Maroc - TAIWANTODAY.TW - Taiwan Review - 01/Jul 00:00

Prosperous Ties

Taiwan and Eswatini’s economic links produce mutually beneficial outcomes. Catherine Liu, founder of Luxy Garden, displays one of the fine dining establishment’s signature dishes. (Photo by Oscar Chung) Longtime allies Taiwan and Eswatini are not just strengthening diplomatic relations—they are forging powerful economic partnerships that are transforming both countries. Over the past 20 years, Taipei City-headquartered Tex-Ray Industrial Co. has become one of the largest employers in the southern African kingdom of 1.2 million people, while Taipei-based CECI Engineering Consultants Inc. designed the terminal of King Mswati III International Airport, which is Eswatini’s primary international gateway. Taiwan’s influence extends to the culinary scene with Luxy Garden, a fine dining restaurant in the emerging tourist town of Ezulwini that has been serving Taiwanese and Asian cuisine since 2012. “While patrons are familiar with Taiwan thanks to over 50 years of official ties, here they experience the flavors and textures of our signature foods,” founder Katherine Liu (劉書凱) said. Currently, 25 Taiwan businesses operate in Eswatini, and both governments are eager to grow this number through activities like the investment fair held in Taipei in March. The event saw Swati officials highlight the advantages of investing in their country, including access to a tariff-free market of 70 million people under the Southern African Customs Union (SACU). “The union significantly expands the free-trade market for manufacturers in Eswatini,” said Carlos Z.W. Lin (林政偉), deputy economic counselor at the Embassy of the Republic of China (Taiwan) in the Kingdom of Eswatini. The Economic Cooperation Agreement inked by Taiwan and Eswatini in 2018 has also lowered barriers to bilateral trade, with the number of tariff-free product lines exported to Taiwan increasing from 153 six years ago to 199 today.   Taipei-headquartered Tex-Ray Industrial Co. is one of the largest employers in the African ally. (Photo by Oscar Chung) Expanding Ventures Tex-Ray, an early Taiwan investor in Eswatini, has seen remarkable success. With factories for knitting, dyeing and garment-making employing 2,500 workers, the company is now the top supplier for several major clothing brands in southern Africa. Its Golden Jubilee factory, established in 2018, also exports apparel to the U.S. tariff-free under the African Growth and Opportunity Act. Tex-Ray’s Eswatini division generates 95 percent of its revenue through sales in SACU countries like Namibia and South Africa, with the remaining 5 percent from the U.S. market. Eswatini is a crucial part of Tex-Ray’s global network, generating a quarter of the company’s total revenue and higher production volumes than any of its other manufacturing bases at 1.2 million items per month. To ensure sustainable growth, the company has built reservoirs and plans to install solar panels on its factory roofs.  Eswatini’s government has recognized Tex-Ray not only for its export performance, but also for its generous community contributions, including donations of rice, clothes and stationery, as well as garment-making classes for women offered in collaboration with Taiwan Technical Mission. “We’re prospering together with local people,” said Mars Tseng (曾郅諺), regional general manager of Tex-Ray’s Eswatini division.   Power Pack Africa significantly reduces the import of plastic bottles. (Photo by Oscar Chung) Another Taiwan company that has gained a firm foothold in Eswatini is Power Pack Africa. Established in 2021 in Matsapha, it has captured nearly 90 percent of the plastic bottle market for drinking water. According to company director Achilles Yeh  (葉衛綺), bottles were previously imported from South Africa, but local production has lowered prices and encouraged further investment in the sector, with more than 10 water bottling companies emerging in the past three years. “Eswatini relies heavily on imports, which means there’s a lot of domestic manufacturing potential,” Yeh said. The company plans to expand its product line and is opening a second factory in August to produce cardboard cartons. Diverse Sectors Taiwan’s presence is likewise growing in the service sector, as evidenced by companies like CECI. Since designing the airport terminal in 2007, CECI has overseen dozens of infrastructure projects, many of which, including a new building for Mbabane Government Hospital in the capital, were publicly funded by Taiwan. The company has also been awarded contracts from Eswatini’s government, such as the construction of a five-star hotel in Ezulwini and a resort in a former mining area near the South African border. CECI’s expertise in science park design led to the creation of the Royal Science and Technology Park (RSTP), completed in 2017. The park, located 20 kilometers southeast of Mbabane, is expected to drive significant technological growth in Eswatini. “As the largest engineering consultancy in Taiwan, our company contributes by sharing design and construction concepts with local professionals,” said Tsai Chin-yao (蔡欽耀), development project manager at CECI. Taiwan also advises the government on park management strategies and related policies. In 2023 the Ministry of Economic Affairs’ Bureau of Industrial Parks and Taipei-based International Integrated Systems Inc. jointly produced a regulatory recommendation report for RSTP. “The park’s growth story reflects the strengthening of economic ties between Taiwan and Eswatini,” Lin said. “As longtime allies with a relationship based on unwavering trust, we’ll continue to explore mutually beneficial economic opportunities across the board.”   Write to Oscar Chung at mhchung@mofa.gov.tw