Swazi Media Commentary: southern African development community

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Sunday, 12 September 2021

People of Swaziland deserve justice over lives lost in recent political unrest, human rights group reports

The people of Swaziland (eSwatini) should exercise their right to choose their political system and justice must be done for lives lost during the continuing unrest in the kingdom, according to a briefing paper from the South Africa-based Helen Suzman Foundation just released.

Swaziland is not a democracy and over the past months protests for reform have been repressed with excessive might from police and security forces.

Political parties are barred from taking part in elections and groups advocating for reform are banned under the Suppression of Terrorism Act. No members of the kingdom’s Senate chamber are elected by the people and the King appoints the Prime Minister, cabinet ministers and top judges among others.

At least 21 protestors had reportedly been killed by 30 June 2021. HSF reports, ‘Video clips surfaced on social media of police officers physically assaulting protesters and using live ammunition at the violent protests. The UN Human Rights Committee on the International Covenant on Civil and Political Rights (ICCPR) had previously noted its concerns over the use of force by the government of eSwatini.

‘In particular, it raised concerns regarding the permissive conditions in Article 41 of the Criminal Procedure and Evidence Act and provisions of the Public Order Act which leaves it to the discretion of individual police officers to decide whether it is expedient to use force. In essence, the police force have violated the right to security of the person using this legal provision.

‘Around the 30 June 2021, the government ordered an internet shutdown to make it difficult for the people of eSwatini to communicate within its borders and with the outside world. For instance, MTN admitted to shutting down the internet following a directive from the eSwatini Communications Committee. This led to an urgent application in the High Court of eSwatini by the Southern Africa Litigation Centre (SALC).’

SALC said the said internet shutdown led to violation of freedom of expressions, information and association. The matter has yet to be heard.

On 2 July 2021, The Southern African Development Community (SADC) started a fact-finding mission in Swaziland through the SADC Organ Troika on Politics, Defence and Security. This was criticised by civil society organisations as being too late and out of touch.

HSF said, ‘The government’s response to the political demands of the people for a reform of the current monarchy into a democratic government ought not to have been the use of force or limitation and infringement of freedom of expression, and sharing and attaining of information. This violated its domestic laws and international obligations.’

Wednesday, 7 March 2018

SWAZI BUDGET A TALE OF WOES

Swaziland’s economy is in disarray and the kingdom continues to fail to raise enough money to pay for its spending, the national budget reveals.

All government job recruiting will be frozen, Value Added Tax will go up by 1 percent to 15 percent and there is a plan to try to impose VAT on electricity tariffs for the first time.

Pensions for people aged 60 and over will be frozen, but E5.5 million is earmarked to buy the Prime Minister Barnabas Dlamini a retirement home. E1.5 billion will be spent on a conference centre and five-star hotel to house an African Union summit.

Local pension and insurance companies are to be compelled to invest at least 50 percent of their funds within Swaziland.

Swaziland received a B2 negative credit rating from international agency Moody’s.

Swazi Finance Minister Martin Dlamini delivered a catalogue of woes during his budget speech on 1 March 2018. He said he took his lead when constructing the budget from King Mswati III who rules Swaziland as sub-Saharan Africa’s last absolute monarch. Dlamini was not elected to parliament and along with the Prime Minister, Cabinet ministers and top public servants was appointed by the King.

In his speech opening Parliament in February 2018 Dlamini said the King commanded his government, ‘to prepare a budget that is based on available resources’. Dlamini said, ‘Government has conducted a thorough analysis of our expenditure in order to prioritise only the most pressing concerns.’

He told Parliament, ‘The public sector has grown at a much faster pace over the years creating significant dependency in the economy and compromising growth and employment creation. This has led to the large size of government, increased the wage bill significantly, and limited the space for social and infrastructure spending.’

He added, ‘Government spending continues to outpace its ability to raise enough revenues resulting in cash flow challenges and accumulation of arrears.’

He said the Government owed E3.1 billion to its suppliers for goods and services and it was trying to find ways to find money to repay these debts.

Dlamini added, ‘In recent years, Government has not been able to raise enough revenues to cover the ever increasing expenditures, which is a clear indication that the current Government model cannot be sustained in the medium-term.’ He announced a freeze on all government recruiting.

He reported the economy in Swaziland was projected to have grown by 1.9 percent in 2017 from 1.4 percent in 2016. Crop production which had been hit by drought grew by 17.2 percent in 2017, but livestock production was ‘significantly reduced due to the drought’.

He said, ‘There has been a decline in the construction sector as implementation of various construction projects slowed largely due to the current fiscal challenges’

Economic performance in 2018 was anticipated to grow by 1.3 percent.

Inflation continues to grow. In 2016 consumer prices grew by 7.8 percent. They increased a further 6.2 percent in 2017.

The cost of food for a kingdom where seven in ten of the estimated 1.1 million population have incomes of less than the equivalent of US$2 per day rose 19 percent in 2016 and a further 2.6 percent in 2017. The slowdown in price increases was put down to improved weather conditions for agricultural production after the drought.

Transport costs rose 9.6 percent in 2016 and a further 3.9 percent in 2017. Communication costs (mainly phones) rose 4.7 percent in 2016 and by a further 0.4 percent in 2017.

The Finance Minister reported that Swaziland’s ‘current account’ had a surplus of E8.6 billion in 2017, but this was down from E9.5 billion in 2016. Export earnings fell by 1.3 percent in 2017 to E24.1 billion. Foreign Direct Investment declined over the year.

He announced that the government would compel local pension fund and insurance institutions to invest 50 percent of their holdings within Swaziland. At present that figure is 30 percent. He said government would also reduce the amount of retirement funds and insurance assets that can be held as cash, ‘in order to encourage retirement funds and insurance companies to invest in the domestic economy’.

Swaziland’s official currency reserves fell by 7.8 percent in 2017 to E7.6 billion. ‘This development was mainly due to inadequate Government revenue to cover public expenses,’ Finance Minister Dlamini said.

Swaziland has been given a B2 rating (on a scale from A – C) with a ‘negative outlook’ by international credit rating agency Moody’s, he said. The poor rating is ‘due to the financial and economic pressures we continue to face’, he added.

The year ahead in Swaziland is bleak. In line with the King’s command, Dlamini said, government would spend only on the ‘most critical’ items. He said, ‘In managing the financing, the gap, Government aims to do the following: a. Monitoring and controlling all commitments including those of Ministries that had been previously ring-fenced to avoid unnecessary and wasteful expenditure with the aim to prioritise critical expenditure; b. Prioritising payment arrears and aligning them to cash available. c. Continue exploring the possibility for other sources of funding including but not limited to utilising excess balances on Government special accounts.’

The kingdom is in debt. He said, ‘As of December 2017, total debt stock stood at E11.51 billion, which is an equivalent of 19.29 per cent of GDP. Of this stock, external debt is at E4.35 billion, whilst domestic is E7.15 billion.’

Government has taken out loan agreements with among others; EXIM Bank – China, the Kuwait Fund for Development, the Saudi Fund for Development, the Arab Bank for Economic Development (BADEA), the OPEC Fund for International Development (OFID). The loan agreements are for the following approved projects; National Referral Hospital, Five Star Hotel, LUSIP II, Lukhula-Big Bend Road and Lukhula-Siteki Road.

He said, ‘The livelihood of our people continues to be Government’s priority, with the agriculture sector playing such a large role in the economy’. He allocated E1.4 billion to the Department of Agriculture which is less than the E1.5 billion to be spent on a convention centre and hotel at Ezulwini.

He said the total expenditure for financial year 2018/19 was estimated at E21.6 billion, a reduction of 1 percent on the previous year. He added, ‘I am pleased to announce that Government has been able to deliver on His Majesty’s directive from the Throne regarding a realistic budget. Government has conducted a thorough analysis of our expenditure in order to prioritise only the most pressing concerns.’

As is customary, he did not announce how much of the annual budget would go to King Mswati for his upkeep and that of his Royal Family. The King has at least 13 palaces, fleets of top-of-the range BMW and Mercedes cars and at least one Rolls Royce. He has a private jet airplane and is due to take delivery of another during 2018.

The 2017 budget increased spending on the Swaziland Royal Household by E200 million to E1.3 billion.

Monday, 5 March 2018

BUILDING HOTEL A BUDGET PRIORITY

The Swaziland Government is to spend E1.5bn (US$125m) this year building a conference centre and five-star hotel to host the African Union summit in 2020 that will last eight days.

This is more than the sum allocated to the Ministry of Agriculture (E1.4bn) or the Ministry of Defence (E1.15bn). It is the biggest single capital project in Swaziland’s budget this year. Total capital spending is set at E5.6bn.

It comes as the Finance Minister Martin Dlamini announced Value Added Tax (VAT) would be increased by 1 percent to 15 percent and a review would be made of the VAT Act to allow taxation of electricity for the first time. Commentators within Swaziland say this will have a huge effect on the poor. Seven in ten of the estimated 1.1 million population have incomes less than the equivalent of US$2 per day.

The hotel and conference centre is another project supported by King Mswati III, who rules Swaziland as sub-Saharan Africa’s last absolute monarch. He believes such buildings add to the prestige of his kingdom and will make it a First World nation by 2022. He already has an airport named in his honour that cost an estimated E2.5bn to build but only has one airline using it. King Mswati III International Airport has been described as a ‘white elephant’ and a ‘vanity project’ for the King.

Dlamini in his budget speech on Thursday (1 March 2018) said the government would only spend on ‘the most critical expenditure items’ this year. He acknowledged, ‘Government sending continues to outpace its ability to raise enough revenues resulting in cash flow challenges and accumulation of arrears.’

The hotel and convention centre – popularly known as ICCFISH - is under construction at Ezulwini. In 2013 when the plan for the development was announced the cost was estimated at E1bn. Completion of the work was expected by 2016.

In September 2017 it was reported that King Mswati had visited Las Vegas in the United States to try to get the Caesars Palace company (famous for its hotel and casino) to manage the ICCFISH.

‘The King’s Office Correspondent’, writing at the time in the Swazi Observer, a newspaper in effect owned by the King, reported Caesars Palace management had promised to submit a proposal on what it would cost to manage the ICC and hotel.

In 2013, when the plan for building was announced the Swazi Observer reported, ‘The scope of the project include a facility of international standards with a Swazi theme, a facility to handle up to 4,500 delegates at a time, trade centre for high value exhibition, a secure chamber room to take 53 heads of state, 3,500 seat banqueting hall, restaurants, 1,500 seat theatre, and special holding rooms.’

The African Union summit is held twice a year in January and June but by tradition the first meeting is held in Addis Ababa, Ethiopia.

In 2016, King Mswati took about E40m of public funds to host a lavish Southern African Development Community (SADC) Heads of State summit at a time when his government was so poor it could release only E22 million of the E305 million earmarked for drought relief in that year’s national budget.

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