ANNUAL GENERAL MEETING 2024
Business Eswatini held its Annual General Meeting (AGM) on Friday, 27 September 2024 where the sitting President successfully held his maiden meeting since being elected. There were two sessions during this meeting; a closed and an open session. During the closed session, the committee leaders of each department delivered each of their reports where they highlighted what transpired in the past year 2023/2024. During the open session, we had presentations from Eswatini Electricity Company (EEC) and SwaziMed which were followed by a launch of a market insights report titled Eswatini: Solar PV-Embedded Generation Market (Developer Guide). More details below.
ESWATINI ELECTRICITY COMPANY’S PRESENTATION AT THE AGM
During the open session of the AGM, EEC, through a presentation delivered by James Mabundza who is the General Manager of Customer Service, outlined key updates and initiatives concerning energy procurement, infrastructure projects, and future goals of the organization and what that means for the country. Below is a summary of the major points:
SAPP Participation: EEC continues its role as a member of the Southern African Power Pool (SAPP) and is acknowledged as a national power utility.
Eskom Contract: EEC is in discussions to renew its 25-year Power Supply Agreement (PSA) with Eskom, which expires in September 2025, as Eswatini relies on Eskom to meet its energy needs.
Energy Mix & Achievements: The presentation highlights EEC’s current and future energy sources, which include hydro, solar PV, biomass, coal, and geothermal projects. Notably: Maguga expansion, geothermal exploration, and plans to increase installed capacity to 648 MW by 2031.
A contract with Kenya Generation Company (KenGen) for geoscientific exploration has been signed.
Challenges & Importance of Energy Mix: There is a focus on diversifying the energy mix to reduce risks and take advantage of cheaper technologies like solar and hydro when conditions are favorable.
Transmission Projects: Multiple ongoing and planned projects aim to strengthen the reliability and capacity of Eswatini’s power grid, including:
These initiatives aim to ensure reliable power supply, support industrial growth, and facilitate regional energy trading.
Click on the following link to access presentation: https://drive.google.com/drive/folders/1VshAhSgk4tHhQyOCkOLyB1OoPkfxlP6t?usp=sharing
SWAZIMED PRESENTATION TO MEMBERS
SwaziMed, through the Chief Executive Officer Peter Simelane, also made a presentation of their management accounts and what that means for contributing members and the fund at large. The accounts highlighted a reporting period from April 2024 to June 2024 presented the following:
Membership & Income:
The total gross contributions were approximately E313.8 million for the year-to-date (YTD).
Expenses:
Benefit expenditure amounted to E250.9 million.
Net Results:
Including investment income the total net surplus for the year is E13.7 million.
In simple terms, SwaziMed collected more money from its members than it spent on claims and running the business, leading to a positive surplus. This indicates a healthy financial position for this period. The MD also shared that the fund will also be diversified into other investments so that they don’t only rely on the members’ subscriptions.
Click on link to access presentation: https://drive.google.com/drive/folders/1VshAhSgk4tHhQyOCkOLyB1OoPkfxlP6t?usp=sharing
LAUNCH OF THE ESWATINI: SOLAR PV-EMBEDDED GENERATION MARKET (DEVELOPER’S GUIDE)
During the AGM the Honourable Minister of Commerce, Industry and Trade together with the newly appointed Ambassador of the European Union Delegation to Eswatini launched a report called “Eswatini: Solar PV-Embedded Generation Market (Developer Guide)” which is a Market Insights lengthy “reference document” to inform early market exploration, specifically aimed at new entrants to the Small-Scale Embedded Generation (SSEG) market in Eswatini. This report offers key market insights that can help SMEs and investors identify and navigate the embedded power generation landscape in Eswatini.
Click on this link to download the report: https://business-eswatini.co.sz/eswatini-solar-pv-embedded-generation-market-developers-guide/
BUSINESS ESWATINI’S PARTICIPATION IN THE LABOUR ADVISORY BOARD
Business Eswatini formally notified the Ministry of Labour and Social Security of its decision to re-asses its continued participation in the Labour Advisory Board (LAB) with immediate effect. This decision was not taken lightly and follows years of continuous frustration and dissatisfaction with the functionality and governance of the LAB. After careful deliberation, the matter was tabled at the Annual General Meeting (AGM) held last Friday, where it was unanimously resolved that the Ministry be put on Notice on the irregularities within the LAB.
INVITATION TO THE CUSTOMS TO BUSINESS FORUM MEETING OF THE 2nd QUARTER OF 2024/25
The Eswatini revenue Service (ERS) is inviting you to the Customs to Business Forum meeting to be held at the ERS Headquarters, Ezulwini on the 11th October 2024 from 09:00 – 12:00hrs. Kindly RSVP if you are interested in attending the forum. See invitation and agenda attached.
ECONOMIC SOUNDBITES
THE CENTRAL BANK OF ESWATINI (CBE) SLASHED INTEREST RATES!
The Central Bank of Eswatini reduced interest rates by 25 basis points to 7.25% during its last monetary policy consultative meeting as consumer prices cooled down and projections for inflation remained on the down side of the scale. This also confirms the independence of our country’s monetary policy regime as South Africa’s interest rates remain at 8%. BE notes that the country’s monetary policy interventions have been effective in maintaining market price stability and curbing runaway inflation. However, more would be achieved if these measures were supported by smart fiscal policy initiatives by government.