Africa-Press – Eswatini. Suppliers continue to lead the business sector this year as more opportunities have availed themselves.
To date, the country has constructed and commissioned 27 factory shells and these factories cover an area of about 197 500 square metres. “The factories are distributed around the country to encourage decentralisation.” This was mentioned by the Minister of Commerce Industry and Trade Manqoba Khumalo exclusively to the business desk. Khumalo said foreign companies who have invested in Eswatini were encouraged to source their inputs from local suppliers. “In fact most of the foreign companies do business with local suppliers as it is cheaper for them to do so. However, there are gaps and limitations in the capacity of local supply which often requires importation of what cannot be sourced in the country.
“Furthermore, not only the business community is benefiting from the corporate sector since most of these companies have a strong presence in the social sector through their Corporate Social Responsibility (CSR) programmes. Not even the hardships brought by COVID-19 could deter investors from helping communities, one of the investors in the energy sector donated solar geysers to all clinics in the country, at a time when the clinics were in desperate need for running water for improved hygiene,” he added.
Companies
When asked on how many companies have shown interest in investing in Eswatini, the minister said their pipeline indicates a healthy appetite for companies that want to expand and diversify in the country. He said over a handful of these companies were at advanced stages of readiness to expand. “This is amidst challenges that pose as key deterrents such as the power cost and its guaranteed supply in Eswatini. Another limitation experienced is the unavailability of suitable space including land and factories,” added Khumalo.
Reviewing
The minister alluded that the country was currently in the process of reviewing the investment policy that was developed a decade ago as well as establishing legislation that advances the objectives outlined in the strategic roadmap and post-Covid-19 economic recovery strategy. He said they have seen significant investment in recent years, both in the form of new entrants and expansion, they considered the significance of investments from various perspectives due to the fact that the impacts they bring to the economy was multi-faceted and varies from one project to the next. “It could be in terms of the number and quality of jobs they will provide, the initial and subsequent capital invested, the gains to the community in the form of economic participation, social enhancement and other useful indicators which make us conclude that there have been a number of those projects delivered,” he added.
One of the construction material suppliers locally Sibonelo Mavimbela said they were ready to supply any project that has been approved. Mavimbela said one of their challenges was sourcing material abroad as it comes at a big price. “Material outside the country is expensive, this means that we then have to increase the price we charge our clients,” he added. He also mentioned that they need investors to procure such material and sell it locally.
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