FACTS OF SWAZILAND

Click on one of the following:

• Location
• Investing in Swaziland
• The Business Environment
• Labour Quality / Availability
• Quality of Life
• Industrial Infrastructure
• Rail, Road and Air Links
• Access to Markets
• Exchange Control
• Investment Protection
• Establishing Business Operations in Swaziland Through SIPA'S ONE-STOP-SHOP
• Support Services
• Banking Services
• Sample Legal Firms
• Country Membership and Trade Agreements

Location

The Kingdom of Swaziland is bordered by the Republic of South Africa and Mozambique and is one of the smallest countries in Southern Africa.

Investing in Swaziland

Whilst relatively small, Swaziland has long been considered an ideal destination for foreign investors, and it is not difficult to understand why: politically stable with abundant labour and high literacy levels; it has excellent natural resources, a perfect climate, and most importantly a vibrant free-market economy.

The country is now home to over fifty FDI companies originating from United States of America, United Kingdom, Japan, Republic of China (Taiwan), Germany, Republic of South Africa, amongst others. These companies are engaged mainly in the manufacturing and processing sectors, agriculture and horticulture, forestry and timber products, mining, tourism, automobile assembly and international services.

The Business Environment

Swaziland is today's "The right choice" as a location for Foreign Direct Investment (FDI). While small in physical size and landlocked, Swaziland enjoys closer proximity and easier access to the nearby seaports of world road and railway network. Swaziland also enjoys direct air links with major airports in southern African region which facilitate the movement of passengers as well as freight. These international airports include Johannesburg and Durban ( South Africa), Dar es Salam (Tanzania), Nairobi (Kenya) and Maputo (Mozambique).

Swaziland is now home to over fifty FDI companies from USA, United Kingdom, Japan, Republic of China (Taiwan), Germany and Republic of South Africa, amongst others. These companies operate mainly in the manufacturing and processing sectors, Agriculture, and Horticulture, Forestry and timber products, Mining, Tourism, Motor Car Assembly and International Services

Swaziland as a premier investment location, boasts a readily available industry infrastructure of serviced factory shells and factory site, skilled and semi-skilled english speaking workforce with the highest productivity levels in the region.

In addition, the country has a long established free enterprise economy, political and economic stability as well as a safe and secure location for business, family and property. Institutional support services are available from well established international firms.

Competitively priced utilities such as water, electricity, telephone and postal services are readily available. Foreign exchange and international money transfers are provided through the international commercial banks operating in the country. Capital goods and raw materials enter the country free of customs and excise duties.

The Manufacturing and Processing sectors have been the major contributors to the economic growth and the government is committed to increasing its contribution through a variety of incentives. In addition, Tourism, Agriculture and Natural Resources have been identified as having potential for driving economic development and are also eligible for government support.

Labour Quality / Availability

The productive labour force currently comprises over 10% of the country’s population and is growing at a rate of 1.7% per annum. The country’s education system produces over 10.000 high school, college and university graduates. This ensures an abundant supply of a literate, English speaking labour force.

Labour cost in manufacturing section range from US$17 per week for a Trainee Machine Operator/Spinner/Weave to US$99 for skilled Tradesman and US$105.56 per week for a Laboratory Technician. (Labour cost are amongst the lowest in the region).

Quality of Life

Swaziland is a modern country in every respect. Goods and services found in other parts of the world are all available. Excellent shopping facilities are to be found in all of the major centres.

Satellite communications gives access to worldwide entertainment and has also led to the Establishment of a sophisticated GSM cellular telephone network. Cinemas, country clubs, sports clubs and gaming facilities are all part of the magic of Swaziland. An international tourist destination of acclaim, Swaziland has some of the finest leisure facilities in the world - stunning scenery, world class golf courses, fishing, game viewing and safari ranches being just some of the attractions on offer.

All levels of schooling are available from pre-school through to university. Primary and secondary schooling is mainly funded from private sources while most tertiary education is government funded. One of Swaziland’s most famous schools is Waterford Kamhlaba United World College, a selective entry international private school. Students from 46 countries throughout the world attend this well-known school.

There are 176 hospitals, clinics and health care centres run by government and other organizations, situated throughout the country. Swaziland has a liberal society that allows full freedom of religious expression. There are churches in all communities with Christianity being the most widely practiced religion.

Industrial Infrastructure

Swaziland has developed excellent industrial estates in the key urban centres, where medium size and large businesses are found. The industrial estates are fully serviced with water, electricity and telecommunication connections. The Matsapha Industrial Estate, the premier business site and hub of industrial activity in Swaziland, is well developed and geared for any business operation. Located centrally in the country, it has established factory buildings of different sizes. There are also vacant serviced properties with no facilities suitable for their operations. Excellent residential accommodation is also available.

The Nhlangano Industrial Site is located approximately 96km south of Matsapha. The
site is fully serviced and currently houses 5 textile companies. The industrial site is
approximately 12 km from the nearest South African border and 33km from nearest
railway head in South Africa, leading to the international port of Durban.

Ngwenya Industrial Site has been increased in capacity through the surveying and servicing of additional industrial plots. Ngwenya is located approximately 3 km to the Oshoek Border Post (RSA), and 35 km from Matsapha Industrial Site. 3 new companies are already earmarked for this area, 3 companies are already operating there.

Rail, Road and Air Links

The upgrading of the road infrastructure began in 1993 with the construction of a world class highway linking Manzini and the capital Mbabane. The highway was completed in 1999 and yet another one is currently under construction linking Mbabane and the Oshoek Border Post with Republic of South Africa. All roads linking cities and towns are tarred and well maintained.

The railroad network is equally well planned and highly reliable. The railroad passes through most industrial sites with the exception of Nhlangano and is the most preferred mode of transporting industrial goods, mainly to and from the port of Durban in the Republic of South Africa. Goods transported from Matsapha to Durban have an average lead time of 1½ to 2 days. The railroad network is constantly upgraded to meet the ever increasing needs of the industries in Swaziland.

Airlink Swaziland is the national air carrier offering 4 daily flights between Matsapha International Airport and Johannesburg International Ariport. Swazi Express is another carrier offering daily flights to Durban, Nelspruit (RSA) and Maputo (Mozambique).

Access to Markets

Access to regional and International markets is achieved through a world class road and rail transportation network. Both road and railway systems are linked to the seaports of Durban and Richards Bay in South Africa, and Maputo in Mozambique. Goods are also transported between Swaziland and Johannesburg.

Distance
Swaziland Durban 562km
Swaziland Richards Bay 480km
Swaziland Maputo 224km
Swaziland Johannesburg 360km

Sample Road Transportation Companies:

Smaller freight companies operate overnight services between Swaziland - Johannesburg and Durban as well as Swaziland and Maputo.

These companies include:

Name Speedy Overborder Services Telephone (268) 518 4596; 518 4604 Telefax (268) 518 7725    Name Federal Express (FEDEX) Swaziland Telephone (268) 518 5134; 518 5049 Telefax (268) 518 5159    Name Sharp Freight SWD (Pty) Ltd Telephone (268) 518 6378 Telefax (268) 518 5580 E-mail    Name DHL International Telephone (268) 404 5829; 404 5831 Telefax (268) 404 5440 E-mail    Name Interfreight Swaziland Telephone (268) 422 0699; 422 0700; 422 0702 Telefax (268) 422 0701 E-mail    Name Express Cargo Swaziland Telephone (268) 518 4288; 518 5831 Telefax (268) 518 5048    Name UPS (United Parcel Service) Telephone (268) 404 4839 404 4845 Telefax (268) 404 4840

All freight companies provide warehouse as well as customs clearing services.

Rail transportation is provided by Swaziland Railway which is linked to both South African and Mozambique railway systems. In addition, Swaziland Railway operates a unique inland Dry Port at the main Matsapha Industrial Estate where pre-customs clearing is undertaken.

Contact:

Gideon Mahlalela Managing Director

Exchange Control

Swaziland has a liberal exchange control regime. All profits, dividend and other income accrued are freely repatriated after notification of the Central Bank of Swaziland.

Investment Protection

Swaziland is a member of the Multilateral Investment Guarantee Agents (MIGA), a scheme which is affiliated to the World Bank. Through this scheme, the expropriation and nationalization of foreign investment are prohibited by law.

Establishing Business Operations in Swaziland Through SIPA'S ONE-STOP-SHOP

The Government of Swaziland welcomes investments into Swaziland and to ensure that establishing business in Swaziland becomes a seamless process, it mandated SIPA to assume this function. SIPA facilitates the entire process of establishing business operations for new investors as well as established companies wishing to expand or open new operations. The process itself involves some key steps, which are highlighted below.

Support Services (sample)

Name Price Waterhouse Coopers Telephone (268) 404 3143; 404 7931/2 Telefax (268) 404 3142 E-mail    Name Ernst and Young Telephone (268) 404 2015/6 Telefax (268) 404 5012 E-mail    Name KPMG Chartered Accountant Telephone (268) 404 2891/3; 404 2637/8 Telefax (268) 404 1929 E-mail    Name Deloitte and Touche Telephone (268) 404 2865; 404 2868 Telefax (268) 404 1496 E-mail    Name Fisher Hoffman Sithole Telephone (268) 404 4992 Telefax (268) 404 6088 E-mail

Banking Services

Name First National Bank Telephone (268) 404 5401; 4041961 Telefax (268) 404 3088    Name Standard Bank (Swaziland) Limited Telephone (268) 404 6589; 404 2691 Telefax (268) 404 5889 E-mail    Name Nedbank Swaziland Telephone (268) 404 3351; 404 3352 Telefax (268) 404 4060 Web http://www.nedbank.co.sz/    Name Swazibank Telephone (268) 404 2551/8 Telefax (268) 404 2550 E-mail Web http://www.swazibank.sz/

Sample Legal Firms

Country Membership and Trade Agreements

Swaziland is an active member of the following international bodies:

• United nations
• World Bank
• Commonwealth
• Africa Unity (AU)
• Africa Development Bank (ADB)

Trade Agreements