The government of Eswatini has introduced a new regulation aimed at empowering citizen-owned businesses. Under the Citizen Economic Empowerment Regulations, 50% of annual government procurement will be set aside for companies owned by citizens. This move is part of the government's efforts to increase Emaswati's participation in the economy and create more opportunities for locally owned businesses.
The new regulations are based on the Citizen Economic Empowerment Act No. 18 of 2023 and are designed to translate into practical economic opportunities for citizens. Minister for Commerce, Industry and Trade Manqoba Khumalo stated that the 50% procurement allocation includes clear provisions for women, youth, and persons with disabilities. This aims to create opportunities for citizen-owned enterprises to access government business and participate more meaningfully in the economy.
The regulations also provide for the reservation of certain sectors and trades for citizen-owned enterprises, as well as preferential procurement measures and the promotion of citizen ownership of productive assets. Furthermore, the regulations introduce measures aimed at addressing delayed payments to micro, small, and medium enterprises (MSMEs), which can affect their cash flow and ability to sustain operations.
Minister Khumalo emphasized that the legislation should not be viewed merely as a policy or legislative exercise but as a framework for expanding economic participation among Emaswati. He stressed that Parliamentarians have a critical responsibility in ensuring that the regulations are implemented with integrity, transparency, and accountability. Khumalo also urged them to strengthen oversight while helping to educate and mobilize citizens.
The Minister noted that effective citizen economic empowerment would require more than government intervention. He called on financial institutions, training providers, and investors to align their programs with the national economic empowerment agenda. The UNDP and other development partners were recognized for their contribution in shaping the regulations.
The broad consultation process was important in developing a framework that responds to the needs of different sectors of society. Khumalo said that citizen economic empowerment should ultimately result in an economy where Emaswati are able to participate, own productive assets, grow businesses, and benefit from economic activity. He emphasized that empowerment is not a government program alone but a national mission requiring collective responsibility.
The Minister’s message places responsibility for implementing the empowerment agenda beyond government, requiring Parliament, the private sector, and development partners to play a role. The regulations aim to create a shared responsibility for advancing citizen participation in the economy and promoting economic growth and development in Eswatini.
Key points
- 50% of annual government procurement will be set aside for citizen-owned companies
- The regulations provide for the reservation of certain sectors and trades for citizen-owned enterprises
- Effective citizen economic empowerment requires collective responsibility from government, Parliament, and the private sector
