Phantom Gold Refineries Uncovered in Eswatini's Special Economic Zone

Matsapha, Eswatini — A major investigation by the International Consortium of Investigative Journalists (ICIJ) has uncovered the existence of two phantom gold refineries in Eswatini, revealing a complex network of financial transactions channeling millions of dollars to Dubai.

This discovery has cast a shadow over what was once touted as a bold plan by King Mswati III to transform a large tract of agricultural land into a thriving economic zone, the Royal Science and Technology Park.

Situated against a backdrop of rolling hills and sugar cane fields near the small industrial town of Matsapha, the land was historically home to Musa Motsa, a 51-year-old farmworker, and approximately 180 other residents.

In 2012, these individuals were forcibly removed to make way for the development of the special economic zone (SEZ), aimed at stimulating economic growth under the direct initiative of Eswatini’s king.

However, the area now stands largely vacant, dotted with unutilized plots and a single government office complex.

The intended oasis of business and technological advancement has failed to materialize, leaving behind a ghost land where community life once thrived.

The investigation has highlighted that the SEZ, rather than attracting legitimate businesses, appears to have been exploited for financial maneuvers benefitting a select few. The two companies, Mint of Eswatini Pty. Ltd. and RME Bullion Pty. Ltd., reportedly set up within the SEZ, were found to be nonexistent beyond paper.

These entities have raised suspicions at the Central Bank of Eswatini and the Swaziland Financial Intelligence Unit (now known as the Eswatini Financial Intelligence Unit), sparking concerns about potential money laundering and tax evasion facilitated through the SEZ’s regulatory loopholes.

Further complicating matters, connections to the royal family have been implicated in the dubious activities surrounding the phantom refineries.

Keenin Schofield, a Swazi jeweler and one of King Mswati III’s sons-in-law previously fined for diamond smuggling, along with Alistair Mathias, a politically connected Canadian businessman involved in gold trading, have been subjects of particular concern to financial watchdogs in the country.

The revelations have cast doubt on the effectiveness and ethical standing of the SEZ as a tool for economic development.

Instead of drawing productive investment, the zone may have served as a conduit for illicit financial flows, undermining the economic and social fabric of Eswatini—a country already grappling with high unemployment and the world’s highest HIV prevalence among adults.

The authorities in Eswatini, along with international bodies, face significant pressure to address these allegations and implement stringent oversight to prevent further exploitation of the economic zone.

Meanwhile, the local community, still reeling from the displacement, continues to deal with the repercussions of a project that has radically altered their lives without delivering the promised economic benefits.