Too many regulators for Eswatini’s economy

MBABANE – For a country with a relatively small economy, Eswatini has an extensive network of regulatory authorities, commissions, professional councils and statutory bodies overseeing almost every major sector of economic activity.

From banking, insurance and telecommunications to agriculture, construction, energy, healthcare and tourism, businesses and individuals operate within a regulatory environment involving numerous public institutions, each established to perform particular functions.

However, the growing debate is whether the kingdom needs so many separate institutions to regulate an economy of its size, particularly at a time when government faces pressure to contain public expenditure, improve efficiency and create a more attractive environment for private investment.

Economist Sanele Sibiya believes Eswatini is beginning to over-regulate its economy, warning that overlapping responsibilities among public institutions could increase operating costs, frustrate consumers and undermine innovation.

Sibiya said some regulatory authorities performed functions that could be accommodated within existing institutions, either through mergers or the establishment of specialised departments.

ARRANGEMENT

He argued that the present arrangement could result in several institutions carrying out closely related responsibilities, despite the possibility of consolidating their operations.

The economist cited financial technology, commonly known as fintech, as an example of an emerging industry where regulatory responsibilities may intersect. According to Sibiya, certain financial services fall under one regulatory authority while related activities are supervised by another, creating difficulties for consumers seeking assistance.

He said consumers could find themselves approaching an institution that regulates a particular service, only to discover that its mandate does not extend to the specific problem they need resolved. Beyond the inconvenience to consumers, Sibiya warned that maintaining multiple regulatory bodies could place an unnecessary financial burden on the country.

Each institution requires administrative structures, personnel and operational resources. Where functions overlap, he argued, consolidation could reduce expenditure and improve efficiency. He further cautioned that excessive regulation could discourage innovation, particularly in rapidly developing industries such as artificial intelligence (AI).

Sibiya said technological developments were moving so quickly that regulatory authorities could struggle to keep pace, potentially imposing restrictions that inhibit the introduction of new products and services. His concerns raise a fundamental economic question: Can Eswatini afford its existing institutional structure, and are all these authorities necessary as separate entities?

REGULATORY BODIES ACROSS THE ECONOMY

A closer examination of Eswatini’s institutional landscape reveals an extensive range of authorities responsible for supervising economic activities, enforcing standards, administering public programmes and protecting consumers.

In the financial sector alone, the Central Bank of Eswatini (CBE) supervises commercial banks, while the Financial Services Regulatory Authority (FSRA) oversees non-bank financial institutions, including insurance companies and pension funds. The Financial Intelligence Unit (FIU) deals with financial intelligence and the fight against money laundering, while the Eswatini Revenue Service (ERS) administers taxation and customs.

Meanwhile, the Eswatini Competition Commission (ESCC) is responsible for competition matters and investigating anti-competitive business practices. Although these institutions have distinct legal mandates, their responsibilities may intersect where financial services, commercial activities and regulatory compliance are concerned. The energy sector falls under the Eswatini Energy Regulatory Authority (ESERA), while the Eswatini Public Procurement Regulatory Agency (ESPPRA) oversees the public procurement framework.

REQUIREMENTS

Businesses must also contend with environmental requirements administered by the Eswatini Environment Authority (EEA), while the Eswatini Standards Authority (ESWASA) addresses standards and quality assurance.

The construction industry has its own oversight arrangements through the Construction Industry Council (CIC), while architects, engineers, surveyors and allied professionals are subject to professional oversight through their respective council, commonly referred to as AESAP.

The aviation industry is overseen by the Eswatini Civil Aviation Authority (ESWACAA), while the Central Transport Authority (CTA) performs functions relating to government transport.

Tourism is another sector with a dedicated public institution, the Eswatini Tourism Authority (ETA), whose responsibilities include tourism development and promotion. Here, the country has the Ministry of Tourism and Environmental Affairs.

The agricultural sector has several specialised institutions, including the National Agricultural Marketing Board (NAMBoard), the Eswatini Cotton Board, the Eswatini Dairy Board, National Maize Corporation (NMC) and the Eswatini Sugar Association.

Although their mandates differ and some perform important commercial, marketing or industry-development functions rather than conventional regulation, their existence illustrates the breadth of the institutional structures serving the country’s economy. Healthcare also operates under several oversight arrangements. These include the Medicines Regulatory Authority (MRA), the Eswatini Medical and Dental Council and the Eswatini Nursing Council, which deal with different aspects of medicines, professional standards and healthcare practice.

In education, the Eswatini Higher Education Council (ESHEC) oversees higher education matters, while the Examinations Council of Eswatini (ECESWA) administers national examinations and assessment functions. There is also the Eswatini Qualifications Authority, which is responsible for the qualifications system in Eswatini and this includes all of the country’s activities that result in the recognition and validation of learning and qualifications.

MANDATE

Other statutory institutions include the Conciliation, Mediation and Arbitration Commission (CMAC), which deals with labour disputes that the Labour Department of the Ministry of Labour and Social Service also handle; the Anti-Corruption Commission (ACC), which investigates corruption and the Elections and Boundaries Commission (EBC), which administers electoral matters within its mandate.

The Eswatini National Trust Commission (ENTC) performs heritage and conservation functions, while the Eswatini National Sports and Recreation Council is involved in sports development and administration.

Taken together, it must be said that these institutions demonstrate the extent to which different areas of economic and public life are administered through specialised bodies.

However, economists feel that their inclusion does not necessarily mean that they all impose regulatory burdens on businesses. Some provide essential services, promote economic sectors, protect professional standards or fulfil constitutional and public-interest obligations.

They say their central concern is therefore not merely how many institutions exist, but whether their functions are clearly defined, efficiently administered and justified by the benefits they deliver.

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