MBABANE – Over 100 new jobs have been created and several others saved in the merger involving Usutu Forest Products Company Limited.
The approved transaction by the Eswatini Competition Commission (ESCC) involves the acquisition by Usutu Forest Products Company Limited of a portion of land belonging to Shiselweni Forestry Company (Pty) Ltd (SFC) and a pine sawmill owned by Sawco Mining Timber (Pty) Ltd.
The portion of land, identified as Portion ‘A’ of Farm No. 133 in the Nhlangano District, measures 41.43 hectares.
The merger was notified on May 27, 2025 and determined by the technical committee of the Board of Commissioners on September 24 2025.
All companies involved – Usutu, SFC and Sawco – are registered and incorporated under the laws of Eswatini.
According to the Eswatini Competition Commission, the merger has had a direct positive impact on employment, with Usutu absorbing a number of Sawco employees, while also introducing a second operational shift at its Nhlangano sawmill – a move that has generated over 100 additional jobs.
The commission stated that the transaction demonstrates how responsible corporate restructuring can stimulate employment growth and sustain livelihoods in key sectors such as forestry and timber processing, contributing to the local economy’s industrial stability.
In assessing the Usutu–SFC–Sawco transaction, the Eswatini Competition Commission’s Secretariat identified two relevant markets – the supply of softwood sawlogs and the production of processed timber within the Shiselweni Region.
While both Usutu and SFC produce forestry products, Usutu does not currently produce softwood sawlogs in the region and relies instead on imported softwood for processing at its Nhlangano mill.
The commission concluded that even though the merger introduces both vertical and horizontal integration, the overall structure of the market remains unaffected and no competition concerns arise from the transaction.
From a public interest perspective, the merger was found to be beneficial rather than harmful, primarily because it protected existing jobs and created new ones.
The commission stated that ‘the structure of the relevant market is not going to change upon implementation of the proposed transaction.
Competition concerns will not arise, and the merger will not have negative effects on public interest matters in Eswatini.’
Accordingly, the technical committee approved the merger without conditions, while reminding the parties that the approval ‘does not absolve them from other legal requirements applicable under Eswatini law.’
The decision by the Eswatini Competition Commission to approve a merger that creates and safeguards jobs mirrors the broader regional stance of the COMESA Competition Commission (CCC), which has repeatedly emphasised that mergers should not come at the expense of workers’ livelihoods.
Speaking during the COMESA Competition commission press briefing and media workshop held in Nairobi, Kenya, the commission’s Chief Executive Officer, Dr Willard Mwemba, stressed that while market efficiency is vital, ‘it cannot be pursued at the cost of human welfare.’
“As regulators, we support market growth and competitiveness, but mergers and acquisitions should not have the effect of depriving people of their jobs or undermining livelihoods,” Dr Mwemba said.
*…
New Seasons Security acquires Fidelity Swaziland
MBABANE – In a separate ruling, the Eswatini Competition Commission approved the acquisition by New Seasons Security Services (Pty) Ltd (NSSS) of 100 per cent shareholding in Fidelity Security Services Group Swaziland (Pty) Ltd.
The transaction also includes Siyasitana Cash Loans (Pty) Ltd, both entities being subsidiaries of the Fidelity Services Group.
The transaction, notified on May 12, 2025 and determined on September 24, 2025, marks part of a regional corporate restructuring strategy by the Fidelity Group.
NSSS, a South African-registered investment holding company, focuses on the private security services sector and does not currently conduct business, own assets or generate revenue in Eswatini.
*Full article available in our publication.
Leave a comment