Taiwan, sidelined in South Africa, is opening a shopfront in neighbouring Eswatini to exhibit and sell its products. But not everyone in the kingdom is buying into it.
Eswatini’s minister of commerce, trade & industry, Manqoba Khumalo, says the agreement with Taiwan can help the kingdom build a manufacturing and investment hub for Southern Africa. Khumalo hosted an Eswatini-Taiwan business seminar in Mbabane last November. The Times of Eswatini said the event bolstered the country’s efforts to establish direct economic collaboration with Taiwan.
Khumalo says Eswatini regards Taiwan’s innovation and manufacturing strength as key in transforming the nation’s industrial sector. He says an important element of this strategy is the Taiwan innovation and business park, set for construction in Phocweni in Manzini. Khumalo says the facility will allow Taiwanese firms to reach broader markets in Southern Africa. Eswatini hosted three Taiwanese business missions last year.
“The park will be a game-changer in the investment landscape for Eswatini in our quest to turn the country into a manufacturing hub for the region,” he says.
Khumalo says Eswatini’s location and economic diversification ambitions align with Taiwan’s global leadership in advanced technologies. Taiwan is the world’s leading producer of semiconductors.
“As we marvel at the strength of Taiwan in technology, we welcome Taiwanese businesses to share their expertise and invest in our growing industries, which will not only boost our economy but also enhance technological advancement in Eswatini,” he says.
He says the government has implemented policy reforms, including a business one-stop shop and a permanent residence by investment programme. “The programme seeks to ensure certainty of tenure by providing long-term provisions for staying and working in Eswatini,” says Khumalo.
Not everyone is upbeat. Sicelo Mngomezulu, an entrepreneur based in South Africa and chair of the Multi-Stakeholder Forum Swaziland, says the manufacturing hub will not bring economic change for citizens. “There will be little to no economic benefit to ordinary citizens given that Eswatini does not have a strong investment case,” he says.
Like most of King Mswati’s pet projects, the industrial hub will in all likelihood be a white elephant given the state’s anti-indigenous business tendencies
— Sicelo Mngomezulu
The reason, he says, is that King Mswati’s regime has failed to provide prudent stewardship of the country’s economy. Other problems include the absence of the rule of law and the degradation of state institutions. “This has resulted in many factories closing shop in the country,” he says.
“Like most of King Mswati’s pet projects, the industrial hub will in all likelihood be a white elephant given the state’s anti-indigenous business tendencies,” says Mngomezulu.
On political issues, he says the hub points to closer ties with Taiwan. “Eswatini is the only African country that maintains diplomatic ties with Taiwan, yet it has not realised any meaningful political or socioeconomic benefits. If anything, many Eswatini businesses have been compromised by this relationship since they can’t access the massive Chinese market, and Emaswati have been subjected to a visa ban by China.”
Mngomezulu says Taiwanese companies will gain from the deal. “Taiwanese businesses are poised to syphon money out of the country through the development of the industrial hub and the strategic energy reserve project, the development of which was also awarded to Taiwanese companies,” he says.
“Meanwhile, Taiwan will continue to have a puppet regime in King Mswati’s government that will continue to lobby UN member states to recognise Taiwan’s statehood; this seems to be the real benefit that Taiwan derives.”
At the launch of the industrial park last year, King Mswati said Eswatini is “open for business” and ready to host more investors. He said the project embodies his vision for national transformation and will address the country’s high unemployment.
South Africa has downgraded Taiwan’s representation to a liaison office. This has been criticised by its GNU partner, the DA, which urged the department of international relations to rebuild trade relationships with Taiwan.
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