Companies’ investments surge by 51.2%
MBABANE - Data collected reflects that investment increased significantly in 2022 relative to the figures reported in 2021.
This indicated an increase by 51.2 per cent year-on-year to E2.612 billion.
They were mainly buoyed by sizable investments undertaken by entities in the manufacturing and utility sectors.
This is according to the companies survey report for 2023, published by the Ministry of Economic Planning and Development, in collaboration with the Central Bank of Eswatini (CBE) yesterday.
The survey looked at the performance of the economy in 2022 as compared to 2021. A total of 121 companies participated in the 2023 company survey exercise.
According to the report, a sectoral analysis of capital investment indicated that the ‘utilities’ sector spent about E878.5 million in capital investments during 2022, depicting a growth of 71.5 per cent from E512.3 million posted the previous year.
Generation
The bulk of the investment in this subsector was channelled towards capital projects, such as water and sanitation infrastructure, as well as electricity generation.
A further E36.1 million was utilised for the procurement of working vehicles during the same year.
Within the ‘manufacturing’ sector, an estimated E922.0 million was invested in 2022, with 88.8 per cent (E818.4 million) being spent in the ‘food and beverages’ sub-sector. Bulk of the investment, amounting to E476.1 million, was directed towards capacity expansion and automation in the sub-sector.
A further E69.9 million (versus E61.0 million in 2021) capital investment expenditure was undertaken in the ‘textile’ sub-sector in 2022.
The expenditure was primarily focused on the expansion of working space and procurement of vehicles. Investment towards the ‘financial services’ sector amounted to E240.7 million in the period, depicting a two-fold increase from the capital investment expenditure in 2021.
Investments were observed in the ‘banking’, ‘insurance’ and ‘pension funds’ sub-sectors.
A value of E159.9 million capital investments was expensed in the ‘banking’ sub-sector during the review period, with E50.0 million channeled towards land and buildings.
Implemented
A sum of E21.1 million was invested towards the acquisition of computer hardware and software as the sub-sector implemented its digital strategies. The sub-sector spent E24.2 million in other projects aimed at improving efficiency in the financial system.
The ‘pension funds’ sub-sector reported an investment of E40.0 million that was channelled towards the construction of office buildings, while E39.5 million was directed towards improving IT systems and purchasing equipment, as part of the automation and digitisation strategy within the insurance sub-sector.
Capital investment spent in the ‘wholesale and retail’ sector totalled E135.7 million during 2022, distributed among ‘supermarkets’, ‘fuel wholesalers’ and ‘car dealerships’ sub-sectors.
Investment expenditure in the ‘supermarket’ sub-sector, which accounted for 50.9 per cent of total investment in the ‘wholesale and retail’ sector, amounted to E69.1 million and was spent on refurbishment of existing shops and the construction of new shops as well as acquiring new vehicles and equipment.
In the ‘fuel wholesalers’ sub-sector, an amount of E46.6 million was invested in the equipment category (mainly the installation of new tanks and pumps) and refurbishment and building of new filling stations. Furthermore, the ‘car dealerships’ sub-sector expensed an amount of E20.0 million, which was attributable to the purchase of vehicles.
The ‘agriculture and forestry sector reported an expenditure of E117.2 million in 2022, which was mainly channelled towards the construction of warehousing space, as well as the erection of treatment plants to improve production in the ‘forestry’ sub-sector.
Expenditure
Investment expenditure in the ‘information and communication’ sector amounted to E156.3 million.
The investment was related to the construction of office buildings, vehicles, acquisition of software, as well as expenditure on ‘machinery and equipment’ to improve quality and network coverage.
The ‘mining and quarrying’ sector spent a minimum of E72 million in capital expenditure in 2022 on ‘machinery and equipment, which was aimed at improving efficiencies and enhancing productivity.