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Introduction
Swaziland's diverse manufacturing and processing concerns are predominately private sector enterprises, ranging from small factories to large concerns employing several thousand people and utilising the latest technology. The categories of goods produced include food and beverage; clothing and textiles; timber, pulp and paper; engineering and metal industries, plastics and chemicals.
This sector constitutes the largest share of foreign direct investment and expanded by 15.2% in 2001/2, recording E2,875 million compared with 2,496.2 million the previous year. Manufacturing is also the leader in terms of contribution to the gross domestic product, of which it accounted for 34.5% in 2001/2.
The continued depreciation of the Lilangeni against major currencies again increased the value of exports to overseas countries in local currency terms.
The manufacturing sector is a major employer, second only to agriculture, and provides jobs for 26% of the work force. The majority of goods manufactured in Swaziland are exported with South Africa as the main market.
Policy Development
The Ministry of Enterprise and Employment collaborates with the various industries in order to formulate policies and strategies in line with the international economic developments such as recessionary trends, globalisation and the liberalisation of trade. The ministry also actively encourages the establishment of industries by promoting both local and foreign investment.
FOOD AND BEVERAGE
Most of these industries fall into the value added category as they utilise locally produced raw materials, an activity which is encouraged by Government. While these manufacturers supply local markets, their main thrust is export outlets. Bromor Foods, a major food processor, unfortunately ceased operations during 2002 in order to consolodate its activities within South Africa. However, a traditional beer manufacturer was relaunhced, after several years of dormancy, in order to fill a niche in the local beverage market.
Cadbury Swaziland
The world renowned Cadbury company, which has produced high quality confectionery products in South Africa since 1938, established its Swaziland operation in 1989 when the Candy World factory was commissioned at Matsapha. The venture proved to be one of the country's most successful investments, quickly growing with several expansion projects taking place. The company changed its name to Cadbury Swaziland during 1992 when a major extension to the factory was implemented, effectively doubling production.
The modern plant, which is regularly upgraded, produces a wide range of sweets, the major lines of which are Choclairs (previously Chocolate Eclairs) and Chappies. These two brands are the most popular confectionery items in Southern Africa, to where most of Cadbury Swaziland's products are exported.
A major expansion project involving investment of E12.5 million was completed and commissioned in 1996 to provide for increased production of the two major brands in order to meet market demand.
The company is a major purchaser of locally refined sugar.
Cadbury employs 350 permanent staff with additional seasonal personnel recruited during peak periods. The factory operates on a three-shift system, 24 hours a day, five days a week.
Ngwane Mills
Ngwane Mills is a major producer of diversified staple foods, which was established in 1991 and which now has the capacity to satisfy Swaziland's entire wheat and maize product demand.
The addition of Feedmaster in 2001, a state of the art animal feeds plant, confirmed the company's commitment to offer the people of Swaziland and surrounding regions a range of superior quality cereal food products and animal food products.
The core values of Ngwane Mills centre around the development of its staff and the upliftment of the local community by offering pre-planting contracts to maize farmers and sub-contracting the distribution functions to local entrepreneurs.
The wheaten and maize products are milled to strict ISO standard with no compromise on quality or consistency. Independent tests have proved that the local products rank with the best in the region.
The Bakers Pride flour range has established itself as the baker's choice in Swaziland with a majority share in the local market. The majority of commercially baked goods in the country are produced from this flour and the brand also offers flexibility to the housewife who takes pride in improving the quality of life for her family.
The Top Score super quality maize meal range has brought a new dimension to maize meal standards in Swaziland: it cooks whiter, faster and provides the family with energy for the day. Ligugu, the country's favourite maize meal, delivers the trusted formula of good quality and value for money.
During 2002, the product range was expanded to include smaller packs of maize rice and samp, and new pasta and biscuit products were introduced. The latter two are distributed by a sister company in Botswana but if successful, will be produced locally.
Ngwane Mills prides itself in its quality management systems, having been accredited with the prestigious ISO 9002 standard. The mills have also maintained a NOSA 4 Star rating during 2000/1.
The company will continue to contribute towards the development of the agri-business sector in Swaziland by being a world-class processor and distributor of quality staple cereal food products.
Feedmaster
Established to manufacture quality animal feed products, the Feedmaster mill was commissioned in February 2001 as an arm of Ngwane Mills. The project compliments the Ngwane operation by utilising the mills' by-products and has not only provided several new job openings but has also presented opportunities for local farmers who are contracted to grow yellow maize, a major component of the feeds.
The range produced includes broiler, layer, pig, dairy and beef feeds and the marketing policy is to sell direct to farmers. Manufacturing is done to order based on farmer requirements and partial feeds are also made up where a farmer wishes to utilise his own by products.
Back up provided by the company includes the training of small farmers by a technical advisor on the correct usage of animal feeds and the latest animal husbandry techniques.
The Feedmaster products have added a new dimension to the local animal feed sector by targeting a market previously supplied by South African producers.
The world class factory, which is headed by an experienced animal feeds expert, represents investment of E15 million and incorporates the latest Swiss technology. It is also supported by a nutritionist and an analytical laboratory located at the premises.
Swaziland Fruit Canners - Swazican
During 2001 Swazican became part of the Rhodes Food Group whose head office is at Groot Drakenstein in the Western Cape, South Africa. The group comprises RFF Foods, Swazican and Wonder Foods, all of which are important players in both the South African and global food processing markets. The group's product range includes canned deciduous and citrus fruit, canned pineapples, jams and vegetables, juice concentrates and purees, dairy products and prepared meals.
Central to the group's philosophy is the need to be the best in all it does. With this comes a particular focus on product quality, customer service and flexibility in meeting clients' needs.
As a strongly export-oriented company, Swazican is a major earner of foreign exchange and an important value-added industry which utilises locally produced sugar. It is Swaziland's main pineapple grower and processor of the fruit which is canned at the Malkerns factory in the form of slices, pieces and juice concentrates. Swazican also processes and cans grapefruit and oranges grown in Swaziland in segment and juice concentrate form. These products are sold to export markets and are labelled for brands worldwide. The United Kingdom is one of the largest buyers with Swazican supplying over 25% of that country's canned grapefruit segments market. Other export markets include Germany, Spain, Italy, Portugal, the USA and Japan.
A stringent quality management system in line with HACCP and European Food Safety Inspection Services mean that higher level guidelines are in place to ensure that top class product and service standards are maintained.
Swazican is one of the largest employers in the country with an average of 2,000 people employed throughout the year and up to 3,000 during the busier season.
The company processes about 22,000 tonnes of pineapple, producing 500 containers of canned pineapple and 50 of juice concentrate. About 45,000 tonnes of citrus is processed into 580 containers of canned Marsh grapefruit, orange and citrus salad and 110 containers of juice concentrate.
Other Food and Beverage Industries
These include a commercial beer producer, which also began producing traditional beer during 2002, and a soft drinks bottling factory. The concentrate for Coca Cola is also manufactured in Swaziland at a plant which supplies several other African countries. Swaziland Meat Industries processes beef at its abattoir and exports to the EU, Southern Africa and other markets while a sister pork project comprises a breeding scheme and abattoir which produces fresh pork and processed products.
TIMBER, PULP AND PAPER
While pine and gum trees are exotic to Swaziland, they are grown commercially in various parts of the country to produce raw materials for various value added industries, contributing a significant proportion of Swaziland's exports and forex earnings. The commodities produced include unbleached kraft pulp, furniture and fittings in kit and finished form, construction materials, packaging and various types of paper.
Neopac Swaziland
Neopac has served Swaziland's industrial, agricultural and commercial sectors since 1968 when the company began producing corrugated cardboard containers.
Over the years, major expansions and plant upgrading have more than doubled production capacity to cater for increased demand and growth, and projects of this nature are ongoing.
The Matsapha based company boasts state-of-the-art printing and converting equipment, ensuring consistent quality of the numerous styles and sizes of cartons which are designed to meet individual customers' requirements.
In excess of 80% of the cartons made are supplied to local producers and manufacturers who pack their products for export to various parts of the globe.
Swazi Paper Mills
Swazi Paper Mills emerged from a defunct chemical plant at Matsapha which was taken over by a private company in 1987 and presently employs about 550 people. The company has grown in several phases in the 16 years since it was established and is now the largest privately owned concern in the country.
During 1998, SPM invested in new plant, machinery and technology for the production of various types of paper and packaging materials, at the same time increasing output. Further expansion took place in March 2000 when some of the machinery was upgraded to substantially increase kraft volumes.
The two tissue machines produce high quality tissue paper on contract for a leading South African company and for many applications. The kraft machines produce kraft wrapping paper for local and export markets, and kraft products are introduced as market demand dictates, the most recent being fruit wrapping, light packing paper, stationery and heavy duty wrapping for commodities such as cement and potatoes.
Swazi Paper Mills is the only manufacturer of products of this type in the region and generates foreign revenue from countries throughout the PTA and SADC. The papers are also marketed locally.
Corporate responsibility in terms of the environment is a key consideration and only recycled waste paper is utilised for the manufacture of all the products. The collection of waste paper from around the Kingdom and neighbouring countries is facilitated by outside vendors using their own vehicles. This has resulted in substantial indirect employment and greater environmental awareness.
SAPPI Usutu
Sappi, the world's largest producer of coated fine paper and dissolving pulp, owns the Usutu Pulp Company Limited which is based at Bhunya in the Kingdom of Swaziland and is known as Sappi Usutu mill.
Today, Sappi Usutu mill is one of the largest employers and foreign exchange earners in the kingdom and the almost 800 people employed are involved in the growth and supply of over one million tonnes of wood from the 70,000 hectares of renewable pine forests, and the annual production of 220,000 tonnes of springwood pulp.
The world-class quality pulp, a flash dried, long fibre unbleached kraft pulp used mainly in the manufacture of linerboard, kraft and bag paper, and selected filter grades, is mostly exported to south east Asia, North America and Europe.
The company accesses the global expertise of Sappi Limited's research and development facilities, as technology and technical competence are essential to Sappi Usutu mill's competitive edge. Understanding that quality cannot be inspected into the springwood pulp, in 1993 the mill was certified as having ISO 9002 quality assurance throughout the manufacturing and delivery precesses, in production, installation and servicing. To maintain these world-class standards, external audits are carried out once a year.
Both in the forests and the mill, Sappi Usutu has an environmental management system that will conform to the internationally recognised ISO 14001 environmental management system, and is further committed to the continuous improvement of its environmental management.
Overall, Sappi Usutu mill intends to make a difference - to its lands, its production processes, its distribution channels, its customers, employees and communities, and its stakeholders.
METAL & ENGINEERING
Exipro
Exipro, the only manufacturer of plumber's brassware in Swaziland, produces a full range of taps, mixers and fittings for all plumbing applications under the Probrass brand. Established in 1983, the company has expanded considerably over the years with 120 people presently employed.
The factory is equipped with specialised machinery capable of producing highly competitive products to SABS standards. This includes plant for casting, forging, machining, polishing, grinding and chrome plating.
The company produces plumber's brassware for South Africa, where there is only one other manufacturer of this kind, and is now starting to penetrate the local market. Other export destinations for the brassware are Mauritius, the SADC states and other African countries, and Europe. The products are distributed in South Africa by Pennyware Distributers, a sister company based in South Africa. Exports to other countries are handled directly from the factory.
The operation represents substantial investment in both plant and buildings at Matsapha Industrial Site, which is located sufficiently close to South Africa for raw materials to be obtained at reasonable prices, thus enabling competitively priced, high quality products to be manufactured. Other advantages are that smaller production runs can be produced than are required in bigger economies and there is a higher percentage of handwork involved so the operation is labour intensive and conducive to job creation.
Exipro is targeting more trade within the SADC region using COMESA trade agreements, and also intends broadening its European customer base for special part manafacture.
Swazi Oxygen
Based at Matsapha with retail sales centres throughout the country, Swazi Oxygen is a wholly owned subsidiary of Afrox Ltd. and stocks the complete range of products. The company is Swaziland's main supplier of industrial gases, including oxygen, acetylene and carbon dioxide shielding gases. Special gas mixtures are available on request. It is also the major supplier of medical gases and stocks related regulators and equipment.
Gases for freezing and preserving food and carbon dioxide for the manufacture of carbonated drinks are also supplied, as well as helium under the name Partigas.
Liquefied petroleum gas (LPG), under the name Handigas, is distributed throughout the country in cylinders or as bulk installations.
An extensive range of arc welding machines are supplied for both domestic and industrial use, while Metal Inert Gas and Tungsten Inert Gas machines, together with Robotics and Plasma cutters are widely used in the heavy industrial sector.
Swazox also stocks a full range of Transarc welding electrodes and accessories, together with speciality electrodes; general purpose and speciality rods; multi and single stage regulators and gas torches.
Because dealing in such products requires the highest safety standards and practices, Swazi Oxygen has invested substantially in this regard and is proud of the NOSA 5 Star status.
Other Metal & Engineering Concerns
These include a new refrigerator manufacaturer, borehole pumps, steel fencing and related items, and steel and wire goods for the construction industry.
PLASTIC, GLASS AND CHEMICAL INDUSTRIES
Swazi Plastic Industries
SPI, which serves the packaging needs of many local companies, is an extruder of a wide range of low and linear low density polyethylene film, and PVC electrical conduit. It provides 6-colour flexographic printing and a diverse range of packaging, including side and bottom sealed bags, punched or micro-perforated with side or bottom gussets; printed film for automatic packaging, and shrink wrap materials in sleeves, sheeting or shrouds.
All SPI products are backed by a team with over 25 years experience and technical know-how and production methods are constantly reviewed and updated.
The products are manufactured at a, modern factory at Matsapha which was completed during 1997.
Other manufactures in this category include producers of plastic products for industrial and domestic applications, and manufacturers of soaps, detergents and other cleaning materials.
CLOTHING AND TEXTILES
There are several diverse manufacturers of this category in Swaziland producing zippers, yarns and various types of clothing, including fashion items, knitwear, uniforms and protective overalls. A number of new concerns of this nature once again opened during the year and still more others were waiting to commence operations. This follows efforts by the Investment Promotion Authority to encourage textile operations to locate in Swaziland.
The clothing side of the textile sector is popular with Swazi entrepreneurs, many of whom have enjoyed success and growth in this field within local markets.
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