Eswatini: Download the country investment note
Eswatini 2026
INVESTMENT PROFILE
85.86 million
(in USD) Total Investment
16.82%
Internal rate of return
64.01 million
(in USD) Investment gap
SUSTAINABILITY BENEFITS
86,900
Direct beneficiaries
174.50
(in USD) Income increase per capita
Agriculture is the mainstay of the economy of Eswatini and a key driver for achieving the overall developmental objectives of the Kingdom. The Government has put in place a number of supportive policies and strategies. These include: (i) the National Development Plan (2023-2028), which focuses on the promotion of agriculture and high value crops as well as value addition and processing and (ii) Eswatini National Agricultural Investment Plan (ENAIP) (2023-2028) focusing in increasing growth of agricultural productivity and production & diversification of agricultural production and overall consumption. In 2023, the Government launched the Eswatini Agriculture Development Fund (ADF) with the main purpose of transforming the agriculture sector by providing catalytic incentives and investments to stimulate growth in farming and active private sector participation in agricultural value chains. The Government has made an initial injection of USD 2.9M and targets to reach USD 54,869,684 over a 4 year period.
Eswatini offers a wide range of supportive policy instruments and an incentive framework to attract investment. These include: (i) duty free access on raw material for production of goods exported outside SACU; (i) unlimited provision for losses to be carried forward indefinitely; (iii) duty free access on capital goods imported as intermediate goods; (iv) full repatriation of profits and dividends in any currency - repatriation for capital repayments; (v) double taxation agreements offering relief for taxes paid abroad on income; and (vi) employee training allowance of 100% of the cost to be offset against tax liabilities. Some of the non-tax incentives include: (i) export credit guarantee scheme; (ii) Eswatini is a member of multi–Investment Guarantee Agency (MIGA); (iii) five-year work and residence permits; (iv) subsidised rental on government factory shells; and (v) special designated areas for agricultural development.
Under the Hand-in-Hand (HiH) initiative, FAO is committed to support the Government of Eswatini in its quest to enhance agricultural food systems in the country. HiH which is an evidence-based, country-led and country owned initiative to accelerate progress in achieving agricultural transformation and sustainable rural development. FAO in coordination with the Ministry of Agriculture has conducted a deep-dive analysis of investment cases to be showcased to the national government, development partners and the private sector. The selection process has been evidence based and largely data driven.
Download the summary
Eswatini offers a wide range of supportive policy instruments and an incentive framework to attract investment. These include: (i) duty free access on raw material for production of goods exported outside SACU; (i) unlimited provision for losses to be carried forward indefinitely; (iii) duty free access on capital goods imported as intermediate goods; (iv) full repatriation of profits and dividends in any currency - repatriation for capital repayments; (v) double taxation agreements offering relief for taxes paid abroad on income; and (vi) employee training allowance of 100% of the cost to be offset against tax liabilities. Some of the non-tax incentives include: (i) export credit guarantee scheme; (ii) Eswatini is a member of multi–Investment Guarantee Agency (MIGA); (iii) five-year work and residence permits; (iv) subsidised rental on government factory shells; and (v) special designated areas for agricultural development.
Under the Hand-in-Hand (HiH) initiative, FAO is committed to support the Government of Eswatini in its quest to enhance agricultural food systems in the country. HiH which is an evidence-based, country-led and country owned initiative to accelerate progress in achieving agricultural transformation and sustainable rural development. FAO in coordination with the Ministry of Agriculture has conducted a deep-dive analysis of investment cases to be showcased to the national government, development partners and the private sector. The selection process has been evidence based and largely data driven.
Download the summary
Geospatial Typologies
Agro-informatics connects information technology with the management, analysis and application of agricultural data to indentify territories with untapped agrifood potential and design more accurate and targeted agrifood interventions. The use of new technologies and techniques in agriculture, such as satellite imagery, remote sensing, and geographic information systems, enable the transformation of data into actionable information.
POVERTY
POTENTIAL
EFFICIENCY
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Investment cases in Eswatini
Investment Cases and Interventions
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Seed multiplication
INVESTMENT
USD 21.27M
INTERNAL RATE OF RETURN (%)
20.05%
NET PRESENT VALUE
USD 18.45 M
DIRECT BENEFICIARIES
27,200
INDIRECT BENEFICIARIES
149,600
INCOME INCREASE PER CAPITA
148.59 USD/person
EMISSION REDUTION (EXACT)
0 TCO2-E
The Eswatini Government seeks to mobilize public and private sector financing for the development of a seed multiplication and grain reserve facility to be located at Manzini area. The targeted products are maize and beans – for the local market. Specific investments include climate smart seed multiplication facility, farm infrastructure, satellite collection centres (for maize and beans), transport infrastructure; and a 160,000-ton physical grain silo. Other supportive services will also be rolled out including an out grower production system and a digital marketing system.
The proposed facility will build on the success of the existing pilot scheme, the Seed Multiplication Project (SMP) developed by the government. Through the scheme, commercial farmers are contracted to produce seeds. SMP also delivers farm inputs to retailers in all parts of the country, which makes it easier for smallholder farmers to access farming inputs locally. There are several small-scale millers (approx. 200) with average capacity of 90Mt and commercial miller silos with capacity of around 53,000Mt. The National Maize Cooperation (NMC) guarantees a competitive market, maize aggregation and storage, whilst NAMBoard regulates grain imports and exports.
Market demand for maize is estimated at 140,000 metric tons/year against a supply of 75,000 metric tons/year. The supply gap is estimated at 65,000 metric tons. Eswatini imports 2,954.5 MT of beans per year mainly for local consumption. Overall, Eswatini’s demand for legumes estimated at 4,200 metric tons per annum. This is far above the local production of 924 metric tons. This implies a need to import over 3,276 metric tons to fill the gap.
The total investment outlay for the project is estimated at 21.27 M USD. The project has an internal return of 14.80%. The net present value (NPV) is estimated at USD 18.44 million. The project will create a total of 27,200 new jobs and 149,600 indirect beneficiaries. The increase in per capita income is estimated at USD 148.59.
The proposed facility will build on the success of the existing pilot scheme, the Seed Multiplication Project (SMP) developed by the government. Through the scheme, commercial farmers are contracted to produce seeds. SMP also delivers farm inputs to retailers in all parts of the country, which makes it easier for smallholder farmers to access farming inputs locally. There are several small-scale millers (approx. 200) with average capacity of 90Mt and commercial miller silos with capacity of around 53,000Mt. The National Maize Cooperation (NMC) guarantees a competitive market, maize aggregation and storage, whilst NAMBoard regulates grain imports and exports.
Market demand for maize is estimated at 140,000 metric tons/year against a supply of 75,000 metric tons/year. The supply gap is estimated at 65,000 metric tons. Eswatini imports 2,954.5 MT of beans per year mainly for local consumption. Overall, Eswatini’s demand for legumes estimated at 4,200 metric tons per annum. This is far above the local production of 924 metric tons. This implies a need to import over 3,276 metric tons to fill the gap.
The total investment outlay for the project is estimated at 21.27 M USD. The project has an internal return of 14.80%. The net present value (NPV) is estimated at USD 18.44 million. The project will create a total of 27,200 new jobs and 149,600 indirect beneficiaries. The increase in per capita income is estimated at USD 148.59.
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Aquaculture
INVESTMENT
USD 18.97 M
INTERNAL RATE OF RETURN (%)
14.98%
NET PRESENT VALUE
USD 12.43M
DIRECT BENEFICIARIES
18,000
INDIRECT BENEFICIARIES
99,000
INCOME INCREASE PER CAPITA
169.32 USD/person
EMISSION REDUTION (EXACT)
0 TCO2-E
Aquaculture Content
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Grain production
INVESTMENT
USD 17.20 M
INTERNAL RATE OF RETURN (%)
16.04%
NET PRESENT VALUE
USD 16.54 M
DIRECT BENEFICIARIES
26,000
INDIRECT BENEFICIARIES
143,000
INCOME INCREASE PER CAPITA
131.60 USD/person
EMISSION REDUTION (EXACT)
0 TCO2-E
There is a need for the development of an integrated climate smart grain production. The facility will be located within the Eswatini Mkhondvo-Ngwavuma Agro Industrial Zone. The investment will also benefit from and build on the investments in the Mkhondvo-Ngwavuma Dam. The targeted products are maize, beans and livestock feed – for local and export market. Specific investments include: production and processing facility; farm infrastructure for maize and dry beans, collection/bulking centres and transport infrastructure. Other supportive services will also be rolled out including: technical services for climate smart production practices and management; Good Agriculture Practices (GAP); incubation programme; out grower production scheme; digital and collective marketing system.
Market demand for maize in Eswatini is estimated at 140,000 metric tons/year against a supply of 75,000 metric tons/year. The supply gap is estimated at 65,000 metric tons. Eswatini’s demand for legumes estimated at 4,200 metric tons per annum is far above the local production of 924 metric tons. This implies a need to import over 3,276 metric tons to fill the gap. In addition, demand for soya beans for livestock feed manufacturing is 40,000 metric tons per. Only 25% of this is available locally. The gap (10,000 MT) is filled by importation mainly from South Africa. Furthermore, Eswatini imports 2,954.5 MT per year mainly for local consumption.
The total proposed investment is USD 17.20 million, which would yield an internal rate of 15.00%. The net present value is estimated to be USD 16.56 million, and the total direct and indirect beneficiaries are estimated to be 26,000 and 143,000 respectively. The average expected income increase through these investments would be approximately USD 131.60 for each beneficiary.
Market demand for maize in Eswatini is estimated at 140,000 metric tons/year against a supply of 75,000 metric tons/year. The supply gap is estimated at 65,000 metric tons. Eswatini’s demand for legumes estimated at 4,200 metric tons per annum is far above the local production of 924 metric tons. This implies a need to import over 3,276 metric tons to fill the gap. In addition, demand for soya beans for livestock feed manufacturing is 40,000 metric tons per. Only 25% of this is available locally. The gap (10,000 MT) is filled by importation mainly from South Africa. Furthermore, Eswatini imports 2,954.5 MT per year mainly for local consumption.
The total proposed investment is USD 17.20 million, which would yield an internal rate of 15.00%. The net present value is estimated to be USD 16.56 million, and the total direct and indirect beneficiaries are estimated to be 26,000 and 143,000 respectively. The average expected income increase through these investments would be approximately USD 131.60 for each beneficiary.
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Food processing
INVESTMENT
USD 28.42 M
INTERNAL RATE OF RETURN (%)
16.20%
NET PRESENT VALUE
USD 19.45 M
DIRECT BENEFICIARIES
15,100
INDIRECT BENEFICIARIES
137,500
INCOME INCREASE PER CAPITA
248.49 USD/person
EMISSION REDUTION (EXACT)
0 TCO2-E
There is a need for setting up an integrated food processing facility at the King Mswati III International Airport. The targeted products are dairy, baby vegetables, beef and goat meat (chevon). In addition to providing fresh and frozen products, the facility will process various products including: cheese, yoghurt, butter, skimmed milk, juice; sausages, and dried meat - for the local and export market. The project will also involve development of cold chain infrastructure, storage & logistics, food packaging, branding and distribution facilities.
Available data (2016-2022) show that Eswatini’s import bill with respect to the targeted commodities has grown at significant proportions. Annual imports currently stand at USD 419 million for beef with a CAGR of 4%; USD 67 million for dairy (CAGR = 69%) and USD 3.7 million for vegetables growing at a CAGR of 13%. The Eswatini Government is looking at the high import bill as an opportunity for investment. The proposed investment will promote import substitution and reduce the high import bill for Eswatini.
The demand for beef in Eswatini is estimated at 19,094 metric tons per annum. With the current supply of 16, 352 tons, there is a gap of 2,741 metric tons per annum. Current imports are estimated at 2,014 metric which are still below the annual gap. Demand for milk is estimated at 88 million litres per annum while the production (supply) is only 22 million litres. This leaves a gap of 66 million litres which have to be imported. There are significant market prospects for baby vegetables in Eswatini. The demand is estimated at 39,146 metric tons per annum. With the current supply of 7,647 tons, there is a gap of 31,499 metric tons per annum. Current imports are estimated at 2,994 metric which are far below the annual gap. The targeted products can be exported in destinations with growing demand potential. These includes the European Union, South Africa and Mozambique.
The total proposed investment is USD 28.42 million, which would yield an internal rate of 13.90 percent. The net present value is estimated to be USD 19.34 million, and the total direct and indirect beneficiaries are estimated to be 15,100 and 137,500 respectively. The average expected income increase through these investments would be approximately USD 248.32 for each beneficiary.
Available data (2016-2022) show that Eswatini’s import bill with respect to the targeted commodities has grown at significant proportions. Annual imports currently stand at USD 419 million for beef with a CAGR of 4%; USD 67 million for dairy (CAGR = 69%) and USD 3.7 million for vegetables growing at a CAGR of 13%. The Eswatini Government is looking at the high import bill as an opportunity for investment. The proposed investment will promote import substitution and reduce the high import bill for Eswatini.
The demand for beef in Eswatini is estimated at 19,094 metric tons per annum. With the current supply of 16, 352 tons, there is a gap of 2,741 metric tons per annum. Current imports are estimated at 2,014 metric which are still below the annual gap. Demand for milk is estimated at 88 million litres per annum while the production (supply) is only 22 million litres. This leaves a gap of 66 million litres which have to be imported. There are significant market prospects for baby vegetables in Eswatini. The demand is estimated at 39,146 metric tons per annum. With the current supply of 7,647 tons, there is a gap of 31,499 metric tons per annum. Current imports are estimated at 2,994 metric which are far below the annual gap. The targeted products can be exported in destinations with growing demand potential. These includes the European Union, South Africa and Mozambique.
The total proposed investment is USD 28.42 million, which would yield an internal rate of 13.90 percent. The net present value is estimated to be USD 19.34 million, and the total direct and indirect beneficiaries are estimated to be 15,100 and 137,500 respectively. The average expected income increase through these investments would be approximately USD 248.32 for each beneficiary.
Resources
FAO's Hand-in-Hand Initiative
21/12/2023
The Hand-in-Hand (HIH) Initiative supports the implementation of nationally led, ambitious programmes to accelerate agrifood systems transformations...
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Contacts
For more information, please contact the Hand-in-Hand team