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By PHEPHILE MOTAU | 2024-11-10
Government has signed a landmark agreement with iSwiss Bank, positioning the country as one of the most competitive and attractive destinations for international investors and entrepreneurs, with tax incentives reaching as low as zero per cent.
This is a joint venture agreement, which will see the bank establish a free trade zone at King Mswati III International Airport.
Granting the bank a licence comes at the background of the Central Bank Governor, Dr Phil Mnisi, announcing that as part of its current strategy, they seek to bring in more banks, which range from Islamic to Investment Banks.
The governor revealed that they currently have three to five applications from local and international institutions on table, applying for the licensing. Other banks that have applied for licences are the Swaziland Building Society (SBS), which transitioning from being a society to a bank and the Farmers Bank.
Minister of Commerce, Industry and Trade, Manqoba Khumalo, said the joint venture known as FZ CAPITAL JSC was between iSwiss Bank and SENZA Eswatini.
FZ CAPITAL JSC has been given the operator and developer licences.
The minister said FZ CAPITAL JSC would also establish a free trade zone at KMIII.
The World Bank defines free trade zones as small, fenced-in, duty-free areas, offering warehousing, storage and distribution facilities for trade, transhipment and re-export operations.
Minister Manqoba said the venture create employment opportunities for semi-skilled and skilled Emaswati, diversification of the financial sector, provision of special financing packages for special economic zone (SEZ) companies, to have faster and secure way of doing international transactions.
Benefit
Khumalo said the country would also benefit from a boost of economic growth, industrial expansion and economic development
The Cabinet and private offices second quarter performance report also states that this was one of the approvals done in the second quarter of the financial year.
The Swiss Bank, in a statement, also announced that through its subsidiary FZ CAPITAL JSC, it has obtained the Free Economic Zone license in the country.
The bank said the establishment of a zero-tax Free Economic Zone would open the country's market to a wide range of global investors, with projections to register between 600 000 and one million new companies by 2025.
Entrepreneurs
“This favourable fiscal environment, combined with advanced financial infrastructure and global banking connections, promises substantial benefits for both foreign entrepreneurs and the local population.
The Free Zone will provide direct access to multi-currency bank accounts, simplifying and streamlining international economic transactions,” the bank stated.
CEO of iSwiss Bank and Interim President of the Eswatini Free Zone Authority, said after spending many years in Dubai and working closely with Middle Eastern royal families, he had the opportunity to observe and understand the success models that have made cities like Dubai and other economic hubs international benchmarks for business.
“This experience, coupled with my travels to Georgia, Kazakhstan, Bulgaria and other countries, allowed me to integrate the best aspects of various Free Zones worldwide, always keeping in mind the needs of modern digital entrepreneurs, consultants and freelancers,” Aleo said.
He said many entrepreneurs, freelancers, and digital consultants feel lost when faced with complex tax regulations and bureaucratic processes that delay business setup.
“In Eswatini, we've made it possible to open a business in under three minutes, complete with a multi-currency bank account and global payment services. Thanks to our advanced facial recognition and document verification systems, clients can register quickly and securely without the long, costly trips typically required to open accounts abroad.
Our goal is to provide them with the best possible experience while ensuring full compliance with anti-money laundering regulations,” Aleo said.
The organisation also said the Free Economic Zone project went beyond offering tax incentives as it aims to create a modern and interconnected economic platform.
They said new companies would be able to operate as though they were based in the home country of their commercial counterpart, with fast, secure, real-time transactions that break down geographical barriers and simplify international trade.
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