SD TO LOSE ABOUT E25M IN 3 MONTHS

MBABANE – In the next three months, the country will kiss goodbye hopes of securing not less than E25 million in revenue following the European Union beef ban.

The country in 2015 exported beef to the EU amounting to approximately E83.6 million. However, economists note that following the ban, the country will not supply the EU with beef for the duration of the year.
According to a statement issued last month, following the arrival of three buffaloes from Zambia, which are currently being screened for foot and mouth disease (FMD), Swaziland Meat Industries (SMI) issued a statement notifying cattle farmers of the suspension of beef products to Europe.

An economist with one of the country’s financial institutions, who spoke on condition of anonymity, noted that there will be ripple effects following the ban. He said these effects included the possibility of unemployment to a number of sectors of the economy.
He said one of these sectors that will the pinch immediately is the retail sector. The economist said those who would be rendered unemployed will have limited money to spend consequently minimising revenue towards the services and goods they procured while employed.

“People who are unemployed are unable to earn a regular salary, and are therefore unable to pay their bills. However, unemployment has much further-reaching effects on individuals, families and the economy at large.”
The ripple effects of unemployment, he said, extended beyond the worker and to families as well. The economist said families were not only faced with lost income during the unemployment period, but also experienced long-term decreases in wealth, which forces them to deplete their savings and rely on loans and alternative sources of credit.

These effects, according to the economist, in turn cause a decline in long-term financial security. He said less overall spending and demand for products, which can in turn lead to decreased profits for employers as well as hiring cut down.
The country has beef export markets through SMI which are destined to Europe, Norway, France and Mozambique.

According to the Central Bank of Swaziland Annual Report for 2015/16, boneless beef exports to the EU remained above 500 metric tonnes while volumes to the Mozambican market declined marginally due to a shortage of foreign exchange currency in that country.

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