enterprises Unit (PEU) within the Ministry of Finance was established under the
Public Enterprises (Control and Monitoring) Act 1989. The Act mandates the PEU to monitor and
report on the performance of all Category A public enterprises, to ensure their efficient operation, to
provide technical assistance whenever necessary, and to advise the Cabinet Standing Committee on
Public Enterprises (SCOPE) on the relevant issues.
50. Recently the Swaziland Government has introduced a policy of separating the regulatory
functions of parastatal enterprises from their commercial operations.  For example, the Dairy Board
has been split from its former selling organization, Pamalat, which now operates as a separate,SACU-Kingdom of Swaziland WT/TPR/S/114/SWZ
Page A5-333
commercial entity;  other splits are being considered.  This raises new questions for Swaziland, of
how to deregulate productive activities and ensure competition in a small economy.
(iii) Competition policy and price controls
51. Swaziland has until recently had no competition policy. An incipient structure for competition
policy is contained the Fair Trading Act, 2001, a nd the Competition Bill, 2002, which in January 2003
was still before Cabinet. The objectives of the Fair Trading Act (FTA) are:  to establish a standardcode of trading conduct and prohibit deceptive trade practices; to prohibit conduct liable to mislead
the public in relation to employment or to sale of goods or services;  to prohibit false representation of
goods or services;  and to protect proprietors of trade marks, and consumers, from unscrupulous
supply of goods bearing false trade marks.  Thus the FTA links both to consumer and to intellectual
property protection.  The Competition Bill is "to provide for the encouragement of competition in theeconomy by controlling anti-competitive trade practices, mergers and acquisitions, protecting
consumer welfare and providing for an institutional mechanism for implementing the objectives of the
Bill and other matters incidental thereto".
52. Price controls in Swaziland are imposed under the Price Control Order, 1973.
55  This provides
for the fixing of maximum prices for both goods and services.  Currently, only three products areunder price control;  bread, gasoline, and sugar.
(iv) Intellectual property protection
53. Swaziland’s legislation relating to protection of trade marks, patents, utility models, and
industrial designs is relatively modern;  it consists  of the Trade Marks Act, 1981 (Act No. 6 of 1981)
and the Patents, Utility Models and Industrial Desi gns Act, 1997 (Act No. 6 of 1997).  Copyright is
protected under the Copyright Act 1912; however, a new Copyright Bill has been drafted. The Fair
Trading Act, mentioned above, is also relevant to TRIPS questions as it aims to deal with violations oftrade marks in future.
54.   Swaziland is a member of the African Regional Industrial Property Organization (ARIPO),
and a signatory to the Paris Convention for the Protection of Industrial Property, the ARIPO Protocol
on Patents and Industrial Designs, the Patents Cooperation Treaty, 1970, and the Berne Convention.
55. A number of WTO Members have posed questions to Swaziland in the context of the TRIPS
Council review of intellectual property legislation
56, but so far Swaziland has not replied, nor has it
yet notified its legislation as required by the TRIPS Agreement.  Swaziland’s intellectual property
legislation is currently under review by WIPO.
56. General responsibility for TRIPS issues falls under the Registrar-General’s Department in the
Ministry of Justice.
57. The Trade Marks Act, 1981 establishes a Registrar of Trade Marks (in the Registrar-
General’s Office of the Ministry of Justice ).  Trade marks may be registered for a period of ten years,
and may be renewed for subsequent periods of ten years. The registered proprietor 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 decisions regarding trade marks
                                                     
55 Order-In-Council No. 25 of 1973.
56Questions by Members:  Canada: IP/C/W/314; Switzerland: IP/C/W/315; United States: IP/C/W/316;
European Union: IP/C/W/320; Japan: IP/C/W/322; and Australia: IP/C/W/328.WT/TPR/S/114/SWZ Trade Policy Review
Page A5-334
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.
58. The Patents, Utility Models and Industrial Designs Act, 1997, establishes a Registrar of
Patents, in the Registrar-General’s office.  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 possibility of renewal. Registrations of industrial designs are valid for fiveyears from the date of application, renewable for two subsequent periods of five years.
59. 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 authorities
admit that the legislation is considerably deficient; for example, currently, there is a severe problem of
piracy in audio and audiovisual cassettes, CDs, and DVDs, and no provisions exist for royalties to bepaid to musicians, authors or performers.
60. A new Copyright Bill, currently awaiting presentation to the Cabinet (February 2003),
addresses the administration of copyright and neighbouring rights, audiovisual works, expression 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 Administrator’soffice in the Registrar-General’s office.
61. Penalties for infringement of IP legislation vary between a maximum fine of E 2,000 and/or
imprisonment for six months in the case of the Trade Marks Act to a maximum fine of E 10,000
and/or five years’ imprisonment in the case of the Patents, Utility Models and Designs Act.  Civil
suits relating to damages may also be brought.
62. Table III.6 shows statistics on registration of IP rights since 1991.
Table III.6
Registration of intellectual property rights, 1991-02
Year Trade/Service Marks Patents Industrial designs
1991 446 59 12
1992 554 47 8
1993 580 42 5
1994 1,453 27 5
1995 1,068 48 5
1996 846 39 3
1997 803 42 3
1998 659 23 2
1999 631 43 9
2000 604 17 ..
2001 431 8 ..
2002 470 5 ..
.. Not available.
Source: Information provided by the Swaziland authorities.SACU-Kingdom of Swaziland WT/TPR/S/114/SWZ
Page A5-335
IV. TRADE POLICIES AND PRACTICES BY SECTOR
(1) OVERVIEW
1. As noted in Chapter I, the economy of Swaziland remains heavily imbalanced by sector.  The
agriculture sector is divided between the cash economy, mainly dependent on sugar and on
preferences in the EU and U.S. markets, and the subsistence sector, which remains very
underdeveloped.  Manufacturing has until recently been almost entirely dependent on sugar and otherfood-based production, mainly subject to developm ents in South Africa (although COMESA as an
outlet is growing in importance).  New preferential outlets in the United States for clothing under the
African Growth and Opportunity Act (AGOA) offer so me prospect of diversification and Swaziland is
classed as a "lesser-developed be neficiary" under AGOA.  Swaziland is  in the process of modernizing
its legislation concerning financial, transport, and tourism services;  however, little modernization orderegulation has yet taken place in telecommunications.
(2) P
RIMARY SECTOR
(i) Agriculture and related activities
(a) Selected crops and animal products
2. Agriculture accounts for some 10% of Swaziland’s  GDP.  As noted in Chapter I(1), the sector
is highly dualistic, broadly speaking, with large-scale, commercial, irrigated, export-oriented
production on "title-deed" land, and small-scale, rain-fed, production for local markets (often informal
or subsistence level) on "Swazi nation" land (SNL).   Large-scale agriculture focuses on production of
sugar (Swaziland’s largest single crop), meat, dairy products, citrus, and other fruit, while the
small-scale sector is devoted mainly to production of maize, cotton, vegetables, and other foodstuffs,
as well as cattle (largely regarded as a store of value, and with little commercial significance) and
other livestock.  There is some limited overlap between the two sectors, and some steps are beingtaken to make the SNL sector, in particular, less vulnerable to weather fluctuations through the
provision of irrigation
57; however, such efforts are still at an embryonic stage.58
3. In policy terms, Swaziland’s main export products - sugar, citrus and other fruit - remain
heavily dependent on the maintenance of existing preferential access to the EU, U.S. and South
African markets.  Sugar in particular is very heavily dependent on duty-free and price-supportedaccess to Europe, and to a much lesser extent to the United States.  Withdrawal of these preferences in
a short period would probably cause the collapse of the sector.
4. Sugar accounts for more than half the volume of farm output in Swaziland; established in
1958, the industry now contributes 18% of national output, 16% of private-sector wage employment,
and 11% of national wage employment. Most sugar production is by large estates on irrigatedtitle-deed land; a small volume is produced by small farmers on Swazi nation land. The opening of the
Maguga Dam is expected to boost output of sugar still further, including through smallholder
schemes.
                                                     
57 It is estimated, inter alia , that the Maguga Dam project in northern Swaziland, scheduled for
completion in 2006, will benefit about 20,000 people by enabling irrigated sugar cane production by small
farmers;  another water development, the Usutu River basin, may open 25,000 hectares of land for exclusive useby small farmers  (Swaziland Business Yearbook, 2002).
58 The Economist Intelligence Unit considers that "Only drastic reform of the land tenure system will
encourage the transformation of SNL agriculture" (EIU, 2001).WT/TPR/S/114/SWZ Trade Policy Review
Page A5-336
5. According to the Swaziland Sugar Associatio n, more than 92% of the sugar produced in
Swaziland is exported.  Roughly half of the outp ut is sold within SACU , around 30% to the EU, 3%
to the United States, and the rest on the world market.59  Swaziland sugar benefits from preferential
access to three markets:  SACU, the European Union and the United States (Box IV.1).  In all cases,
Swaziland’s sugar benefits from preferential access to the markets concerned;  from agreed supply
quantities at agreed prices in the EU and United States, and from supported prices (see Table I.2).Without this protection, Swaziland would receive prices based on competition from world market
sugar, including from Brazil, Cuba, the EU  itself, Australia, India, and Thailand.
6. In the framework of the WTO negotiations on agriculture, Swaziland has presented two
papers: "Market Access under Special and Differential Treatment for Small Developing Countries" 
60,
and "Trade Preferences – A Proposal for Small Developing Countries" (non-paper no. 8876, dated26 November 2001)  The first paper proposed that current preferential market-access arrangements
enjoyed by small developing countries (SDCs) should be protected in the new negotiations for a
sufficient period for meaningful development and adjustment to occur, and that provisions must be
included to allow SDCs to protect local agriculture from threatening imports, with a gradual phase-out
of such protection but retaining a safeguard provision; that tariff escalation should be reduced toenable SDCs to move from production of raw materials to processed products; that the reduction of
support measures in developed countries "should be approached with flexibility, imagination and
innovation so that the progress of SDCs is not st unted"; and that no SDC should be disadvantaged by
giving special and differential treatment to other developing countries.  The second paper set out a
framework for redefining trade preferences in th e WTO, including a reformulation of the Enabling
Clause to include all vulnerable developing countries, namely least-developed, small, island, and
landlocked states; definition of a subset of countries deserving special support because of small sizeand vulnerability, together with graduation clauses; commitment by developed markets to preferences
on a multi-year basis, with a period sufficiently long to enable meaningful structural adjustment and
human development in receiving countries; definition of trade preferences in absolute (e.g. monetary)
rather than relative terms, avoiding erosion of preferences as tariff rates fall; increase of tariff rate
quotas under the GSP for small, vulnerable developing countries; and reduction of tariff peaks andtariff escalation to encourage diversification and higher value-added production for export.
7. The combination of sugar growing and access to the SACU markets has also encouraged
growth of food industries based on sugar (see below);  sudden changes in the situation could lead to
the withdrawal of these investments, just as it co uld for the sugar industry itself.  Some commentators
have asserted that the sugar-using industries in Sw aziland have been adversely affected by exports of
subsidized sugar-containing products to their ma in markets in SACU (see section (3) below).
8. Citrus and other fruit production is also a significant element in large-scale production on
title-deed land. Pineapples and other fruit are largely canned locally for export to South Africa as well
as to the EU, United States, and Japan; citrus is largely marketed, together with South African
produce, through the South African Cooperative Citrus Exchange.
61  Again, the industry is highly
dependent on the maintenance of preferential conditions.  As noted in Chapter II, Swaziland’s beef
                                                     
59 Figures supplied by the authorities show that the quantity of sugar sales within SACU during the
period 1997/98-2001/02 represented on average 53.3% of output; this masks a fall in the SACU share from 56%
to 48% of a rising total output between 1997/98 and  2000/01, when sales to SACU were rising, and an increasein the SACU share to 59% in 2001/02 when total production declined.
60 WTO document G/AG/NG/W/95 dated 22 December 2000.
61 Ministry of Enterprise and Employment (2002).SACU-Kingdom of Swaziland WT/TPR/S/114/SWZ
Page A5-337
exports to the EU benefit from a tariff quota under which the ad valorem  element of the EU’s
common external tariff on beef is reduced by 92%.62
9. As noted in Chapter III, Swaziland requires import permits on a number of farm and
processed products (wheat flour, dairy products, maize, and rice) and maintains import levies on a
range of dairy products under Legal Notice No. 2 of 2000, and on a number of other products under
the National Agricultural Marketing Board Act, 1985 (see Chapter III(2)(i) and (ii)).  Price controlsunder the Price Control Order, 1973 apply to bread and sugar for consumption.
10. Veterinary and animal health conditions are laid down in the Animal Disease Act of 1965
63,
as modified by regulations issued up to 2001.  Under the Act, the Minister of Agriculture and
Cooperatives may restrict imports or exports of animals, animal products, live virus, and other
pathogens or biological or chemical products for th e treatment of animals or the use of the latter.  He
may also, in case of disease among stock and in his estimation, in the public interest, fix maximum
and minimum wholesale and retail prices for any animal or animal product for sale within Swaziland
(or specified areas thereof).  The most recent regulation, of 2001, deals with reclassification of foot-
and-mouth diseases guard areas;  prohibition of movement of animals and animal products;
movement of persons, vehicles, and containers;  sanitary measures;  presentation of susceptibleanimals for examination;  testing and destruction of infected animals;  and offences and penalties.  In
1999, to guard against the spread of BSE, the Director of Veterinary and Livestock Services issued a
directive requiring all Veterinary Officers and Animal Husbandry and Extension Officers to ensure
that no ruminant animals were given feed containing animal by-products and to ensure proper
reporting and investigation of animals showing signs of the disease. An amendment to the Act
following the directive is pending.
64 
11. Phytosanitary conditions, including for the import of plants, are laid down in the Plant
Control Act, 1981 (Act No. 7 of 1981). The First Schedul e of the Act defines a list of plants and living
materials prohibited from import into Swaziland.  The Second Schedule lays down that any other
plants or materials require an import permit. The Third Schedule specifies a list of plant materials
that, although requiring a permit, will not normally be restricted if they bear proof that they are from
South Africa;  this list includes fruit and vegetables other than citrus, flowers and other materialsregularly sold by florists and greengrocers; seed potatoes; and a range of other plants or vegetables
including certain subtropical fruit and crops, vegetables, graminaceae, legumes, ornamentals, and
others.  Purchases by individuals 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, for immediate use or consumption and not for sale, may be imported
without a permit (Fourth Schedule of the Act).  The Ninth Schedule contains the general
phytosanitary requirements for the import of plants, plant portions, and certain seeds.
12. Swaziland has not yet notified its legislation on SPS issues to the SPS Committee.  Its enquiry
point is noted in G/SPS/ENQ/13 and its national notification authority in G/SPS/NNA/3.
65
                                                     
62 Cotonou Agreement, Trade Régime Applicable during the Preparatory Period, Protocol 4, Articles 1
and 2.
63 Act No. 7 of 1965.
64 "Veterinary surgeon" is defined in the Act as "a member of the Royal College of Veterinary
Surgeons of Great Britain, or anyone possessing a veterinary qualification recognized by that institution asequivalent to its own, or a possessor of a Bachelor of veterinary science degree of the University of East Africa,or anyone possessing a veterinary qualification recogni zed by the Minister by notice published in the Gazette".
65 The Principal Secretary of the Ministry of Agriculture and Cooperatives.WT/TPR/S/114/SWZ Trade Policy Review
Page A5-338
Box IV.1:  Market access conditions for Swaziland’s sugar
Swaziland benefits from substantial, on going support, in terms both of guaranteed quantities for sale and of price
preferences, for its sugar production and exports to major developed markets, particularly the EU. This has been a major
factor in the development of the large-scale industry in Swaziland since 1958.  Sugar occupies, on a mono-crop basis, the
majority of the productive land in Swaziland. Concerns about this overdependence were raised at the first NationalConference on sugar held in 2001, where it was stated that "From an overall macroeconomic perspective, thisoverdependence on sugar is risky and must be redressed.  The industry is concerned with its own economics. It will
expand as long as it is profitable to do so. It is up to government to provide an enabling environment to encourage the
start-up of non-sugar industries."  The position of Swazi sugar in its protected markets also has a major influence onSwaziland’s position in WTO negotiations on agriculture.
(a) The EU marketSwaziland’s access to the EU market is principally governed by the Sugar Protocol, annexed to the Cotonou Agreement.
This is independent from the agreement a nd is of indefinite duration, unlike the Cotonou Agreement, which runs till 2007.
Under the Protocol, ACP sugar is tied into the Common Agricultural Policy through the Common Organization ofMarkets in the Sugar Sector.  Under the Sugar Protocol, the EU agrees to purchase and import "agreed quantities" at a"guaranteed price", free of duty.  The total quantity imported from all ACP sugar sources under the Protocol in 2000 was
1,297,000 tonnes white sugar equivalent;  Swaziland’s share of this was 117,845 tonnes or about 9%, at a supported price
of €523.70/tonne. In addition, under the Special Preferential Sugar Agreement (SPSA) of 1995, Swaziland benefits froman additional tariff quota (TQ), at a reduced rate of duty, of some 62,000 tonnes (one-fifth of a global TQ of 300,000tonnes) at a price of €427/tonne.  This compares with a "world" market price of US$171/tonne (roughly €200/tonne) in
2001 (see Table I.2).
(b) The United States market
Swaziland benefits from a preferential tariff quota, currently around 16,000 tons of sugar, into the United States. This
represents Swaziland’s share of the minimum sugar imports bound by the United States under the WTO Agreement on
Agriculture.  Swaziland’s share of the U. S. market has declined; until 1999, Swaziland also benefited from an additional
variable amount dependent on the excess demand for sugar in the U.S. market, using a stocks-to-use trigger ratio of 15%,but the present sugar surplus in the United States has limited Swaziland’s share to the bound volume.
Between 1971 and 1987, total sugar imports into the United States fell from between 5,000 and 6,000 short tons
to little more than 1,000 short tons in raw value; during the 1990s the volume fluctuated between some 3,000 and 1,700
tonnes.  For years 2001/02 and 2002/03 the tariff quota for U.S. sugar imports (under which sugar is imported duty free orat a reduced rate was maintained at the minimum level of 1,117,195 metric tons, plus a further 105,788 metric tonsimportable from Mexico under NAFTA provisions. The tariff quota allocation is based on trade patterns established
during 1975-81; discounting Mexico, Swaziland is 11
th of 39 countries among which the TQ is allocated.  In 2000, sugar
production in the United States was reckoned at a record level.  The out-of-quota duty of 15.36 cents per pound isconsidered by the U.S. Department of Agriculture to be "high enough to be generally prohibitive".
(c) The SACU/SADC markets
Under the SADC Sugar Cooperation Agreement signed in 1998, Swaziland’s sales of sugar to the SACU market are likely
to face lower-cost competition from SADC exporters such as Mozambique and Zimbabwe. The agreement, which is anannex to the SADC Trade Protocol, has the long-term objective of full liberalization in the sugar sector in the region after
2012; in the meantime it provides for temporary measures "to insulate member States’ sugar producing industries from the
destabilizing effects of the distorted global market."
66 Currently, an annual tariff-free quota of 45,000 tonnes is shared out
among all SADC surplus producers; an additional 20,000 tonnes per annum is available in the SACU sugar market to non-SACU SADC member states producing surplus sugar, and will be allocated according to each producer’s relative net
surplus production.  Allocations of this additional quota w ill not be transferable among SADC member States (See also
Main Report, Chapter II(4)).
Source: Summary of Discussion from the Floor, Session I:  Swaziland Sugar Journal , Special Edition, September 2001; 
Price, J., "The Position of the Swaziland Sugar Industry in the International and particularly the EU Sugar 
Markets", Swaziland Sugar Journal , Special Edition, September 2001;  United States Department of 
Agriculture, Briefing Room, "Sugar and Sweetener: Trade" ( http://www.ers.usda.gov/briefingsugar/trade.htm );  
U.S. Raw Sugar Tariff  Rate Quota;  and Agricultural Outlook , September 2000, "Weak Prices Test U.S. Sugar 
Policy").
                                                     
66 SADC (2001).SACU-Kingdom of Swaziland WT/TPR/S/114/SWZ
Page A5-339
(b) Forestry
13. Around 45% of Swaziland’s terrain is covered by forests and woodlands; natural forests,
woods and bush cover some 35.6%, plantation forests 6.4% and wattle forests (largely now
uncultivated) 1.4%.  The subsector accounts for about 17% of formal employment and 15% of GDP.67
As in agriculture, there is a dichotomy between cultivated plantation forest – largely for commercialpurposes - and "natural" woodlands and scrublands largely on communal lands, where there is littleformal economic development and degradation has been increasing due to factors such as conversion
of forest lands to agriculture, uncontrolled extraction of forest products, and large livestock
populations.
68
14. The principal export-related production is unbleached kraft pulp from plantation pine forests,
which accounted for nearly 9% of exports in 2001 (Table AI.1); other export products include mining
and construction timber, doors and pallets, wooden furniture and shelving units, as well as eucalyptus
oil.69
15. In the context of the National Development Strategy, the Cabinet is currently (February 2003)
considering a National Forest Policy and Regulation with the declared aim "to achieve efficient,
profitable and sustainable management and utilization of forest resources for the benefit of the entiresociety, and to increase the role of forestry in environmental protection, conservation of plant and
animal genetic resources and rehabilitation of degraded land."
70
16. Existing legislation concerning forestry in Swaziland consists of the Natural Resources Act
1951, the Flora Protection Act, 2001, aimed at protec ting indigenous flora, including environmental
impact assessment in respect of any activity impacting on such flora, and the Control of Tree Planting
Act, 1972, which, inter alia,  discourages the expansion of plantations on title-deed prime agricultural
land.71
17. The Forest Policy covers a wide variety of issues, including economic and social
sustainability, biodiversity, pollution control, relations between commercial forestry and community
development, taxation questions, certification of forestry activities under Forest Stewardship Council
(FSC) or ISO 14001, and relation of forestry management to such Swazi laws as the Standards and
Quality Assurance Act, 2001 (Chapter III(2)(iv)) and the Industrial Relations Act, 2000.  In relation totrade policy measures, it focuses on creating an enabling environment for downstream, value-adding
industries, through enhancing existing tax incentives .  It suggests investigating whether this could
better be achieved through offering pioneer status with tax exemption and industry protection for a
given period of time, or whether introducing export taxes on unprocessed or semi-processed products
could have the desired effect.
72
(ii) Mining and quarrying
18. Swaziland has deposits of asbestos, coal, quarryable stone, sand and soapstone, and kaolin,
gold, talc and silica on a limited scale.  All mining rights are vested in the King, and held in trust for
the Swazi nation;  royalties are assigned to the royal fund Tisuka Taka Ngwane.  Little export-related
activity takes place; mineral exports, mainly of anthracite coal and asbestos, account for around 1.4%
                                                     
67 Swaziland Business Yearbook (2002).
68 Ministry of Agriculture and Cooperatives (2001), Section 1.1.
69 Swaziland Business Yearbook (2002).
70 National Forest Policy, section 1.2.
71. National Forest Policy, section 1.6.
72  National Forest Policy, section 2.1.5.1.WT/TPR/S/114/SWZ Trade Policy Review
Page A5-340
of total exports.  Quarried stone is generally used for local road construction and repair; the principal
anthracite mine closed during 2001 but mining has resumed under a new 20-year renewable lease to
joint-venture ownership between Tibiyo Taka Ngwane and several American investors.73 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.  Excavation of sand and soapstone is strictly
controlled under the Mineral and Environmental Authority Act of 1992, which provides forsubstantial penalties for illegal extraction.
(3) M
ANUFACTURING
19. Much of Swaziland’s manufacturing production remains based on inputs from the sugar,
dairy, and forestry subsectors.  The main local input-based exports are flavourings and other food
preparations;  these together accounted for 37% of exports in 2001.  As noted above, wood-basedproducts are also significant value-added exports.  Tissue and kraft wrapping paper are exported to
South Africa, based on recycled waste paper mainly imported from South Africa.  Since 2000, exports
of clothing have increase d markedly under AGOA conditions.
20. Most food and fodder exports (soft drink concentrates, confectionery, canned fruits, wheat
and maize-based animal feeds) are to the SACU region, principally South Africa, although Swaziland
also exports throughout the S ADC 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.
21. The structure of SACU tariffs is of concer n to Swaziland’s sugar-using and wheat-using
industries.  They would wish to benefit from lower cost sources for their raw materials than within
SACU and have made representations to th e Government about the present situation.
22. Sugar-based products are also subject to the effects of policies determined elsewhere.  One
UK-based NGO, ActionAid, has recently alleged that "subsidized EU sugar products, primarily
confectionery products, are seriously undermining the Swazi sugar processing industry.  For example,
the Sugar Daddy factory used to provide sugar confectionery products for the South African market…
However, in recent years the South African outlets have increasingly switched to buying cheaper,
subsidized EU confectionery imports and in 2001 the Sugar Daddy factory was forced intoliquidation…the dumping of EU sugar products has led to the loss of some 16,000 jobs in the Swazi
sugar industry and 20,000 jobs indirectly linked to the industry, such as packaging and transport".
74 
23. As noted in Chapter II(2)(iii), Swaziland has been eligible for AGOA benefits in the
United States since January 2001, including on textiles and clothing, and is counted as a less
developed beneficiary country (LDBC).  Between 1999 and 2001, the valve of U.S. imports fromSwaziland increased by 72%, from US$37.8 million to US$65 million.  The largest part of this trade
was in textiles and clothing (US$48 million in 2001).  Data for the period January-September 2002
show a very rapid increase in the share of this trade falling under AGOA benefits (88% of all imports
in January-September 2002); almost 100% was textiles and clothing.
75  Swaziland has seen a
substantial increase in investment, especially in textiles and clothing.  Investors have been primarilyfrom Chinese Taipei.  The AGOA has contributed nearly 17,000 jobs to Swaziland’s economy.  At
end 2002, roughly 20 textile and apparel factories had began or expanded operations, and other new
operations are under consideration.
                                                     
73 Ministry of Enterprise and Employment (2002).
74 ActionAid (2002).
75 USITC online information.  Available at:  http://reportweb.usitc.gov/africa/by_country.jsp .SACU-Kingdom of Swaziland WT/TPR/S/114/SWZ
Page A5-341
(4) SERVICES
24. Swaziland’s sector-specific commitments under the GATS reflect the Government’s policy of
maintaining liberal cross-border supply of services and encouraging commercial presence.  The
commitments cover nine sectors or subsectors (engineering services, integrated engineering services,
medical and dental services, consultancy services related to the installation of computer hardware,
research and experimental services on natural sciences and engineering, management consultingservices, technical testing and analysis services, hospital services, and hotel and restaurant services).
76
In all cases, Swaziland has left measures affecting cross-border supply (mode 1) unbound, and allowsmarket access without limitation on consumption ab road and commercial presence (modes 2 and 3).
Under mode 4, 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.
25. Swaziland’s MFN exemptions in services relate to financial services, where an exemption is
made for the preferential access that members of the CMA enjoy to the Swaziland capital and money
markets and the maintenance of exchange controls by the CMA; and to any existing or future bilateral
agreements relating to international road transport (including 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).
(i) Financial services
26. Four commercial banks, one building society, one insurance company, and the National
Provident Fund (a compulsory savings, life insurance, and pension institution), operate in Swaziland.
The commercial banks are First National Bank/Wesbank, Nedbank Swaziland, Standard Bank
Swaziland, and Swazibank (previously Swaz iland Development and Savings Bank).   The existing
banking legislation, contained in the Financial Institutions (Consolidated) Order 1975, requires banks
to apply for and obtain a licence from the Central Bank of Swaziland before they start operations.
Commercial bank lending is dominated by short-term loans to the agri-processing sector, principally
the sugar industry; according to the IMF, foreig n-controlled businesses and the Government do not
rely on the local banking system for finance.  There is not yet a government securities market inSwaziland.
27. Swazibank was restructured during 2000-01, but still depends on transfers from the general
budget.  It is licensed to provide the full range of banking services but is also required under its
statutes to promote rural development, infrastruc ture development and local empowerment;  these are
higher-risk areas by national standards.
28. The Swaziland Building Society is the country’s major provider of long-term mortgage
lending ; however, it operates only on title-deed land properties.  The Swaziland Royal Insurance
Corporation is the only national insurance company, with a monopoly on insurance policies of all
classes under the Swaziland Royal Insurance Corporation Order 1973.  This company and the
National Provident Fund have recently seen their investment base seriously eroded by the falls inglobal stock markets and by the effects of the HIV/AIDS epidemic.
29. In recent years, Swaziland has enacted, or is in the process of formulating, several inter-
related new laws to reform the financial sector, which should create conditions more consistent with
good international practice and open the market to competition in some areas.  Thus, the Money
Laundering (Prevention) Act 2001 defines the crim e of money laundering, lays down penalties, and
                                                     
76 WTO document GATS/SC/81, 15 April 1994.WT/TPR/S/114/SWZ Trade Policy Review
Page A5-342
places a legal responsibility on institutions to report suspicious transactions to a supervisory authority.
The Securities Bill, 2002 creates a regulatory structure for the capital market in Swaziland.
30. The Financial Institutions Bill will, when passed, repeal the existing Financial Institutions
(Consolidation) Order. It seeks to incorporate the Basle Core Principles for Effective Bank
Supervision, as endorsed by the East and Southern Africa Bank Supervisors Group (ESAF), into
Swaziland’s legislation; to implement a consolidated system of supervision and exchange ofinformation with other Central Banks or supervisory authorities; to provide for investigation of
institutions taking illegal deposits;  to enhance the duties of auditors; to provide a framework for
reporting suspicious transactions; to provide for the seizure, winding up, and re-organization of
financial institutions;  and provide for prudent and sound corporate governance for financial
institutions.  The Bill defines future provisions for operating banks and other financial institutions inSwaziland (whether domestic or foreign owned), lays  down levels of capital and reserve accounts,
prescribed investments and minimum liquid assets, sets out the duties of auditors and terms of
financial reporting, and defines such things as the liabilities of directors and officers, anti-competitive
agreements, and liquidation or reorganization of financial institutions.  The Bill does not apply to
building societies, cooperative institutions or insurance companies.
31. The Insurance Bill, 2002 aims to demonopolize the insurance industry while setting in place a
legal framework for the supervision of insurance comp anies and intermediaries to ensure that they are
managed with due diligence and professionalism.  It provides for:  the establishment of a Registrar of
Insurance and Retirement Funds, an Insurance and Retirement Funds Board and an Insurance
Adjudicator; the supervision of insurance companies and intermediaries; regular reporting by
insurance companies; standardization of procedures  governing the operations of insurance companies
and intermediaries; and sanctions for offences committed against the procedures laid down in the Act.The Bill opens the insurance market to foreign investors under certain conditions:  only public
companies with a paid-up share capital of at least E 2 million may apply for registration as insurers; at
least 15% of the 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 retirement fund, of its membership) must be held by citizens of Swaziland; at least 10% ofthe directors of the company must be citizens of Swaziland; and any insurer registered in Swaziland
must maintain a principal office and appoint a principal representative in Swaziland.
32. The Retirement Funds Bill, 2002 lays down conditions for the operation of retirement funds,
including registration, management (fiduciary responsibilities, rules, contributions, and bank
accounts), statutory obligations and statutory restrictions on the disposal of retirement fund benefits. Itestablishes a Registrar and Adjudicator of Retirement Funds and provisions for dealing with
complaints.
33. Overarching this new structure of bills and acts governing the financial system is the Central
Bank of Swaziland (Amendment) Bill, 2002, which seeks to amend the Central Bank of Swaziland
Order of 1974, so as to provide for the promotion and operation of payment systems, theestablishment of an Ombudsman’s office, the supervision of financial institutions, the establishment
of a Monetary Policy Consultative Committee (although, because of its membership of the Common
Monetary Area,  Swaziland is not in a position to conduct an independent monetary policy), the
publication of policy directives by the Prime Minister, and the Bank’s accountability to Parliament.
(ii) Telecommunications
34. Fixed telecommunications services in Swaziland are still in the hands of the national
monopoly, the Swaziland Posts and Telecommunicat ions Corporation (SPTC), established in 1983SACU-Kingdom of Swaziland WT/TPR/S/114/SWZ
Page A5-343
under the Posts and Telecommunications Act and responsible to the Ministry of Tourism,
Environment and Telecommunications.  The cellular network is also under the monopoly control of
Swazi MTN, a consortium made up of SPTC, MTN of South Africa and a local empowerment
company. According to the authorities, "service needs in Swaziland are to be met by means of a
20-year development master plan that will ensure an orderly telecommunications network
expansion."77
35. The Government has formulated a new Telecommunications Policy aimed at liberalizing the
sector through the passage of a new Telecommunications Act. This will eliminate the SPTC and
separate posts and telecommunications into two separate corporations. The telecommunications
business will be incorporated as a telecommunications company under the Companies Act. A  new
regulatory body, the Swaziland Communications Commission (SCC), will be set up.  A period of
exclusivity for the new Telco will determined at the date of commencement of the Act and
competition will be opened for private networks, internet services, value added services and customer
premises equipment within 90 days after the effective date of SCC’s operating authority.78
36. Current developments plans include the modernization of telephone systems in rural areas by
the replacement of copper wire with optic fibre systems;  and the subsequent installation of ISDNsystems, data circuits, and high-speed Internet connections. The Internet was introduced to Swaziland
in 1995 and a local Internet portal, Swazi.net was introduced in 2000.  SPTC also offers subsidized
rates to schools to assist in connecting them to th e Internet.  The cellular network reportedly covers
over 70% of the geographical area, including all major business centres, as well as continuous
coverage from the Ngwenya border, along the Mbabane-Manzini highway and on to the Mozambique
border.
79
(iii) Transport
37. 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 Swazila nd’s exports. Air services are also relatively poor.
A National Transport Policy adopted in 2000 sets out a new strategy for the integrated development of
all transport subsectors.
38. Transport infrastructure development accounts for between 36% and 43% of the government
budget.  Like many developing countries, Swazil and's challenge is that construction of roads,
railways, and airports may be relatively easy, often using external aid resources, but that maintenance
has been inadequate.80
39. Under a National Transport Policy adopted in June 2000, 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.  The general policy document also includes a rural
access policy, under which the Ministry of Public Building and Works has been mandated to take over
responsibility for maintenance of the feeder road network, using labour-intensive methods.81  T h e
                                                     
77 Ministry of Enterprise and Employment (2002).
78 Kingdom of Swaziland, Draft National Telecommunications Policy, 2001.
79 Swaziland Business Yearbook (2002).
80 The Ministry of Public Works and Transport’s 2001/2002 " Transport Bulletin ", shows that transport
infrastructure spending absorbed more than 35% of the government annual capital budget in FY 2001/02 and5.4% of the recurrent budget.
81 The network was originally constructed under the aegis of the Ministry of Agriculture, but no clear
responsibility was assigned for its maintenance.WT/TPR/S/114/SWZ Trade Policy Review
Page A5-344
policy also seeks to improve the regulatory struct ure for road transport and to this end a new Road
Transport Bill and Road Traffic Act are before Parliament.
40. In respect of rail development, the volume of goods moved by Swaziland Railway in import-
export trade has been growing steadily, despite difficulties with the main east-west line and generally
with capacity.  In the financial year 2001/02, import-export trade carried by rail increased by 19.4%
over the previous year, reaching the highest level since 1995;  the main contributions came fromsugar, coal, timber, and cement, and transport of  wood pulp returned to the rail network. The
east-west line to the border with Mozambique is under rehabilitation with Italian assistance.
Expansion of the inland container depot (Matsapha dry port) has been completed, with assistance
from Chinese Taipei.  Swaziland’s rail network is directly competitive with Mozambique’s ports and
transport links to and from Zimbabwe and northern pa rts of South Africa;  to that end a new western
rail link into South Africa has been studied and is before the Ministry for consideration.
82
41. Air transport links with Swaziland are limite d:  one company (Airlink Swaziland, a joint
venture between the Government and South Africa n Airways) operates the principal link between
Manzini and Johannesburg and a second (Swazi Express) operates the Manzini-Durban and
Manzini-Maputo routes. Royal Swazi National Airways, which was the national carrier, ceased tooperate in 1999.  There is no significant air freight operation.  Plans are afoot to upgrade Matsapha
airport and to construct a new international airport at Sikuphe in the Lowveld area.
(iv) Tourism
42. Tourism is a potentially important subsector for Swaziland’s economy; although it currently
contributes under 2% to GDP, it accounts for roughly one quarter of services exports.  The industry
has had to reorient itself since the advent of demo cracy in South Africa and that country’s approval of
the opening of casinos and gaming houses. In recent years, a decline in South African visitors hasbeen partly compensated by an increase in other vis itors.  In terms of local currency, tourist receipts
held up reasonably well between 1997 and 2000;  however, because of the depreciation of the
currency, receipts in U.S. dollar terms fell markedly during the period (Table IV.1).  Statistics for
2001 show that 341,000 tourists visited Swaziland during the year.
Table IV.1
Receipts and Bednights Sold, Tourism, 1997-00
1997 1998 1999 2000
Bednights sold 415,600 424,116 438,996 421,407
Total receipts
- E million- US$ million170.0
36.9179.0
32.7185.0
30.2188.7
27.3
Source : Swaziland Business Yearbook (2002).
43. A new parastatal body, the Swaziland Tourism Authority, funded by the European Union and
the World Bank, was launched in 2001 under the Tourism Authority Act.  The aim is to develop a
Swaziland Tourism Strategy to promote and improve the industry.  A draft Tourism Policy wasadopted in 2001 with six key principles:  that tourism development should be private-sector driven,
with Government playing a supportive role;  that  tourism development will be managed to ensure
sustainability and the conservation of the country’s environment and natural resources;  that tourism
development will promote active Swazi participation in the subsector as entrepreneurs and suppliers
                                                     
82 Ministry of Public Works and Transport (2002).SACU-Kingdom of Swaziland WT/TPR/S/114/SWZ
Page A5-345
of goods and services and as customers, and that community-based tourism will be encouraged; that
tourism development will aim to maximize the opportunities afforded by strategic regional initiatives
such as the Maputo Development Corridor, the Lubombo Spatial Development Initiative marrying the
efforts of South Africa, Swaziland and Mozambique, the Lubombo Trans-frontier Conservation Area
and the Bio-diversity and Tourism Corridors; that Swazland will provide a clean, healthy, and safe
environment for tourism, linking up with other service sectors; and that the Swaziland tourist industrywill develop a marketable identity focussing on selected niches and products that can differentiate
itself, where necessary, from its neighbours.
44. Effective development of tourism in Swaziland will also depend on cooperation with South
Africa for joint holiday reservations, as well as on improvement of the road infrastructure within the
country and of the air services to Manzini.  The Government has recognized this, inter alia,  through
the designation of the Lubombo Spatial Development Initiative, linking Swaziland with the South
African provinces of Mpumalanga and Kwazulu-Natal, as well as with Mozambique; the creation of
the South East African Tourism Committee (SEATOC) comprising these same areas along with South
Africa’s Northern Province
83, and the Millennium Project, launched early in 2000 to accelerate new
investment in infrastructure and tourism facilities.  Under this programme, targets for increasedtourism revenue were set at 10%, 15% and 25% in 1999, 2000, and 2001 respectively.
84  Swaziland is
also a member of the Regional Tourism Organiza tion of Southern Africa (RETOSA), which promotes
tourism throughout the southern African region and has a well-developed website.85
                                                     
83 SEATOC’s main objective is stated to be the promo tion of the sub-region as a distinctive destination:
to this end it will develop theme routes across borders, produce and distribute publicity materials, establishbetter communication among members, develop a data base for land tourism, facilitate access of SMEs to the
tourism sector, and undertake joint promotion of the sub-region as a tourism destination.
84 Ministry of Enterprise and Employment (2002).
85 RETOSA online information.  Availabe at:  http://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/114/SWZ
Page A5-347
REFERENCES
ActionAid (2002), Farmgate: The developmental impa ct of agricultural subsidies , London.
Central Bank of Swaziland (2002), Annual Policy Statement .
Central Bank of Swaziland (2001), Annual Report 2000/2001 .
Clay, Edward, Louise Bohn, Enrique Blanco de Armas, Singand Kakambe and Hardwick Tchale,
"Climatic variability, economic performance and th e uses of climatic forecasting in Malawi and
Southern Africa", Disaster Risk Management Working Paper Series No. 7, World Bank
(forthcoming).
EIU (2001) Country Profile , Economist Intelligence Unit, London.
Haacker, Marcus (2002), "The Economic Consequences of HIV/AIDS in Southern Africa ", IMF
Working Paper WP/02/38, International Monetary Fund, Washington D.C
IMF (2002), Staff Report for Article IV Consultation , November.
Ministry of Agriculture and Cooperatives (2001), National Forest Policy , October.
Ministry of Enterprise and Employment (2002), Swaziland Review 2002 .
Ministry of Public Works and Transport (2002), " Transport Bulletin:  2001/2002" .
SADC (2001), . "SADC Free Trade",  SADC Review, 2001, Special Feature  .  [Online].  Available at:
http://www.sadcreview.com/special%20fea tures%202001/sadcfreetrade/frfreesugar.htm .
Swaziland Business Yearbook (2002).Swaziland Sugar Journal  (2001), "Markets for Swazi Sugar:  Patterns, Challenges and Strategic
Considerations",special edition, September.
U.S. Trade and Investment with Sub- Saharan Africa.  Available online at:
http://reportweb.usitc.gov/africa/by_country.jsp .
UNAIDS/WHO (2002), Epidemiological Fact Sheet, 2002 update.
UNICEF, "Southern Africa crisis – Swaziland" [Online].  Available at:
http://www.unicef.org/noteworth y/safricacrisis/swaziland.html
UNICEF (2002), . "Swaziland Situation Report", 5 August 2002 [Online].  Available at:
http://www.unicef.org/emerg/Country/Swaziland/020805.htm .
World Bank (2000), Swaziland, Reducing Poverty through Shared Growth , summary report, January,
Washington D.C.APPENDIX TABLESSACU-Kingdom of Swaziland WT/TPR/S/114/SWZ
Page A5-351
Table AI.1
Merchandise exports, 1997-01
(US$ million and per cent)
Description 1997 1998 1999 2000 2001
Total exports 845.0 967.7 924.5 900.8 693.9
(Per cent)
Total 100.0 100.0 100.0 100.0 100.0
Total primary products 55.7 56.4 55.9 45.5 52.9
Agriculture 54.3 54.6 55.3 44.3 51.5
Food 45.1 44.8 45.7 33.6 39.3
210690 Food preparations nes 6.0 10.8 9.0 10.4 18.2
170111 Raw sugar, cane 21.2 16.3 18.3 9.8 9.2
170490 Sugar confectionery (including white chocolate), not containing cocoa 4.5 3.1 3.8 1.4 2.8
170240 Glucose and glucose syrup, containing in the dry state at least 20% but less
than 50% by weight of fructore0.2 0.7 1.0 0.9 1.0
170191 Refined sugar,in solid form, containing added flavouring or colouring matter 1.1 1.5 1.0 1.0 0.8
Agricultural raw material 9.2 9.8 9.7 10.7 12.2
470311 Chemical wood pulp, soda or sulphate, coniferous 5.2 5.7 5.7 6.7 8.8
440729 Other 0.1 0.2 0.3 0.6 0.9
Mining 1.4 1.8 0.6 1.1 1.4
Fuels 0.3 1.0 0.1 0.7 0.9
270111 Anthracite, whether or not pulverised but not agglomerated 0.3 0.9 0.1 0.5 0.8
Ores and other minerals 1.0 0.8 0.4 0.4 0.5
Non-ferrous metals 0.0 0.0 0.0 0.0 0.0
Manufactures 44.0 43.3 43.9 54.3 46.8
Chemicals 11.3 16.4 17.3 20.1 21.2
330210 Mixtures of odoriferous substances for the food or drink industries 9.7 14.5 15.4 18.4 18.4
Clothing 3.9 6.7 8.4 13.9 11.7
Other consumer goods 5.0 3.5 3.3 5.6 5.1
610990 T-shirts, singlets and other vests, of other textile materials, knitted 1.3 3.7 5.1 6.8 5.0
Machinery and transport equipment 14.9 9.4 8.5 9.7 4.6
Other non-electrical machinery 2.7 2.6 2.4 4.5 2.2
Other semi-manufactures 4.4 4.1 3.7 2.5 2.1
610910 T-shirts, singlets and other vests, of cotton, knitted 1.2 0.8 0.2 1.4 1.9
Textiles 3.8 2.7 2.6 2.4 1.9
610510 Mens/boys shirts, of cotton, knitted 0.0 0.0 0.1 1.0 1.6
Automotive products 1.6 1.3 1.0 1.2 1.3
491199 Printed matter, nes 1.0 0.3 0.6 0.9 1.2
940360 Furniture, wooden, nes 0.7 0.6 0.7 1.8 1.0
960720 Parts of slide fasteners 0.8 1.0 0.9 0.8 0.9
481500 Floor coverings on a base of paper, whether or not cut to size 0.6 0.3 0.4 0.4 0.9
610610 Womens/girls blouses and shirts, of cotton, knitted 0.0 0.0 0.5 1.9 0.8
540252 Yarn of polyester filaments, single, >50 turns per metre, not put up 0.4 0.6 0.8 1.4 0.8
960711 Slide fasteners fitted with chain scoops of base metal 0.0 0.1 0.2 0.7 0.8
330190 Conc&aqueous distls of essentl oils; terpenic by-prods of essentl oils 0.1 0.0 0.0 0.0 0.7
Other electrical machines 9.3 5.1 4.6 3.4 0.4
Office machines & telecommunication equipment 0.9 0.3 0.3 0.3 0.4
Other transport equipment 0.3 0.1 0.1 0.2 0.2
Agricultural machinery and tractors 0.1 0.1 0.1 0.1 0.1
Iron and steel 0.7 0.6 0.1 0.2 0.1
Power generating machines 0.2 0.0 0.1 0.1 0.1
Other 0.3 0.3 0.2 0.2 0.3
Source: WTO Secretariat calculations, based on data provided by the Swaziland authorities; and UNSD, Comtrade 
database.WT/TPR/S/114/SWZ Trade Policy Review
Page A5-352
Table AI.2
Merchandise imports, 1997-01
(US$ million and per cent)
Description 1997 1998 1999 2000 2001
Total imports 1,180.8 1,168.6 1,142.4 1,110.3 846.8
(Per cent)
Total 100.0 100.0 100.0 100.0 100.0
Total primary products 35.3 34.3 35.9 34.4 35.0
Agriculture 21.8 20.5 22.7 21.1 22.4
Food 18.3 16.8 20.2 18.7 19.5
100590 Maize (corn) nes 0.1 0.2 0.5 0.7 1.1
230990 Animal feed preparations nes 1.0 1.1 1.3 1.2 1.0
020210 Bovine carcasses and half carcasses, frozen 0.3 0.1 0.1 0.0 0.8
220210 Waters incl mineral&aeratd, containg sugar o sweeteng matter o flavourd 0.4 0.5 0.9 0.6 0.6
Agricultural raw material 3.5 3.7 2.4 2.3 2.9
470790 Waste&scrap of paper or paperboard, nes (includg unsorted waste&scrap) 1.0 0.9 0.5 0.7 0.8
520100 Cotton, not carded or combed 0.8 1.1 0.7 0.3 0.5
Mining 13.4 13.8 13.3 13.3 12.6
Ores and other minerals 0.3 0.3 0.4 0.5 0.7
Non-ferrous metals 0.4 0.4 0.3 0.3 0.5
Fuels 12.7 13.1 12.5 12.6 11.5
271000 Petroleum oils&oils obtained from bituminous minerals, o/than crude etc. 8.0 10.8 10.6 10.2 9.2
270119 Coal nes, whether or not pulverised but not agglomerated 0.2 0.2 0.2 0.4 0.6
Manufactures 63.1 64.1 62.2 64.2 64.3
Iron and steel 3.0 3.0 1.7 2.2 2.1
Chemicals 11.3 11.3 14.4 11.2 13.2
300490 Medicaments nes, in dosage 0.7 0.6 0.4 0.8 1.0
330210 Mixtures of odoriferous substances fo r the food or drink industries 0.7 1.0 0.5 0.7 0.8
391721 Tubes, pipes and hoses, rigid; of polyethylene 0.4 0.7 0.5 0.3 0.5
310520 Fertilizers cntg nitrogen,phosphorus&potassium in pack weight </= 10 kg. 0.3 0.4 0.5 0.2 0.5
Other semi-manufactures 9.4 8.5 8.9 10.3 10.9
252329 Portland cement nes 0.9 0.7 0.8 0.9 1.0
731029 Cans, iron or steel, capacity <50 litres nes 0.3 0.3 0.3 0.4 0.5
Machinery and transport equipment 26.8 28.5 25.4 27.3 23.2
Power generating machines 0.3 0.5 0.4 0.4 0.4
Other non-electrical machinery 12.5 12.9 8.5 11.4 7.7
Agricultural machinery and tractors 0.9 0.9 0.8 1.1 1.0
Office machines & telecommunication equipment 2.6 3.1 3.2 2.3 3.0
Other electrical machines 1.9 2.1 2.8 3.9 2.4
Automotive products 8.9 8.8 9.7 8.5 9.2
870323 Automobiles w reciprocatg piston engine displacg > 1500 cc to 3000 cc 0.6 0.3 2.3 2.3 2.4
870431 Gas powered trucks with a GVW not exceeding five tonnes 0.0 0.0 0.5 1.5 1.6
870899 Motor vehicle parts nes 2.1 2.2 2.2 1.6 1.4
870490 Trucks nes 0.1 0.1 0.8 0.2 1.2
Other transport equipment 0.5 1.1 0.8 0.6 0.6
Textiles 3.2 3.7 2.9 3.5 3.9
600242 Warp knitted fabrics, of cotton, nes 1.4 2.4 1.4 1.8 1.4
Clothing 2.5 2.4 2.2 2.9 2.8
Other consumer goods 6.8 6.8 6.8 6.9 8.2
960720 Parts of slide fasteners 0.4 0.2 0.4 0.3 0.5
Other 1.7 1.6 1.9 1.4 0.7
Monetary gold 0.0 0.0 0.0 0.0 0.0
Gold 0.0 0.0 0.0 0.0 0.0
Source: WTO Secretariat calculations, based on data provided by the Swaziland authorities;  and UNSD Comtrade 
database.SACU-Kingdom of Swaziland WT/TPR/S/114/SWZ
Page A5-353
Table AI.3
Merchandise exports by destination, 1997-01
(US$ million and per cent)
Description 1997 1998 1999 2000 2001
Total exports 845.0 967.7 924.5 900.8 693.9
(Per cent)
America 4.1 5.2 3.5 8.9 4.0
United States 4.1 5.2 3.5 8.8 4.0
Canada 0.0 0.0 0.0 0.0 0.0
Other America 0.0 0.0 0.0 0.0 0.0
Europe 17.5 12.1 14.0 6.9 2.4
EU(15) 17.3 12.0 14.0 6.9 2.4
United Kingdom 8.4 4.4 6.8 3.7 1.1
Italy 0.3 0.2 0.5 0.9 0.4
France 3.1 4.3 3.0 0.7 0.3
EFTA 0.2 0.0 0.0 0.0 0.0
Eastern Europe 0.0 0.0 0.0 0.0 0.0
 Former USSR 0.0 0.0 0.0 0.0 0.0
Other Europe 0.0 0.0 0.0 0.0 0.0
Asia 0.1 0.1 1.8 2.6 1.1
Middle East 0.0 0.0 0.1 1.4 0.0
East Asia 0.1 0.1 1.7 0.4 1.0
China 0.0 0.0 0.0 0.0 0.7
Chinese Taipei 0.0 0.0 0.0 0.3 0.3
South Asia 0.0 0.0 0.0 0.7 0.1
Oceania 0.0 0.0 0.4 0.4 0.2
Africa 78.3 82.5 80.3 81.1 92.3
Sub-Saharan Africa 78.2 82.4 80.2 79.9 91.8
South Africa 68.5 65.3 72.0 59.7 78.0
Mozambique 4.7 11.2 3.7 6.2 4.6
Angola 0.0 0.0 0.0 0.7 1.5
United Republic of Tanzania 1.3 1.6 1.1 3.0 1.4
Zimbabwe 1.5 1.8 1.5 3.7 1.1
Mauritius 0.5 0.7 0.4 1.4 0.8
Kenya 0.0 0.2 0.2 0.4 0.7
Congo 0.0 0.0 0.0 0.4 0.6
Zambia 0.7 0.7 0.2 0.9 0.6
Ethiopia 0.0 0.0 0.0 0.7 0.5
Uganda 0.3 0.4 0.4 0.9 0.5
Madagascar 0.0 0.0 0.0 0.2 0.4
Rwanda 0.0 0.0 0.0 0.1 0.4
Malawi 0.6 0.4 0.6 1.1 0.3
Other Africa 0.1 0.2 0.1 1.2 0.4
Reunion 0.0 0.1 0.1 1.2 0.4
Source:  WTO Secretariat calculations, based on data provided by the Swaziland authorities; and UNSD, Comtrade 
database.WT/TPR/S/114/SWZ Trade Policy Review
Page A5-354
Table AI.4
Merchandise imports by origin, 1997-01
(US$ million and per cent)
Description 1997 1998 1999 2000 2001
Total imports 1,180.8 1,168.6 1,142.4 1,110.3 846.8
(Per cent)
America 1.2 1.4 1.8 0.3 0.3
United States 1.0 1.2 0.2 0.2 0.2
Canada 0.2 0.1 1.4 0.0 0.0
Other America 0.0 0.1 0.1 0.0 0.1
Argentina 0.0 0.0 0.0 0.0 0.1
Europe 6.0 4.9 6.8 1.0 1.0
EU(15) 5.8 4.9 6.7 0.9 1.0
Italy 1.0 0.9 0.6 0.3 0.4
United Kingdom 1.7 1.4 4.6 0.2 0.2
Germany 0.4 0.9 0.2 0.1 0.1
Belgium-Luxembourg 0.5 0.2 0.1 0.1 0.1
Portugal 0.1 0.0 0.0 0.0 0.0
EFTA 0.2 0.1 0.1 0.0 0.0
Switzerland 0.2 0.1 0.1 0.0 0.0
Eastern Europe 0.0 0.0 0.0 0.0 0.0
Former USSR 0.0 0.0 0.0 0.0 0.0
Other Europe 0.1 0.0 0.0 0.0 0.0
Asia 6.3 7.2 4.3 3.7 3.4
Middle East 0.2 0.1 0.2 0.1 0.1
Israel 0.0 0.0 0.1 0.0 0.0
East Asia 5.6 6.8 3.9 3.6 3.2
Hong Kong, China 0.6 0.9 0.5 1.1 1.0
Japan 1.7 1.5 1.1 0.7 0.9
Chinese Taipei 0.6 1.3 0.7 0.7 0.6
China 0.3 0.3 0.2 0.4 0.5
Singapore 1.3 1.7 0.5 0.3 0.1
Indonesia 0.0 0.1 0.1 0.1 0.1
Korea, Rep. of 0.4 0.7 0.4 0.3 0.0
South Asia 0.5 0.3 0.2 0.0 0.0
Oceania 0.2 0.2 0.0 0.0 0.0
Australia 0.2 0.2 0.0 0.0 0.0
Africa 84.7 84.7 86.7 93.8 94.9
Sub-Saharan Africa 84.7 84.69 86.7 93.6 94.9
Mozambique 0.6 0.7 0.7 0.4 0.3
Zimbabwe 0.2 0.2 0.1 0.0 0.1
South Africa 83.6 83.5 85.8 93.2 94.5
Other Africa 0.0 0.1 0.1 0.1 0.0
Other areas n.e.s 1.5 1.4 0.4 1.2 0.3
Source: WTO Secretariat calculations, based on data provided by the Swaziland authorities; and UNSD, Comtrade 
database.
__________