SD looking for hydro markets to supply with sugar

TO supplement revenue to be lost as a result of the further price reduction of sugar exported to the European Union (EU) at the end of this month, Swaziland is also seeking to supply hydro markets.

Swaziland Investment Promotion Authority (SIPA) Investor Facilitation and After Care Director Mandla Nkambule said among the counteractive strategies being put in place, the country was looking for hydro markets so as to make up for the loss in revenue.

He was responding to a question posed by Zimbabwe Ministry of Industry and Commerce Enterprise Development Director Stanslaus Daison Mangoma, who wanted to know what Swaziland’s plans were regarding the sugar industry, taking into consideration the further decline of prices at the end of this month.

Responding, Nkambule said since some African, Carribean and Pacific (ACP) countries might drop out of the export bandwagon because of the lower prices, this would increase chances for countries like Swaziland to supply more sugar to the EU. “So we’re looking at increasing our volumes of production,” he said.

“Also, smallholder sugar cane farmers are being encouraged to produce other crops.”
Annual production capacity of sugar is currently estimated in excess of 600 000 tonnes. The industry produces raw, refined and brown sugar while annual molasses production is 195 713 tonnes.

Federation of Swaziland Employers and Chamber of Commerce (FSE&CC) CEO Zodwa Mabuza noted that Swaziland was one of the low-cost producers of sugar, so even though prices have been reduced, the industry was still profitable.

She said counteractive strategy included the country producing as much as it possibly could to supply the EU as well as diversification, “where there’s more emphasis on ethanol and power production”.

More opportunities in infrastructure development.

MEANWHILE, the Zimbabwe delegation led by Minister of Industry and Commerce Professor Welshman Ncube was informed on the various infrastructure development projects government is currently undertaking.

Swaziland Investment Promotion Authority (SIPA) Domestic Investments Director Sabelo Mabuza informed the delegation that these projects included development of Sikhuphe International Airport, whose complete construction he said should be done by January, 2010. He said even though there were technical challenges along the way, they were hopeful that the airport would start operations by March, next year as construction of the terminal had already started. Other infrastructure development projects in the pipeline, Mabuza informed the delegation, included toll gates, a 30 000-seater stadium, railway expansion, international convention centre five-star hotel (projected at cost of US$40 million), an amusement park (projected to cost US $60 million).

Other projects with available investment opportunities currently being implemented are Jozini Big Six; game parks, 36-hole golf estate and holiday homes; Nkonyeni Golf Estate with five-star hotel facilities and a world class restaurant and Summerfield Casino and Golf Estate.

source: observer.org.sz