NEW BILL TO EASE REGULATION OF COMPANIES

MBABANE – The proposed Companies Bill, 2024 seeks to provide, among other things, non-excessive regulation and administration of companies in Eswatini.

The Bill that has since been published or gazetted seeks to repeal the Companies Act, 2009. It is worth noting that during the last quarter of the 2023/24 financial year, the draft of the Companies Bill, 2024 submitted to the Attorney General’s Office was approved, reviewed by the New Zealand consultants and was ready to be submitted to Cabinet for approval.
The Bill is now set to be tabled in Parliament by the Minister of Commerce, Industry and Trade, Manqoba Khumalo.

Programme

The Bill will provide for the efficient registration and incorporation of companies on electronic and online platforms. In this regard, the Ministry of Commerce, Industry and Trade, through its annual report for 2023 indicated the continuation of the ease of doing business programme. Minister Khumalo through the aforementioned report, stated that along with the ease of doing business, his ministry has progressed very well with the implementation of the Electronic Business Registry project, which is sponsored by the Government of New Zealand. Therefore, this Bill will be the supporting instrument for this initiative.In the report, the minister indicated that the team of experts will be visiting the country to start Phase II which entails design, procurement and installation of the Electronic Business Registry.

Final diagnosis of the current online company registration system and trading licences system, design and procurement of the new systems and migration of databases to the new platform, will continue in the new financial year, 2024/2025. He said the project aims to transform Eswatini to a First World status, where starting a business shall be done within one day of registration. Furthermore, the Bill seeks to provide for economically efficient and economically enhancing flexible and adaptable company structures; modern and clear statement of the rules that apply to companies; procedure for the creditors of an insolvent company to enter into a compromise with a company; the efficient and orderly liquidation of insolvent companies and modernise the law relating to company receiverships.

Policy

Khumalo urged Parliament to fast-track the process of debating and passing of the draft Companies Bill once it has been tabled in Parliament. It is worth noting that last year, the ministry was able to review the Industrial Development Policy, Handicraft Policy, the Regulatory and Quality Infrastructure Policy.  In the period under review, the ministry was in the verge of developing the following policies; MSMEs Policy, Investment Policy and the Cooperative Policy. The ministry is convinced that these policies shall impact positively on the economy.  The ministry would like to echo the United Nations Development Partner for ushering the support on the review of the MSMEs Policy. This year, the ministry is pushing for the operationalisation of the recently enacted Citizen Economic Empowerment (CEE) Act. Last week, Khumalo announced the readiness of the Citizens Economic Council.

Investors

According to the minister, the council’s role will be responsible for the implementation of the Citizens Economic Empowerment Act, which seeks to make sure that local businesses get a fair chance when competing with international businesses. He mentioned that his ministry will soon be announcing who will be part of the council. The Act aims to prioritise local entities over foreign direct investors. When speaking at the Happy Valley Hotel during the inaugural Family Business Summit, the minister mentioned that they were busy disputing the fallacy that government only supports foreign direct investments and prioritises them over indigenous entities.

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