E171m for factory shells project
MBABANE – Eswatini is currently focusing on industrialisation and foreign direct investment (FDI), and government has committed funds towards factory shells.
These funds will be utilised by companies and individuals who will offer procurement services, works and other related initiatives to make these projects a success.
To date, the country has constructed and commissioned 27 factory shells and these factories cover an area of about 197 500 square metres.
In line with His Majesty’s Speech from the Throne, government has committed to building factory shells to stimulate the entry of new investors into the local market. This includes developments such as the construction of the Gamula, Ndzevane and Mantambe factory shells, which will create over 3 000 jobs for emaSwati.
This was mentioned by the Minister of Finance Neal Rijkenberg in his budget speech. He said factory shells played a crucial role in attracting investment by creating a conducive and enabling environment, drawing FDI into our borders.
“Furthermore, the government shall complete the Johnson Workwear factory shell at Nhlangano and the rehabilitation of the burnt down factory shell at Hlathikhulu. In this budget government has provided E171 million for the construction of factory shells,” he said.
The minister mentioned that investment in infrastructure to support industrialisation was key. He said the government was continuously accelerating industrialisation within our available financial resources to upgrade and develop infrastructure, such as industrial estates to promote domestic and foreign investments into the manufacturing sector.
To attract investment and strengthen value addition, he said the government would reinvigorate the development of the Sidvokodvo Industrial Estate of 310 hectares, which would alleviate the shortage of industrial land for investors and create employment for emaSwati. This initiative is anticipated to create 600 jobs during the initial phase of the construction and 4 000 jobs in the second year.
“The factories are distributed around the country to encourage decentralisation.” This was mentioned by the Minister of Commerce, Industry and Trade exclusively to the business desk.
Khumalo said foreign companies who have invested in Eswatini were encouraged to source their inputs from local suppliers.
“In fact, most foreign companies do business with local suppliers as it is cheaper for them to do so. However, there are gaps and limitations in the capacity of local supply which often requires importation of what cannot be sourced in the country.”