ABOUT THIS COUNTRY
The Kingdom of Eswatini is a small, landlocked country covering a total area of 17,364 km² and is located in the southern part of Africa bordered by the Republic of Mozambique to the east and the rest by the Republic of South Africa. Known as the Switzerland of Africa, Eswatini comprises magnificent mountain scenery with unique, ancient rock formations, which are a source of fascination for geologists, scholars and visitors.
The agricultural sector is the main source of income for more than 70 % of Swazis, particularly in the rural areas. The sector also plays an important role in providing raw materials for the largely agro-based manufacturing industries. Swaziland’s economic situation remains precarious mainly due to significantly reduced revenue from the traditional sources. Forecasts indicate GDP growth of 2% for 2010, however, the GDP is expected to decline in 2011/12 with among other factors, forced reduced government expenditure impacting across the board. Contributing to the slight improvement of 2010 are growth in the agricultural, retail and transport and communications sectors coupled with improved performance by South Africa, the market for more than half of Swaziland’s exports.
Reasons to invest in the Kingdom of Eswatini:
- Extended market access into the region
- Quality support infrastructure and utilities
- Stable and good industrial relations regime
- Safe and peaceful environment
- Strong investor protection framework
Agriculture
Manufacturing
Textiles
Energy
Agriculture
- Agriculture is traditionally the backbone of Swaziland’s economy and a great contributor to the country’s GDP with a 12.7% share after a 2% growth in 2007/8. However a greater proportion of GDP is indirectly related to agriculture as a significant part of the manufacturing sector is value-added through processing of agricultural products like timber, fruits and sugar cane.
- The sector is a major source of employment for over 70% of the rural population. The diverse agricultural activities that take place in the country include sugar cane production, citrus fruit, cotton, forestry, livestock, maize, other cereal crops and other undertakings which generate foreign exchange earnings.
Manufacturing
- Eswatini offers immense opportunities for manufacturing. The strategic location further enhances Swaziland’s export potential, which is anchored by Government’s focus on value addition to a wide range of natural resources of locally available unprocessed resources is vital to attracting investments into value added industries.
- Manufacturing operations range from small factories to large concerns employing thousands of people and utilizing the latest technology. This sector accounts for around 65% of total FDI and as an employer is second only to agriculture, providing jobs for about 26% of the work force.
Textiles
- Textile and garment production plays a significant role in Swaziland’s manufacturing sector. In the last several years, the textile and garment industry has grown to offer a wide range of services, including spinning, weaving, knitting, dyeing, and finishing.
- Introducing such labour-intensive processes locally has increased employment opportunities; currently, the industry provides jobs for over 15,000 Swazis. Eswatini’s textile and garment manufacturers are primarily located in the Matsapha Industrial Estate.
- Eswatini’s offering of comprehensive product lines in one location is attractive to buyers, as it allows them to meet their broad purchasing needs in one place. As a result, Swaziland provides textiles and garments to some of the largest retailers in the United States, Europe, and South Africa.
Energy
- Over 95% of the total power production in Swaziland is hydro – powered energy. Two hydro stations supply the electricity needs of the country. These stations are owned and operated by the Swaziland Electricity Company.
- The smallness of the country makes it possible for SEC to adequately provide isolated transformers to individual large companies in some cases. This helps these companies to avoid power cuts and in consequence stay clear of unnecessary foregone revenues due to power interruptions.
Tourism
Food Processing
Tourism
- Eswatini’s tourism industry remains one of the fastest growing industries and a large generator of income. The peace, stability and low crime rate compare well with the neighbouring countries South Africa and Mozambique.
- Unique attractions and close proximity to the world famous Kruger National Park make Swaziland the right place to visit. Swaziland offers many diverse and unique attractions that appeal to a wide cross-section of tourists.
- Traditional ceremonies are an integral part of Swazi life, despite the advent of modernization. The most important of these include the sacred Incwala or the Festival of the First Fruits. This is essentially a Kingship ceremony held to renew the strength of the King and the Swazi Nation for the coming year. Incwala is held in December/ January of each year, at the time of the new moon preceding the event.
- Another major ceremony is Umhlanga or the Reed Dance which is held for a week at the end of August or early September. Swazi maidens gather at the Queen Mother’s residence and set out in parties to gather reeds. The reeds are used to repair the windbreak around the Queen Mother’s residence.
Food Processing
- This is a very vibrant and significant player in the manufacturing sector of Swaziland. Food processing includes fruit and vegetable canning for export in the European, North America and Japan markets.
- There is huge demand for Swazi produce in the overseas markets especially pineapples, which has resulted in a strategy to increase production. Sweets & delicatessen as well as soft drinks concentrates manufacturing all utilize locally produced sugar and are carried out on a large scale.
Opportunities exist in
- Fruit, Vegetable Preservation and Bottling
- Bottling (preservation) of pickles and chutneys
- Bottling of jams and jellies
- Processing of beans and other legumes
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