E150 000 TO ENJOY 20-YR TAX HOLIDAY

MBABANE – Companies with interests to be granted the 20-year tax holiday will have to part ways with E150 000.

The Minister of Commerce, Industry and Trade, Manqoba Khumalo, in exercise of powers conferred by section 18 of the Special Economic Zones Act 2018, has issued a new fees notice for special economic zones (SEZs).

“The minister has determined that the special economic zones application fee will be E150 000 and E50 000 for annual renewals,” reads legal notice number 155 of 2019.

Khumalo clarified that the notice would be deemed to have come into force from August 16, 2019.
It should be mentioned that four companies had already expressed interest to be granted SEZ licences. Three of the four were American, Australian and Dubai all of whom had local partners who were credible people within our private sector.

Khumalo recently disclosed that these companies had asked for SEZ application forms to be considered for an SEZ licence. He said one of them had submitted their application and the other two were preparing their applications.

The minister disclosed that many companies have enquired about it, and they had provided all information and support in collaboration with the Royal Science and Technology Park (RSTP).

Khumalo said the Eswatini Investments and Promotion Authority (EIPA) and RSTP management were doing a fantastic job of educating potential local and foreign investors about the RSTP but they needed to do more.
The minister also mentioned that a number of Taiwanese companies had also expressed interest and they were still considering their options.

Names

Asked what the names of the companies were, Khumalo said they could not disclose the names for confidentiality purposes.
Khumalo added that he expected some Taiwanese companies to commit in the next two months.

It should also be mentioned that Eswatini has over 150 hectares of land that is ready to accommodate businesses that will enjoy the 20-year tax holiday.   
Budding entrepreneurs and existent companies have been challenged to tap into the Eswatini’s markets that boast over 500 million people through utilisation of the Special Economic Zones Act of 2018. These markets include, but are not limited to, Southern African Customs Union (SACU), Common Market for Eastern and Southern Africa, European Union (EU), Africa Growth (AGOA) and Economic Cooperation Agreement (ECA) that was entered into with Taiwan. 

The RSTP, which was declared a special economic zone, announced that that it had about 158 hectares of land that could be utilised for the establishment of businesses to satisfy both local and external demand for goods and services.

A special economic zone means a designated geographical area or building to facilitate the provision of services including business processing outsourcing centres, call centres, management consulting and advisory services and other associated services. They are used for the purpose of economic development by attracting foreign and domestic investments and ensuring the transfer of technology and for the purpose of exporting products produced.

During a presentation at the Eswatini – Taiwan Business Seminar at the Royal Swazi Spa, RSTP Policy Analyst Busile Dlamini, informed about 34 business representatives from Taiwan that the kingdom had reserved 75 hectares of land at the Innovation Park situated at Phocweni for industrial purposes.

The analyst further informed the Taiwan business conglomerates that another 78 hectares of land was also readily available to play host to serious businesses that may be interested to set-shop at the Bio-technology Park located in Nokwane.











        

      
           

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