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BEEF EXPORTS BAN LEADS TO EMPLOYMENT RATE DECLINE

20/09/2018 04:10:00 BYPHEPHILE MOTAU

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EZULWINI – A study suggests that the ban of beef exports from the country to the European Union (EU) has had dire effects on employment.

According to the 2018 company survey conducted by the Central bank of Eswatini (CBE) and the Ministry of Economic Planning and Development, employment in the food and beverages sector decreased by 5.8 per cent in 2017 as compared to 2016.

The study was unpacked by Maqhawe Mnisi from the Ministry of Economic Planning and Development during a breakfast meeting at the Happy Valley Hotel yesterday morning. Mavuso said companies that were interviewed attributed the decrease in their employment levels to the beef export ban.
suspended

The EU suspended beef imports from the country last year following a suspected foot and mouth disease after three buffaloes were donated to the country last year. However, the ban was lifted after tests showed that there was no risk of foot and mouth infestation from locally produced beef.
The number of people employed in the sector in 2017 dropped to 10 165 from 10 790 in 2016.
However, the numbers improved by 2.9 per cent in 2018 to 10 460.

Other industries which saw a decline in employment are the mining and quarrying sector where the numbers dropped by 12.4 per cent in 2017 from 2016 and the municipalities where the numbers dropped by 9.1 per cent.

Meanwhile, a positive growth of 10 per cent was shown in the textile sector. The survey also looked at opportunities that companies were planning to explore.
Manufacturing companies were reportedly planning to explore new market opportunities in Africa while insurance and financing organisations identified Small and Medium Enterprises (SMEs) as potential business.

The African Growth Opportunity Act (AGOA) market was predicted to result in additional growth in the manufacturing and transport sectors.
The companies also said an opportunity to locally produce a vast variety of agricultural products that are currently imported and possibly produce them for export.
Further merging of telecommunications technologies and financial services have given an opportunity to allow companies across both sectors to diversify their product offerings.