i
Final Report Organisational Arrangement for Women in Informal Cross
Border Trade in Swaziland
Prepared by: Dr. Khanyisile D. Dlamini
November 2013
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ACKNOWLEDGEMENT
My special thanks and foremost appreciation goes to UN Women, which has funded the project and without whose funding this project would not
have taken place. I would also like to extend my appreciation to the UNDP Swaziland Country Office, Minister and Principal Secretary of the
Ministry of Commerce, Industry and Trade and the Ministry’s SMME Unit for affording me the opportunity to be part of this project. Special thanks
go to the SMME Unit Director, Mr Michael Zwane and Mr Mduduzi Kunene for their outstanding support and guidance throughout the project.
Your commitment, flexibility and ownership of the project cannot be matched. Appreciation also goes to the key informants and the vendors for
their commitment towards the project, providing valuable information and above all, giving their valuable time.
To God be the glory; for providing me with the wisdom and strength to do the assignment.
Dr. Khanyisile D. Dlamini
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Table of Contents ACKNOWLEDGEMENT ............................................................................................................................. ii
ACRONYMS ............................................................................................................................................. v
EXECUTIVE SUMMARY ........................................................................................................................... vi
1. INTRODUCTION AND BACKGROUND .............................................................................................. 1
1.1 Background ............................................................................................................................. 1
1.2 Trade Protocols Relevant to the Informal Trade Sector ......................................................... 2
1.3 Gender Dynamics of Informal Cross Border Trade ................................................................. 5
2. SWAZILAND’S CONTEXT .................................................................................................................. 7
3. METHODOLOGY .............................................................................................................................. 9
6.1 Data collection ........................................................................................................................ 9
6.1.1 Documents review .......................................................................................................... 9
6.1.2 Observation ....................................................................................................................... 10
6.1.3 Key informants interviews ............................................................................................ 10
6.1.4 Focus group discussions ................................................................................................ 10
6.2 Data Analysis ......................................................................................................................... 11
4. PROCEEDINGS OF THE FOCUS GROUP DISCUSSIONS ................................................................... 11
7.1 The First Session .................................................................................................................... 11
7.2 The Second Session ............................................................................................................... 13
7.3 The Third Session .................................................................................................................. 13
7.4 The Fourth Session ................................................................................................................ 14
5. FEEDBACK ON DISCUSSIONS ......................................................................................................... 15
6. STRATEGY FOR DEVELOPING THE ORGANISATION ....................................................................... 16
9.1 Name ..................................................................................................................................... 16
9.2 Vision ..................................................................................................................................... 16
9.3 Mission .................................................................................................................................. 16
9.4 Values .................................................................................................................................... 16
9.5 Membership .......................................................................................................................... 17
9.6 Defining WICBT ..................................................................................................................... 18
9.7 Meetings ............................................................................................................................... 19
9.8 Executive Committee ............................................................................................................ 20
9.9 Term of Office ....................................................................................................................... 21
9.10 Financial Projections ............................................................................................................. 22
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9.11 Objectives, action plan, timelines and the cost of activities of the Apex Organisation ....... 26
9.12 Legal Formation .................................................................................................................... 30
9.12.1 Association not for gain ................................................................................................ 30
9.12.2 Features of the an association not for gain .................................................................. 30
9.12.3 Pros of an association not for gain ................................................................................ 31
9.12.4 Cons of an association not for gain ............................................................................... 32
9.12.5 Registration process of an association not for gain ...................................................... 33
7. RISK ASSESSMENT ......................................................................................................................... 34
8. CONCLUSION ................................................................................................................................. 35
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ACRONYMS
CBT
Cross Border Trade
COMESA Common Market for Eastern and Southern
Africa
GDP Gross Domestic Product
ICBT Informal Cross Border Trade
ICBTs Informal Cross Border Traders
MCIT Ministry of Commerce, Industry and Trade
PRSAP Poverty Reduction Strategy and Action Programme
SADC Southern African Development Community
SMME Small Micro Medium Enterprise
STR Simplified Trading Regime
UNIFEM United Nations Development Fund for Women
WICBT Women in Informal Cross Border Trade
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EXECUTIVE SUMMARY It has been realised that informal cross border trade (ICBT) places a strong emphasis on a
market-led strategy of regional integration. Thus, there has been a widespread operation of
informal cross-informal trading activities, which have succeeded in effecting extensive
market integration where government-led initiatives have failed. Research has shown that
informal cross border trading activities have cushioned the effects of the financial crisis and
the food crisis on African countries. Research has indicated that ICBT is an integral, yet
unrecognized, component of the economy of Southern Africa. The reason that these ICBT
activities are not recognised could be because they move small amounts of goods from
country to country, often trading in informal sector markets. Additionally, ICBT largely
consists of those goods exchanged across borders, either bypassing the official customs
checks and recording points, or passing through these customs points while deliberately
undervalued or unrecorded.
Some African countries have established policy instruments and protocols that are relevant
to the informal trade sector. In 2008, the Southern African Development Community
(SADC) Protocol on Gender and Development was adopted, which addresses issues of
relevance to informal traders. COMESA has also made the business of ICBT easier by
supporting a Simplified Trading Regime (STR) for cross border traders. The idea behind
STR is to simplify the trading procedures, which are currently regarded as being
cumbersome and restrictive.
It has been observed that ICBT in Africa features prominently among women’s individual
strategies for self-employment, poverty reduction and wealth creation. Thus, United
Nations Women South Africa Multi Country Office (UN Women), in collaboration with
the Ministry of Commerce, Industry and Trade (MCIT) – Small, Micro Medium Enterprises
(SMME) Unit, began to implement the “Women in Informal Cross Border Trade in
Swaziland” Project. The overall goal of the project is to create wealth, reduce poverty and
minimise exclusion among WICBT. The objectives of the assignment were to review and
establish a coordinated apex organisation for the WICBT sector in Swaziland; to facilitate
harmonised national frameworks and collective operational and organisational growth of the
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organisation, and; to develop a harmonised approach with domestic and international
trading counterparts.
Several methods were adopted to conduct the assignment. Data collected were analysed
on the basis of emerging themes within the context of the study framework. The findings
and contributions made formed part of the strategies for formulating the apex organisation.
The methodology included:
Literature review of national policies; regulatory frameworks; organisational
brochures; programmes in progress; forms of organised structures; national
strategies and plans within and those affecting the WICBT sector;
Observation of organizations promoting ICBT around Swaziland;
Conducting interviews with key informants who hold key official positions in
selected organisations providing support to WICBT; and
Focus group discussions where members of different organisations/associations of
WICBT participated.
Based on the information gathered and discussions held, the strategic organisational
framework of the apex organisation was developed. The participants agreed that the apex
organisation shall be known as: “Buhle Bebunye - Swaziland National Women in Informal
Cross Border Trade”. The name Buhle Bebunye means “the beauty of oneness”. It was later
established that Buhle Bubenye is no longer available for use at the Registrar’s Office so it
was agreed that the name Buhle Bebunye will be used as a tag line and the organisation shall
be registered as “Swaziland National Women in Informal Cross Border Trade”. It was also
resolved that the registered head office of the organisation will be in Manzini. The vision of
the organisation will be “to provide and represent Swaziland’s informal cross border traders
with a platform to trade nationally; regionally and internationally by ensuring free
movement”. The mission being “to assist in creating a pleasant environment for members
to conduct their informal cross border trade with ease, being profitable and eradicating
poverty”.
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Values of the organisation and its members are to uphold service excellence, honesty,
transparency, commitment and accountability. Only associations/organisations will be
allowed to be members of the apex organisation. Individuals will be encouraged to be
members of any association/organisation which is a member of Buhle Bebunye. The member
association/organisation may be informal/formal; legally or not legally established; with or
without a constitution – the main criteria was that it must be able to prove its existence by
showing membership of a minimum of seven (7) members who are ICBTs.
It was further decided that the composition of the Executive Committee shall be 100%
women. The 100% women in the executive was decided upon realising that, as with other
sectors, gender inequalities are pronounced in ICBT. The positions in the Executive
Committee are the President, Vice-President, Executive Secretary, Vice-Executive Secretary,
Treasurer, Organising Officer and three (3) other Members. The term of office for all
positions in the executive committee will be three (3) years. Each Executive Member may
be in office for three (3) consecutive terms , after which that member shall take a term’s
break before being re-appointed to office.
A financially sustainable organisation is crucial. Institution-building support in the form of
(direct or indirect) contributions from a donor to the formation of the apex organisation is
also essential. Based on the participants’ understanding of the importance of sustainability, it
was agreed that the fees would be E2,000.00 joining fee and E500.00 subscription per
month. It was also agreed that the fees needed to be reviewed bi-annually. Buhle Bebunye
shall also embark on income generating activities.
The participants had agreed that they are in support of a legal structure that will allow equal
opportunities where they will all work as equals; everyone must have one equal voice; as
that will allow members to give the mandate to the executive. Nevertheless the objectives
of the organisation will be to:
1. Register and launch the apex organisation;
2. Develop and implement effective advocacy strategies and interventions;
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3. Facilitate information gathering and dissemination;
4. Promote and monitor relevant legislation and policy changes in support of WICBT;
and
5. Develop strategic partnerships.
The country’s informal sector is of crucial importance to its economy and society.
Therefore, the Government needs to prioritise support to women informal cross border
traders, providing them with information and services in support of their activities. WICBT
can be easily and adequately targeted through the formation of an apex organisation that can
represent, address , support and empower them.
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1. INTRODUCTION AND BACKGROUND
1.1 Background According to Hashin and Meagher (1999)1, the original approach to trade in Africa was
characterised by autarchic, government-driven approaches to regional integration, an
emphasis on the transformation of industrial production through import-substitution, and
the proliferation of largely ineffective regional integration schemes. What has been
observed is that since the 1980s, governments in the SADC region have taken to pursuing
policies prescribed by the international financial institutions, ranging from Structural
Adjustment Programmes (SAPs) to Poverty Reduction Strategy Papers (PRSPs) to Poverty
Reduction and Growth Facility (PRGF). Yet the current global economic crisis has exposed
how the model of unbridled free markets, deregulation and ever-increasing competition has
been risky and ill conceived (Makombe, 2011)2.
In contrast, it has been realised that informal cross border trade (ICBT) is totally different,
since it places a strong emphasis on a market-led strategy of regional integration, conceived
as complementary to structural adjustment involving a shift in orientation to liberalisation,
and a more decentralised approach grounded in popular support and private sector
initiative. Thus, there has been a widespread operation of informal cross-border trading
activities, which have succeeded in effecting extensive market integration where
government-led initiatives have failed. Some commentators have noted that formal
integrated initiatives have been severely weakened by structural adjustment, owing to the
pressure of mounting economic crisis, constraints on government spending; as civilians have
resorted to informal means of income generation under the pressure of increasing
economic austerity. By contrast, the same economic environment appears to have resulted
in a flourishing of cross-border trade.
1 HASHIN, Y. and MEAGHER, K. (1999) Cross-Border Trade and the Parallel Currency Market Trade and Finance
in Context of Structural Adjustments: A Case Study from Kano, Nigeria; A report from the research programme. The Political and Social Context of Structural Adjustment in Africa; Nordiska African Institute Research Report No.113. 2 MAKOMBE, P.F. (2011) Informal Cross Border Trade and SADC: The Search for Greater Recognition; Open
Society Initiative for Southern Africa Initiative p44-49.
2
Subsequently, recent research has shown that informal cross border trading activities have
cushioned the effects of the financial crisis and the food crisis on African countries. The
Regional Indicative Strategic Development Plan (SADC, 2003)3 clearly states that ICBT is an
integral, yet unrecognized, component of the economy of Southern Africa. The reason that
these ICBT activities are not recognised could be that they move small amounts of goods
from country to country, often trading in informal sector markets. Additionally, ICBT
largely consists of those goods exchanged across borders either bypassing the official
customs checks and recording points, or passing through these customs points while
deliberately undervalued or unrecorded.
It has been noted that despite its economic significance, ICBT largely goes undocumented
and its participants are rarely recognized, supported, or included in policy formulation. As
such, the general negative perception of ICBT means that in practice it is viewed more as a
threat needing control rather than a genuine economic activity (Makombe, 2011)4. These
traders work without benefiting from preferential tariff agreements, and often work at
personal and economic risk – they can be robbed, harassed by customs officials, and women
in particular, can be raped, beaten or sexually exploited if they are not adequately
protected. Despite the risks, this kind of trade is an important component of the economy
and a vital source of livelihood for the poor – particularly for women, who form the
majority of ICBT. People involved in ICBT do not derive the benefits of formal employment
– such as health insurance, access to information or capital, or leave days.
1.2 Trade Protocols Relevant to the Informal Trade Sector There are a number of policy instruments and protocols that are relevant to the informal
trade sector. In 1996, SADC adopted a Protocol on Trade which addresses issues of
relevance to informal traders such as transport issues; transportation and storage
requirements pertaining to certain goods; exemptions from customs; customs legislation;
import and export restrictions; and competition. The protocol further commits SADC
member states to:
3 SADC (2003), Regional Indicative Strategic Development Plan, 2003, SADC Gaborone.
4 MAKOMBE, P.F. (2011) Informal Cross Border Trade and SADC: The Search for Greater Recognition; Open
Society Initiative for Southern Africa Initiative p44-49.
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• Raise awareness amongst their citizenry regarding the importance of trade to
economic development;
• Facilitate the strengthening of internal capacities to undertake trade effectively;
• Strengthen national and regional infrastructure;
• Involve the private sector in policy development;
• Encourage SME participation; and
• Harmonize laws and practice, as well as simplify and harmonize customs procedures.
In August 2008, the SADC Heads of State and Government, with the exception of
Botswana and Mauritius, signed the SADC Protocol on Gender and Development. The
Protocol, though not limited to, mentioned that by 2015 the member states shall:
Adopt policies and enact laws which ensure equal access benefit and opportunities
for women and men in trade and entrepreneurship, taking into account the
contribution of women in the formal and informal sector;
Review their national trade and entrepreneurship policies, to make them gender
responsive; and
Introduce measures to ensure that women benefit equally for economic
opportunities, including those created through public procurement processes.
However, the SADC Gender Protocol 2012 Barometer stated that the “conventional
macroeconomic policies and perspectives are gender blind, failing to recognise that:
• Women's potential contribution to economic development is systematically discouraged,
adversely affecting the economic health of the region;
• Women's contribution to the economy is systematically underestimated;
• There is an informal and hidden economy made up mostly of women;
• There is an unpaid care economy in which women do most of the work of maintaining the
labour force and keeping the social fabric in good order, maintaining social cohesion, civic
responsibility and good neighbourliness; and
• Non-market processes contribute to the “healthy functioning” of the economy.”5
5 GENDER LINKS (2012) SADC Gender Protocol 2012 Barometer; Chapter 4: Productive Resources and
Employment, Economic Empowerment; p 121-153.
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The SADC Gender Protocol 2012 Barometer confirms what was earlier stated by Verveer
(2011)6 and Pheko (2010)7 that women continue to be side-lined in gaining access to
opportunities for economic empowerment and that SADC states continue being biased
towards formal business and larger industries by intervening in their markets through trade
and fiscal policies, while doing little to help the informal traders. Therefore, SADC still
needs to recognize ICBT as a part of the bigger regionalist strategy because it has been
established that it is not only a source of livelihood; but contributes towards formal
employment under Structural Adjustments Programmes (SAPs). Thus, ICBT plays a key role
in poverty alleviation as it is a means of survival and a source of income. Further, ICBT
complements the objectives sought under regional integration to poverty alleviation and the
promotion of sustainable development.
On the other hand, COMESA seems to have gone a long way in trying to make the business
of ICBT easier. For example, it has supported a Simplified Trading Regime (STR) for cross
border traders. The idea behind STR is to simplify the trading procedures, which are
currently regarded as being cumbersome and restrictive. Ten COMESA members – namely
Burundi, Democratic Republic of Congo (DRC), Ethiopia, Kenya, Malawi, Rwanda, Sudan,
Uganda, Zambia and Zimbabwe – have agreed to pilot the STR. The STR is an important
development as it is an initiative of the CBTs themselves. They were given an opportunity
to discuss their concerns at a COMESA Council of Ministers meeting. The discussions led
to COMESA developing an STR to meet the traders’ demands. The STR applies to
consignments of less than US$500 and is based on three components: a simplified customs
document; a simplified certificate of origin; and a common list of products. According to
the COMESA Assistant Secretary General Karangizi (2009)8 some of the key benefits of the
STR include:
• Duty and quota free access for traders who currently have to pay duty for goods
that should otherwise be free of customs duties;
6 VERVEER, M. (2011) AGOA should empower Women SMEs; Southern Africa Trade Hub, 2011.
7 PHEKO, L. (2010) SADC States Blamed for Unjust Informal Trade Policies; Media Statement Issued by
Ecumenical Service for Socio-Economic Transformation (ESSET) on 15/10/2010. 8 Karangizi, S. (2009) STR Beneficial to our People. Opening Speech at a sub-regional meeting of Permanent
Secretaries and Senior Officials of Pilot countries implementing STR held in Nairobi, Kenya 21st – 22nd October, 2009. COMESA.
5
• Reducing smuggling and use of unauthorized routes as there will be an incentive for
“informal” traders to use formal channels and no longer any reason for them to
smuggle goods across borders or to bribe border officials; and
• Mainstreaming cross-border trade from informal to formal which should lead to
better data capture, improved planning and policy making, improved monitoring of
trade flows and ultimately better information and reporting on the region’s trade
situation.
While the provisions of the protocol are relevant and important for informal traders, it has
been argued that the SADC protocols in particular do not seem to adequately take
cognizance of the sector and thus do not respond to its needs effectively. It is unclear how
informal traders or their associations can access the protocol in terms of being within the
ambit of its provisions or whether they are considered as relevant actors in regional trade.
The protocol speaks of trade in general and does not specifically mention ICBT. Thus,
there is a low level awareness of it among the ICBT. There is also the added burden that it
seems to lean heavily towards formal trade thus creating the perception that it is not really
for informal traders.
1.3 Gender Dynamics of Informal Cross Border Trade Gender inequalities also manifest themselves in informal trade and affect the way in which
women make their living. According to the International Labour Organisation (ILO) (1991)9
informal trade is the most important source of employment among self-employed women in
sub-Saharan Africa. Ndiaye (2010)10 stated that informal cross border trade in Africa
features prominently among women’s individual strategies for self-employment, poverty
reduction and wealth creation. This was further confirmed by the United Nations
Development Fund for Women (UNIFEM) baseline studies on Women in Informal Cross
Border Trade (WICBT) carried out in 2006-2009 of women in informal cross border trade
surveyed by UNIFEM in Cameroon, Liberia, Mali, Swaziland, Tanzania and Zimbabwe as
9 ILO (1991) The dilemma of the Informal Sector Report of the Director General, p21, Geneva: ILO.
10 NDIAYE, T. (2010) Case Story on Gender Dimension of Aid for Trade: Women Informal Traders Transcending
African Borders: Myths, Facts and Ways Forward; International Trade Centre.
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cited by Chiwara and Ndiaye (2010)11. The survey also revealed that a great majority of the
women interviewed stated that the proceeds from their trading activities are the main
source of income for the family; women traders use their income to buy food and other
items for the household, pay for school fees, health care services and rent, save in savings
clubs and banks and reinvest in their businesses.
Therefore, empowering women informal cross border traders will have multiplier effects on
poverty reduction, employment creation, intra-African trade and regional integration12. The
women informal cross border trade address vital issues of livelihoods such as food and
income security, yet they are neglected by mainstream trade policies and institutions, thus
undermining the profitability and visibility of their activities. It can be said that the actual
economic and social integration of southern Africa is being spearheaded by what is
happening in ICBT. Thus, WICBT is said13 to sustain Southern African Development
Community (SADC) economies because:
Women's informal trading activities contribute to poverty reduction, employment
and wealth creation in Africa;
WICBT traders make an important contribution to economic growth and
government revenues. This is supported by Southern Africa Trust (2008) who
reported that an average value of informal cross border trade in the SADC Region is
US$ 17.6 billion per year;
A 2004 ILO study showed that trade is the most important source of employment
among self-employed women of Sub-Saharan Africa providing 60% of non-agricultural
self-employment; and
Informal Cross Border Trade (ICBT) contributes for 30-40% to intra-SADC Trade
of which 70% of informal cross border traders are women.
11
CHIWARA, L. and NDIAYE, T. (2010) Unleashing the Potential of Women Informal Cross Border Traders to Transform Intra-African Trade; UN Women. 12
FACT SHEET the Contribution of Women Informal Cross Border Traders to Transform SADC Economies 13
CHIWARA, L. AND NDIAYE, T. (2010) Unleashing the Potential of Women Informal Cross Border Traders to Transform Intra-African Trade; UN Women.
7
Despite the notable contributions of the WICBT, these traders are said to be neglected by
the mainstream trade policies and institutions, thus undermining the profitability of their
activities14. It was also realized that despite all the challenges encountered by the ICBTs,
they are contributing a considerable percentage to the Gross Domestic Product (GDP) of
both their home countries as well as the countries they were trading in15. Hence, it has
been argued that “by ignoring informal cross border trade, SADC member States could be
overlooking a significant proportion of their trade”16.
2. SWAZILAND’S CONTEXT It is in this context that UN Women in collaboration with the Ministry of Commerce,
Industry and Trade (MCIT) – Small, Micro Medium Enterprise (SMME) Unit began to
implement the “Women in Informal Cross Border Trade in Swaziland” Project. The overall
goal of the project is to create wealth, reduce poverty and minimise exclusion among
WICBT. The organisational arrangement for WICBT in the Swaziland project ran
concurrently with the development of the national strategy and action plan to promote
ICBT. This made it easy to understand the operating environment in which WICBT
function; the constraints they face; and how to enhance their participation to create wealth
and reduce poverty.
Swaziland has faced her own share of economic downturn which severely affected most
efforts to boost economic development. This has seen, among other things, the burgeoning
of informal cross border trade as people seek ways of escaping the poverty trap. The
informal sector has become an important component of national economies and a major
contributor to socio-economic progress. The economic and social situation in Swaziland
has become more acute and the crisis of unemployment, poverty and HIV/AIDS cries out
14
UNITED NATIONS DEVELOPMENT FUND FOR WOMEN BRUSSELS (2009) Findings of the Baseline Findings Studies on Women in Informal Cross Border Trade in Africa; 24 March 2009. 15
UNITED NATIONS DEVELOPMENT FUND FOR WOMEN (UNIFEM) (2010) Consultative Meeting for women in Informal Cross Border Trading; 3 – 4 June 2010 at Holiday INN Harare, Zimbabwe. 16
UNITED NATIONS DEVELOPMENT FUND FOR WOMEN BRUSSELS (2009) Findings of the Baseline Findings Studies on Women in Informal Cross Border Trade in Africa, 24 March 2009.
8
for attention. As the battle to survive intensifies, informal and cross border trade has
become a viable alternative.
According to Manzini and Ncube (2009)17 ICBT in Swaziland has been a source of wealth
creation and a means of survival for small businesses. The SMME National Policy18 mentions
that the Government is committed to creating a market economy in which the private
sector play a major part in creating income, employment and growth. Since Small, Micro
and Medium-sized Enterprises (SMMEs) form the base for the private sector in the country,
the revised SMME National Policy states that the SMMEs must be enabled by encouraging
and facilitating growth; creating a conducive environment in which small business ownership
can flourish and take the lead in driving economic growth.
Furthermore, the Poverty Reduction Strategy and Action Programme19 also emphasises the
empowerment of the poor through direct participation in the generation of the country’s
economic growth where they are able to generate income. Swaziland, being one of the
member states that signed the SADC Protocol on Gender and Development in 2008, also
indicates Government’s commitment to create a favourable environment for WICBT. The
SADC Gender Protocol 2012 Barometer indicates that women constitute 63% of the
informal sector while men constitute only 37%. It further states that most of the business
ventures are not recognised by local governments, or only a few vending points are
permitted by municipalities, making most street vendors' activities illegal. Thus policy
specific to the informal sector is yet to be developed. Thus, the Ministry of Justice and
Constitutional Affairs is in the process of auditing and aligning trade legislation with the
Constitution and the Convention on the Elimination of All Forms of Discrimination against
Women (CEDAW). The National Gender Policy20 highlights the importance and
17
MANZINI, L. AND NCUBE, C. (2009) Women in Informal Cross Border Trade in Swaziland; UN Women. 18
MINISTRY OF ENTERPRISE AND EMPLOYMENT (2003) National Policy of the Kingdom of Swaziland on the Development of Small, Micro and Medium-sized Enterprises.
19 GOVERNMENT OF SWAZILAND (2006) Yingcamu Poverty Reduction Strategy and Action Programme:
Towards Shared Growth and Empowerment; Volume 2; Ministry of Economic Planning and Development. 20
THE KINGDOM OF SWAZILAND (2010) National Gender Policy.
9
commitment of the Government to promote gender equality and empowerment of women
in the country. Subsequently, this project seeks to provide the framework to support the
creation of a viable and sustainable coordinated apex organisation that will create economic
opportunities for ICBT and empower them through collective action. This is expected to
contribute to poverty reduction and inclusion of women since traditional Swazi men were
sought to provide for their families, but this gender orientation has drastically changed over
the past years due to lack of employment because major companies closed down. This
situation has forced women to engage in income generating activities including ICBT in
order to provide for their families, which has been a great challenge to women as they had
been marginalised in the past. Nevertheless, these disparities will be eradicated as
Government promotes aspects of Swazi tradition and culture in order to “promote equitable
opportunities and rights for both males and females in all aspects of development”21. Moreover;
this report forms a basis of how the proposed apex organisation will be established based
on recommendations from various stakeholders in WICBT according to the terms of
reference (ToR).
3. METHODOLOGY This section of the report discusses processes adopted for the execution of the assignment.
The adoption of the methodology was based on the objectives of the assignment; the scope
of work and deliverables as outlined in the ToR were also considered. The discussion
identifies the areas in which data were collected in order to meet the objectives and
deliverables. It will also include a description of the steps taken in conducting the
assignment , the methods used to collect the data and assumptions made.
6.1 Data collection
6.1.1 Literature Review
A desk review of national policies; regulatory framework; organisational brochures;
programmes in progress; forms of organised structures; national strategies and plans within
and those affecting the WICBT sector was conducted. This provided valuable insight on the
21
THE KINGDOM OF SWAZILAND (2010) National Gender Policy.
10
possible and various forms of organised structures, highlighting their pros and cons, and
policy and legal arrangements that might need to be negotiated to establish the apex
organisation (see Annexure 1). This review included the justification for the creation of an
apex organisation and the comparative advantages in the promotion of informal traders.
6.1.2 Observation
A number of organizations promoting ICBT around Swaziland were observed in an effort to
derive lessons from their actual experiences about the costs and benefits of their operation
and their establishment.
6.1.3 Key informant interviews
Key informant interviews were held with relevant officials from selected organisations,
which were identified as those providing support to WICBT. One-on-one interviews were
conducted with officials from several organisations/associations of WICBT and their
responses formed part of the analysis. These individuals were identified through focus group
discussions with women traders, as well as a snowballing process where one organisation
identified would mention other organisations undertaking similar work with crossborder
traders ensuring representativeness of the target population. The data gathered from the
interviews reinforced the results from the observations of apex organisations in the
country. The findings from the interviews were triangulated with focus group discussion
findings.
6.1.4 Focus group discussions
Additional information was gathered from focus group discussions where members of
different organisations/associations of WICBT participated. The focus group discussions
provided detailed information on prevailing beliefs, opinions and attitudes on WICBT and
how they can be structured within the short time that was allocated. The information was
collected from participants without personalizing it, allowing face-to-face interaction with
many informants simultaneously as well as providing an opportunity for many informants to
interact at the same time.
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6.2 Data Analysis Content analysis was used to analyse qualitative data on the basis of emerging themes within
the context of the study framework. The findings and contributions made formed part of
the strategies for formulating the apex organisation.
4. PROCEEDINGS OF THE FOCUS GROUP DISCUSSIONS
7.1 The First Session Representatives from different association/organisation of WICBT (see Annexure 2
attendance list) were invited by UN Women Programme Coordinator to attend the focus
group discussions on May 14, 2013. Focus group discussions were used because they
provided detailed information on prevailing beliefs, opinions and attitudes on ICBT.
Sensitive information was collected from participants without personalising information;
there was face-to-face interaction with many informants simultaneously; and it provided an
opportunity for many informants to interact at the same time.
12
The purpose of the focus group discussion was to advise participants on the various
available structures for coordinating the sector; highlight the pros and cons of each
structural formation; assist in the development of a strategy document on the establishment
of the network, its structure, management, governance issues, regulations and registration;
and also advise on likely risks.
Figure 1: One of groups during discussions
Figure 2: Participants listening to presentation
13
7.2 The Second Session A second focus group discussion was held on June 4, 2013. The discussions were to validate
the draft organisational framework and proposed organisational structure from the previous
session; consolidate and ensure that all inputs and comments from the first session were
captured; present the vision, mission and objectives of the proposed organisational
structure; advice on registration; advice on obligations and reporting requirements and
present strategies to mitigate risk.
7.3 The Third Session A meeting of leaders of the different existing organisations that deal with issues of WICBT
was held at the MCIT SMME Unit conference room on 26 June 2013 (see Annexure 5 –
Attendance List). The objective of this consultative meeting was to obtain the views of the
leaders on matters related to the formation of the apex organisation and how best the
organisation could be established in order to be effective. The main focus of the discussion
was on the legal formation that was to be adopted and membership of the apex
organisation. The Director of the SMME Unit was also in attendance, he offered advice to
the leaders.
It was in this meeting that the resolution on membership and legal arrangement for the apex
organisation was reached.
Figure 4: Some leaders Figure 3: Other leaders
14
7.4 The Fourth Session
A final adoption meeting was held on 12 July 2013, which was attended by all individuals
who are in CBT. A final presentation of what had been recommended by the participants
was presented (see Annexure 6).
Figure 5: Some of the participants at the adoption meeting
Figure 6 below is a picture of the Interim Committee that was elected. Annexure 7 shows
the name, contact number and position held by each interim committee member. The
committee was also addressed by the Director of SMME Unit.
Figure 6: Interim committee
15
5. FEEDBACK ON DISCUSSIONS This part of the report specifies the beliefs, opinions and attitudes stipulated in the focus
group discussions on the structural formation of the proposed apex organisation. A
presentation was made on the pros and cons of each of the possible ways that the apex
organisation could be formed; this allowed all participants to have a common understanding
in terms of the concept of ICBT and an apex organisation’s establishment. The facilitation
was in a participative set up to allow the participants to voice their views and opinions. The
participants were then divided into groups; each group was tasked with discussing the
proposed apex organisation. Despite its focus on the creation of a new organisation, results
of this investigation may still suggest some guidelines for improving the performance of the
few existing apex organisations that may have a promising future. After the presentation of
reports by the different groups, a common understanding emerged in terms of how to
strategically establish an apex organisation for WICBT in Swaziland, whose parameters are
stated below.
Figure 7: A group discussing the legal formation of the apex organisation
16
6. STRATEGY FOR DEVELOPING THE ORGANISATION
Based on the discussions held, the participants agreed on the following strategic
organisational framework to establish the apex organisation;
9.1 Name From the focus group discussions, it was decided and all participants were satisfied with the
formation of a national umbrella body (apex organisation) for WICBT which would
represent all ICBT. It was understood and agreed by all participants that the apex
organisation will ensure that their challenges are addressed and resolved. By the end of the
session, after having considered the purpose of the organisation; the participants agreed that
the apex organisation will be known as: “Buhle Bebunye - Swaziland National Women in
Informal Cross Border Trade”. The name Buhle Bebunye means “the beauty of oneness”. It
was established that Buhle Bubenye is no longer available for use at the Registrar’s Office so
it was decided that the name Buhle Bebunye will be used as a tag line and the organisation
shall be registered as “Swaziland National Women in Informal Cross Border Trade”. It was
also decided that the registered head office of the organisation will be in Manzini.
9.2 Vision To provide Swaziland’s informal cross border traders with a platform to trade nationally;
regionally and internationally by ensuring free movement.
9.3 Mission To assist in creating a pleasant environment for members to conduct their informal cross
border trade with ease, being profitable and eradicating poverty.
9.4 Values The participants expressed the importance of establishing values for the members and the
organisation. It was then agreed that the apex organisation will be committed to upholding
the values outlined below. It was also agreed that the members and the organisation will be
17
guided by the shared values (as shown in Figure 8) at all times in their internal and external
operations.
Figure 8: Values of the apex organisation - Buhle Bebunye
9.5 Membership The issue of membership was discussed at length during the focus group discussions since
the participants had different views and interpretations of who should be members of the
proposed apex organisation. The main issue was whether to allow individuals in their
personal capacities to be members of Buhle Bebunye. It was felt that individuals might pull
out from their respective associations/organisations and register as individuals in Buhle
Bebunye, in their personal capacity. This would mean the individuals are not accountable to
any association/organisation, thus avoiding any form of discipline or being reprimanded if
they are pulling out because of improper conduct in the association/organisation. This was
set out to avoid/minimise any potential inappropriate conduct from individuals in the future,
knowing they would be reported to their association/organisation. When an individual is
reported for bad conduct, it is expected that the association/organisation they belong to will
take appropriate disciplinary action per their code of conduct.
•Continue to look for better ways of doing things
Service excellence
•Work and represent our members with integrity and honesty Honesty
•Openness in communication and being fair at all times Transparency
•To love and be patient with each other Commitment
•Accountable and respect members, deliver on every promise Accountability
18
Nevertheless, after much deliberation it was finally decided that only
associations/organisations would be allowed to be members of the apex organisation. Thus,
any individual who wants to be part of Buhle Bebunye must be a member of any
association/organisation which is an affiliate of Buhle Bebunye; if not, that individual will be
advised to join any of the association/organisation which is a member. Participants
highlighted the proposed name of the apex organisation Buhle Bebunye speaks to the beauty
of unity, “oneness with one goal and voice”. Thus, individuals are encouraged to belong to
an association/organisation to promote unity and oneness. It was also decided that an
association/organisation may be informal/formal; legally or not legally established; with or
without a constitution – the main criteria was that it must be able to prove its existence by
showing membership of a minimum of seven (7) members who are ICBTs.
It was also noted that some of the organisations which will be members of the Buhle Bebunye
are performing the roles of an apex organisation by working as a coalition of minor
organisations that are, in most cases, involved with the ordinary masses. The participants
pointed out that the involvement of such associations/organisations can strengthen
grassroots involvement of the traders. All individual members of the
associations/organisations can be part of Buhle Bebunye irrespective of gender or whether
their current business activities involve cross border trade – assuming they will enter the
cross border trade market. It was then resolved that an Interim Committee will have to
develop a strategy on how the apex organisation can be involved at regional level.
9.6 Defining WICBT The discussion of the membership led to the importance of defining WICBT. Based on the
outcome of the meeting it was decided that WICBT are those that:
Cross the border for their income generating activities
Are part of the value chain of the ICBT providing goods and/or services
Vendors who are customers or suppliers of ICBT
19
SADC Member States (2010)22 agreed on a working definition of ICBT in the Southern
African context as follows; “Informal Cross Border Trade is any business operating in goods and
services that trades across the border and that has no official export/import license/permit within a
defined threshold and frequency”23. After much brainstorming for the Swaziland context; this
definition was accepted with the addition of other traders (be it suppliers or customers)
who are directly affected by the business operations of those in cross border trade. It was
also acknowledged that some traders can have some sort of official license/permit to trade
as required by the MCIT and the City Council; which will be included in the context of
ICBT. It was also recognized that the traders can be individuals, the majority of whom are
women, literate or illiterate, and most operate in small quantities on a regular basis.
The nature of the informality of the goods and services that the traders provided was
assumed to mean small quantities and usually on regular basis. Given the size of their
economic activities, it was established that the traders can deliberately conceal their
activities from public authorities and are sometimes not detected in official gross domestic
product (GDP) statistics. Nevertheless, the crucial role they play in the country’s
economies was appreciated because they provide income and in some cases employment to
many poor households for livelihood/survival purposes.
9.7 Meetings The participants agreed that an Executive Committee shall be elected and the Executive
Members will have to meet at least four (4) times during a financial year and a special
meeting may be convened by the Chairperson as circumstances may dictate. There will be
at least two (2) general meetings for all members per financial year.
The quorum for all executive meetings shall be 50% plus one. For annual general meetings,
the same rule will apply – 50% plus one member in good standing, all having paid the joining
fee and up-to date subscriptions in that financial year.
22
SADC (2010) Advocacy Strategy on Informal Cross Border Trade (ICBT); developed at the 1 -3 November 2010 at the SADC High Level Policy Meeting on ICBTs, Rainbow Towers, Harare, Zimbabwe. 23
SADC (2010) Advocacy Strategy on Informal Cross Border Trade (ICBT); developed at the 1 -3 November 2010 at the SADC High Level Policy Meeting on ICBTs, Rainbow Towers, Harare, Zimbabwe.
20
9.8 Executive Committee In choosing the Executive Committee Members, the participants agreed that individuals of a
certain calibre must be elected to stand for office. It was decided that any individual elected
as an Executive Member must have integrity, be in good standing, must be at least 18 years
of age and a member of an organisation that is up-to-date with their subscriptions in Buhle
Bebunye. It was further decided that the composition of the Executive Committee shall be
100% women. The decision to have 100% women in the Executive Committee was reached
upon realising that as with other sectors, gender inequalities are pronounced in ICBT. The
participants resolved that since women make up the majority of informal traders, they are
more directly affected than men in the way they make their living thus the 100% women will
ensure total representation of their interests. For example, ICBT involves a large degree of
travel both within the country as well as across borders, making women more vulnerable to
sexual harassment and abuse. There were experiences where women street vendors were
continuously harassed by the police and civic authorities who regard their businesses as
illegal (WLSA/ SARDC, 1998)24. These issues can be better handled by women with first
hand experiences.
It was observed that the SADC Gender Protocol is also critical for women in informal cross
border trading, especially Article 17 on economic empowerment which states that: “States
Parties shall, by 2015, adopt policies and enact laws which ensure equal access, benefit and
opportunities for women and men in trade and entrepreneurship, taking into account the
contribution of women in the formal and informal sectors. States Parties shall, by 2015,
review their national trade and entrepreneurship policies, to make them gender
responsive.” According to the International Labour Organisation (ILO) (1991,)25 informal
trade is the most important source of employment among self-employed women in sub-
Saharan Africa. Since women play a critical role in addressing vital issues of livelihoods such
as food and income security through ICBT, it was thus adopted that the 100% executive
members shall 100% women. The offices that can be held by the Executive Committee are
shown in Figure below.
24
WLSA/ SARDC (1998) Beyond Inequalities: Women in Swaziland; WLSA, 1998. 25
ILO (1991). The dilemma of the informal sector. Report of the Director General, Geneva: ILO.
21
Figure 9: Proposed organogram
9.9 Term of Office The participants decided that Term of Office shall mean all positions in the office as an
Executive Committee Member will be for a period of three (3) years. The participants
further agreed that each Executive Member may be in office for three (3) consecutive terms
after which that member shall take a term’s break before being re-appointed to office.
President
Vice President
Executive Secretary
Vice Executive Secretary
Treasurer Organising
Officer Three elected
members
22
9.10 Financial Projections After much brainstorming, it was decided that financial sustainability was critical to the
success of the proposed apex organisation. As such, creating a financially sustainable
organisation is an important milestone and crucial.
It was understood that sustainability means the ability to pursue the mission of the
organisation, while covering all financial and operational costs from revenues from members
and business operations of the organisation, excluding grants and subsidies. However, it
was pointed out that the apex organisations might encounter difficulties in realizing this goal
due to the small size of the domestic market, especially the number of
associations/organisations. It was decided that the apex organisations will engage in income
generating activities that would allow them to achieve sustainability.
Institution-building support was also considered as the most important (direct or indirect)
contribution by Government or donors to the formation of the apex organisation.
Institution-building relies mostly on organisational formation, securing office space, salaries
for administrator and capacity building for the members. It was concluded that unless
donors and Government support them, these institution-building efforts will be insufficient
to achieve the desired visible value of establishing the apex organisation. This was further
reflected when the financial projections for the first three years were discussed. The
projections indicated a deficit (see Table 1) if the organisation has no support from
Government or donors to sustain
its operational activities.
Based on the participants’
understanding of the importance
of sustainability, it was stated that
the fees need to be reviewed bi-
annually and discussions on joining
Figure 10: A group discussing joining fees and subscriptions
23
fee and monthly subscription were negotiated to be:
E2,000.00 joining fee; and
E500.00 subscription per month.
The participants pointed out that the fees were not to be a hindrance for any
association/organisation in joining the apex organisation. It was revealed that the individuals
still need to appreciate the importance of paying subscription in their respective
associations/organisation. In view of the fees’ implications on the organisation’s financials, it
was resolved that the Interim Committee will have to review the fees. Nonetheless, the
financial projections for the initial years were discussed. It was observed that the financial
projections reflected a deficit. The organisation will need financial injections in order to be
sustainable and realise a surplus. Thus, means of alternative sources of revenue are
essential; apart from financial interventions from donors and/or government; Buhle Bebunye
must embark in income generation activities.
In preparing the financial projections, it was assumed that:
Associations/organisations who will be members of Buhle Bebunye for the first three
years are 10, 15 and 22 respectively. This means that new memberships for the first
three years will be 10, 5 and 7 respectively.
It was assumed that the increase in members joining on the third year was because
of marketing strategies to solicit membership and people’s general knowledge of the
benefits of being a member of Buhle Bebunye;
When preparing the financial projections, the joining fee and monthly subscriptions
remained unchanged;
No escalation rate/increase has been factored on all the expenses; and
During the first three years, the organisation does not have any planned activities
for generating revenue.
24
Table 1: Financial projections
Financial Projections for the first three years
Income
Months Year 1
Year 2
Year 3
Number of members
10 members 15 members 22 members
New membership
10 members 5 members 7 members
Joining fee per
association
2,000 1 20,000
10,000
14,000
Monthly subscription
500 12 60,000
90,000
132,000
Total annual
income
80,000
100,000
146,000
Expenses:
Registration expenses
5,000 1 5,000 -
-
Rent (monthly)
5,000 12 60,000 60,000 60,000
Salaries
5,000 12 60,000 60,000 60,000
Utilities
1,000 12 12,000 12,000 12,000
Telephone
1,200 12 14,400 14,400 14,400
Travel allowances
1,000 12 12,000 12,000 12,000
Total expenses
163,400
158,400
158,400
Deficit
-83,400
-58,400
-12,400
Table 1 shows that the organisation would not be sustainable if it was not supported by
Government and/or donors. Table 2 below shows a scenario whereby the organisation
receives support from Government and/or donors. It was envisaged that support for the
first three years will be adequate, after which the organisation would have established
income generating activities to supplement its income. Support to the value of
25
E120,000.00; E100,000.00; and E80,000.00 respectively in the next three years would be
sufficient. The organisation would not only have a surplus each year, but would have
sufficient funds for contingencies and financing capital requirements for any business
enterprise it might venture into for income generation purposes.
Table 2: Financial projections with support
Financial projections for the first three years with support Months Year 1 Year 2 Year 3
Number of members 10 members 15 members 22 members
New membership 10 members 5 members 7 members
Income
Monetary value of support from government or donors
120,000
100,000
80,000
Joining fee per association 2,000 1
20,000
10,000
14,000
Monthly subscription 500 12
60,000
90,000
132,000
Total annual income 200,000
200,000
226,000
Expenses:
Registration expenses 5,000 1
5,000
-
-
Rent (monthly) 5,000 12
60,000
60,000
60,000
Salaries 5,000 12
60,000
60,000
60,000
Utilities 1,000 12
12,000
12,000
12,000
Telephone 1,200 12
14,400
14,400
14,400
Travel allowances 1,000 12
12,000
12,000
12,000
Total annual expenses 163,400
158,400
158,400
Surplus for the year 36,600
41,600
67,600
26
9.11 Objectives action plan, timelines and the cost of activities of the Apex Organisation The table below list the objectives, action plan, timelines and the cost of activities for the apex organisation.
Table 3: Objectives and action plan
Objectives/ activities Action plan Deliverables Time frame Cost
1. Register and launch the
apex organisation
1. Identify a legal firm to
draft the Memorandum
and Articles of
Association.
2. Reserve the name of the
apex organisation.
3. Register the organisation.
4. Launch the organisation.
1. Buhle Bebunye
registered as an NGO.
4 months E50,000
2. Develop and implement
effective advocacy
strategies and
interventions
1. Identify issues affecting
WICBT.
2. Prioritise the issues based
on importance and
resources available.
3. Classify the issues of
concern which can be
1. Advocacy strategy
2. Consultative
meeting/workshops
held.
3. Sensitised stakeholders
on WICBT issues, for
example:
6 months
Continuous process
E200,000
27
used in advocacy
activities.
4. Develop an advocacy
strategy.
5. Propose consultative
meetings/workshops with
stakeholders on issues
affecting WICBT.
SRA
Royal Swaziland
Police
Umbutfo
Swaziland
Defence Force
Swaziland
Standards
Authority
4. Promotional pamphlets.
3. Facilitate information
gathering and
dissemination
1. Mobilise membership for
the organisation.
2. Develop a database of all
stakeholders.
3. Develop knowledge and
information management
for WICB.
4. Store information.
5. Disseminate information
to stakeholders.
1. Buhle Bebunye
promoted.
2. Database of all
stakeholders.
3. Timely, comprehensive
and relevant
disseminated
information to
stakeholders.
4. Stored information.
On-going E300,000
28
6. Source information for
members on relevant
issues such as access to
credit, trade market and
food security.
7. Mobilise Government,
NGO and private sector
support for WICBT.
8. Nurture relationships
with mass media.
5. Promotional pamphlets.
4. Promote and monitor
relevant legislation and
policy changes in support
of WICBT
1. Research relevant
legislation and policies
affecting WICBT.
2. Lobby whenever
necessary to promote
relevant legislation and
policy changes in support
of WICBT.
1. Enacted policy. On-going E50,000
5. Develop strategic
partnerships
1. Liaise with similar
networks in southern
Africa, greater Africa and
1. Membership in national,
regional and
international
On-going E40,000
29
globally in order to
collaborate on issues of
collective concern.
2. Form networks,
partnerships, links and
alliances and facilitate
business linkages with
organisations locally,
regionally and
internationally.
organisations.
6. Capacity building 1. Identify skills capacity
gaps.
2. Facilitate the provision of
skills training and building
awareness on sound
business practices.
3. Encourage economic
literacy programmes.
1. Capacity building
sessions on:
Taxation
Business
management
Trade protocols
Health issues
Basic Portuguese
On-going E450,000
30
9.12 Legal Formation The participants had agreed that they were in support of a legal structure that would allow
equal opportunities where they would work as equals; everyone must have one equal voice;
thus allowing members to give the mandate to the executive. They then decided on forming
an association not for gain, commonly known as a non-governmental organisation (NGO).
The NGO will be formed under the Companies Act No.8 of 2009 Section 17. Although
Buhle Bebunye will be not-for-profit, it would have paid employees and activities generating
revenue which would be used solely for the benefit of its members.
9.12.1 Association not- for- gain
The Companies Act No. 8 of 2009 Section 17 states that an association can be formed to
promote charity, recreation or any cultural or social activity or communal or group
interests which intends to apply its profits or other income in promoting its said main
object. The association not-for-gain as stated in the Companies Act is commonly known as
a non-profit organisation. These associations are prohibited by the Companies Act to make
any payment of any dividend to its members. In respect of its formation and registration, it
may be incorporated as a company with limited guarantee.
9.12.2 Features of an association not-for-gain
The features of an association not-for-gain are the same as those of a private company with
the following exceptions:
• The words Proprietary Limited or the abbreviation Pty Ltd after the company name
are not used.
• Income and property of the association howsoever derived shall be applied solely
towards the promotion of its main objectives.
• No portion of the association shall be paid or transferred directly or indirectly by
way of dividend, bonus, or otherwise, to the members of the association.
• Upon its winding-up, deregistration or dissolution, the assets of the association
remaining after the satisfaction of all its liabilities shall be given or transferred to
some other association or institution having objects similar to its main object, to be
31
determined by the members of the association at or before the time of its
dissolution or failing such determination by the court.
• Payment in good faith of reasonable remuneration is allowed to any officer or
servant of the association or to any member thereof in return for any services
actually rendered to the association.
9.12.3 Pros of an association not- for- gain
The advantages of an association not-for-gain are:
9.12.3.1 No taxes
As a non-profit corporation, the organisation is eligible for exemptions from corporate
income taxes plus certain other taxes. It is expected that the association to be formed by
the traders will earn substantial amounts of money from services, exhibits, product sales,
thus it is likely to want to seek an exemption.
9.12.3.2 Ability to receive public and private donations
As a Section 17 of The Companies Act No. 8 of 2009 non-profit corporation, the
association will be able to receive grants and donations. In most cases, international donors
are required to donate only to non-profit organisations. Individual donors to any non-profit
organization can claim income tax deduction for the donation. The cross border association
expects to operate largely on grants and donations in its start-up stage.
9.12.3.3 Corporate structure
Through the drafting of the Articles of Association, the members are exposed to a lot of
documents and have to be clear about the organisation’s objectives. The Articles of
Association also provide a chance for the development of a clear structure with operating
rules and concise procedures for decision making. This is important for a non-profit
organization as broader members may come with diverse interest and viewpoints.
32
9.12.3.4 Protection from personal liability
Another benefit of being a non-profit organisation is that members are protected from
personal liability. This means that Board members, officers, and employees of the
organization are protected from corporate debt or liabilities such as unpaid organisational
debts or lawsuits against the organisation.
9.12.3.5 Organisational perpetuity
A corporation is a legal entity separate from individuals who manage it or organise it. The
non-profit organisation is a separate legal existing entity that is immortal in a way. The non-
profit corporation continues to exist beyond the lifetime or involvement of the people who
began it or who have managed it. The fact that the organisation continues in this way is
attractive to donors who want to fund a cause over the long term.
9.12.4 Cons of an association not-for-gain
Some of the disadvantages of an association not-for-gain are:
9.12.4.1 Paperwork
One major disadvantage of a non-profit organisation is that the registration process is
cumbersome and involves a lot of paper work. Business people, like the cross border
traders, do not have time and patience to participate in the whole process.
9.12.4.2 Restrictions
The non-profit organisation is subjected to a lot of restrictions. There might be chances that
the Directors are not paid and, further to that, the organisation might be restricted when it
comes to politics and advocacy.
9.12.4.3 Dissolution of the organisation
Once the organisation, for whatever reason, decides to close down, its assets must be given
to another non-profit entity. The people who have been involved from inception, and those
who have also contributed to the growth of the organisation, benefit nothing.
33
9.12.5 Registration process of an association not-for-gain
An association not-for-gain is registered in terms of Section 17 of The Companies Act No. 8
of 2009. The first step towards registration is reservation of the association’s name. This
could be done over the counter or through online services. Once this process has been
done, Memoranda and Articles of Association will then be lodged with the office of The
Registrar of Companies in Swaziland. Documents that would be required to lodge an
application with The Registrar of Companies will include:
Memoranda and Articles of Association
Reservation application and reply
Form E/TF 42 (Notice of company registered office/Application for annual license)
Directors’ Tax Clearance Certificates
Directors’ Identity Documents
Declaration of Compliance
Payment receipt of E 20.00 (Twenty Emalangeni) for company name reservation
Payment receipts for company registration (depending on Nominal Capital)
These requirements are the same as those for a private company limited guarantee except
that the Memorandum of Association of the association not- for- gain will also state that:
• Income and property of the association howsoever derived shall be applied solely
towards the promotion of its main objectives;
• No portion of the association shall be paid or transferred directly or indirectly by
way of dividend, bonus, or otherwise, to the members of the association; and
• Upon its winding-up, deregistration or dissolution, the assets of the association
remaining after the satisfaction of all its liabilities shall be given or transferred to
some other association or institution having objects similar to its main object, to be
determined by the members of the association at or before the time of its
dissolution or, failing such, determination by the court.
For the purposes of this apex organisation, there will be five (5) directors who will be the
following Interim Committee Members: the President, Vice-President, Executive Secretary,
34
Vice-Executive Secretary and the Treasurer. These Interim Committee members will
provide their tax clearance certificates, identity documents and their addresses.
7. RISK ASSESSMENT The environment in which an apex organisation operates (systemic risk) can simultaneously
cause problems for most of the beneficiaries of an apex organization. Table 4 below
highlights the top organizational risks and mitigation strategies.
Table 4: Risks and mitigation strategies
Risks
1. The over-reliance on revenue streams
(donor funds, grants and Government
subventions) may impact service
delivery.
2. The absence of proper organisational
processes and policies to ensure
service delivery.
3. Political interventions may disrupt
service delivery.
4. Weak financial controls within the apex
organisation, particularly financial
controls relating to the collection of
subscriptions, the use of finances and
misappropriation of funds.
5. Changes in legislation negatively
impacting the WICBT.
6. Implicit power gained by member
organisations’ in their relationship with
the apex organization.
7. Apex organization may not have the
capacity to deliver services to
members.
Mitigating strategies
1. Lobbying with all stakeholders as well
as the introduction of
programmes/activities generating
revenue that limit the overreliance on
donor funds and subventions.
2. The development and alignment of
processes and policies to ensure
service delivery that benefit members.
3. Lobbying with the intervening parties so
that they understand the impact of their
intervention.
4. Implementation of systems to ensure
that different interventions are
introduced to encourage payment of
subscriptions, appropriate internal
controls and proper use of the finances
of the organisation, avoiding
misappropriation.
5. Legal advisor within the apex
organisation to keep abreast of the
legislative changes and advise
accordingly.
35
8. Lack robust organizational designs.
6. Fair representation of all member
organisations in the apex body.
7. Capacity building for executive and staff
members is essential.
8. Adopt best practise and better policies
and procedures.
8. CONCLUSION Swaziland’s informal sector is of crucial importance to its economy and society. Despite the
importance of the sector, policy, law and fiscal regulation had for many years failed to
support the informal workers and their enterprises, limiting income growth and
productivity, especially for the poorest. It was forecasted that with economic recovery
would come significant changes that recognise women as significant players in the economic
sector. Therefore, the Government needs to prioritise support to women informal cross
border traders, providing them with information and services in support of their activities.
WICBT can be easily and adequately targeted through the formation of an apex organisation
that can represent, address, support and empower them.
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