MBABANE – Eswatini has begun validating reforms to align its investment regime with the AfCFTA Protocol on Investment, as stakeholders reviewed a national gap analysis report.
The country has taken a key step towards aligning its investment framework with the African Continental Free Trade Area (AfCFTA) after convening a stakeholder engagement and policy dialogue on investment.
Opening the Eswatini Stakeholder Engagement and Policy Dialogue on Investment, Principal Secretary in the Ministry of Commerce, Industry and Trade, Melusi Masuku, said the validation workshop marked an important milestone in implementing the AfCFTA Protocol on Investment within the Kingdom.
Masuku was represented by Lungile Dlamini, the Director for International Trade at the ministry.
Masuku said the AfCFTA went beyond tariff liberalisation and trade facilitation, describing it as a framework aimed at transforming African economies through increased and better-quality investment.
“Investment is the engine that makes this transformation possible. Without it, there can be no factories, logistics networks, innovation or meaningful participation in regional and global value chains,” he said.
He explained that the AfCFTA Protocol on Investment introduced a shift from traditional protection-focused investment rules towards a balanced framework that promotes and facilitates investment, while safeguarding sustainable development, investor obligations and the right of States to regulate in the public interest.
Masuku said the gap analysis report on Eswatini’s investment regime comes at a critical time, noting that while foreign firms operating in the country outperform domestic firms in productivity, value addition and export orientation, their contribution remains constrained.
According to the report, these constraints include regulatory fragmentation, coordination challenges, limited transparency and weaknesses in dispute-prevention mechanisms.
The principal secretary acknowledged that government had already initiated reforms to improve the investment climate.
These include the proposed Eswatini Trade and Investment Promotion Act, the development of a National Investment Policy, the operationalisation of the Business One-Stop Shop, and plans to reconstitute the investment promotion authority into the Eswatini Economic Development Agency.
He said these measures provide a foundation for alignment with the AfCFTA Protocol on Investment, but noted that further work was required.
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AfCFTA backs Eswatini investment reforms
MBABANE – The AfCFTA Secretariat has reaffirmed support for Eswatini’s investment reforms, urging alignment with continental standards to attract sustainable, development-focused investment.
The African Continental Free Trade Area (AfCFTA) Secretariat has encouraged Eswatini to deepen alignment between its national investment framework and the AfCFTA Protocol on Investment to attract higher-quality and more sustainable investment.
Speaking at the Eswatini Stakeholder Engagement and Policy Dialogue on Investment held in Mbabane, AfCFTA Chief Technical Advisor Gilberto Antonio said the engagement and validation workshop was intended to promote open dialogue, validate existing analysis and agree on practical reforms aligned with the country’s development priorities.
Antonio thanked the Government and people of Eswatini for hosting the engagement, noting that the workshop provided an opportunity for stakeholders to assess what works, identify gaps and build consensus on realistic policy and institutional reforms.
He said Eswatini was at a pivotal moment, as it implements several domestic reforms aimed at strengthening its investment environment. These include the draft Eswatini Trade and Investment Promotion Act, the National Investment Policy, Foreign Investment Screening Guidelines, the transformation of the investment promotion authority into the Eswatini Economic Development Agency and the operationalisation of the Business One-Stop Shop.
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Some of the attendees following proceedings. (Pics: Sabelo Majola)