Ethyl alcohol market in Eswatini

Earlier Report Observations

Ethyl alcohol production in Eswatini increased from 131 million liters in 2018 to 147 million liters in 2019, supporting a rise in domestic market volume to 106 million liters. This growth was facilitated by an exceptionally high import tariff of 169,000% on denatured spirits, which shielded local producers from foreign competition and encouraged domestic output. Concurrently, export value surged by 41% to $30.1 million, reflecting expanded production capacity and external demand.

The market volume dipped to 94 million liters in 2020 as a larger share of production was directed abroad, with export volumes reaching 56 million liters. However, by 2021, domestic consumption recovered to 108 million liters as export volumes eased to 46 million liters while production climbed further to 154 million liters. During this period, Eswatini solidified its role as a regional supplier, notably exporting $9.87 million worth of high-strength ethyl alcohol to South Africa.

From 2022 onward, both production and market volume contracted. Production fell to 121 million liters in 2022 and remained at 122 million liters in 2023, pulling the domestic market down to 94 million liters and then 80 million liters. This decline occurred against a backdrop of a longer-term downward trend in African exports of denatured ethyl alcohol, with Eswatini’s export growth facing challenges.

Production ethyl alcohol in Eswatini

In kind, 2017-2020, M l

From 2017 to 2020, Eswatini ranked 21st globally in ethyl alcohol production.

Top producers of ethyl alcohol, 2017-2020

World map of production of ethyl alcohol, 2017-2020

Eswatini's ethyl alcohol production grew for the second year in a row. In 2020, the country produced 149.8 million liters, marking a 2.2% increase from 2019. Over the 2017-2020 period, production rose by 14%, with an average annual growth rate of 4.4%. The lowest production level was in 2018 at 130.8 million liters. That year also saw the largest decline of 0.5%, while the biggest increase occurred in 2019 at 12.0%.

Annual dynamics of production in Eswatini in kind, 2017-2020, M l

Exports ethyl alcohol from Eswatini

Exports in kind, K l

After two years of decline, ethyl alcohol exports from Eswatini rebounded. In 2020, export volume reached 55 847 thousand liters, surging by 37.0% compared to the previous year. From 2017 to 2020, exports grew by 16.9%, equivalent to an annualized rate of 5.3%. The lowest export volume was in 2019 at 40 762 thousand liters. The largest drop happened in 2018 at 10.1%.

Annual dynamics of product's exports from Eswatini in kind, 2017-2020, K l

Between 2017 and 2020, South Africa, Mozambique, and Zambia were the top markets for Eswatini's ethyl alcohol exports by volume. South Africa accounted for 39.4% of exports, Mozambique for 15.9%, and Zambia for 7.7%. Together, these three countries represented 63.0% of total export flows.

Structure of product's exports in kind by countries, 2017-2020

World map of product's exports from Eswatini in kind, 2017-2020

Exports in value, K $ US

Eswatini's ethyl alcohol exports in value terms increased for the second consecutive year. In 2020, exports totaled 32 403 thousand US dollars, up 7.6% from the previous year. Over the 2017-2020 period, export value rose by 42.2%, with a compound annual growth rate of 12.4%. The lowest value was recorded in 2018 at 21 272 thousand US dollars. That year also saw the largest decline of 6.7%, while the biggest increase occurred in 2019 at 41.6%.

Annual dynamics of product's exports from Eswatini in value, 2017-2020, K $ US

From 2017 to 2020, South Africa, Mozambique, and Zambia were the main buyers of Eswatini's ethyl alcohol by value. South Africa made up 37.5% of exports, Mozambique 16.5%, and Zambia 7.2%. Collectively, these three markets accounted for 61.3% of total export value.

Structure of product's exports in value by countries, 2017-2020

World map of product's exports from Eswatini in value, 2017-2020

Imports ethyl alcohol to Eswatini

Imports in kind, K l

Ethyl alcohol imports into Eswatini showed significant fluctuations during this period. The highest volume was in 2017, while the lowest was in 2018, with a peak-to-trough ratio of 5.2 times. In 2020, imports reached 323 thousand liters, jumping by 273.9% compared to 2019. The minimum import volume was in 2018 at 83 thousand liters, which also saw the largest decline of 80.7%.

Annual dynamics of product's imports to Eswatini in kind, 2017-2020, K l

From 2017 to 2020, South Africa was overwhelmingly dominant as the source of ethyl alcohol imports into Eswatini, accounting for 97.1% of total import volume.

Structure of product's imports in kind by countries, 2017-2020

World map of product's imports to Eswatini in kind, 2017-2020

Imports in value, K $ US

Eswatini's ethyl alcohol imports in value terms grew for the second year in a row. In 2020, imports amounted to 202 thousand US dollars, a 3.7% increase from 2019. Over the 2017-2020 period, import value rose by 3.9%, with an average annual growth rate of 1.3%. The lowest value was in 2018 at 164 thousand US dollars. That year also experienced the largest decline of 15.6%, while the biggest increase was in 2019 at 18.8%.

Annual dynamics of product's imports to Eswatini in value, 2017-2020, K $ US

Between 2017 and 2020, ethyl alcohol imports into Eswatini were primarily sourced from South Africa, which absorbed 97.2% of total import value.

Structure of product's imports in value by countries, 2017-2020

World map of product's imports to Eswatini in value, 2017-2020