STATEMENT BY THE RT HON. PRIME MINISTER,
AMBROSE MANDVULO DLAMINI
AT THE BUSINESS ESWATINI BREAKFAST MEETING
HAPPY VALLEY HOTEL, EZULWINI
WEDNESDAY 17 APRIL 2019
Honourable Ministers
Chairperson and members of the AfCFTA National Steering Committee
Senior Government Officials
Captains of Industry
Members of the business community
Members of the Media
Distinguished guests
Ladies and gentlemen
Good Morning
May I, on behalf of His Majesty’s Government, welcome you all to this all important Business Eswatini breakfast meeting.
I am pleased to be a part of this ground breaking dialogue that seeks to enhance the efficiency of the business community in exploiting available business opportunities in the Kingdom. The Government of Eswatini is resolute in its determination to provide a conducive environment for the private sector to take its rightful place as the drivers of economic growth.
As part of our economic renewal efforts, Government seeks to improve the ease of doing business in order to provide the necessary impetus for business start-ups to strive, and lay a firm foundation for the private sector to achieve sustainable growth, founded in continuous improvement, creativity and innovation which breed quality. While attracting Foreign Direct Investment is a vital component of economic progression, the importance of facilitating domestic business growth cannot be over-emphasized.
The theme for today’s event titled ‘AfCTA opportunities for Eswatini Businesses and collaboration between private sector and Government in economic turnaround,’ is relevant at a time when Eswatini is bidding to host the African Continental Free Trade Area (AfCTA). It was just over a year ago that His Majesty’s Government declared its desire to host the African Continental Free Trade Area (AfCFTA) Secretariat during the Tenth Extraordinary Session of the African Union Assembly of Heads of States and Government held in Kigali, Rwanda.
The AfCFTA is tipped to be the world’s biggest trade organ, in terms of membership, since the establishment of the World Trade Organisation. It intends to bring together all 55 African Union Member States under a common trade banner. With a projected cumulative Gross Domestic Product (GDP) of US$3.4 trillion and a combined population of 1.2 billion inhabitants, the AfCFTA is earmarked to create a single market for Africa.
Its main aim is to boost intra-regional trade by removing over 90% of all tariff and non-tariff barriers to trade. The removal and easing of tarrif barriers is a great step in enhancing continental trade, and provides a gigantic opportunity for businesses across Africa to minimise operational costs and maximise profit. This is an exciting development for Eswatini as Government intends, among other interventions, to forge towards an export driven economy for accelerated economic growth.
For too long Africa has remained behind other regions in terms of facilitating effortless trade. Intra-Africa trade currently stands at a disappointing 18%, compared to 70% in Europe, 55% in North America, 45% in Asia, and 35% in Latin America. The current scenario is suffocating Africa’s business potential, and in extension economic growth, hence Eswatini welcomes the establishment of the AfCFTA with excitement.
It is worth highlighting that the Kingdom of Eswatini was among the first group of African States to adopt, sign and ratify the Agreement establishing the AfCFTA.
Consequently, His Majesty’s Government appointed a National Steering Committee to put together a Bid document and submit it to the African Union Commission by the set deadline of 20 March 2019. A Cabinet Task Team headed by the Minister of Commerce, Trade and Industry was similarly set up to provide support to the National Steering Committee.
The Eswatini business community stands to benefit the most from hosting this coveted African organ. On average, the country which will succeed in the Bid will be expected to host at least two high-level AU meetings per quarter, thereby boosting the hospitality industry through the provision of conference facilities and hotel accommodation. These guests will buy, among others, food, handcraft, and use services provided by the business community of the host country.
The aviation and transport sector also stands to gain through increased air and domestic travel, and remuneration in foreign currency will increase as local spending by delegates attending meetings will directly contribute to foreign exchange earnings.
Moreover, winning the Bid will create demand for the establishment of new Diplomatic Missions and commercial offices as well as supportive institutions such as research institutions, think tanks, audit firms, travel agents and many more. This is exactly where the business community comes in. Hosting the AfCFTA Secretariat comes with a lot of opportunities for entrepreneurs across many sectors of business in Eswatini. We look up to you to tap into these opportunities through further research and innovation to help improve the country’s economy.
Programme Director, I take this opportunity to congratulate the National Steering Committee headed by Nathi Dlamini, the Chief Executive Officer of Business Eswatini, for the substantial ground they have covered in enhancing the country’s chances to win this Bid. They did not only submit the Bid document in record time but have spent the past few weeks putting together all the necessary logistics needed to ensure that Eswatini wins this Bid.
I have no doubt that Eswatini stands a good chance of winning the hosting rights to the AfCFTA Secretariat despite competing against some of the largest economies in Africa. As a country, we have the advantage of having among the best infrastructure and facilities in the continent, and have been actively involved in the African trade revolution consistently for many years.
While we wait for the arrival of the AU Evaluation Team, expected in the coming few weeks, we should continue to spread the word among all Emaswati about the significance of the opportunity we are presented with as a country. I do hope that when the Evaluation team is here, they will sample and appreciate the hospitality that Emaswati are known for and be convinced that, indeed, Eswatini is ready to host Africa.
May I once again thank you all for participating in this important dialogue and wish you all the best in your deliberations.
Thank you. May God bless us all.