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MBABANE – Eswatini is positioning itself as a more competitive investment destination through a package of incentives designed to attract foreign direct investment (FDI).
The Central Bank of Eswatini (CBE) unveiled a set of reforms and guarantees aimed at easing the movement of capital, ensuring investor security and strengthening regional integration.
Presenting during the Eswatini–Taiwan Business Workshop held at the Royal Villas Hotel last week, the CBE’s Head of Financial Markets, Dr Melvin Khomo, said the bank was committed to creating a seamless and secure environment for investors.
At the centre of the CBE’s strategy is the relaxation of exchange controls to facilitate FDI into the country. “We have implemented measures that allow for the full repatriation of profits and exemption from foreign exchange controls.
This ensures that investors have unrestricted access to their returns, thereby making Eswatini a highly- competitive jurisdiction for international capital,” Dr Khomo said.
He explained that the bank has also embarked on streamlining licensing and regulatory support to reduce bureaucracy and speed up the entry process for new investors.
“Our goal is to make the process of doing business in Eswatini more efficient and predictable. Investors need confidence that their capital and profits are secure and that the regulatory environment supports growth,” he noted.
Dr Khomo emphasised that one of Eswatini’s strongest incentives lies in its membership in the Common Monetary Area (CMA), which links the country’s currency – the Lilangeni (SZL) – to the South African Rand (ZAR) at a one-to-one parity.
“This arrangement offers significant benefits to foreign investors,” he said. “Being part of the CMA facilitates capital movement across member states, guarantees currency stability and ensures efficient cross-border payments within the region. For investors, this reduces foreign exchange risk and simplifies trade and financial transactions with South Africa, Lesotho and Namibia.”
The CMA also provides investors access to developed capital markets in South Africa, offering a gateway to regional liquidity. Within the CMA framework, dividends and profits can be fully repatriated, provided they meet basic registration requirements and comply with reporting standards.
Dr Khomo added that the CBE continues to work closely with authorised dealers (ADs), such as commercial banks, to ensure seamless repatriation processes.
“This is part of our continuous process improvement. We want to ensure that investors encounter no barriers when transferring capital or profits in and out of Eswatini,” he said.
Eswatini’s strategic location and participation in regional economic blocs are additional factors enhancing its attractiveness. As a member of both the Southern African Development Community (SADC) and the Southern African Customs Union (SACU), the country provides access to a combined market of over 1.2 billion consumers.
“Investors in Eswatini can leverage our regional integration to expand their reach,” Dr Khomo explained. “Being part of SADC and SACU reduces tariff barriers, enhances trade facilitation and integrates Eswatini into broader value chains within southern Africa and beyond.”
The CBE also highlighted the role of the country’s foreign currency reserves in maintaining investor confidence. These reserves enable smooth execution of international transactions, reducing currency risk and transaction costs for businesses engaged in cross-border trade.
The presentation highlighted Eswatini’s growing financial relations with Taiwan, which have been cemented through memoranda of understanding (MoUs) between the CBE and the Taiwan Central Bank. Dr Khomo said these partnerships aim to enhance market infrastructure, foster knowledge exchange and develop climate finance initiatives.
“We are working closely with Taiwan’s financial institutions, including the Taiwan Academy of Banking & Finance and the Taiwan Stock Exchange, to broaden our market capabilities,” he stated. The CBE has also initiated collaboration with the Taiwan Carbon Solutions Exchange, signalling a future focus on sustainable finance and green investment opportunities.
These partnerships were a key highlight of the Eswatini–Taiwan Business Workshop, which brought together policymakers, financial institutions and private sector players from both countries to explore opportunities in trade, investment and market development.
Dr Khomo’s presentation also provided an overview of Eswatini’s financial sector, which he described as resilient but exposed to global economic shifts. The CBE manages foreign exchange reserves, supports financial market development and acts as the government’s agent in debt origination and treasury operations.
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