11 FDI PROJECTS WORTH E2.5BN IN Q2

MBABANE – In the second quarter of 2024, Eswatini recorded 11 foreign direct investment (FDI) projects valued at E2.5 billion, predominantly in the energy sector, which accounted for 73 per cent (E1.619 billion).

According to the Ministry of Commerce, Industry and Trade’s second quarter report, this aligns with the country’s strategy for energy self-sufficiency. The ministry reported that the Eswatini Investment Promotion Authority (EIPA) continues to track the growing interest in the energy sector, which aligns with the national energy self-sufficiency strategy.

Renewable energy
The Eswatini Energy Regulatory Authority (ESERA) anticipates E9 billion in renewable energy investments by 2025, which are expected to generate 198.5 MW of power and create over 9 000 jobs, although actual job creation may be affected by project scope changes. These projects will focus on hydropower, solar photovoltaic (PV) and biomass energy generation.
This quarter, pipeline projects are anticipated to generate 9 241 jobs at full scale. However, EIPA has observed a concerning trend where job creation consistently needs to catch up to projections. This shortfall can be attributed to various factors, including reduced project scopes.

Other challenges in realising projects revolve around policy issues (such as incentives), process flow, project bankability and provision of working space (factory shells).  To enhance the investor experience and ensure greater efficiency, EIPA will accelerate the implementation of the One Stop Shop (OSS) and other key legislative components to improve service delivery, while ensuring a conducive environment for investment and trade.

Agri-business sector
On investor facilitation and aftercare service, the ministry reported that EIPA was engaged by the Elangeni Food Group as they sought to expand into the agri-business sector.  The company’s project focuses on growing and exporting macadamia nuts, with a projected investment of E100 million and creating over 1 000 jobs.  EIPA’s Facilitation Office provided critical business set-up services, including regulatory compliance, investment incentives guidance and streamlined access to necessary approvals and permits.

The investment facilitation function refers to creating a conducive environment that makes it easier for investors to establish and expand their businesses within a country. Essentially, investment facilitation is about streamlining administrative processes and ensuring investors have a smooth experience throughout their investments’ life cycle. EIPA also engaged with four additional companies – Juries, FTM, HO’s and Davin Scot – located in the Shiselweni and Lubombo regions. These companies sought investment advisory services to support their expansion plans.

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