Africa-Press – Eswatini. Minister of Commerce, Industry and Trade Manqoba Khumalo has praised the recent national budget presented by Minister of Finance Neal Rijkenberg, highlighting its focus on maintaining investor-confidence.
Khumalo described the budget as responsible due to its efforts to balance supporting economic growth, while keeping the country’s debt-to-GDP ratio in check.
He indicated that he believed this approach demonstrated great stewardship of resources and instilled confidence in both existing and potential investors.
“This gives confidence to existing and prospective investors that Eswatini is a stable economy that won’t risk their investment due to reckless fiscal policy,” Khumalo said.
environment
A stable and predictable economic environment is crucial for attracting and retaining investment, according to Khumalo’s highlighting that government is committed to creating such an environment through responsible fiscal policy.
“It’s also a responsible budget. The balance between funding growth yet maintaining a decent budget deficit and keeping our debt to GDP at bay speaks to great stewardship of our resources.
Khumalo underscored that the budget was a pertinent response to His Majesty’s Speech from the Throne, as well as submissions at Sibaya.
“I am very encouraged by the budget that the Minister of Finance tabled on Monday. What is very clear is that Sibaya was unequivocal about the need for government to create jobs, and do so now.
His Majesty’s Speech from the Throne reiterated the same point in the clearest way possible. This budget is an apt response to that,” he said.
The minister based his thoughts on the fact that the budget supports industrial development and promotes investment and entrepreneurship development, which in turn leads to job creation.
Khumalo further noted some of the key components highlighted in the budget speech, including the design of the Sidvokodvo Industrial Park.
“The budget speaks to designing the Sidvokodvo Industrial Park. Once these designs are completed, we expect to start actual development in the next budget cycle,” he said.
Addressing the budget in terms of on-going projects, Khumalo spoke about how the budget allows for the expansion and completion of these projects.
“It completes the play in ongoing factory shell projects at Magindaneni (Maseyisini Inkhundla) and Ndzevane (Lubuli Inkhundla).
“About 3 000 jobs will be created when they are handed over to the investor.
It allows us to continue expanding the factory shells to rural areas, such as Mantambe (Shiselweni 1 Inkhundla), Sigwe and Bulandzeni (Ndzingeni Inkhundla). Approximately 1 300 jobs will be created across all three projects,” he said.
The minister further said the budget tabled for the completion of the two factories in Ngwenya for the expansion of Lush Hair, where an additional 1 000 emaswati will be employed.
“The budget will also allow us to expand serviced industrial areas in Ngwenya and Nhlangano,” he said.
corporate
Khumalo welcomed the reduction on corporate tax, as it will enable businesses to reinvest.
“We welcome the reduction on corporate tax, this will enable businesses to reinvest and potential business to consider Eswatini favourably.
It funds new organs such as the State Business Relations, one stop shop for investment promotion, the review of the Special Economic Zones Act, the single window for business registry and reviews in capital gains tax rules,” he said.He further pointed out that the budget allows for SEDCO to have more funds for incubation programmes at grassroots level by collaborating closely with the Youth Enterprise Revolving Fund.
“I have also noted that it supports the implementation of the AfCFTA strategy for the country and the review of both the Industrialisation Strategy and the Investment Policy, which are fundamental to job creation,” he said.
charged
Finally, he said the ministry was committed to work with all ministries that are charged with job creation to ensure the resultant jobs are sustainable by providing support to mining investors, agriculture investors, energy investors and the various MSME jobs that will be created through improved services from EIPA, ENIDC, the Competition Commission, Eswatini Standards Authority and SEDCO, who all have been asked to align their priorities with the outcomes of Sibaya, which the budget is based on.
“Let me congratulate the minister of finance for an excellent budget speech and also thank the support he received from the ministers of economic planning and development, as well as public service and their respective teams for coming up with such a positive budget,” Khumalo said.
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