Times Of Swaziland: 11 FDI PROJECTS WORTH E2.5BN IN Q2

11 FDI PROJECTS WORTH E2.5BN IN Q2
================================================================================
Nhlanganiso Mkhonta on 03/11/2024 07:55:00


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.