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ESCCOM ANNUAL INCOME CONTRACTS BY 31%

23/09/2022 06:26:00 Mhlengi Magongo

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MBABANE – The annual income recorded by Eswatini Communications Commission (ESCCOM) contracted by 31 per cent in the current reporting period.

This was detailed in ESCCOM’s financial performance and highlights section of the annual report for the year 2022. ESCCOM’s income decreased from E122.7 million in 2021 to E84.4 million in 2022. The commission’s income is comprised mainly of mobile licence fees, spectrum fees, type approval and renewal fees. During the financial year 2021/2022 the commission earned E84.4 million. They said their main source of revenue was based on five per cent levied on the net operating income of mobile network operators (MNOs), as well as the two per cent levied on the net operating income of internet service providers (ISPs).

“These fees are used to fund the cost of regulation,” said ESCCOM. The commission reported that interest was earned from their investments. They said long-term investments consist of government bonds, whereas short-term investments were money markets at various institutions. Interest income was reported at E10.2 million. The total accumulated expenditure for the period was reported at E93.98 million. Included in this amount was the commission’s contribution to the Universal Access and Service Fund amounting to E15 million.

Equipment

In addition, E700 000 was contributed to purchase equipment for Eswatini Television Authority (ESTVA) and E500 000 was contributed to purchase equipment for Eswatini Broadcasting and Information Services (EBIS). The surplus for the financial year amounted to E9.7 million. During the year under review, ESCCOM expanded its total assets from E449 million to E452 million.To date, the commission has spent E69.9 million on the new office building project. The total cost was estimated at E188.8 million.

“E40 million investments in bonds were made in an effort to assist government in alleviating the economic fiscus at the time the investments were made. The first E20 million bonds earn interest at 9 per cent per annum and will mature in August 2023. The second E20 million bonds earns interest at 9.85 per cent per annum and will mature in August 2026,” said ESCCOM in the report. ESCCOM added that other investments as at 31 March 2022 amounted to E101 million. They said these investments were short-term in nature and were held with Stanlib Swaziland (Pty) Ltd, African Alliance Eswatini Management Company Ltd, Status Capital Building Society, Aluwani Fund Managers and Old Mutual Investment Group (Eswatini) Pty Ltd.

“Designated funds represent licence fees earmarked for future projects of the commission. Costs incurred on these projects are subsequently transferred to capital reserves. The capital reserves are amortised in line with the useful lives of the underlying assets,” added the commission.
They further reported that their cash resources were held to meet prudential liquidity targets and the liquidity levels enable them to respond effectively to changes in cash flow requirements.

ESCCOM Chief Executive Officer (CEO) Mvilawemphi Dlamini said the commission’s project to construct an office building at Ezulwini was progressing well, despite challenges experienced at the beginning. He said the project, earmarked for completion in May 2023, sought to provide a conducive work place environment that promotes knowledge transfer, collaboration, communication and productivity. Construction Associates (CA) was appointed as the contractor to undertake the main construction works, together with other nominated sub-contractors. “As of March 31, 2022, considerable progress estimated at 21 per cent had been achieved. With an accelerated programme to take advantage of the dry season during the next few months, it is hoped that the majority of the project works will be undertaken during the first and second quarters of the coming financial year,” he said. The CEO also mentioned that the coming financial year looks set to be a busy period. He said the expansion of the ESCCOM mandate as a result of the newly-enacted legislation coincided with the development of the next five-year Organisational Strategy (2024-2028).