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.

3

• 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.

6

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.

11

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.