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Trade & Investment


 

Investment
The promotion of foreign direct investment into Swaziland and any other forms of investment is entrusted to the Ministry of commerce, industry and Trade. The country’s government established an institution called the Swaziland Investment Promotion Authority (SIPA) to be the main engine for the promotion of foreign direct investment and to deal with logistics for establishing investment in the country. The website for SIPA is www.sipa.org.sz. ?

Foreign Direct Investment


Data indicates an increase of 4.6% in the overall stock of FDI, from E5, 791.9 million to E6,056 million. This can be partly attributed to the weakened local currency which resulted in more income being generated. The stock of FDI into the service sector was up from E731 .9 million to E930 million, while stock in the investment sector increased by39.3% to reach E284.4 million. FDI in the agricultural sector was E980 million, a decline of 6.3%. The FDI equity component increased by 4.7% to reach E802.9 million. This compares with a previous 5.8% increase, supporting the claim that there has been a slow down in FDI inflows, The various components of FDI inflows are also detailed in the chart that appears on page 45.

 

 

Trade & Investment
The national priority on investment sectors is specifically in manufacturing (including assembly and processing), Tourism, Agriculture and Agribusiness, mining, forestry and timber, utilities (when privatised) and international services sector. Other areas of investor interest are subject to negotiation and agreement with the Minister for Commerce, Industry and Trade.

 Agriculture & Agro-Processing
Activities include sugar cane production, citrus fruit, maize and other cereal crops, cotton, forestry, ethanol production and livestock.

 

 Manufacturing, Assembly & Processing
Swaziland offers immense opportunities for manufacturing, mostly for exports, import substitution and value addition to a wide range of natural resources like timber, coal, sugar, textiles, fruits, vegetables and a wide range of other locally available, unprocessed resources.

 Tourism and Tourism Infrastructure.

The Swaziland Tourism Authority (STA) has been tasked by the government to stimulate and expand the tourism industry through aggressive marketing drives and development of tourism infrastructure. The quasi - governmental body also takes the initiative and mandate to facilitate projects and activities within the tourism industry.

 

 

Major Investment legislation

 The Companies Act (Company Act of 1912), the law regulates the basic requirements for setting up a company and the company’s registration. Currently, Government is updating this law to meet the requirements of modern industry, business and the needs of the community.

 Trading Licenses Order of 1975, in order to apply for a trading licence you need to have a business registration certificate.

 Income Tax Law, to regulate the taxation of incomes for the employers and employees income tax. There are also laws on corporate Tax.

 Customs & Excise Act, to regulate the taxation of imported goods, machinery and raw materials for the manufacturing sector.
 Industrial Relations Act of 2000
This Act provides the general legal framework of operations of companies, employer to employee relations, employer-union -employee relations, dispute resolution mechanism and other statutory requirements.
 Wages Act of 1964
This Act and its regulations specifies the basic minimum wage applicable per sector, conditions of service highlighting hours of work, overtime, public holidays, annual leave among others, for each business sector.
 Workmen’s Compensation Act of 1983
This Act specifies the requirement of manufacturing companies to acquire workmen’s insurance cover for all employees, in case of injury sustained at work.
 Swaziland National Provident Fund
This act directs all employees to deduct E30.00 (US$4.25) from each employee, contribute an additional E30.00 (US$4.25) per employee and remit E60.00 (US$8.50) per employee to the provident fund administrators.
 Sales Tax
This is payable on most goods and services and is charged on imported items, with the exception of food, at the entry point. The flat rate is 14%, except for Luxury goods, such as tobacco and alcoholic beverages, which are taxed at 25%. The sales tax will be replaced by the Value Added Tax (VAT) very soon.





Swaziland
Population
Area
Capital
Official language
Politics
Time Zone
1,133,066 (July,2007)
17,368 (half of Taiwan)
Mbabane
English
Sovereign state that is ruled by a Monarch
6 hours behind Taiwan