Eswatini considers state-owned mining company
By the AFREEQUE newsroom, based on Times of Eswatini
Illustrative image · Harshal . · Pexels · Licence PexelsEswatini’s government is considering creating a state-owned mining company, as the country already has about 50 public enterprises and bodies. The project revives debate over whether the new entity could generate enough revenue to cover its costs, reports the Times of Eswatini.
Eswatini’s government is considering creating a state-owned mining company as the country already has about 50 public and parastatal enterprises. The project revives debate over the state’s ability to develop a mining activity requiring significant capital, specialised technical skills and exposure to fluctuations in international prices, reports the Times SUNDAY.
The debate focuses in particular on whether the future company could generate enough revenue to cover its establishment and operating costs, as several public enterprises already depend on state subsidies. The government recently created the Eswatini National Petroleum Company, adding another state-owned enterprise to its portfolio, according to the Times SUNDAY.
Supporters of the project believe a national mining company would allow Eswatini and its citizens to capture a larger share of revenue from mineral resources. They highlight jobs, skills transfer and the contribution to economic development, according to the newspaper.
The Coordinating Assembly of Non-Governmental Organisations (CANGO), which brings together non-governmental organisations, supports the creation of the company. Its executive director, Thembinkosi Dlamini, believes state participation in the mining sector is long overdue and could strengthen the country’s ability to defend its economic interests in the exploitation of mineral resources, reports the Times SUNDAY.
