Eswatini, a country with a relatively small economy, has an extensive network of regulatory authorities, commissions, professional councils, and statutory bodies overseeing major sectors of economic activity. These institutions, established to perform specific functions, include the Eswatini Competition Commission, the Central Bank of Eswatini, and the Financial Services Regulatory Authority, among others. The growing debate is whether the kingdom needs so many separate institutions to regulate an economy of its size, particularly when the government faces pressure to contain public expenditure and create a more attractive environment for private investment.
Economist Sanele Sibiya believes Eswatini is beginning to over-regulate its economy, warning that overlapping responsibilities among public institutions could increase operating costs, frustrate consumers, and undermine innovation. Sibiya suggests that some regulatory authorities perform functions that could be accommodated within existing institutions, either through mergers or the establishment of specialised departments. This arrangement, he argues, could result in several institutions carrying out closely related responsibilities, despite the possibility of consolidating their operations.
The present arrangement could lead to difficulties for consumers seeking assistance, as certain financial services fall under one regulatory authority while related activities are supervised by another. For instance, in financial technology, or fintech, regulatory responsibilities may intersect, creating challenges for consumers. Sibiya cautions that maintaining multiple regulatory bodies could place an unnecessary financial burden on the country, as each institution requires administrative structures, personnel, and operational resources.
A closer examination of Eswatini's institutional landscape reveals an extensive range of authorities responsible for supervising economic activities, enforcing standards, administering public programmes, and protecting consumers. In the financial sector alone, the Central Bank of Eswatini supervises commercial banks, while the Financial Services Regulatory Authority oversees non-bank financial institutions, including insurance companies and pension funds. The Eswatini Competition Commission is responsible for competition matters and investigating anti-competitive business practices.
The energy sector falls under the Eswatini Energy Regulatory Authority, while the Eswatini Public Procurement Regulatory Agency oversees the public procurement framework. Businesses must also contend with environmental requirements administered by the Eswatini Environment Authority, while the Eswatini Standards Authority addresses standards and quality assurance. The construction industry has its own oversight arrangements through the Construction Industry Council, while architects, engineers, surveyors, and allied professionals are subject to professional oversight through their respective council.
The aviation industry is overseen by the Eswatini Civil Aviation Authority, while the Central Transport Authority performs functions relating to government transport. Tourism is another sector with a dedicated public institution, the Eswatini Tourism Authority, whose responsibilities include tourism development and promotion. The agricultural sector has several specialised institutions, including the National Agricultural Marketing Board, the Eswatini Cotton Board, and the Eswatini Sugar Association.
The concerns raised by Sibiya and others raise a fundamental economic question: Can Eswatini afford its existing institutional structure, and are all these authorities necessary as separate entities? The answer to this question will require careful consideration of the country's economic needs, the role of regulatory authorities, and the potential impact of consolidation on efficiency and innovation.
Key points
- Eswatini has an extensive network of regulatory authorities overseeing various sectors of its economy.
- The country's regulatory environment may be overly complex, with overlapping responsibilities among public institutions.
- Consolidation of regulatory authorities could reduce expenditure and improve efficiency.
