SWAZI COMMERCE MINISTER: SUSTAINABLE SMALL ENTERPRISES AND

UNCLAS SECTION 01 OF 02 MBABANE 000319

SIPDIS

SENSITIVE

E.O. 12958: N/A
TAGS: EIND ETRD PGOV WZ
SUBJECT: SWAZI COMMERCE MINISTER: SUSTAINABLE SMALL ENTERPRISES AND
ENTREPRENEURSHIP POINT TO WAY FORWARD


1. (SBU) SUMMARY: Minister of Commerce, Industry and Trade
Jabulile Mashwama confided to Ambassador and PolOff November 19 that
the need for Swazis to change their cultural mind-set and take on
greater personal responsibility for their economic welfare was her
biggest challenge. In government, ministries and other
organizations need to pursue coordinated strategies, and within her
ministry Minister Mashwama affirmed she wants to develop a better
strategy to encourage sustainable small enterprises. She agreed
that there is a perception that corruption is rampant in Swaziland,
and emphasized that Prime Minister Barnabas Sibusiso Dlamini and the
cabinet were focused on the issue. Minister Mashwama stated that
government would be highlighting seven high-profile corruption cases
over the next few months. END SUMMARY.


2. (U) On November 19, Ambassador and PolOff paid a courtesy call
to Minister of Commerce, Industry and Trade Jabulile Mashwama, who
stated that Swazis need to change their cultural mind-set and take
on greater personal responsibility for their economic welfare. In
Swaziland, she explained, people expected somebody to put up capital
for or otherwise help them get their businesses off the ground. She
indicated that government should focus on instilling entrepreneurial
principles in the populace and improve education. She emphasized
she enjoyed the prime minister's full support in that connection.
The Minister believed that, in order to improve services and advance
the cause of the nation, ministries and other organizations needed
to pursue coordinated strategies, something she saw as improving
under the current prime minister.


3. (U) Within her ministry, Minister Mashwama affirmed she wanted a
better strategy for encouraging sustainable small enterprises. She
indicated the Swaziland Enterprises Development Company (SEDCO)
suffered from expectations of continuous government support for rent
and expenses to participants who never left the program. She stated
that her Ministry was restructuring SEDCO to encourage participants
to become viable, independent entrepreneurs. She complimented
U.S.-funded Technoserve on its activities training small and medium
business in Swaziland.


4. (U) The Minister agreed with the Ambassador that there is a
perception that corruption is rampant in Swaziland, although she and
her husband, who is a businessman, had never experienced it. She
emphasized that Prime Minister Barnabas Sibusiso Dlamini and the
cabinet were focused on the issue, and that a cabinet working group
had been formed to tackle the subject. Minister Mashwama stated
that government would be highlighting seven high-profile corruption
cases over the next few months, one of which, concerning a school
principal who had embezzled funds from his institution, was in the
courts.


5. (SBU) COMMENT: On November 18, Ambassador Irving hosted a
luncheon for 15 managing director-level leaders of American
businesses and franchises in Swaziland. The overarching impression
left from the business leaders' comments was that government
corruption and requests for kickbacks have gotten substantially
worse in Swaziland over the past few years, costing their
enterprises a great deal of business to less scrupulous local and
regional competitors. Participants indicated that requests for
bribes by government officials have become more blatant. When
participants discussed the new Anti-Corruption Commission, they were
dismissive of its possible effectiveness and openly scoffed at Prime
Minister Barnabas Sibusiso Dlamini's anti-corruption campaign.
Business leaders also mentioned that courts tended to hand down
lenient sentences to those few actually convicted for corruption.


6. (SBU) COMMENT CONTINUED: Minister Mashwama appears idealistic
and energetic about her portfolio, which she indicates has taken her
a year to master. She recognizes that there is much to be done to
improve Swaziland's image as an investor-friendly country, and
concedes that government dysfunction hinders its ability to address
shortcomings. It is possible that she has been shielded from
corrupt practices having worked for Coca Cola, which enjoys a
special status in Swaziland thanks to the revenue it generates for
the government. Nevertheless, we suspect she is in denial regarding
the extent of corruption in the country. In the course of the
conversation, she made her unswerving loyalty to the king and prime
minister abundantly clear. END COMMENT.


7. (U) Biographical information: Born August 28, 1971, Jabulile
Mashwama was appointed to the Senate and as Minister of Commerce,
Industry and Trade by King Mswati III in October 2008. Prior to her
government service, Mashwama was a highly regarded businesswoman in
Swaziland, serving as the human resources manager at Coca-Cola
Swaziland (CONCO). She joined CONCO in 1994, initially working as a
laboratory chemist. A year later she was promoted to team leader in
the water treatment plant. In 1998 she became an environment, safety
and loss prevention officer and was promoted to manager in 1999. She
was promoted to the position of human resources manager in 2005.


8. (U) Mashwama holds a Bachelor of Science degree in math and
science from the University of Swaziland. She has served on several

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boards such as the Swaziland Revenue Authority, Swaziland
Environment Authority, Federation of Swaziland Employers, and
Chamber of Commerce. She was also a member of World at Work, which
is a human resources practitioners' body. She is married and has
two children.

IRVING