micro lending are regulated by statutorily appointed regulators.

Exchange Controls Although exchange controls still exist, South Africa, Lesotho, Namibia and Swaziland have no exchange control restrictions SWAZILAND between them (and the flow of funds and payments between them is unrestricted) by virtue of their membership of the Common Monetary Area (CMA). Swaziland is a member of the CLOETE HENWOOD ASSOCIATED Southern African Customs Union (SACU) together with South Africa, Lesotho, Botswana and Namibia. Firm Information Languages Spoken: English, Siswati, Afrikaans Taxation Tax is levied on income from actual and deemed Swaziland Contacts: Rob Cloete and John Henwood sources. The corporate tax rate is 30%. Withholding tax is 15% Telephone: +268 2404 3124/2405 0385 / 2405 0387 of dividend payments to non-resident shareholders. Value Fax: +268 2404 3136 Added Tax (VAT) is 14%. There is no capital gains tax or tax on Email: [email protected], [email protected] and dividends from companies or distributions paid to residents. [email protected] Swaziland has double tax agreements with various countries in Rated as the leading Law Firm (general business law) in the Africa including South Africa. Kingdom of Swaziland since 2004 by Chambers & Partners Global Directory of the World's Leading Lawyers. Import/Export Import tariffs and direct controls such as import permits exist. Country Information There is virtually unimpeded exchange of goods between Swaziland has a population of approximately 1.2 million. member states of the Southern African Customs Union. In addition Swaziland is party to many preferential trade Political System agreements in Africa, Europe and the United States and there Swaziland is a constitutional monarchy with the Parliament and are many export incentives available to genuine exporters. Senate partly elected through an intricate process and partly appointed by the monarch. Legal System The Swazi legal system and the judiciary are totally independent Economic Indicators and follow the principles of Roman Dutch Law. In terms of an agreement between Swaziland, South Africa, Lesotho and Namibia, Swaziland is part of a Common Monetary Intellectual Property Area which allows for the free flow of funds between the four Protection is provided by statute and the constitution. There are countries. The Swazi Lilangeni (Emalangeni is the plural) is public registries for trademarks and patents. Swaziland is a pegged (one to one) to the South African Rand. signatory to the Berne and Paris Conventions.

Inflation Rate Financial Services/Insurance The inflation rate mirrors that of South Africa. All the major South African commercial banks are represented in Swaziland. Major South African insurance companies are also Forms of Business well represented here. ?Private or public limited liability company ? External company (i.e. a branch of a foreign company) Key Strategic Growth Initiatives by Government/Private ? Partnership Sector ? Trading trust There are major drives for growth in the fields of tourism, game ? Sole trader. parks, gold and diamond mining, coal power generation. A new international airport has just been commissioned at Sikuphe in Formation of a Company the middleveld. Companies, trusts and external companies must be registered with the company authorities in Mbabane. Prior to commencing Membership of International and Regional Organisations operations a trading licence from the Ministry of Commerce and Swaziland is a member of the Southern African Development Enterprise is required and must thereafter register for tax, value Community (SADC), United Nations (UN), the Common Market added tax (if its turnover will exceed 500 000 Emalangeni per for Eastern and Southern African (COMESA), World Bank, annum), workmen's compensation, graded tax and Swaziland International Finance Corporation (IFC), African Union (AU) and National Provident Fund. Business licences are required for most other regional and international organisations. activities. Road and Transport Regulatory Framework Swaziland has a good road haulage and rail system. Maputo in The Swaziland Stock Exchange has regulations Mozambique is the closest port. There are plans to upgrade the governing dealings in securities listed on it railway network system which will include a new railway line which are in line with those of the from Lothair in South Africa to the industrial hub in Matsapha. Johannesburg Stock Exchange. Various sectors such as banking, insurance, communications Water Treaties and Bilateral Agreements There is a joint venture with South Africa for water supply in the Swaziland is a signatory to most United Nations (UN) treaties and Komati River Basin Authority. Swaziland has a number of water is a member of the World Bank, the International Monetary Fund storage dams. The Swaziland Water and Agricultural (IMF), African Union (AU), Southern African Customs Union Development Enterprise Limited (SWADE) is a statutory body set (SACU) and Southern African Development Community (SADC). It up to facilitate amongst other things, the erection of storage has bilateral tax agreements with a number of African countries. dams and the monitoring and usage of water in the Kingdom.

Energy Most energy is purchased from South Africa and Mozambique. A fair amount of energy is produced locally but not enough to sustain demand. Swaziland plans to augment its energy requirements using its own coal supplies. Swazi sugar mills produce a limited amount of energy for their own use.

Telecommunications There is a landline and GSM cellular operator in Swaziland.

Trade and Industry Swazi industry is focussed mainly on textiles.

Mining Swaziland has coal, iron ore, diamonds and gold deposits. Mining is an exciting emerging sector. The Minerals Management Board oversees the grant of prospecting and mining rights. Iron ore and diamond mining rights have been granted and prospecting licences for coal and tin have been granted.

Agriculture Swaziland is the eighth largest sugar producer in the world. The country also has a thriving timber and pulp industry.

Trade and Investment Swaziland welcomes foreign investment and most business activities are open to foreign investors. Revenue and original capital investment can be repatriated subject to the consent of the Central Bank of Swaziland. The Swaziland Investment Promotion Agency (SIPA) is a statutory body that has specifically been set up to deal with all aspects of investment. SIPA advises investors on how to set up a business and all aspects relating to authorisations, registrations for tax and other issues. Their advice and assistance is usually quite helpful and any potential investor would do well to make contact with them.

Incentives The following are the main incentives to investors in Swaziland: ?Machinery imported into the country for the purposes of setting up businesses is exempt from value added tax ?The labour market in Swaziland is competitive with other Southern African countries ?Non-Swazi citizens are able to an extent to purchase immovable property and investors who purchase property in the Matsapha Industrial Area are exempt from applying for and obtaining the consent of the Land Speculation Control Board ?A development approval order may be obtained in terms of which businesses may be granted additional tax concessions such as reduced corporate tax and an exemption on withholding tax on dividends to non- resident shareholders.

Labour Relations There are well established labour laws and an efficient Industrial Court. The laws recognise full freedom of association and there are organised labour unions in existence.