SUBSIDIES

REPLY TO QUESTION POSED BY THE UNITED KINGDOM[1] REGARDING THE NEW AND FULL SUBSIDY NOTIFICATION OF THE KINGDOM OF ESWATINI[2]

The following communication, dated and received on 17 October 2025, is being circulated at the request of the delegation of Eswatini.

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Eswatini thanks the United Kingdom for submitting questions in relation to Eswatini's subsidy notification as mentioned here above and is pleased to provide the following replies as below:

Question

Special Economic Zones

The United Kingdom thanks Eswatini for providing information on its special economic zones (SEZs) and the incentives available to investors operating within the SEZs.

To aid in our understanding of the scheme, would Eswatini be able to provide additional information on the eligibility criteria for enterprises to be able to invest in the SEZs?

Reply:

Section 14 of the Special Economic Zones Act of 2018 provides for the eligibility criteria to invest in the special economic zones in Eswatini. The Act provides that:

A special economic zone developer shall, in addition to such other criteria and requirements as may be prescribed-

a._    A company registered in Eswatini, for the purpose of undertaking special economic zones activities,

b._    Have the financial capacity, technical and managerial capacity, and associated track record of relevant development or operational projects, required for developing and operating a special economic zone.

c._    Be an owner or lessee of land or premises within the special economic zone

Section 15 of the Act (As Amended) further provides that,

(1) The benefits prescribed under Part V of this Act shall not accrue to any operator of a special economic zone unless the operator holds a valid license issued by the Committee.

(2) The Committee shall grant a license if the application meets the objectives of this Act, and if the proposed business enterprise –

(a) is incorporated in Eswatini whether or not it is one hundred (100%) per cent foreign owned.

(b) proposes to engage in any activity or activities eligible to be undertaken by a special economic zone enterprise in the special economic zone;

(c) does not have a negative impact on the environment or engage in activities impinging on national security or presenting a health hazard; and

(d) conducts business in accordance with the laws for the time being in force save for any exemptions under this Act.

Section 12 of the Special Economic Zones (Amendment) of 2024 provides that the Committee shall, when considering an application for a developer take into account the following,

a._    Nature of the proposed project;

b._    Intended size and perimeter of the proposed special economic zone;

c._    Availability of land and unencumbered land titles;

d._    Geographical location and topography;

e._    Proximity to resources, population centers and infrastructure;

f._     Infrastructure and public utility requirements including water, sewer, power, telecommunications, solid and water waste management;

g._    Provision of medical, recreational, security, fire safety, customs and administrative facilities;

h._    Impact on off-site infrastructure, utilities and services;

i._     Environmental impact assessment report;

j._     Approval of land use and zoning requirements to facilitate the SEZ, environmental standards and requirements;

k._    Any other criteria as may be prescribed in the regulations.

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