DOMESTIC DIRECT INVESTMENT REMAINS DWARFED BY FDI PROSPECTS

MBABANE - The domestic direct investment (DDI) line remains dwarfed by FDI prospects, indicative of the need for deliberate efforts to promote domestic entities and individuals in investment.

According to the Ministry of Commerce, Industry and Trade’s first quarter report for 2024/25 financial year, there were 11 foreign direct investment (FDI) projects added in the pipeline during the current reporting quarter. The ministry reported that there were two inward missions in the quarter: Samlex Group and China Unique. The Samlex group was allocated land at the Nokwane ICT Park. The event was graced by the Royalties, where a sod-cutting ceremony was held to mark the beginning of the project. On the other hand, the China Unique company visited the country on an exploratory mission in the textile sector. Part of their visit included touring the Gamula factory.

The ministry highlighted that trade missions were an important tool for promoting both inward investment and outward trade. Trade missions provide companies with a risk-free way to assess and explore new international markets. They offer access to decision-makers, business executives and potential partners or distributors in target countries. This allows companies to efficiently evaluate business opportunities without committing significant resources upfront (UNCTAD, 2019).

Furthermore, the ministry highlighted that domestic trade remains essential in fostering economic growth through enhancing market efficiency and encouraging local businesses to thrive by creating robust internal markets that support innovation and job creation. The ministry also reported that the Eswatini Investment Promotion Authority (EIPA) has completed the compilation of Eswatini’s trader’s directory. The directory has now entered the phase of design set-up. The next phase will be to request all uploaded companies to verify the accuracy of information on the directory. This document will be continuously updated at least twice a year.

During the period under review, EIPA engaged the Eswatini High Commission in South Africa, to identify local companies that can trade with South African companies in textile, grains and scrap metal. It was reported that 22 Eswatini companies in the textile sector were exposed; three top importers of grains and three scrap metal companies including their association.

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