Country Snapshot
| Population (2019, millions)¹ | 1.14 |
| Population Projections (2030, millions)¹ | 1.29 |
| Economically active population in agriculture (as % of Economically active population)¹², 2019 | 33 |
| Capital | Mbabane |
| Surface Area (km²)² | 17,360 |
| Weather¹¹ | In Mbabane: Hottest months, January and February, 15-25°C; coldest month, June, 5-19°C; driest month, June, 18 mm average rainfall; wettest month, January, 252 mm average rainfall |
| Languages³ | Official: English and siSwati |
| Main Religions³ | Main: Zionist (blend of Christianity and indigenous ancestral worship) and Roman Catholic – Others: Muslim, Anglican, Baha’i, Methodist, Mormon and Jewish |
| Time⁴ | South Africa Standard Time (SAST) +0200 UTC |
| Driving Orientation⁵ | Left Side |
| Internet Country Code⁶ | .sz |
| Country Calling Code | +268 |
| Plug, Socket and Voltage⁷ | Type M – 230V/50Hz |
| Currency | Lilangeni (SZL) – 1/100 = Cent and South African Rand (ZAR) = 1/100 = Cent |
| Exchange Rate (As of 12 February 2019, per USD)⁸ | 13.87 (SZL = ZAR) |
| GDP at Market Prices (2018, current, billions of USD)⁹ | 4.7 |
| GDP Growth (2018, annual %)⁹ | 0.62 |
| Average GDP Growth (2014-2018, annual %)⁹ | 1.6 |
| GDP per Capita, PPP (2017, current international $)⁹ | 10,721 |
| Inflation, Consumer Prices (2018, annual %)⁹ | 4.81 |
| Average Inflation, Consumer Prices (2014-2018, annual %)⁹ | 5.9 |
| Total Reserves in Months of Imports (2017)⁹ | 3.14 |
Sources:
¹United Nations Population Division, Department of Economic and Social Affairs.
²COMESA Statistics, COMESTAT Data Hub.
³CIA World Factbook.
⁴Time and Date Portal.
⁵Chartsbin Portal, “Worldwide Driving Orientation by Country”.
⁶Wikipedia, “List of Internet top-level domains”; and, Internet Assigned Numbers Authority, Root Zone Database.
⁷International Electrotechnical Commission, World Plugs.
⁸Central Bank of Eswatini.
⁹World Bank, World Development Indicators 2018.
¹¹Economist Intelligence Unit.
¹²AFDB Socio Economic Database
Reasons to Invest in Eswatini
- Strong Investor protection framework: Signatory to MIGA, member of UNCTAD, Mem- ber of ICSID.
- Abundance of qualified skills and competitively priced work force as Eswatini ranks 11th amongst African countries in Literacy Index (UNDP 2019).
- Advanced infrastructure including a road system 3,594 km and cargo rail system covering 301 km, which provide easy access to seaports, including Durban and Rich- ards Bay in South Africa, a new state-of-the-art international airport , and two Spe- cial Economic Zones (SEZs) already admitting investors as well as four developed sites for industrial infrastructure.
- Stable and free business environment; ranked first in Africa in Trading Across Board- ers in the 2019 World Bank Ease of Doing Business Index, and first out of 46 countries in the Sub-Saharan Africa region in the 2017 Index of Economic Freedom, and its overall score is above the world average.
- Extended Market Access as Eswatini has access to preferential markets in regional and international arena such as COMESA, SACU, SACU-Mercosur, EPAs, (GSP), and SACU- EFTA.
- Close proximity to key ports such as Durban, Richards Bay and Mozambique.
- A homogenous and peaceful tribe with a unifying cultural background that promotes peace and is well acclaimed by investors.
Source: Eswatini Investment Promotion Agency – EIPA.
Population
Population Projections (millions)
| Population (2015) | 1.14 |
| Population Projections (2030) | 1.29 |
Source: United Nations Population Division, Department of Economic and Social Affairs.
Population Residing in Urban Areas (%)
| Population Projections (2019) | 23.9 |
| Percentage of Population Residing in Urban Areas (2030) | 26.5 |
Source: United Nations Population Division, Department of Economic and Social Affairs.
Youth Literacy Rates (2017, %)
| Youth Literacy Rate, Population 15-24 Years, Both Sexes | 95.46 |
| Youth Literacy Rate, Population 15-24 Years, Female | 96.69 |
| Youth Literacy Rate, Population 15-24 Years, Male | 94.29 |
Source: United Nations Educational, Scientific and Cultural Organization, UNESCO Institute of Statistics.
Labour
Unemployment (2018, % of Total Labour Force, Modeled ILO Estimate)
| Unemployment, Total |
| Unemployment, Female |
| Unemployment, Male |
Source: World Bank, World Development Indicators 2019.
Labour Force (2017, % of Ages 15+, Modeled ILO Estimate)
| Labour Force Participation Rate, Total | 52.99 |
| Labour Force Participation Rate, Female | 41.37 |
| Labour Force Participation Rate, Male | 65.91 |
| Labour Force, Total (number) | 372,633 |
Source: World Bank, World Development Indicators 2019.
Economy Overview
GDP
| 2014 | 2015 | 2016 | 2017 | 2018 | |
| GDP at Market Prices (current, billions of USD) | 4.37 | 4.02 | 3.81 | 4.43 | 4.7 |
| GDP Growth (annual %) | 1.93 | 0.39 | 3.22 | 1.87 | 0.62 |
Source: World Bank, World Development Indicators 2019.
Value Added by Sector (% of GDP)
| Indicator | 2018 | 2019 |
| Agriculture | 11.83 | 11.58 |
| Manufacturing | 38.87 | 39.09 |
| Industry | 44.66 | 44.50 |
| Services | 62.51 | 62.93 |
| Construction | 3.74 | 3.73 |
| Electricity, gas and water | 1.36 | 1.28 |
| Mining and quarrying | 0.69 | 0.39 |
| Education | 7.52 | 7.59 |
| Finance, real estate and business services | 18.90 | 18.98 |
| Public administration and Defense | 8.83 | 9.01 |
| Health and Social Work | 2.90 | 3.02 |
| Other services | 1.00 | 1.01 |
| Transport, storage and communication | 6.29 | 6.31 |
| Wholesale and retail trade, hotels and restaurants | 18.84 | 18.81 |
Source: AFDB Socio Economic Database.
Trade Profile
Import Partners (Imported Value, thousands, USD)
| World |
| South Africa |
| China |
| India |
| Japan |
| Mozambique |
Source: International Trade Center COMTRADE Statistics.
Export Partners (Exported Value, thousands, USD)
| 2014 | 2015 | 2016 | 2017 | 2018 | |
| World | 1,964,839 | 1,788,225 | 1,508,299 | 1,800,364 | 1,851,271 |
| South Africa | 1,191,208 | 1,187,051 | 986,279 | 1,241,522 | 1,249,359 |
| Kenya | 65,683 | 71,700 | 58,717 | 106,020 | 94,368 |
| Nigeria | 94,468 | 85,350 | 73,070 | 84,049 | 79,648 |
| Mozambique | 75,998 | 72,824 | 52,648 | 57,554 | 59,913 |
| Tanzania | 34,080 | 35,837 | 33,779 | 35,364 | 35,004 |
Source: International Trade Center COMTRADE Statistics.
Eswatini’s Top Import Products (USD ‘000)
| Chapter | Description | 2014 | 2015 | 2016 | 2017 | 2018 |
| All products | 1,697,845 | 1,473,274 | 1,246,647 | 1,617,108 | 1,823,401 | |
| 27 | Mineral fuels, mineral oils and products of their distillation; bituminous substances; mineral waxes | 273,518 | 178,657 | 136,867 | 182,394 | 222,428 |
| 84 | Nuclear reactors, boilers, machinery and mechanical appliances; parts thereof | 91,569 | 92,990 | 74,372 | 109,369 | 133,396 |
| 87 | Vehicles other than railway or tramway rolling-stock, and parts and accessories thereof | 161,712 | 111,551 | 96,002 | 117,877 | 126,839 |
| 85 | Electrical machinery and equipment and parts thereof; sound recorders and reproducers, television image and sound recorders and reproducers, and parts and accessories of such articles | 85,044 | 85,004 | 69,715 | 86,207 | 91,026 |
| 10 | Cereals | 49,238 | 44,150 | 61,606 | 55,575 | 83,970 |
Source: COMSTAT database
Eswatini’s Top Export Products (USD ‘000)
| Chapter | Description | 2014 | 2015 | 2016 | 2017 | 2018 |
| All products | 1,964,839 | 1,788,225 | 1,508,299 | 1,800,364 | 1,851,271 | |
| 33 | Essential oils and resinoids; perfumery, cosmetic or toilet preparations | 576,324 | 523,992 | 489,562 | 637,594 | 628,454 |
| 17 | Sugars and sugar confectionery | 399,933 | 362,019 | 330,602 | 354,668 | 374,695 |
| 38 | Miscellaneous chemical products | 341,367 | 300,192 | 220,351 | 242,642 | 233,131 |
| 62 | Articles of apparel and clothing accessories, not knitted or crocheted | 110,877 | 96,650 | 99,639 | 133,423 | 151,416 |
| 44 | Wood and articles of wood; wood charcoal | 76,146 | 78,386 | 85,402 | 99,182 | 105,300 |
Source: COMSTAT database
Investment Profile
FDI Inflows (millions of USD)
| Year | 2016 | 2017 | 2018 | 2019 | 2020 |
| FDI Inflows | 21.4 | 56.0 | 36.5 | 130.2 | 40.9 |
Source: United Nations Conference on Trade and Development, World Investment Report 2021
FDI Outflows (millions of USD)
| Year | 2016 | 2017 | 2018 | 2019 | 2020 |
| FDI Outflows | 7.1 | 65.5 | 10.5 | 22.2 | 14.3 |
Source: United Nations Conference on Trade and Development, World Investment Report 2021
FDI Inward Stock (millions of USD)
| Year | 2016 | 2017 | 2018 | 2019 | 2020 |
| FDI Inward Stock | 847.6 | 925.0 | 812.7 | 975.4 | 877.4 |
Source: United Nations Conference on Trade and Development, World Investment Report 2021
FDI Outward Stock (millions of USD)
| Year | 2016 | 2017 | 2018 | 2019 | 2020 |
| FDI Outward Stock | 73.4 | 122.2 | 126.2 | 168.3 | 103.5 |
Source: United Nations Conference on Trade and Development, World Investment Report 2021
FDI Inflows Main Source Countries (in terms of number of projects)
South Africa, UK, United States, Egypt, Taiwan, Malaysia, Mauritius, Nigeria, Portugal, and Tanzania.
Source: Financial Times, fDi Markets, 2018
FDI Inflows Main Sectors (in terms of number of projects)
Financial Services, Business Services, Building and Construction Materials, Communications, Food and Tobacco, Pharmaceuticals, Textiles, Coal, Oil and Natural Gas, Consumer Products, and Healthcare.
Source: Financial Times, fDi Markets, 2018
FDI Inflows Main Companies (in terms of number of projects)
Vantage Health, Reyada Construction Industries, Nedbank Swaziland, Techno Brain, Galp Swaziland, Limkokwing University of Creative Technology, Don’t Waste Services, MTN Swaziland, Nan-Woei Industrial, and Massmart.
Source: Financial Times, fDi Markets, 2018
Doing Business
Overall Doing Business Ranking
| 2020 | 121/190 |
| 2019 | 117/190 |
Source: World Bank, Doing Business, 2020
Starting a Business
| 2020 Rank | 155/190 |
| Procedures (number) | 12 |
| Time (days) | 21.5 |
| Cost (% of income per capita*) | 10.7 |
| Paid-in Minimum Capital (% of income per capita*) | 0.2 |
*GNI per capita used: USD 3,850
Source: World Bank, Doing Business, 2020
Paying Taxes
Paying Taxes
| 2020 Rank | 73/190 |
| Payments (number per year) | 33 |
| Time (hours per year) | 122 |
| Total Tax Rate (% of profit) | 35.8 |
| Profit Tax (% of profit) | 25.2 |
| Labor Tax and Contributions (% of profit) | 6.4 |
| Other Taxes (% of profit) | 4.1 |
Source: World Bank, Doing Business, 2020
Trading Across Borders
| 2020 Rank | 35/190 |
| Time to Export: Border Compliance (hours) | 2 |
| Cost to Export: Border Compliance (USD) | 134 |
| Time to Export: Documentary Compliance (hours) | 2 |
| Cost to Export: Documentary Compliance (USD) | 76 |
| Time to Import: Border Compliance (hours) | 3 |
| Cost to Import: Border Compliance (USD) | 134 |
| Time to Import: Documentary Compliance (hours) | 4 |
| Cost to Import: Documentary Compliance (USD) | 76 |
Assumptions
- It is assumed that shipment travels from a warehouse in the largest business city of the exporting economy to a warehouse in the largest business city of the importing economy.
- It is assumed that each economy imports a standardized shipment of 15 metric tons of containerized auto parts (HS 8708) from its natural import partner—the economy from which it imports the largest value (price times quantity) of auto parts. It is assumed that each economy exports the product of its comparative advantage (defined by the largest export value) to its natural export partner—the economy that is the largest purchaser of this product.
- A shipment is a unit of trade. Export shipments do not necessarily need to be containerized, while import shipments of auto parts are assumed to be containerized.
- Shipping cost based on weight is assumed to be greater than shipping cost based on volume.
- If government fees are determined by the value of the shipment, the value is assumed to be $50,000.
- The mode of transport is the one most widely used for the chosen export or import product and the trading partner, as is the seaport, airport or land border crossing.
- Time is measured in hours, and 1 day is 24 hours.
- Costs do not include tariffs.
Source: World Bank, Doing Business, 2020
Investment Regime
Legal Framework
Investment Code – the Swaziland Investment Promotion Act 1998
Key guarantees in terms of investment protection include:
- Non-discriminatory treatment of foreign investments;
- 100% foreign ownership of foreign investments;
- Guaranteed repatriation of funds;
- Guarantees against expropriation and government interference.
Source: Eswatini Investment Promotion Authority (EIPA).
Investment Incentives
- Exemption from duty on raw materials to manufacture goods to be exported outside the Southern African Customs Union (SACU).
- Generous tax allowances and deductions for new enterprises, including a 10-year exemption from withholding tax on dividends and a low corporate tax of 10 percent for approved investment projects in Manufacturing, Mining, Tourism and International Services.
- New investors also enjoy duty-free import of machinery and equipment in accordance with SACU-wide incentive.
- Fully serviced industrial sites and provision of purpose-built factory shells at subsidized rates, provided in partnership with the private sector
- Capital allowances:
- Plant and machinery used in a process of manufacture – 50% initial allowance in the first year of use and a 10% annual allowance on the reducing balance method over the lifetime of the asset.
- Hotel construction and improvement allowance – 50% of the cost is deductible in the year in which it is incurred on the construction of a new hotel or beneficial improvements to an existing hotel. In addition, an annual allowance of 4% of such expenditure is allowed
- Buildings (and improvements thereto) used to house manufacturing plant and machinery (industrial buildings) – 50% initial allowance in the first year of use and an additional 4% annual allowance
- Immovable Property Allowance: In respect of a taxpayer other than one whose sole trade is in immovable property, for an expenditure to be used for the erection of any dwelling that will be occupied solely by his staff for the purpose of his own business. The allowance shall be at the rate of 20% during the first year the expenditure is incurred and 10% for the next succeeding years
- Hotel Initial Allowance – In respect of capital expenditure in connection with the erection or beneficial improvement of a hotel. During the year of assessment for the first use of the hotel or beneficial improvements on an existing one, the allowance shall be at the rate of 50% of the actual cost incurred plus 4% annual allowance given for the succeeding Such allowance shall not exceed the expenditure
- Trading Losses Carry Forward – Where, in any year of assessment, the allowable deductions of the taxpayer, as determined by the Income Tax Order exceed the total income, an assessed loss arises. The loss may be carried forward to subsequent years of assessment to be set off against any future income. However, where a company does not carry on trade in any year of assessment, it is not entitled to bring forward the loss from the previous tax year. A company may, accordingly, carry forward the assessed losses indefinitely, provided that such loss has been assessed / approved by the Commissioner General.
- Employee housing allowance – For the erection of dwellings for employees, an allowance of 20% may be claimed for the first year and 10% for each of the succeeding eight years. The same concessions are given to farmers in respect of the erection of any buildings used for the domestic purposes of any employees.
- Export promotion expenditure:
- 133% deduction on approved export promotion expenditure incurred during the year preceding the year of assessment by an approved company in the handicraft and cottage industry sector.
- 150% deduction on approved export promotion expenditure incurred during the year preceding the year of assessment by an approved trading house. (The allowance is subject to the approval of the Commissioner and the Ministry of Enterprise and Labour).
- Farming – Certain capital expenditure is tax deductible, but the total deduction in any year of assessment is limited to 30% of the gross income derived by the farmer from farming Any amount disallowed is carried forward and added to expenditure in the succeeding year.
- Certain tax incentives are available to investors qualifying as a “development enterprise,” including a 10% corporate income tax rate for 10 years and an exemption from WHT on dividends for the same period.
- Special Economic Zones Incentives
- 20 year tax Holiday for investors, thereafter 5% tax
- Research and development allowance
- Exemption from training levy
- Green technology allowance
Source: Eswatini Investment Promotion Authority (EIPA).
Country Snapshot
| Population (2019, millions)¹ | 1.14 |
| Population Projections (2030, millions)¹ | 1.29 |
| Economically active population in agriculture (as % of Economically active population)¹², 2019 | 33 |
| Capital | Mbabane |
| Surface Area (km²)² | 17,360 |
| Weather¹¹ | In Mbabane: Hottest months, January and February, 15-25°C; coldest month, June, 5-19°C; driest month, June, 18 mm average rainfall; wettest month, January, 252 mm average rainfall |
| Languages³ | Official: English and siSwati |
| Main Religions³ | Main: Zionist (blend of Christianity and indigenous ancestral worship) and Roman Catholic – Others: Muslim, Anglican, Baha’i, Methodist, Mormon and Jewish |
| Time⁴ | South Africa Standard Time (SAST) +0200 UTC |
| Driving Orientation⁵ | Left Side |
| Internet Country Code⁶ | .sz |
| Country Calling Code | +268 |
| Plug, Socket and Voltage⁷ | Type M – 230V/50Hz |
| Currency | Lilangeni (SZL) – 1/100 = Cent and South African Rand (ZAR) = 1/100 = Cent |
| Exchange Rate (As of 12 February 2019, per USD)⁸ | 13.87 (SZL = ZAR) |
| GDP at Market Prices (2018, current, billions of USD)⁹ | 4.7 |
| GDP Growth (2018, annual %)⁹ | 0.62 |
| Average GDP Growth (2014-2018, annual %)⁹ | 1.6 |
| GDP per Capita, PPP (2017, current international $)⁹ | 10,721 |
| Inflation, Consumer Prices (2018, annual %)⁹ | 4.81 |
| Average Inflation, Consumer Prices (2014-2018, annual %)⁹ | 5.9 |
| Total Reserves in Months of Imports (2017)⁹ | 3.14 |
Sources:
¹United Nations Population Division, Department of Economic and Social Affairs.
²COMESA Statistics, COMESTAT Data Hub.
³CIA World Factbook.
⁴Time and Date Portal.
⁵Chartsbin Portal, “Worldwide Driving Orientation by Country”.
⁶Wikipedia, “List of Internet top-level domains”; and, Internet Assigned Numbers Authority, Root Zone Database.
⁷International Electrotechnical Commission, World Plugs.
⁸Central Bank of Eswatini.
⁹World Bank, World Development Indicators 2018.
¹¹Economist Intelligence Unit.
¹²AFDB Socio Economic Database
Reasons to Invest in Eswatini
- Strong Investor protection framework: Signatory to MIGA, member of UNCTAD, Mem- ber of ICSID.
- Abundance of qualified skills and competitively priced work force as Eswatini ranks 11th amongst African countries in Literacy Index (UNDP 2019).
- Advanced infrastructure including a road system 3,594 km and cargo rail system covering 301 km, which provide easy access to seaports, including Durban and Rich- ards Bay in South Africa, a new state-of-the-art international airport , and two Spe- cial Economic Zones (SEZs) already admitting investors as well as four developed sites for industrial infrastructure.
- Stable and free business environment; ranked first in Africa in Trading Across Board- ers in the 2019 World Bank Ease of Doing Business Index, and first out of 46 countries in the Sub-Saharan Africa region in the 2017 Index of Economic Freedom, and its overall score is above the world average.
- Extended Market Access as Eswatini has access to preferential markets in regional and international arena such as COMESA, SACU, SACU-Mercosur, EPAs, (GSP), and SACU- EFTA.
- Close proximity to key ports such as Durban, Richards Bay and Mozambique.
- A homogenous and peaceful tribe with a unifying cultural background that promotes peace and is well acclaimed by investors.
Source: Eswatini Investment Promotion Agency – EIPA.
Population
Population Projections (millions)
| Population (2015) | 1.14 |
| Population Projections (2030) | 1.29 |
Source: United Nations Population Division, Department of Economic and Social Affairs.
Population Residing in Urban Areas (%)
| Population Projections (2019) | 23.9 |
| Percentage of Population Residing in Urban Areas (2030) | 26.5 |
Source: United Nations Population Division, Department of Economic and Social Affairs.
Youth Literacy Rates (2017, %)
| Youth Literacy Rate, Population 15-24 Years, Both Sexes | 95.46 |
| Youth Literacy Rate, Population 15-24 Years, Female | 96.69 |
| Youth Literacy Rate, Population 15-24 Years, Male | 94.29 |
Source: United Nations Educational, Scientific and Cultural Organization, UNESCO Institute of Statistics.
Labour
Unemployment (2018, % of Total Labour Force, Modeled ILO Estimate)
| Unemployment, Total |
| Unemployment, Female |
| Unemployment, Male |
Source: World Bank, World Development Indicators 2019.
Labour Force (2017, % of Ages 15+, Modeled ILO Estimate)
| Labour Force Participation Rate, Total | 52.99 |
| Labour Force Participation Rate, Female | 41.37 |
| Labour Force Participation Rate, Male | 65.91 |
| Labour Force, Total (number) | 372,633 |
Source: World Bank, World Development Indicators 2019.
Economy Overview
GDP
| 2014 | 2015 | 2016 | 2017 | 2018 | |
| GDP at Market Prices (current, billions of USD) | 4.37 | 4.02 | 3.81 | 4.43 | 4.7 |
| GDP Growth (annual %) | 1.93 | 0.39 | 3.22 | 1.87 | 0.62 |
Source: World Bank, World Development Indicators 2019.
Value Added by Sector (% of GDP)
| Indicator | 2018 | 2019 |
| Agriculture | 11.83 | 11.58 |
| Manufacturing | 38.87 | 39.09 |
| Industry | 44.66 | 44.50 |
| Services | 62.51 | 62.93 |
| Construction | 3.74 | 3.73 |
| Electricity, gas and water | 1.36 | 1.28 |
| Mining and quarrying | 0.69 | 0.39 |
| Education | 7.52 | 7.59 |
| Finance, real estate and business services | 18.90 | 18.98 |
| Public administration and Defense | 8.83 | 9.01 |
| Health and Social Work | 2.90 | 3.02 |
| Other services | 1.00 | 1.01 |
| Transport, storage and communication | 6.29 | 6.31 |
| Wholesale and retail trade, hotels and restaurants | 18.84 | 18.81 |
Source: AFDB Socio Economic Database.
Trade Profile
Import Partners (Imported Value, thousands, USD)
| World |
| South Africa |
| China |
| India |
| Japan |
| Mozambique |
Source: International Trade Center COMTRADE Statistics.
Export Partners (Exported Value, thousands, USD)
| 2014 | 2015 | 2016 | 2017 | 2018 | |
| World | 1,964,839 | 1,788,225 | 1,508,299 | 1,800,364 | 1,851,271 |
| South Africa | 1,191,208 | 1,187,051 | 986,279 | 1,241,522 | 1,249,359 |
| Kenya | 65,683 | 71,700 | 58,717 | 106,020 | 94,368 |
| Nigeria | 94,468 | 85,350 | 73,070 | 84,049 | 79,648 |
| Mozambique | 75,998 | 72,824 | 52,648 | 57,554 | 59,913 |
| Tanzania | 34,080 | 35,837 | 33,779 | 35,364 | 35,004 |
Source: International Trade Center COMTRADE Statistics.
Eswatini’s Top Import Products (USD ‘000)
| Chapter | Description | 2014 | 2015 | 2016 | 2017 | 2018 |
| All products | 1,697,845 | 1,473,274 | 1,246,647 | 1,617,108 | 1,823,401 | |
| 27 | Mineral fuels, mineral oils and products of their distillation; bituminous substances; mineral waxes | 273,518 | 178,657 | 136,867 | 182,394 | 222,428 |
| 84 | Nuclear reactors, boilers, machinery and mechanical appliances; parts thereof | 91,569 | 92,990 | 74,372 | 109,369 | 133,396 |
| 87 | Vehicles other than railway or tramway rolling-stock, and parts and accessories thereof | 161,712 | 111,551 | 96,002 | 117,877 | 126,839 |
| 85 | Electrical machinery and equipment and parts thereof; sound recorders and reproducers, television image and sound recorders and reproducers, and parts and accessories of such articles | 85,044 | 85,004 | 69,715 | 86,207 | 91,026 |
| 10 | Cereals | 49,238 | 44,150 | 61,606 | 55,575 | 83,970 |
Source: COMSTAT database
Eswatini’s Top Export Products (USD ‘000)
| Chapter | Description | 2014 | 2015 | 2016 | 2017 | 2018 |
| All products | 1,964,839 | 1,788,225 | 1,508,299 | 1,800,364 | 1,851,271 | |
| 33 | Essential oils and resinoids; perfumery, cosmetic or toilet preparations | 576,324 | 523,992 | 489,562 | 637,594 | 628,454 |
| 17 | Sugars and sugar confectionery | 399,933 | 362,019 | 330,602 | 354,668 | 374,695 |
| 38 | Miscellaneous chemical products | 341,367 | 300,192 | 220,351 | 242,642 | 233,131 |
| 62 | Articles of apparel and clothing accessories, not knitted or crocheted | 110,877 | 96,650 | 99,639 | 133,423 | 151,416 |
| 44 | Wood and articles of wood; wood charcoal | 76,146 | 78,386 | 85,402 | 99,182 | 105,300 |
Source: COMSTAT database
Investment Profile
FDI Inflows (millions of USD)
| Year | 2016 | 2017 | 2018 | 2019 | 2020 |
| FDI Inflows | 21.4 | 56.0 | 36.5 | 130.2 | 40.9 |
Source: United Nations Conference on Trade and Development, World Investment Report 2021
FDI Outflows (millions of USD)
| Year | 2016 | 2017 | 2018 | 2019 | 2020 |
| FDI Outflows | 7.1 | 65.5 | 10.5 | 22.2 | 14.3 |
Source: United Nations Conference on Trade and Development, World Investment Report 2021
FDI Inward Stock (millions of USD)
| Year | 2016 | 2017 | 2018 | 2019 | 2020 |
| FDI Inward Stock | 847.6 | 925.0 | 812.7 | 975.4 | 877.4 |
Source: United Nations Conference on Trade and Development, World Investment Report 2021
FDI Outward Stock (millions of USD)
| Year | 2016 | 2017 | 2018 | 2019 | 2020 |
| FDI Outward Stock | 73.4 | 122.2 | 126.2 | 168.3 | 103.5 |
Source: United Nations Conference on Trade and Development, World Investment Report 2021
FDI Inflows Main Source Countries (in terms of number of projects)
South Africa, UK, United States, Egypt, Taiwan, Malaysia, Mauritius, Nigeria, Portugal, and Tanzania.
Source: Financial Times, fDi Markets, 2018
FDI Inflows Main Sectors (in terms of number of projects)
Financial Services, Business Services, Building and Construction Materials, Communications, Food and Tobacco, Pharmaceuticals, Textiles, Coal, Oil and Natural Gas, Consumer Products, and Healthcare.
Source: Financial Times, fDi Markets, 2018
FDI Inflows Main Companies (in terms of number of projects)
Vantage Health, Reyada Construction Industries, Nedbank Swaziland, Techno Brain, Galp Swaziland, Limkokwing University of Creative Technology, Don’t Waste Services, MTN Swaziland, Nan-Woei Industrial, and Massmart.
Source: Financial Times, fDi Markets, 2018
Doing Business
Overall Doing Business Ranking
| 2020 | 121/190 |
| 2019 | 117/190 |
Source: World Bank, Doing Business, 2020
Starting a Business
| 2020 Rank | 155/190 |
| Procedures (number) | 12 |
| Time (days) | 21.5 |
| Cost (% of income per capita*) | 10.7 |
| Paid-in Minimum Capital (% of income per capita*) | 0.2 |
*GNI per capita used: USD 3,850
Source: World Bank, Doing Business, 2020
Paying Taxes
Paying Taxes
| 2020 Rank | 73/190 |
| Payments (number per year) | 33 |
| Time (hours per year) | 122 |
| Total Tax Rate (% of profit) | 35.8 |
| Profit Tax (% of profit) | 25.2 |
| Labor Tax and Contributions (% of profit) | 6.4 |
| Other Taxes (% of profit) | 4.1 |
Source: World Bank, Doing Business, 2020
Trading Across Borders
| 2020 Rank | 35/190 |
| Time to Export: Border Compliance (hours) | 2 |
| Cost to Export: Border Compliance (USD) | 134 |
| Time to Export: Documentary Compliance (hours) | 2 |
| Cost to Export: Documentary Compliance (USD) | 76 |
| Time to Import: Border Compliance (hours) | 3 |
| Cost to Import: Border Compliance (USD) | 134 |
| Time to Import: Documentary Compliance (hours) | 4 |
| Cost to Import: Documentary Compliance (USD) | 76 |
Assumptions
- It is assumed that shipment travels from a warehouse in the largest business city of the exporting economy to a warehouse in the largest business city of the importing economy.
- It is assumed that each economy imports a standardized shipment of 15 metric tons of containerized auto parts (HS 8708) from its natural import partner—the economy from which it imports the largest value (price times quantity) of auto parts. It is assumed that each economy exports the product of its comparative advantage (defined by the largest export value) to its natural export partner—the economy that is the largest purchaser of this product.
- A shipment is a unit of trade. Export shipments do not necessarily need to be containerized, while import shipments of auto parts are assumed to be containerized.
- Shipping cost based on weight is assumed to be greater than shipping cost based on volume.
- If government fees are determined by the value of the shipment, the value is assumed to be $50,000.
- The mode of transport is the one most widely used for the chosen export or import product and the trading partner, as is the seaport, airport or land border crossing.
- Time is measured in hours, and 1 day is 24 hours.
- Costs do not include tariffs.
Source: World Bank, Doing Business, 2020
Investment Regime
Legal Framework
Investment Code – the Swaziland Investment Promotion Act 1998
Key guarantees in terms of investment protection include:
- Non-discriminatory treatment of foreign investments;
- 100% foreign ownership of foreign investments;
- Guaranteed repatriation of funds;
- Guarantees against expropriation and government interference.
Source: Eswatini Investment Promotion Authority (EIPA).
Investment Incentives
- Exemption from duty on raw materials to manufacture goods to be exported outside the Southern African Customs Union (SACU).
- Generous tax allowances and deductions for new enterprises, including a 10-year exemption from withholding tax on dividends and a low corporate tax of 10 percent for approved investment projects in Manufacturing, Mining, Tourism and International Services.
- New investors also enjoy duty-free import of machinery and equipment in accordance with SACU-wide incentive.
- Fully serviced industrial sites and provision of purpose-built factory shells at subsidized rates, provided in partnership with the private sector
- Capital allowances:
- Plant and machinery used in a process of manufacture – 50% initial allowance in the first year of use and a 10% annual allowance on the reducing balance method over the lifetime of the asset.
- Hotel construction and improvement allowance – 50% of the cost is deductible in the year in which it is incurred on the construction of a new hotel or beneficial improvements to an existing hotel. In addition, an annual allowance of 4% of such expenditure is allowed
- Buildings (and improvements thereto) used to house manufacturing plant and machinery (industrial buildings) – 50% initial allowance in the first year of use and an additional 4% annual allowance
- Immovable Property Allowance: In respect of a taxpayer other than one whose sole trade is in immovable property, for an expenditure to be used for the erection of any dwelling that will be occupied solely by his staff for the purpose of his own business. The allowance shall be at the rate of 20% during the first year the expenditure is incurred and 10% for the next succeeding years
- Hotel Initial Allowance – In respect of capital expenditure in connection with the erection or beneficial improvement of a hotel. During the year of assessment for the first use of the hotel or beneficial improvements on an existing one, the allowance shall be at the rate of 50% of the actual cost incurred plus 4% annual allowance given for the succeeding Such allowance shall not exceed the expenditure
- Trading Losses Carry Forward – Where, in any year of assessment, the allowable deductions of the taxpayer, as determined by the Income Tax Order exceed the total income, an assessed loss arises. The loss may be carried forward to subsequent years of assessment to be set off against any future income. However, where a company does not carry on trade in any year of assessment, it is not entitled to bring forward the loss from the previous tax year. A company may, accordingly, carry forward the assessed losses indefinitely, provided that such loss has been assessed / approved by the Commissioner General.
- Employee housing allowance – For the erection of dwellings for employees, an allowance of 20% may be claimed for the first year and 10% for each of the succeeding eight years. The same concessions are given to farmers in respect of the erection of any buildings used for the domestic purposes of any employees.
- Export promotion expenditure:
- 133% deduction on approved export promotion expenditure incurred during the year preceding the year of assessment by an approved company in the handicraft and cottage industry sector.
- 150% deduction on approved export promotion expenditure incurred during the year preceding the year of assessment by an approved trading house. (The allowance is subject to the approval of the Commissioner and the Ministry of Enterprise and Labour).
- Farming – Certain capital expenditure is tax deductible, but the total deduction in any year of assessment is limited to 30% of the gross income derived by the farmer from farming Any amount disallowed is carried forward and added to expenditure in the succeeding year.
- Certain tax incentives are available to investors qualifying as a “development enterprise,” including a 10% corporate income tax rate for 10 years and an exemption from WHT on dividends for the same period.
- Special Economic Zones Incentives
- 20 year tax Holiday for investors, thereafter 5% tax
- Research and development allowance
- Exemption from training levy
- Green technology allowance
Source: Eswatini Investment Promotion Authority (EIPA).