The Eswatini International Trade Fair commences this weekend, focusing the nation’s attention on the business environment that underpins the local economy and sustains the livelihoods of thousands of emaSwati.
It opens amid a volatile business landscape- presenting a mix of threats and opportunities that demand urgent action to capitalise on the prospects. With an economic growth rate of 4.8 per cent in 2024, Eswatini outperforms the Sub-Saharan African average of 3.4 per cent and the global average of 2.8 per cent, according to World Bank and IMF data, while local projections placed it at around eight per cent; with Finance Minister Neal Rijkenberg setting a desired target growth at 12 per cent. We need massive investment to achieve this target.
News of a new company set to manufacture footwear, offering hope for approximately 100 potential employees, exemplifies the opportunities we need to hear more frequently – ideally monthly.
However, these gains are at risk from looming retrenchments in the coal mining sector, following the loss of markets in South Africa, where coal-consuming smelters are closing. Alternative markets are needed urgently.
A glimmer of hope emerges from the Ninth Tokyo International Conference on African Development (ICAD 9) in Japan, attended by His Majesty King Mswati III, where Japanese interest in Eswatini’s anthracite coal was expressed. Every effort must be made to secure this market, demonstrating how government and private sector collaboration can benefit the populace.
Government must react swiftly when threats to industries arise, engaging major stakeholders to mitigate impacts. This approach should extend to all sectors facing challenges. Business closures, particularly of key economic players, should no longer be left solely to owners to manage.
This year’s trade fair must deliver practical solutions to current challenges through its business seminars, with outcomes followed through by commitments from relevant stakeholders. This is no longer optional, but essential. As Aliko Dangote, Africa’s renowned business magnate, once stated: ‘To succeed in business, you must build a conducive environment where innovation thrives, supported by decisive policies and infrastructure that attract investment’.
Making Eswatini attractive requires collective effort across multiple sectors; not solely the responsibility of the Ministry of Commerce, Industry and Trade, or those of ICT, Natural Resources, Finance, Economic Planning and Development. The private sector must lead, taking responsibility to shift the business landscape away from reliance on government ‘tenderpreneurs’, whose delayed payments impact the economy.
Given its size and population, Eswatini positions itself as a well-placed hub for accessing the African continent. Advantages include a stable political climate, skilled labour and investment security with profit repatriation. A one-stop shop is being developed to streamline the acquisition of necessary documentation for starting a business and settling in the country. However, investors require assurance that supporting institutions – Judiciary, financial services, health, crime prevention and energy – provide stability. Addressing Eswatini’s corruption perception index is critical, as some locals underestimate its impact. Eswatini’s Corruption Perceptions Index score of 27 out of 100 in 2024 ranks it 135th out of 180 countries, below the Sub-Saharan African average of 33. This is really bad.
This is why recent headlines regarding warrants of arrest in the drug shortage probe must not be left to speculation, but acted upon, as commanded by His Majesty King Mswati III in his Speech from the Throne earlier this year, at Sibaya and in prior years. If the nation has been misled on the cause and accountability for the drugs crisis, the law must take its course – as much depends on decisive action against graft. Meanwhile, there is no ambiguity about the shortage of drugs and no expense should be spared in stocking health facilities with medication for innocent citizens.
Three years into the current Cabinet’s term, meaningful results are expected on priorities raised at Sibaya: Jobs, health, corruption, education, poverty alleviation and gender-based violence. Investors need assurances now more than ever, particularly as neighbouring South Africa faces trade tariff disputes with the United States of America.
Therefore, as we attend this year’s trade fair and assess the progress of local entrepreneurs and their new products, we must consider protecting investments from negative economic impacts caused by indecision and external factors. The trade fair should reinforce the importance of buying local and strengthening the small and medium enterprise sector, which is tasked with creating meaningful employment for the numerous youths lacking job opportunities, amid an unemployment rate of 35.4 per cent according to the latest Labour Force Survey. These are more than just figures. They are people who are watching every decision being taken or not taken, or whether it is their best interest or in the selfish interest of those entrusted with such a responsibility.
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