Discusses the legal requirements/options for joint venture/licensing in this market.
Last Published: 8/5/2019

A number of organizations in Eswatini can help foreign firms pursue joint ventures.  The four largest are the Eswatini Industrial Development Company (EIDC), National Industrial Development Corporation of Eswatini (NIDCS), Interneuron, and Tibiyo Taka Ngwane.

EIDC is a private development finance company formed as a joint venture between the GKoE and several international and local financial institutions.  The main objective of EIDC is to assist incoming companies by financing joint ventures, equity participation, asset leasing, and providing factory shells.  Partners include:

  • Government of Kingdom of Eswatini – 34.9 percent
  • German Investment and Development Company (DEG)  - 22.1 percent
  • International Finance Corporation (IFC) - 13.7 percent
  • Commonwealth Development Corporation (CDC) - 10.9 percent
  • Netherlands Development Finance Company (FMO) - 10.2 percent
  • French Development Finance Institution (PROPARCO) - 5.0 percent
  • Standard Bank of Eswatini - 1.6 percent
  • Nedbank (Eswatini) Limited - 1.6 percent

Tibiyo Taka Ngwane, a private trust fund managed by the King for the nation, is a common player in Swati joint venture enterprises.  Tibiyo invites foreign partners to either form joint venture projects or to run Tibiyo's wholly owned projects under direct management contract.  Tibiyo usually expects the joint venture partner to provide leadership in technical project implementation as well as professional management.  When participating in a joint venture, Tibiyo is flexible on the level of its equity stake, generally ranging between 20-50 percent.  It can provide limited loan financing to the joint venture at a favorable rate.  Tibiyo, when requested, can also play a facilitator role to investors wanting to set up in the country but wishing to "go it alone."
NIDCS serves as a special purpose vehicle (SPV) for investing on behalf of the GKoE to ensure maximization of investment returns in the various investing avenues.

NIDCS activities complement the GKoE’s effort to attract investment by offering equity participation and anchoring investor confidence in Eswatini. Currently, they support undertakings in sectors such as Food and Beverages, Agribusiness, Health and Pharmaceuticals, Infrastructure and Engineering, Paper, Plastic, Energy, Recycling and Waste Management, Leather, Textiles and Apparels, Communications, Mining and Minerals, Financial Services, , and Entertainment.

NIDCS is a strategic partner in joint ventures through equity and debt capital. It is also mandated to introduce and establish new age industries and technological advancement in all the sectors of the economy.

Interneuron
Interneuron Eswatini (Pty) Limited is a registered asset manager whose objective is to help retirement funds invest exclusively within Eswatini. They co-invest with various companies not listed on the Eswatini stock exchange.

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