By Ncaba Ntshakala
Prime Minister Russell Dlamini has challenged State Owned Enterprises (SOEs) to effectively contribute to the country’s economy.
In his remarks to State-Owned Enterprise CEOs and Chairpersons, the Prime Minister issued a bold challenge for them to develop ambitious, E1 billion projects that will create jobs and elevate the lives of all emaSwati.
The Premier urged the entity leaders to step up and play a leading role in driving economic development in Eswatini.
“Government needs great ideas, not just dreams,” declared Dlamini, emphasizing the need for ambitious and viable projects worth over a billion Emalangeni.
He challenged the SOEs to develop concepts that “create jobs and make the lives of every liSwati better,” aligning with His Majesty’s vision for a developed state.
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He added, “I want to declare here today; Government needs great ideas not just dreams. I am proffering a challenge to all of you to develop concepts of high value in any discipline or field that the Government can adopt, support, sell, or finance.”
Traditionally, Eswatini’s economic strategy relied on a more passive approach, where the government provided a conducive environment for the private sector to lead. However, Dlamini argues that this approach has not yielded the desired results for developing countries. He proposes a more proactive role for the government, with SOEs acting as key drivers of industrialization and investment.
The Prime Minister also stressed the importance of SOEs fulfilling their founding mandates. Failure to deliver on these mandates, he warns, could render them obsolete and justify the removal of government subsidies.
While acknowledging the importance of the private sector, Dlamini emphasizes the need for collaboration between SOEs, private businesses, and government ministries. He encourages joint efforts to leverage each other’s strengths and achieve shared goals.
“You should begin to think about collaboration, not only amongst yourselves but also with the private sector as well as Government ministries,” the Premier said.
“You must always be conscious of your founding mandate and reflect it. If you fail to deliver on your mandate, it will mean you have outlived your purpose as SOE. There is no reason the Government should subvent that entity.”
Dlamini reminded the leaders that when doing their duties, they must remember that they serve society.
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“As you carry out your different mandates, remember that you are part of society. For our country to thrive across all spheres, we need to be patriotic,” he stated.
“After all, we only have one country, and we owe it to ourselves and future generations to make it a safe and peaceful haven for all. You must also join hands with Government in fighting the scourge of corruption, in all its forms.”
The Prime Minister emphasized, “As you lead your organisations, you must make sure that you lead with excellence and a high level of integrity. Government will initiate regular engagements with SOEs and the private sector for the common goal of strengthening the country’s economy and creating employment for emaSwati.”
SOEs occupy a unique position in Eswatini’s economic landscape. Their presence aids the government in driving economic and social development.
Historically, SOEs in Eswatini emerged for various reasons which include infrastructure development. In the early stages of development, private investment may be scarce. SOEs were established to invest in critical infrastructure like power, water, and transportation, laying the foundation for future economic activity.
They were also established to enhance strategic sectors. Governments sometimes deem certain industries – like mining or telecommunications – crucial for national interests. Eswatini SOEs were created to control and manage these strategic sectors, ensuring alignment with national goals of development.
The Kingdom of Eswatini also established SOEs to facilitate job creation and social development. The Kingdom’s SOEs are instrumentally used to create employment opportunities and provide essential services in underserved areas, contributing to social development and poverty reduction in the country.
