Simunye – The Eswatini sugar industry pushed revenue past E8 billion in the 2025/26 financial year, yet growers and millers walked away with less money than the previous season after world sugar prices collapsed to their lowest level in about five years.

Eswatini Sugar, the statutory body formerly known as the Eswatini Sugar Association, disclosed the figures in its Integrated Annual Report for the year ended 31 March 2026, which Council approved on 2 July 2026.

Group revenue climbed to E8,08 billion from E7,71 billion, lifted mainly by higher sales volumes of 647 572 tonnes against 591 986 tonnes the season before. But distribution of proceeds to growers and millers dropped to E6,7 billion from E7,3 billion, and the average sugar price achieved came in 7 percent below budget.

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Chief Executive Officer Banele Nyamane said the financial outcome was shaped by conditions far beyond Mbabane. Global sugar prices fell to their lowest point in roughly five years while a weaker United States dollar against the Lilangeni during the latter part of the year further reduced export earnings.

President Nick Jackson described the season as a perfect storm. He said world prices had tumbled from above 25 US cents per pound two years ago to below 14 cents, creating what he called particularly challenging operating conditions. Record crops in Brazil, India and Thailand tipped the world market into a projected surplus of 2,2 million tonnes for 2025/26, reversing a deficit of 3,2 million tonnes the previous season.

The pain was felt most sharply in the Southern African Customs Union market, which absorbs about 72 percent of the country’s sugar sales. Imports into SACU jumped 240 percent compared with the previous year, forcing Eswatini Sugar to discount its selling price to remain competitive. The industry still achieved about 98 percent of its SACU sales target and has made a submission to the International Trade Administration Commission seeking an upward review of the dollar based reference price used to set import tariffs.

Production held, weather did not

Growers delivered 5 461 465 tonnes of cane from 59 979 hectares, up from 5 359 449 tonnes off 59 588 hectares. Sucrose delivered edged up to 756 583 tonnes from 754 703 tonnes. Tonnes of cane per hectare reached 91,06 against a target of 90,45, while tonnes of sucrose per hectare slipped to 12,61 against a target of 12,74.

The report attributes the sucrose shortfall to prolonged cloud cover from November to January that cut radiation levels, followed by a February heatwave that suppressed sucrose accumulation in the closing weeks of the growing period.

Heavy rainfall at the end of the season kept harvesting machinery out of the fields and left 264 115 tonnes of cane uncrushed, forcing mills in the north to extend operations to 31 March 2026. A portion of that cane was carried over into the new crushing season. Average harvesting age rose to 12,14 months from 11,75 months.

Nyamane said the industry is now assessing possible adjustments to the milling season to improve harvesting flexibility and reduce exposure to extreme weather.

Electricity and water costs bite

Chairman Meshack Kunene singled out the cost of electricity as a major concern, noting that growers depend heavily on grid power for irrigation pumping. An electricity tariff increase of 13,61 percent was approved for 2026/27, effective 1 April 2026. A proposed differential water pricing structure of 1,0 cent per cubic metre for small growers, 1,5 cents for medium growers and 2,0 cents for large growers is also under review and would push operating costs higher across the grower base.

Solar uptake is accelerating in response. Six growers installed a combined 1 234kW during the season, bringing cumulative industry capacity to 10 MW across 40 growers. The energy regulator has approved a feed in tariff, which the industry expects will speed up adoption.

Pests and new varieties

Eldana infestation forced the industry to condemn 128 hectares of seedcane during the season, placing pressure on the 950 hectare planting programme set for 2026. Three new cane varieties are ready for commercial release pending formal approval, meeting a five year strategic target, while talks continue with variety providers in Zimbabwe and Brazil to widen the cultivar pool.

A domestic research and development hub is planned from 2026, moving the industry away from its historical reliance on research done in neighbouring countries.

Certification and new markets

Royal Eswatini Sugar Corporation’s Simunye Mill and Tambankulu Estate achieved Bonsucro Production Standard certification in October 2025, while Eswatini Sugar secured Chain of Custody certification in May 2025, completing the value chain. Fairtrade sales for the period reached 35 167 tonnes generating premiums of USD 2,11 million, down from 42 710 tonnes and USD 2,56 million the previous season. Twenty three new growers have been recommended for Fairtrade certification.

On the commercial side, the Mhlume VHP bagging facility was commissioned in March 2026, Malawi and Madagascar were opened as new export destinations, and the Nucane production patent was secured. Total shipments to the United States reached 19 923 tonnes against a quota allocation of 16 500 tonnes, and a trial shipment of bagged brown sugar was dispatched to that market in February 2026 to test logistics and product performance over a 30 day sea voyage. The trial confirmed bagged exports are logistically feasible.

Specialty sugar sales missed target, however, and no Demerara was produced during the period.

Balance sheet strain

Interest paid rose to E335,36 million from E298,95 million on the back of increased funding needs caused by slow moving sales in SACU. The bank overdraft grew by E295,73 million. Foreign exchange management softened the blow, with 100 percent forward cover on dollar denominated sales generating gains of E90,05 million. Inventories fell to E1,034 billion from E1,150 billion on lower valuation prices.

PricewaterhouseCoopers issued an unmodified audit opinion on the financial statements.

What it means for Eswatini

Sugar accounts for about 4,1 percent of gross domestic product and 7 percent of national export earnings. The industry is the largest private sector employer in the country with more than 16 000 permanent and seasonal workers, roughly 30 percent of the national workforce. Small scale farmers make up 93 percent of the 468 active growers and contribute about 29 percent of cane harvested.

Nyamane said the viability of small growers remains a key priority in the current low price environment, with rising electricity and fertiliser costs eroding margins. The industry is working closely with vulnerable growers to help them sustain production.

Council has also flagged uncertainty around the business rescue and possible liquidation of Tongaat Hulett in South Africa as a complication for regional supply, particularly of refined white sugar.

The Relative Sucrose Payment system, approved by Council in March 2026, took effect on 1 April 2026 and adjusts each grower’s sucrose deliveries for the time of season in which cane was delivered.

The industry invested E1,7 million in community projects during the year, up from E1,1 million, funding an automatic weather station and a real time PCR machine for the UNESWA Faculty of Agriculture at Luyengo, three refurbished classrooms at Dlalisile Primary School, a mobile dental unit for the Rotary Club of Mbabane outreach in Ndzevane, and the Eswatini Schools Sports Association national athletics competition.

Kunene closed his message to stakeholders with a line the industry has long used to describe itself. Sugar, he said, is indeed Eswatini gold.