ESWATINI AMENDS SEZ ACT TO ATTRACT INVESTORS

MBABANE – The Government of Eswatini hopes to attract more investors in the upcoming years, as it has already started the amendment of the Special Economic Zones (SEZ) Act.  

A diagnostic process had been carried out by the Export Processing Zones Authority (EPZA) from the Republic of China (Taiwan) who, through an intergovernmental cooperation arrangement agreed to assist Eswatini to reform the SEZ legislation. Yesterday, the International Integrated Systems, Inc (IISI), a consultant from Taiwan, presented a report detailing the gaps that the country needs to address in order to attract investors.  The review of the Act follows the call by His Majesty King Mswati III when he challenged government to do the same. When making his presentation yesterday, IISI Director International Division Jerry Wang said special economic zones remain a key catalyst to stimulate economic development. He said while other countries have different objectives of having established these economic zones, empirical evidence shows that they were a cornerstone for economic development.

Wang said in order for the special economic zones phenomenon to be a success in the Kingdom of Eswatini, government should review the special economic zones act of 2018. He said this would ensure that it was in line with global requirements. Furthermore, government should fast-track the issue of providing the outstanding infrastructure requirement, such as the completion of the one-stop shop service centre to host the relevant service provider. He presented that, indeed the SEZ Act needed significant amendment to increase legal transparency and strengthen the organisation and functions of the SEZ Committee. He said the enforcement rules and related regulations of the SEZ Act must be completed to facilitate investment promotion and development of Royal Science and Technology Park (RSTP).

Wang also noted that the current governing ministry for the SEZ Act is the Ministry of Commerce, Industry and Trade, while RSTP is under the jurisdiction of the Ministry of Information, Communication and Technology (ICT). He said as it is under different ministries, it may affect the overall operation. He said, therefore, it was recommended to establish a clear path and related business authorisation mechanisms for each ministry. “It is suggested that personnel be stationed in RSTP from each ministry to promote the one-stop shop service through joint office,” said Wang.

Meanwhile, the RSTP Acting Chief Executive Officer (CEO) Khanyisile Dlamini said the findings made by the Taiwanese consultant showed that the SEZ Act needed significant amendment to increase legal transparency and strengthen the organization and functions of the SEZ Committee. Dlamini said the review of the Act was proposed to include the review of the roles and responsibilities of key players in the SEZ programme, which include developers, operators and implementing agencies.

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