10-YEAR TAX HOLIDAY PROPOSAL FOR KELLOGG

MBABANE – Kellogg could be granted a 10-year tax holiday and exemption from paying levies from imported raw materials.

A document which was shared with the Business Desk by the Ministry of Commerce, Industry and Trade disclosed that the raw materials which could be exempted include wheat flour, palm oil, seasoning and other packaging materials. Minister of Commerce, Industry and Trade Manqoba Khumalo said these were incentives currently being discussed. “They are based on the development approval order provisions that currently exist in our legislative framework,” Khumalo clarified.

When Kellogg’s Head of External Relations Zandile Mposelwa was asked to unpack what investment incentives had been offered by government, she could only say: “discussion(s) relating to investment incentives on offer by the government of the Kingdom of Eswatini are yet to be concluded between Kellogg’s and EIPA.”

Document

In the same document from the ministry, it was reported that there would be an expectation that the Eswatini Investment Promotion Authority (EIPA) – which is a Category A public enterprise under the same ministry – would also help in the attainment of a licence.

It was further mentioned that EIPA would help fast track registration with Eswatini Revenue Authority (SRA) for a Tax Identity Number (TIN), issuance of a tax clearance certificate for directors and expedite environmental clearance certificate together with the import and export licence among others.

When asked what had prompted Kellogg to open shop in Eswatini, Mposelwa said the company was continually investing behind businesses and markets that present growth opportunities across our wide range of foods.

She said this had resulted in an expanded geographic footprint across Africa as key growth market for Kellogg. “The Kellogg investment in a noodles production facility in the Kingdom of Eswatini will enable improved market access and accelerate noodles market penetration in Africa across multiple economic trading zones that the Kingdom of Eswatini is a member of (SACU, SADC and COMESA) consisting of 350 million consumers in 22 growing markets,” Mposelwa explained.

She mentioned that the latest investment was confirmation of their continued confidence in Africa and followed relatively recent investments in cereal, noodles and Pringles facilities in Nigeria, Egypt and South Africa respectively.
When quizzed about the total value of investment and number of jobs to be created for emaSwati, Mposelwa said the Kellogg’s investment was US$10 million (about E147 million as of yesterday’s exchange rate) towards the instant noodles production facility in the country.

Focus

Mposelwa pointed out that at this early and critical stage in the project, their focus was to ensure, where possible, that they partner with local suppliers, service providers and employees. She was not precise about the total number of jobs that could be created. However, it has been previously explained by Khumalo that over 200 jobs could be created by the investment.   

“Our partnership with EIPA has enabled Kellogg to gain access to the wealth of talented role players in the Kingdom of Eswatini. Our intention is to establish a world class facility in Eswatini and this capital has been allocated to ensure that this is achieved,” added Mposelwa.

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