By Bahle Gama and Ncaba Ntshakala
His Majesty King Mswati III’s recent trip to Taiwan is set to rejuvenate Eswatini’s economy and contribute to the fight against the scourge of unemployment.
Upon his return on Friday, His Majesty revealed that businesspeople in Taiwan have a keen interest in coming to Eswatini to create jobs. The King was in Taiwan for the inauguration of President Lai Ching-te.
Speaking during a press conference at Ludzidzini Royal Residence, His Majesty stated that the businesspeople interested in coming to the country were prevented by the Covid-19 pandemic. However, with the restrictions being lifted, the Taiwanese businesspeople gave assurance they would be flocking to Eswatini.
His Majesty highlighted the bilateral agreements that were signed soon after the President’s inauguration. The King and Taiwan President Dr William Lai Ching-te witnessed the signing of two cooperation agreements and one Joint Declaration between Eswatini and Taiwan, covering Central Banks’ relations, business digitisation and the strengthening of bilateral relations.
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Taiwan asserted that the agreements highlight a commitment to deepen cooperation and mutual development. The agreements aim to support more collaboration, share expertise, and drive economic growth in both countries.
The relationship between Taiwan and Eswatini is longstanding and robust, characterized by mutual respect and cooperation. Eswatini is one of Taiwan’s diplomatic allies, and this partnership has yielded significant benefits over the years. Taiwan has been instrumental in supporting Eswatini through various development projects, ranging from healthcare to infrastructure.
These included the joint statement signed on May 21 in Taipei City to reaffirm the solid diplomatic relationship between the two nations.
The document was inked by Foreign Affairs Ministers Pholile Shakantu and Lin Chia-lung. The two countries have also agreed to enhance cooperation in areas spanning agriculture, education, investment, medical care, mutual legal assistance, public health, trade, vocational training, women’s empowerment and youth employment, as well as combating cross-border crime and preventing information manipulation.
His Majesty further witnessed the signing of two Memorandum of Understanding (MoU) on bilateral cooperation, one on developing a business digitalization project and the other on collaboration between the Central Bank of the R.O.C. (Taiwan) and the Central Bank of Eswatini.
Another significant milestone was the agreement that saw the Eswatini Sugar Association committing to shipping its first order to Taiwan by August. This inaugural shipment is expected to be a precursor to a substantial increase in trade volume between the two nations.
The initial order is projected to be around 2,000 tonnes, with plans to expand to 5,000 tonnes in subsequent shipments. In monetary terms, this translates to an annual value of approximately E1,300,000, which could potentially increase to E3,250,000 as the volume of sugar exports rises.
This initiative is one of the many benefits stemming from the Economic Cooperation Agreement (ECA) between Eswatini and Taiwan, a pact that has significantly enhanced bilateral trade since its inception.
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Eswatini’s total exports to Taiwan in 2022 amounted to E110,801,841.60 (US$6,024,000). These exports are predominantly beverages and spirits, complemented by fresh fruits and vegetables, condiments, honey, liquor, home decor, and other miscellaneous items. This marked a slight decrease from 2021 when exports stood at E114,866,783.00 (US$6,245,000).
Despite this dip, the overall trend since the signing of the ECA in 2018 has been one of growth, with exports jumping from E4,175,301.80 (US$227,000) in 2017 to E12,213,217.60 (US$664,000) in 2019.
Eswatini’s imports from Taiwan also saw significant activity, with 2022 figures reaching E185,092,784.20 (US$10,063,000). These imports are primarily machinery, medical equipment, cereals, and inputs to textiles and apparel. Taiwan is Eswatini’s 13th largest import source, with the list being predominantly filled by Southern African Development Community (SADC) countries.
Highlighting the growing commercial relationship, nine handcraft companies from Eswatini attended the Giftionery Taipei 2024 in April, securing over E150,000 worth of orders from buyers they met. This event exemplifies the benefits that Eswatini’s businesses are reaping from the ECA and the robust support system in place.
Before the ECA, Eswatini’s export figures to Taiwan were modest. However, the agreement has propelled a conducive environment for trade growth, as evidenced by the surge in export values post-2018.
The Eswatini Investment Promotion Authority (EIPA), in collaboration with Taiwan’s External Trade Development Council (TAITRA), has been pivotal in this transformation. Local businesses have been granted opportunities to showcase their products at Taiwanese trade shows, where they gained visibility among international buyers from Asia, Europe, and South America.
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The support from TAITRA includes subsidies for transport, exhibition space, accommodation, marketing, and B2B meetings, facilitating a seamless entry into the Taiwanese market.
Commerce, Industry and Trade Minister Manqoba Khumalo also witnessed the signing of a cooperative agreement between the Eswatini Investment Promotion Authority (EIPA) with its Taiwanese partner, International Integrated Systems Incorporate (IISI) on Wednesday afternoon.
The signing of the agreement followed Tuesday’s signing of a MoU between the minister and his counterpart in the presence of His Majesty the King and Republic of China (Taiwan) President Lai Ching-te which seeks to advance the country’s business digitalization project.
Signing the cooperative agreement was EIPA CEO Sibane Mngometulu and IISI Vice President Andy Lee. IISI is a Government and Enterprise Application department established about 30 years ago. Mngometulu explained that what they were signing was an implementing agency agreement following the government-to-government agreement signed by Minister Khumalo on Tuesday.
“As the implementing agency for the government digitalization project, we are looking at taking our platform ‘Buy Eswatini’ where we currently post on the Website products by local businesses in a virtual platform to buy and sell to their counterparts here in Taiwan.”
“We are looking at enhancing the digital platform and ensure ease of transaction and really up our game in the business of moving goods and services by developing an application (App) where our counterparts will assist it’s to develop it,” he said.
He said they were very excited as EIPA to enter into such an agreement with their counterparts. In response, IISI Vice President Lee said they were happy to have signed the cooperative agreement with EIPA.
“We have in the past assisted the Kingdom of Eswatini through their government in developing its information technology projects like the Data Centre in providing consultancy work. This time we are very happy to continue to support Eswatini to develop an e-commerce platform. They will also assist the Kingdom in training 30 ICT students and 30 SMEs around the platform,” he said.
Lee said they are looking forward to building strong relations with the Kingdom. Also witnessing the signing of the agreement were EIPA Investment Promotion Manager Fanele Mashwama and IISI CEO and Project Manager David Fu, who said he had just returned from Eswatini and was impressed with the progress made in broadband connectivity.
The King further outlined his schedule whilst he was in Taiwan which included meeting emaSwati residing, working, and studying in Taiwan who reported to him how well treated they are in Taiwan.
The King added that he urged emaSwati teaching in Taiwan to also equip Taiwanese pupils and students with siSwati.
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“Whilst they teach English and learn Mandarin themselves, they should also incorporate siSwati words in the vocabulary of people they are teaching. SiSwati should also be spoken in Taiwan as well,” His Majesty emphasised.
The King further reminisced on his first shrimp fishing competition where he topped all participants. This followed after a journalist requested that His Majesty share his experience on shrimp fishing.
“I had no prior experience in shrimp fishing, considering that the country does not have a sea, whilst the other heads of state that participated had an upper hand as their countries are surrounded by oceans. Despite all that, I caught the most shrimp such that I ended up sharing with my colleagues,” said the King.
His Majesty said he was appalled by seeing all the shrimp coming to him the most, leaving everyone in the room in stitches. The King said the fishing competition was a means to foster relations between the countries and helped them relax as they discussed work-related issues.
The win has therefore become a victory for Eswatini. His Majesty went on to reiterate how impressed he is with Taiwan’s new president’s work ethic, referencing how Ching-te was in office a day after his inauguration.
“He also gave an amazing speech where he emphasised the need to improve Taiwan’s economy. Overall and above, we had a fruitful trip,” His Majesty concluded.
