MBABANE – The African Development Bank Group has unveiled an ambitious intervention strategy for Eswatini aimed at reducing the cost of doing business, strengthening private sector competitiveness.
The strategy also seeks to positions the country for sustainable economic growth amid mounting economic and climate-related challenges.
The strategy, which forms part of the bank’s support framework for Eswatini, focuses on two priority areas namely investing in climate-resilient infrastructure and strengthening economic and financial governance to stimulate private sector development.
The development finance institution believes the strategy could help unlock Eswatini’s economic potential by improving infrastructure, attracting investment and creating a more competitive business environment.
Under priority area one, the African Development Bank intends to support investments in transport, energy, water and sanitation infrastructure as part of efforts to reduce production costs and improve efficiency across the economy.
The bank noted that inadequate infrastructure remained one of the major barriers affecting business growth, industrialisation and regional trade competitiveness in Eswatini.
According to the strategy document, the main objective under the first pillar is to increase access to quality infrastructure in order to bolster productivity and enhance competitiveness.
The bank stated that support would focus on transformative investments in strategic sectors capable of driving structural economic transformation.
These include investments in energy generation and transmission infrastructure, road transport networks and water systems to support production areas, industrial activity and agribusiness development.
The institution said such infrastructure investments were essential for improving efficiency in production and logistics while enabling businesses to operate at lower costs.
*…
Private sector development and governance reforms
MBABANE – Under priority area two, the African Development Bank aims to strengthen Eswatini’s competitiveness through improved economic and financial governance.
The bank said a strong governance framework is critical in creating an enabling environment for private sector development, investment growth and job creation.
The institution intends to support the development of policies, strategies and institutional capacities aimed at promoting private investment and improving access to finance.
According to the strategy document, the bank will adopt a holistic approach to help strengthen institutions responsible for economic management and investment promotion.
The intervention will also focus on establishing national institutions and infrastructure required to ensure production quality standards.
Analysts say improving quality assurance systems and standards infrastructure could help local businesses access regional and international export markets more competitively.
Eswatini has increasingly been seeking to leverage opportunities presented by regional integration through trade agreements such as the African Continental Free Trade Area, Southern African Development Community and Common Market for Eastern and Southern Africa.
The African Development Bank noted that access to these large regional markets presents significant opportunities for export growth and industrial expansion. The strategy identifies several strengths and opportunities that could support Eswatini’s long-term growth ambitions.
Among these is the country’s strategic geographic location, which presents opportunities for regional trade collaboration and market access.
*Full article available on Pressreader*
Leave a comment