Analysing the competitive performance of the Eswatini sugar industry by Xolisiwe Simelane Thesis presented in partial fulfilment of the requirements for the degree of Master of Science in Food and Nutrition Security at Stellenbosch University Department of Agricultural Economics, Faculty of Agricultural Sciences Supervisor: Prof CJ van Rooyen March 2021‘Stellenbosch University htips:/!scholarsun.acza DECLARATION By submitting this thesis electronically, | declare that the entirety of the work contained therein is my own, original work, that | am the sole author thereof (save to the extent explicitly otherwise stated), that reproduction and publication thereof by Stellenbosch University will not infringe any third-party 's entirety or in part submitted it for obtaining any qualification, rights and that I have not previously Date: March 2021 Copyright © 2021 Stellenbosch University All rights reservedStellenbosch Universiy htps scholar sun.ac.2a APPENDIX: A QUESTIONNAIRE Survey questionnaire on analysing the competitive performance of the sugar cane industry in Eswatini Dear Sir/Madam You are kindly requested to assist by completing the attached questionnaire. This survey is part of a research study that is presently undertaken to analyse the competitive performance of the sugar cane industry. The research is aimed at generating important new intelligence to inform government, as well as other key industry players, on policies and strategies that must be developed to properly respond to. identified challenges and opportunities. Your company has been selected to provide vital information to assess competitive conditions in the industry. Your expert opinion is therefore essential in bringing light to competitiveness issues that are essential for the country and the sector in which your company operates. The questionnaire has been scientifically designed according to Porter's method (The competitive advantage of Nations, 1990, 1998) and will ensure that an accurate picture of the current state of affairs is reflected in terms of factors influencing the competitiveness of the industry. The questionnaire will take approximately 20 minutes to complete. Most questions in this survey request you to mark a box (using an X) based on your opinion. The questions are designed using the Likert scale, Where: Scale | Meaning 1, | Agree wholeheartedly that the factor constrains competitiveness ‘Somewhat agree that the factor constrains competitiveness Indifferent between the two answers ‘Somewhat that the factor enhances competitiveness a] a} o] Strongly agreed that the factor enhances competitiveness Note: Kindly make a cross on only one number per question Please receive our assurance that all responses will be treated with high confidentiality. Information obtained from this survey will only be used as a group not on an individual basis. Kindly complete the 116‘Stellenbosch University htips/!scholarsun.ac.za questionnaire as soon as possible, once completed please kindly contact Xolisiwe Simelane at +268 76039618 to collect it You are kindly requested to be objective and thoughtful when answering your questions. We thank you in advance for your time and hope you will assist in answering the questions. Kind regards, Xolisiwe Simelane 117‘Stellenbosch University hips:/!scholarsun.acza PRODUCTION FACTOR CONDITIONS T._] The general infrastructure used | Poorly inefficient | 1 [2 [3 ]4 5 | Developed by your organisation is: The cost of infrastructure is: Notaffordable | 7 4 [5 _| Affordable Unskilled labour (manual labor, | Difficult obtain | 7 3/4 | 5 | Easy to obtain drivers, and cleaners) is: %_| Unskilled labour is NotProductve 7 |2 |3 |4 |5 | Highly productive %,_| The cost of unskiledlabouris: | Less expensive |7 [2 [3/4 [5 | Very expense 6. _| Skilled labour in Eswalini is Difficutto obtain | 7 |2 [3/4 | 5 | Easytooblan 7. | Skilled labour (officers, machine | Poor quality 7 [2/3 (4 |5 | High quality operators) in Eswatini is: ‘The cost of skilled labour is: Tooexpensve |7 |2 3/4 Affordable The cost of doing business is: | Exremelyhigh 7 [2/314 Very affordable 10. | Quality of technology in| Difficutto obtain) 1 [2 |3 [4 |5 | Easytooblain Eswatini T1,_| The cost of technology: Exremelynighn |7 [2 3 |4 [8 | Affordable 12, | Climate change for production. | Adverse 7 [27314 5 | Favorable 13._| Water in Eswalini is: ‘Scarce 7/2/34 5 | Available 14, | The cost of water is: Exremeyhign |7 [2 3/4 [5 | Affordable 75, | The milling factories are: Efficiently and) 7 |2 3 |4 | 5 | Notefficient and effectively effective COMMENTS: ‘DEMAND CONDITIONS T._] Local buyers are: Unsophisticated 7 [2 |3 |4 [5 | Knowledgeable and innovative 2. | Adoption of the product by local | Slowto adopt 7 [2 |3 |4 |5 | Adoptseasily buyers: 3. [Local buyers concem on | Notat all 7 [2/3 (4 |8 | Very important environmentally friendly product: 4,_| The local market size: Too small 7 [2 [3 [4 |S [lere 118‘Stellenbosch University hips:/!scholarsun.acza %._] The growth in the local market] Too slow for)7 [2 |S 4 | 5 | Fast enough for is: investment in investment in new technology new technology COMMENTS: Other demand factors that affect compelitiveness: B. RELATED AND SUPPORTING INDUSTRY CONDITIONS T,__| Availability of credit or finance in | Difficultto obtain} 1 [2 [3 |4 [6 | Easytoobtain Eswatini 2, |The cost of financing the |Extremelyhigh 7 [2 |3 4 | 5 | Affordable business is: 3,_| The cost of transport is Exremelyhigh [7 [2/3 |4 [5 | Affordable 4,_| The costs of inputs supplies Extremelyhigh [7 [2 |3 |4 |5 | Affordable 5, | The financial institutions are: | Constraint to| 7 |2 [3 |4 | 5 | Enhancement of company's. company's competitive competitive success success ‘Scientific research institution; | Nonexistent 7 [2/3 (4 |5 | Best Local supplies availabiity Mostly non) 7 |2 4 [5 | Numerous existing @._| Local supplies efficiency: Inefficient 7 [2/3 (4/5 | Efficient ‘9 | Local supplies sustainability: Tisaproblem [1 [2 |3 |4 |5 |Noproblem 10. | Electricity supplies Sufficient 7 [2/3 (4 |8 | Unreliable 17. | Telecommunication and internet | Constraint 7 [2734 5 | Enhance services are: business business 12__| Quality and trustworthiness Nonexstent [7 [2/3 |4 |5 | Allis best 13, | Training and skills development: | Inaccessible and| 1.2 3 4 |6 | Accessible and irrelevant relevant 14. | Regulation standards (safety, | Fully enforced 7 |2 3 4 |8 | Notenforced quality of product) are FIRM STRATEGY, STRUCTURE AND RIVALRY CONDITIONS T._] The source of competition Imports 7 723 |4 15 | Localfirms 2._| Entry of competitors: Never occurs in| 7 |2 3/4 |5 | Isconvenient local market 3. [Spending on research and|Doesnotspend [7 [2 [3 [4 |5 | Spendheavily development: 119‘Stellenbosch University hips:/!scholarsun.acza @__] Environmentally Wiendly | Not vey]? ]2.]3 4 ]5 | Mostimportant product: important 5. | Production processes: Use obsolete) 1 |2 |3 4 |5 | Apply the best technology and most efficient technology E, GOVERNMENT SUPPORT POLICIES CONDITIONS 1, | Public sector personnel | Lower than the)? [2 [3 |4 | | Higher than the competence: private sector private 2. | Public sector personnel | Constrain 7 [2/3 (4 |5 | Enable service effectiveness: service delivery delivery 3._] The tax system in Eswatini Finders 7 [273 14/5 | Promote business investment investment 4, | Regulations on environmental |Notenforced 7 [2/3 4 | 5 | Enforced standards: 5, | Regulations on international | Restricts 7 [2/3 (4 5 | Enable trade: 6. _| Eswatini trade policy: Constrain 7 [2/3 |4 |5 | Enhance ability business ability to compete to compete 7,_| Land policy in Eswatini Constrain 7 [2/3 |4 |5 | Enhances business business operation operation @._| Labour poliey tn Eswatins Constramt and)? [2/3 |4 [5 | Greate a good inhibit working place ‘employment F. CHANCE FACTORS T |The prevalence of crime] Significant cost]? ]2 13 |4 |5 | Doesnot imposes: on business 2. _| HIV and AIDS impose: Significant cost; 7 [2 3/4 [5 | Doesnot on business 3,_| The current exchange rate: Constraints to; 7 |2 |3 |4 |5 | Enhances your your business business %,_| Local political environment Undermine the) 7 [2/3 |4 | 5 | Enhances company's competitiveness competitiveness GENERAL QUESTIONS - In your opinion: 120‘Stellenbosch University htips:/!scholarsun.ac.za ‘Any strategy or recommendations that could enhance the competitiveness of the sugar industry? What are the main factors that enhance the competitive performance of your industry What are the main factors that constrain the competitive performance of your industry? How the does the government influence the competitiveness of your country? END — THANK YOU SO MUCH FOR YOUR TIME. 121