SEMLEX REVIVES SEZS AMBITIONS
MBABANE – The arrival of SEMLEX Group at the Nokwane Biotechnology Park/ Royal Science and Technology Park (RSTP) Special Economic Zone changes the country’s fortunes for the better.
Since the establishment of the RSTP in 2018, no companies had completed applications to be stationed in the Special Economic Zones (SEZs). This is according to the Eswatini Single Window Service Readiness Analysis report provided by the International Integrated Systems, Inc. (IISI), a consultancy from Taiwan, assisting the Government of Eswatini in the amendments of the SEZ Act of 2018. However, all that is set to change as the new company, SEMLEX Group, has been blessed by His Majesty King Mswati III to invest in this special economic zone.
Biotechnology
Last week, the King was cutting the sod to mark the beginning of the construction of SEMLEX Group’s Africa head offices and plant at Nokwane. SEMLEX Group is one of the investors who the King met during his recent visit to Türkiye. The RSTP has two science parks, the Innovation Park, located at Phocweni, Matsapha and the Biotechnology Park, located at Nokwane, Matsapha, where SEMLEX will set up. SEMLEX is a Belgian company with expertise in the production of identity cards, passports, e-visas, biometrics, birth certificates and other secure documents. The company is making an initial investment of E810 million into the project, which will gradually increase as the company expands its footprint in the country.
In an interview with this publication yesterday, Albert Chibi, Chairperson of the Special Economic Zones Committee said inasmuch as he had less information on this company, they were excited to have a new company coming into the SEZs. He said as a committee, they appreciated the SEMLEX Group for agreeing to invest in the country. Chibi said they also appreciated the support they were getting from their principals as they were working around this initiative. He stated that they were also looking forward to having more investors coming into the special economic zones as it was the King’s dream to see more companies investing. The chairperson highlighted that there were other companies who in the past had applied to invest in the SEZs, however, their application processes were somehow slow and some ended up falling off.
Speaking during the sod-cutting ceremony last week, the King urged emaSwati to join government in the ‘hunt’ for high technology investors to come and set shop at the Nokwane Special Economic Zone. The King said the entire land space was available at Nokwane Biotechnology Park – space that could be used by high-tech companies with large turnovers of E1 billion and above. “I, therefore, charge each and every liSwati to go out and hunt for companies that can come and establish themselves here at Nokwane Bio-tech Park so that our kingdom can advance,” he said.
Technologies
He mentioned that the establishment of this plant signifies the country’s unwavering determination to leverage cutting-edge technologies in service of the nation and its people. The King challenged SEMLEX to ensure that this facility meets the SEZs’ goal of attracting and retaining foreign direct investment. He also highlighted that the establishment of this plant would have a transformative impact on the economy. He said it would create employment opportunities for the people, foster skills development and contribute to the transfer of knowledge and technology. It is worth noting that no so long ago, two companies made attempts to invest at RSTP with a substantial investment of over E186 773 200 ($10 million). In 2019, RME (Royal Mint of Eswatini) Bullion Company established a business engaged in precious metal refining, testing, casting, smelting and storage in the country.
Benefit
The company planned to invest in the RSTP with a substantial investment of up to US$10 million and had passed the RSTP’s approval process to construct facilities within the SEZ.
During the investment process, the company applied for the ‘20-year corporate tax exemption’ benefit. However, the National Tax Bureau indicated that, although the SEZ Act contained explicit provisions, there were no corresponding applicable clauses in tax regulations, rendering the company’s application for tax exemption unprocessable. Consequently, the company’s construction project within the RSTP was forced to halt, leading to the company’s decision to terminate its investment plan in the RSTP. The other company, Artemis Phytocare (Pty) Ltd, had also applied to set up operations in the RSTP and was primarily engaged in the cosmetics industry. However, due to the inability to apply for SEZ-related incentive measures and considering the obstacles faced by the RME Bullion Company’s investment plan, the company eventually decided to terminate its investment plan in the RSTP.
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