PRIVATE SECTOR CALLS FOR POLICY REFORMS

EZULWINI - The private sector has called for urgent policy reforms to create a more conducive business environment, citing restrictive regulatory frameworks that hinder growth and economic expansion.

During the second edition of the Business to Government (B2G) Dialogue hosted by Business Eswatini (BE) yesterday, industry leaders raised concerns over stringent policies that stifle investment and innovation.

Prime Minister Russell Mmiso Dlamini acknowledged these concerns, admitting that certain policies indeed make it difficult for businesses to thrive.

He urged the business community to document the specific challenges they face and assured them that the government would prioritise addressing these issues.

Muzi Siyaya, BE Vice President of Trade and Commerce, emphasised the pivotal role played by the private sector, which contributes 70 per cent of employment in Eswatini.

Key industries include construction (31.7 per cent), retail (14.7 per cent), and manufacturing (14.5 per cent), underscoring the need to align educational outputs with labour market demands.

Significant

However, the manufacturing sector, which accounts for 37 per cent of the country’s GDP, faces a significant skills gap, with 32.5 per cent of professionals lacking technical and vocational training and 64.7 per cent without leadership competencies. The agriculture sector, a major economic pillar contributing 9 per cent to real GDP, struggles with high graduate unemployment (40 per cent) due to limited value-added production and reliance on seasonal labour.

To address these concerns, BE is finalising its Business Advocacy Agenda, which presents targeted recommendations across ten priority themes:
w    Improving trade facilitation.
w    Investment in renewable energy.
w     Enabling ICT infrastructure and policy environment.
w     Fair and equitable tax regulations and administration.
w     Efficient public procurement system.
w     Strengthening labour markets.
w     Labour law reform and flexibility.
w     Bridging the skills gap.
w     Labour migration policies.
w     Comprehensive social security framework.

Promoting tripartism and social dialogue for labour market governance.

Enhancing the competitiveness of SMEs.

The agenda reflects BE’s commitment to working closely with the government to address shared challenges and unlock economic opportunities.

Among the pressing proposals requiring immediate attention are the Employment Bill, the review of the Immigration Act, the Public Procurement Act, and the Forestry Bill.

Siyaya stressed that while regulations are essential, they should not stifle business competitiveness, especially for SMEs.

Costs

The dialogue also highlighted the need for digital transformation within the private sector. Currently, 40 per cent of businesses lack automation plans due to high costs and workforce readiness issues.

BE welcomed last year’s partnership with Google, which aims to position Eswatini as a digital economy hub. However, stakeholders stressed the importance of integrating local ICT firms into this initiative. Additionally, government’s ‘Government in Your Hand’ vision to digitise public services presents immense potential and BE urged for local tech companies to be actively involved in its implementation.

On renewable energy, BE acknowledged the commitments outlined in the Energy Master Plan 2050 but called for swift legislative reforms. Updates to the Electricity Act, the Eswatini Electricity Company (EEC) Amendment Act, and the Eswatini Energy Regulatory Authority (ESERA) Amendment Act are necessary to attract investment, create jobs, and boost economic growth.

BE also recognised the support of development partners such as the EU delegation and the UNDP through the CREATE programme in advancing Eswatini’s green transition.

As Eswatini aims to strengthen its position as an export-led economy, regulatory streamlining remains critical.

BE noted significant progress on the Joint Action Plan with the South African Revenue Service (SARS) and the Border Management Authority (BMA) to establish a One-Stop Border Post at Ngwenya. Once operational, this initiative will eliminate bottlenecks and enhance the efficiency of trade.

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