Eswatini Sunday

Business Eswatini commits collaborat­ion with govt for economic growth

- Stories by Ncaba Ntshakala ncaban@rubiconmed­ia.group

Business Eswatini has reinforced its commitment to the Government of Eswatini.

Mvuselelo Fakudze, the President of Business Eswatini, who was represente­d by CONCO General Manager Muzi Mahlobo, highlighte­d the pivotal role of Business Eswatini in shaping the country’s economic landscape. This was during the Business to Government meeting, which was graced by the Prime Minister, His Excellency Russell Dlamini, some Cabinet ministers and key stakeholde­rs in both the public and private sectors.

The President of the business community began by tracing the organisati­on’s rich history, which dates back to the establishm­ent of the Swaziland Chamber of Commerce and Industry in 1916 and the Federation of Swaziland Employers in 1964. The merger of these two entities in 2003 marked a significan­t milestone, symbolizin­g a unified front for businesses in Eswatini.

“Business Eswatini, the voice of business, has a storied past that reflects our country’s economic developmen­t. It emerged from the amalgamati­on of two pivotal organizati­ons: the Swaziland Chamber of Commerce & Industry, establishe­d in 1916, and the Federation of Swaziland Employers, formed in 1964,” said the President.

The transforma­tion continued with the country’s rebranding to Eswatini in 2018, prompting FSE&CC to rebrand itself as Business Eswatini. This change signified adaptabili­ty and forward-thinking, aligning the organizati­on’s identity with the nation’s progress.

Mahlobo stated that in 2003, these two bodies united to become the Federation of Swaziland Employers and Chamber of Commerce (FSE&CC), marking a significan­t milestone in their collective journey. He expressed, “This merger symbolized a stronger, unified front for businesses in Eswatini, advocating for a conducive business environmen­t and fostering a spirit of cooperatio­n between businesses, government, and organized labour.”

Today, Business Eswatini represents over 90 per cent of the private sector, playing a crucial role in policy-making, advisory services, and business connectivi­ty. Fakudze emphasised the organizati­on’s commitment to economic growth, citing its members’ dedication through tax contributi­ons, adherence to laws, and local workforce employment.

During the peak of the Covid-19 pandemic, Business Eswatini extended support, coordinati­ng the private sector response to medical, social, and economic emergencie­s. Fakudze highlighte­d the establishm­ent of ‘Vukani Bomake’ village cottages by Busi

THE country’s official reserves have declined. This is according to the Central Bank of Eswatini’s Monthly Statistica­l Release for February/march 2024, shedding light on the state of the nation’s official reserves.

According to the report, preliminar­y gross official reserves stood at E7.6 billion at the end of March 2024, marking a notable contractio­n of 14.8 per cent month-onmonth, albeit with a marginal year-on-year growth of 0.1 per cent.

The decline in reserves over the month was primarily attributed to a combinatio­n of factors, including a net outflow of Rands from trades with commercial banks and the payment of government fiscal obligation­s.

As a result, the import cover, which indicates the number of months of imports that could be covered by the existing reserves, fell to 2.3 months from the 2.6 months recorded in February 2024.

In addition to the Eswatini Lilangeni valuation, the reserves were also assessed in special drawing rights (SDR), an internatio­nal reserve asset created by the Internatio­nal Monetary Fund. In SDR terms, the reserves experience­d a contractio­n of 13.2 per cent month-on-month and 5.0 per cent year-on-year, closing the month of March 2024 at SDR305.1 million.

Valued in special drawing rights (SDR), the reserves contracted by 13.2 per cent month-on-month and 5.0 per cent year-onyear to close the month of March 2024 at R305.1 million.

Credit extended to the private sector closed the month under review at E18.7 billion, reflecting a slight decline of 0.02 per cent month-on-month, but grew by 7.3 per cent year-on-year. The month-on-month decline in private sector credit was evident in credit to businesses whilst credit to other sectors of the domestic economy and households and non-profit institutio­ns serving households (NPISH) increased.

The report added that credit extended to businesses receded by 1.5 per cent monthon-month and rose by 7.1 per cent year-onyear to stand at E9.2 billion at the end of February 2024.

Accounting for the month-on-month reduction in credit to businesses were the following subsectors: distributi­on & tourism (-10.2 per cent), mining & quarrying (-6.3 per cent), agricultur­e & forestry (-0.7 per cent), and community, social & personal ness Women Eswatini as a testament to resilience and community spirit.

“In times of need, Business Eswatini has risen above the call of duty,” highlighte­d Mahlobo.

“Your Excellency, you will recall that during the challengin­g days of the Covid-19 pandemic, we extended ourselves, coordinati­ng the private sector response to the medical, social and economic emergencie­s that resulted from the pandemic.”

Business Eswatini reiterated its commitment to collaborat­e with the Government of Eswatini, emphasisin­g the importance of a conducive policy environmen­t for project fruition. Mahlobo expressed hope for deeper collaborat­ion with government officials present, envisionin­g a partnershi­p that fosters innovation, sustainabi­lity, and prosperity for all emaswati.

The Prime Minister commended the private sector and its role in stimulatin­g economic growth in the country. He went on to challenge the business community to collaborat­e and strive towards achieving double-digit economic growth in the next five years.

The Premier highlighte­d the government’s commitment to actively partnering with the business community to drive investment and innovation. Dlamini outlined a bold vision for the future, emphasisin­g the need for innovative partnershi­p models and strategies to stimulate growth and attract foreign investment.

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Members of both the private and public sectors following proceeding­s
▴ Members of both the private and public sectors following proceeding­s

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