COUNCIL KICKS OFF CONSULTATIONS ON ACT REGULATIONS

MBABANE – The Citizen Economic Empowerment Council (CEEC) has commenced consultations to develop regulations for the Eswatini Citizens Economic Empowerment Act.

This is a landmark law aimed at increasing the economic participation of emaSwati, addressing historical imbalances and fostering inclusive growth.

The first consultation meeting, held yesterday at the UN House in Mbabane, brought together CEEC members, representatives from the United Nations Development Programme (UNDP), private sector leaders, micro, small and medium enterprises (MSMEs) and other key stakeholders.

Speaking at the event, CEEC Chairperson Lincoln Motsa described the Act as a transformative step towards economic empowerment.

Commitment

“The Citizen Economic Empowerment Act, which came into effect on July 1, 2024, is not just a policy; it is a promise to our people,” Motsa said. “It is a commitment to ensuring that every citizen has the opportunity to participate in and benefit from our nation’s economic growth.”

Motsa, who is also the Director of Linac Investments, that runs the OK Foods in Eswatini, emphasised that the CEEC plays a crucial role in ensuring the effective implementation of the Act. The council is responsible for overseeing implementation, monitoring progress developing strategies to support MSMEs, advocating for policy reforms and creating an enabling environment for businesses to thrive.

“The importance of this task cannot be overstated. The council will serve as the guardian of our economic empowerment agenda, a catalyst for change, and a beacon of hope for our MSMEs,” Motsa added. He expressed gratitude to the UNDP for its support in enacting the CEE Act and in assisting with the development of its regulations.

“These empowerment measures are designed to create a more inclusive and equitable economic environment, enabling local businesses to thrive and contribute to the country’s sustainable development,” Motsa explained.

During the meeting, UNDP Consultant Zizwe Vilane provided insights into the five core components of economic empowerment under the Act:
1.     Increase ownership of productive assets and resources – ensuring emaSwati have greater control over economic activities.
2.     Increase employment levels in the formal sector – promoting job creation and career opportunities.
3.     Expand literacy and skills development – equipping citizens with the knowledge and expertise needed for economic participation.
4.     Ensure preferential procurement – giving local businesses greater access to government and private-sector supply chains.
5.     Enhance access to services from State and private institutions – ensuring fair opportunities for emaSwati to benefit from economic policies.

Vilane stressed that these components would drive economic transformation and create a more sustainable and equitable business environment in Eswatini.

During discussions, some stakeholders called for an increase in the current 15 per cent procurement quota for local businesses. Business owners and industry representatives argued that the current allocation was too low and should be expanded to allow emaSwati-owned companies a greater share of procurement opportunities.

Regulations

Meanwhile, the Director of MSMEs in the Ministry of Commerce, Industry and Trade, Mluleki Dlamini, acknowledged these concerns, stating that stakeholder input would be crucial in shaping the final regulations of the Act.

Dlamini shared that when they did a benchmarking exercise in Botswana on how this kind of Act works in other countries, they learnt that other countries use monetary threshold to determine the quotas.

The director said in Botswana, they have put that any work or tenders below E10 million should be reserved for local MSMEs. He said, therefore, the local stakeholders should agree if the country should adopt this format or increase the 15 per cent threshold.

Motsa further urged all stakeholders, including large corporations, MSMEs, and policymakers, to actively participate in the consultation process.

He noted that businesses and entrepreneurs have a vital role to play in ensuring that the regulations reflect the needs of the local business community.

“As we embark on this journey, I appeal to all stakeholders to fully participate in this consultation meeting and the entire process. Your voices and contributions will help shape a regulatory framework that truly empowers our people,” he said.

The consultations will continue in the coming months, with businesses across Eswatini encouraged to engage with the process to ensure that the final regulations reflect their needs and aspirations.

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