BY MBONO MDLULI
MBABANE – The Ministry of Natural Resources and Energy has officially initiated the process of establishing a state-owned mining company, signalling a significant step towards harnessing Eswatini’s mineral wealth for national development.
Prime Minister Russell Mmiso Dlamini announced the development today (January 20, 2025) during the opening session of the 2025 Cabinet Retreat at Royal Villas, Ezulwini. Highlighting the strategic importance of the initiative, the Prime Minister emphasized the need for Eswatini to maximize the benefits of its natural resources, including newly discovered mineral deposits.
“What we have learnt from other countries is that for maximum benefit to the people, government must have a state-owned mining company. The Ministry of Natural Resources and Energy has begun the process of establishing a national mining company,” Dlamini stated.
The Prime Minister urged the ministry to accelerate the establishment of the company, noting that potential partners are already prepared to invest. He expressed confidence in the initiative, describing it as a step in the right direction for the country’s economic advancement.
Experts have highlighted both the benefits and challenges of government-owned mining enterprises. In the short term, state ownership allows the government to capture a larger share of mining profits compared to taxation of private companies. However, there are concerns about the long-term sustainability of such enterprises. Government-owned companies often face issues of inefficiency and mismanagement, which can erode profitability and lead to eventual losses.
“The government must guard against incompetence and corruption in the management of the public mining company to ensure its success,” cautioned Dlamini.
Historical examples illustrate these challenges. During the French Revolution, state control of factories initially boosted production by reducing downtime for maintenance. However, over time, poor management led to the decline of these factories. Recognizing these pitfalls, Napoleon later reverted to private production systems and commodity-based currency to stabilize the economy.
The establishment of the Eswatini state-owned mining company marks a pivotal moment in the nation’s economic strategy. Ensuring transparency, efficiency, and collaboration with private investors will be crucial for the venture to succeed and deliver long-term benefits for the people of Eswatini.
