Business Eswatini (BE), the country's leading private-sector representative body, has rejected membership bids from Inyatsi Group Holdings, a diversified corporate group with companies spanning construction, telecommunications, and healthcare. The bid involved several of the Group's companies seeking to join BE, while others sought re-admission or upgraded membership. According to sources, the companies were seeking membership under BE's two highest corporate tiers: Platinum and Gold.
Inyatsi Group Holdings, under the chairmanship of Zambia-born businessman Michelo Shakantu, has an annual turnover of around E18 billion. The Group's companies, including Lidwala Insurance, Maloma Colliery, and The Clinic Group, had previously been members of BE. However, their subscriptions had elapsed over the years due to changes in leadership. Inyatsi confirmed that it applied to BE for membership, re-admission, and membership upgrades involving several of its companies.
Despite the applications, BE has not progressed the memberships sought. Sources close to the matter revealed that a decision was taken without explanation to the broader membership. Inyatsi disclosed that some companies received "technical responses" or went unanswered, while others had their applications held in abeyance. The Group expressed hope that the applications would ultimately be considered and chose not to escalate the matter.
Insiders have drawn a link between the current membership impasse and the governance battle over the appointment of Derrick Shiba as chairman of the Eswatini National Provident Fund (ENPF). However, neither BE nor Inyatsi has attributed the handling of the applications to the ENPF dispute. The ENPF dispute became one of the country's most recent prominent clashes between government and the social partners.
The ENPF dispute centered on a long-standing convention governing the chairmanship, which had traditionally rotated among employers and organised labour. Although stakeholders regarded this arrangement as an important governance convention, it was not expressly provided for in the ENPF Order. Government maintained that the law empowered the responsible minister to make the appointment.
Business Eswatini maintained that the membership status and applications of individual companies were confidential and would not discuss or disclose details relating to the Inyatsi Group companies' applications. The organisation explained that membership applications were considered in accordance with its governing instruments and established internal processes.
Inyatsi Group Holdings remains optimistic about the outstanding applications and believes that the executive of BE will be ethical and prudent in adjudicating the entity applications and reinstatement and upgrade of membership. The Group emphasized the importance of forming formidable business relationships and understanding that it cannot operate in isolation.
Key points
- Business Eswatini has rejected membership bids from Inyatsi Group companies.
- The rejection may be linked to the governance battle over the appointment of Derrick Shiba as chairman of the Eswatini National Provident Fund (ENPF).
- Inyatsi Group Holdings remains hopeful that the applications will ultimately be considered.
